[Senate Report 106-275]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 520
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-275

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   SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 1999

                                _______
                                

                 April 25, 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. 1608]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1608) to provide annual payments to the 
States and counties from National Forest System lands managed 
by the Forest Service, and the revested Oregon and California 
Railroad and reconveyed Coos Bay Wagon Road grant lands managed 
predominantly by the Bureau of Land Management, for use by the 
counties in which the lands are situated for the benefit of 
public schools, roads, emergency, and other public purposes; to 
encourage and provide new mechanisms for cooperation between 
counties and the Forest Service and the Bureau of Land 
Management to make necessary investments in Federal lands, and 
reaffirm the positive connection between Federal Lands counties 
and Federal Lands; and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Secure Rural 
Schools and Community Self-Determination Act of 2000''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Definitions.

  TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                  LANDS

Sec. 101. Determination of full payment amount for eligible States and 
          counties.
Sec. 102. Payments to States from Forest Service lands for use by 
          counties to benefit public education and transportation.
Sec. 103. Payments to counties from Bureau of Land Management lands for 
          use to benefit public safety, law enforcement, education, and 
          other public purposes.

               TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS

Sec. 201. Definitions.
Sec. 202. General limitation on use of project funds.
Sec. 203. Submission of project proposals.
Sec. 204. Evaluation and approval of projects by Secretary concerned.
Sec. 205. Resource advisory committees.
Sec. 206. Use of project funds.
Sec. 207. Availability of project funds.

                   TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Authorization of appropriations.
Sec. 302. Treatment of funds and revenues.
Sec. 303. Regulations.
Sec. 304. Conforming amendments.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
          (1) The National Forest System, which is managed by the 
        United States Forest Service, was established in 1907 and has 
        grown to include approximately 192,000,000 acres of Federal 
        lands.
          (2) The public domain lands known as revested Oregon and 
        California Railroad grant lands and the reconveyed Coos Bay 
        Wagon Road grant lands, which are managed predominantly by the 
        Bureau of Land Management were returned to Federal ownership in 
        1916 and 1919 and now comprise approximately 2,600,000 acres of 
        Federal lands.
          (3) Congress recognized that, by its decision to secure these 
        lands in Federal ownership, the counties in which these lands 
        are situated would be deprived of revenues they would otherwise 
        receive if the lands were held in private ownership.
          (4) These same counties have expended public funds year after 
        year to provide services, such as education, road construction 
        and maintenance, search and rescue, law enforcement, waste 
        removal, and fire protection, that directly benefit these 
        Federal lands and people who use these lands.
          (5) To accord a measure of compensation to the affected 
        counties for the critical services they provide to both county 
        residents and visitors to these Federal lands, Congress 
        determined that the Federal Government should share with these 
        counties a portion of the revenues the United States receives 
        from these Federal lands.
          (6) Congress enacted in 1908 and subsequently amended a law 
        that requires that 25 percent of the revenues derived from 
        National Forest System lands be paid to States for use by the 
        counties in which the lands are situated for the benefit of 
        public schools and roads.
          (7) Congress enacted in 1937 and subsequently amended a law 
        that requires that 75 percent of the revenues derived from the 
        revested and reconveyed grant lands be paid to the counties in 
        which those lands are situated to be used as are other county 
        funds, of which 50 percent is to be used as other county funds.
          (8) For several decades primarily due to the growth of the 
        federal timber sale program, counties dependent on and 
        supportive of these Federal lands received and relied on 
        increasing shares of these revenues to provide funding for 
        schools and road maintenance.
          (9) In recent years, the principal source of these revenues, 
        Federal timber sales, has been sharply curtailed and, as the 
        volume of timber sold annually from most of the Federal lands 
        has decreased precipitously, so too have the revenues shared 
        with the affected counties.
          (10) This decline in shared revenues has affected educational 
        funding and road maintenance for many counties.
          (11) In the Omnibus Budget Reconciliation Act of 1993, 
        Congress recognized this trend and ameliorated its adverse 
        consequences by providing an alternative annual safety net 
        payment to 72 counties in Oregon, Washington, and northern 
        California in which Federal timber sales had been restricted or 
        prohibited by administrative and judicial decisions to protect 
        the northern spotted owl.
          (12) The authority for these particular safety net payments 
        is expiring and no comparable authority has been granted for 
        alternative payments to counties elsewhere in the United States 
        that have suffered similar losses in shared revenues from the 
        Federal lands and in the funding for schools and roads those 
        revenues provide.
          (13) There is a need to stabilize education and road 
        maintenance funding through predicable payments to the affected 
        counties, job creation in those counties, and other 
        opportunities associated with restoration, maintenance, and 
        stewardship of federal lands.
          (14) Both the Forest Service and the Bureau of Land 
        Management face significant backlogs in infrastructure 
        maintenance and ecosystem restoration that are difficult to 
        address through annual appropriations.
          (15) There is a need to build new, and strengthen existing, 
        relationships and to improve management of public lands and 
        waters.
    (b) Purposes.--The purposes of this Act are--
          (1) to stabilize and make permanent payments to counties to 
        provide funding for schools and roads;
          (2) to make additional investments in, and create additional 
        employment opportunities through, projects that improve the 
        maintenance of existing infrastructure, implement stewardship 
        objectives that enhance forest ecosystems, and restore and 
        improve land health and water quality. Such projects shall 
        enjoy broad-based support with objectives that may include, but 
        are not limited to:
                  (A) Road, trail, and infrastructure maintenance or 
                obliteration;
                  (B) Soil productivity improvement;
                  (C) Improvements in forest ecosystem health;
                  (D) Watershed restoration and maintenance;
                  (E) Restoration, maintenance and improvement of 
                wildlife and fish habitat;
                  (F) Control of noxious and exotic weeds;
                  (G) Reestablishment of native species; and
                  (H) General resource stewardship.
          (3) to improve cooperative relationships among the people 
        that use and care for Federal lands and the agencies that 
        manage these lands.

SEC. 3. DEFINITIONS.

    In this Act:
          (1) Federal lands.--The term ``Federal lands'' means--
                  (A) lands within the National Forest System, as 
                defined in section 11(a) of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609(a)) exclusive of the National Grasslands 
                administered pursuant to the Act of July 22, 1937 (7 
                U.S.C. 1010-10912); and
                  (B) the Oregon and California Railroad grant lands 
                revested in the United States by the Act of June 9, 
                1916 (chapter 137; 39 Stat. 218), Coos Bay Wagon Road 
                grant lands reconveyed to the United States by the Act 
                of February 26, 1919 (chapter 47; 40 Stat. 1179), and 
                subsequent additions to such lands.
          (2) Eligibility period.--The term ``eligibility period'' 
        means fiscal year 1984 through fiscal year 1999.
          (3) Eligible county.--The term ``eligible county'' means a 
        county or borough that received 50-percent payments for one or 
        more fiscal years of the eligibility period or a county or 
        borough that received a portion of an eligible State's 25-
        percent payments for one or more fiscal years of the 
        eligibility period. The term includes a county or borough 
        established after the date of the enactment of this Act so long 
        as the county or borough includes all or a portion of a county 
        or borough described in the preceding sentence.
          (4) Eligible state.--The term ``eligible State'' means a 
        State that received 25-percent payments for one or more fiscal 
        years of the eligibility period.
          (5) Full payment amount.--The term ``full payment amount'' 
        means the amount calculated for each eligible State and 
        eligible county under section 101.
          (6) 25-percent payments.--The term ``25-percent payments'' 
        means the payments to States required by the sixth paragraph 
        under the heading of ``FOREST SERVICE'' in the Act of May 23, 
        1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
        of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
          (7) 50-percent payments.--The term ``50-percent payments'' 
        means the payments that are the sum of the 50-percent share 
        otherwise paid to a county pursuant to title II of the Act of 
        August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
        and the payment made to a county pursuant to the Act of May 24, 
        1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
          (8) Safety net payments.--The term ``safety net payments'' 
        means the payments to States and counties required by section 
        13982 or 13983 of the Omnibus Budget Reconciliation Act of 1993 
        (Public Law 103-66; 16 U.S.C. 500 note; 43 U.S.C. 1181f note).

  TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                 LANDS

SEC. 101. DETERMINATION OF FULL PAYMENT AMOUNT FOR ELIGIBLE STATES AND 
                    COUNTIES.

    (a) Calculation Required.--
          (1) Eligible states.--The Secretary of the Treasury shall 
        calculate for each eligible State an amount equal to the 
        average of the three highest 25-percent payments and safety net 
        payments made to the eligible counties in that State for fiscal 
        years of the eligibility period,
          (2) BLM counties.--The Secretary of the Treasury shall 
        calculate for each eligible county that received a 50-percent 
        payment during the eligibility period an amount equal to the 
        average of the three highest 50-percent payments and safety net 
        payments made to that eligible county for fiscal years of the 
        eligibility period.
    (b) Annual adjustment.--For each fiscal year in which payments are 
required to be made to eligible States and eligible counties under this 
title, the Secretary of the Treasury shall adjust the full payment 
amount for the previous fiscal year for each eligible State and 
eligible county to reflect changes in the consumer price index for 
rural areas (as published in the Bureau of Labor Statistics) that occur 
after publication of that index for fiscal year 2000.

SEC. 102. PAYMENTS TO STATES FROM NATIONAL FOREST SYSTEM LANDS FOR USE 
                    BY COUNTIES TO BENEFIT PUBLIC EDUCATION AND 
                    TRANSPORTATION.

    (a) Requirement for Payments to Eligible States.--The Secretary of 
the Treasury shall make to each eligible State a payment in accordance 
with subsection (b) for each fiscal year beginning in fiscal year 2000. 
The payment for a fiscal year shall be made as soon as practicable 
after the end of that fiscal year.
    (b) Payment Amounts.--Except as provided in subsection (c), the 
payment to an eligible State for a fiscal year shall consist of the 25-
percent payment applicable to that State for that fiscal year as 
described in section 3(6).
    (c) Election to Receive Full Payment Amount.--
          (1) An eligible State may elect to receive the full payment 
        amount as described in sections 101(a)(1) and 101(b), in lieu 
        of the payment described in subsection (b). The election shall 
        be made at the discretion of each affected county and 
        transmitted to the Secretary by the Governor of a State. Each 
        such county election shall be effective for two fiscal years.
          (2) Except that, when a county elects to receive the full 
        payment amount, such election shall be effective for all the 
        subsequent fiscal years.
          (3) The payment to an eligible State under this subsection 
        for a fiscal year shall be derived first from any revenues, 
        fees, penalties, or miscellaneous receipts, exclusive of 
        deposits to any relevant trust fund, or special accounts, 
        received by the Federal Government from activities by the 
        Forest Service on the Federal lands described in subsection 
        3(1)(A) and/or secondly, as determined by the Secretary of the 
        Treasury, from any funds in the Treasury not otherwise 
        appropriated.
    (d) Distribution and Expenditure of Payments.--
          (1) Distribution method.--An eligible State that elects to 
        receive a payment under subsection (c) shall distribute the 
        payment among all eligible counties in the State, with each 
        eligible county receiving the amount calculated for that county 
        in Section 101(a).
          (2) Expenditure purposes.--Subject to subsection (e), 
        payments received by eligible States under subsection (a) and 
        distributed to eligible counties shall be expended in the same 
        manner in which 25-percent payments are required to be 
        expended.
    (e) Expenditure Rules for Eligible Counties.--
          (1) In general.--Of the funds to be distributed to an 
        eligible county pursuant to subsection (d)--
                  (A) not less than 80 percent but not more than 85 
                percent of the funds shall be expended in the same 
                manner in which the 25-percent payments are required to 
                be expended; and
                  (B) at the election of an eligible county, the 
                balance of the funds not expended pursuant to 
                subparagraph (A) shall either be reserved for projects 
                in accordance with title II, or remitted to the fund 
                created by Section 302(b).
          (2) Deposit of funds in special account.--Funds reserved by 
        an eligible county under paragraph (1) shall be deposited in a 
        special account in the Treasury of the United States and shall 
        be available for expenditure by the Secretary of Agriculture, 
        without further appropriation, and shall remain available until 
        expended in accordance with title II.
          (3) Election.--
                  (A) General.--An eligible county shall notify the 
                Secretary of Agriculture of its election under this 
                subsection not later than September 30 of each fiscal 
                year. If the eligible county fails to make an election 
                by that date, the county is deemed to have elected to 
                expend 85 percent of the funds to be received under 
                subsection (c) in the same manner in which the 25-
                percent payments are required to be expended, and 
                remitted the balance to the fund created by Section 
                302(b).
                  (B) Counties with minor distributions.--
                Notwithstanding the expenditure rules in this 
                subsection, in the case of each eligible county to 
                which less than $100,000 is distributed for any fiscal 
                year pursuant to subsection (c), the eligible county 
                may elect to expend all such funds in accordance with 
                subsection (d).

SEC. 103. PAYMENTS TO COUNTIES FROM BUREAU OF LAND MANAGEMENT LANDS FOR 
                    USE TO BENEFIT PUBLIC SAFETY, LAW ENFORCEMENT, 
                    EDUCATION, AND OTHER PUBLIC PURPOSES.

    (a) Requirement for Payments to Eligible Counties.--The Secretary 
of the Treasury shall make to each eligible county that received a 50-
percent payment during the eligibility period a payment in accordance 
with subsection (b) for each of fiscal year in fiscal year 2000. The 
payment for a fiscal year shall be made as soon as practicable after 
the end of that fiscal year.
    (b) Payment Amounts.--Except as provided in subsection (c), the 
payments to an eligible county for a fiscal year shall consist of the 
50-percent payment applicable to that county for that fiscal year as 
described in section 3(7).
    (c) Election To Receive Full Payment Amount.--
          (1) An eligible county may elect to receive the full payment 
        amount, as described in sections 101(a)(2) and 101(b) in lieu 
        of the payment described in subsection (b). The election shall 
        be made at the discretion of the county. Once the election is 
        made, it shall be effective for the fiscal year in which the 
        election is made and all subsequent fiscal years.
          (2) The payment to an eligible county under this subsection 
        for a fiscal year shall be derived first from any revenues, 
        fees, penalties, or miscellaneous receipts, exclusive of 
        deposits to any relevant trust fund, or special accounts, 
        received by the Federal Government from activities by the 
        Bureau of Land Management on the Federal Lands described in 
        subsection 3(1)(B) and/or secondly, as determined by the 
        Secretary of the Treasury, from any funds in the Treasury not 
        otherwise appropriated.
    (d) Expenditure Rules for Eligible Counties.--
          (1) In general.--Of the funds to be distributed to an 
        eligible county pursuant to subsection (d)--
                  (A) Not less than 80 percent but not more than 85 
                percent of the funds distributed to the eligible county 
                shall be expended in the same manner in which the 50-
                percent payments are required to be expended; and
                  (B) At the election of an eligible county, the 
                balance of the funds not expended pursuant to 
                subparagraph (A) shall either be reserved for projects 
                in accordance with Title II, or remitted to the fund 
                created by Section 302(b).
          (2) Deposit of funds in special account.--Funds reserved by 
        an eligible county under paragraph (1) shall be deposited in a 
        special account in the Treasury of the United States and shall 
        be available for expenditure by the Secretary of the Interior, 
        without further appropriation, and shall remain available until 
        expended in accordance with title II.
          (3) Election.--An eligible county shall notify the Secretary 
        of the Interior of its election under this subsection not later 
        than September 30 of each fiscal year under subsection (d). If 
        the eligible county fails to make an election by that date, the 
        county is deemed to have elected to expend 85 percent on the 
        funds received under subsection (c) in the same manner in which 
        the 50-percent payments are required to be expended and 
        remitted the balance to the fund created by Section 302(b).

              TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS

SEC. 201. DEFINITIONS.

    In this title:
          (1) Participating county.--The term `participating county' 
        means an eligible county that--
                  (A) receives Federal funds pursuant to section 102 or 
                103; and
                  (B) elects under sections 102(e)(3) or 103(d)(3) to 
                expend a portion of those funds in accordance with 
                sections 102(e)(1)(B) or 103(d)(3).
          (2) Project funds.--The term ``project funds'' means all 
        funds an eligible county elects under sections 102(e)(3) and 
        103(d)(3) to reserve for expenditure under sections 
        102(e)(1)(B) or 103(d)(2) for expenditure in accordance with 
        this title.
          (3) Resource advisory committee.--The term ``resource 
        advisory committee'' means an advisory committee established by 
        the Secretary concerned under section 205, or determined by the 
        Secretary concerned to meet the requirements of section 205.
          (4) Resource management plan.--The term ``resource management 
        plan'' means a land use plan prepared by the Bureau of Land 
        Management for units of the Federal lands described in section 
        3(1)(B) pursuant to section 202 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1712) and a land and resource 
        management plan prepared by the Forest Service for units of the 
        National Forest System pursuant to section 6 of the Forest and 
        Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
        1604).
          (5) Secretary concerned.--The term ``Secretary concerned'' 
        means the Secretary of the Interior or his designee with 
        respect to the Federal lands described in section 3(1)(B) and 
        the Secretary of Agriculture or his designee with respect to 
        the Federal lands described in section 3(1)(A).

SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

    Project funds shall be expended solely on projects that meet the 
requirements of this title. Project funds may be used by the Secretary 
concerned for the purpose of entering into and implementing cooperative 
agreements with willing federal agencies, state and local governments, 
private and nonprofit entities, and landowners for protection, 
restoration and enhancement of fish and wildlife habitat, and other 
resource objectives consistent with the purposes of this title on 
public or private land or both that benefit these resources within the 
watershed.

SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

    (a) Submission of Project Proposals to Secretary Concerned.--
          (1) Projects funded using project funds.--Not later than 
        September 30 for fiscal year 2001, and each September 30 
        thereafter for each succeeding fiscal year, each resource 
        advisory committee established under section 205 shall submit 
        to the Secretary concerned a description of any projects that 
        the resource advisory committee proposes the Secretary 
        undertake using any project funds reserved.
          (2) Projects funded using other funds.--A resource advisory 
        committee may submit to the Secretary concerned a description 
        of any projects that the committee proposes the Secretary 
        undertake using funds from state or local governments, from the 
        private sector, or funds held by the Secretary concerned 
        pursuant to Section 302(b), other than project funds and funds 
        appropriated and otherwise available to do similar work.
          (3) Joint projects.--Participating counties or other persons 
        may propose to pool project funds or other funds, described in 
        paragraph (2), and jointly propose a project or group of 
        projects to a resource advisory committee established under 
        section 205.
    (b) Required Description of Projects.--In submitting proposed 
projects to the Secretary concerned under subsection (a), a resource 
advisory committee shall include in the description of each proposed 
project the following information:
          (1) The purpose of the project and a description of how the 
        project will meet the purposes of this Act.
          (2) The anticipated duration of the project.
          (3) The anticipated cost of the project.
          (4) The proposed source of funding for the project, whether 
        project funds or other funds.
          (5) Expected outcomes, including how the project will meet or 
        exceed desired ecological conditions, maintenance objectives, 
        or stewardship objectives, as well as an estimation of the 
        amount of any timber, forage, and other commodities and other 
        economic activity, including jobs generated, if any, 
        anticipated as part of the project.
          (6) A detailed monitoring plan, including funding needs and 
        sources, that tracks project effectiveness, implementation, and 
        provides for validation monitoring, The monitoring plan shall 
        include an assessment of the following: whether or not the 
        project created local employment or training opportunities, 
        including summer youth jobs programs such as the Youth 
        Conservation Corps where appropriate; and whether the project 
        improved the use of, or added value to, any products removed 
        from lands consistent with the purposes of this Act.
          (7) An assessment that the project is to be in the public 
        interest.
    (c) Authorized Projects.--
          (1) In general.--Projects proposed under subsection (a) shall 
        be consistent with section 2(b).
          (2) Search, rescue, and emergency services.--Notwithstanding 
        paragraph (1), a resource advisory committee may submit as a 
        proposed projectunder subsection (a) a proposal that the 
        participating county or sheriff's department receive 
        reimbursement for search and rescue and other emergency 
        services performed on Federal lands and paid for by the 
        county. The source of funding for an approved project of this 
        type must be the fund created by Section 302(b).
          (3) Community service work camps.--Notwithstanding paragraph 
        (1), a resource advisory committee may submit as a proposed 
        project under subsection (a) a proposal that the participating 
        county receive reimbursement for all or part of the costs 
        incurred by the county to pay the salaries and benefits of 
        county employees who supervise adults or juveniles performing 
        mandatory community service on Federal lands.

SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.

    (a) Conditions for Approval of Proposed Project.--The Secretary 
concerned may make a decision to approve a project submitted by a 
resource advisory committee under section 203 only if the proposed 
project satisfies each of the following conditions:
          (1) The project complies with all applicable Federal laws and 
        regulations.
          (2) The project is consistent with the applicable resource 
        management plan and with any watershed or subsequent plan 
        developed pursuant to the resource management plan and approved 
        by the Secretary concerned.
          (3) The project has been approved by the resource advisory 
        committee in accordance with section 205, including the 
        procedures issued under subsection (e) of such section.
          (4) A project description has been submitted by the resource 
        advisory committee to the Secretary concerned in accordance 
        with section 203.
    (b) Environmental Reviews.--
          (1) Payment of review costs.--
                  (A) Request for payment by county.--The Secretary 
                concerned may request the resource advisory committee 
                submitting a proposed project to agree to the use of 
                project funds to pay for any environmental review, 
                consultation, or compliance with applicable 
                environmental laws required in connection with the 
                project. When such a payment is requested and the 
                resource advisory committee agrees to the expenditure 
                of funds for this purpose, the Secretary concerned 
                shall conduct environmental review, consultation, or 
                other compliance responsibilities in accordance with 
                federal law and regulations.
                  (B) Effect of refusal to pay.--If a resource advisory 
                committee does not agree to the expenditure of funds 
                under subparagraph (A), the project shall be deemed 
                withdrawn from further consideration by the Secretary 
                concerned pursuant to this title. Such a withdrawal 
                shall be deemed to be a rejection of the project for 
                purposes of section 207(c).
    (c) Decisions of Secretary Concerned.--
          (1) Rejection of projects.--A decision by the Secretary 
        concerned to reject a proposed project shall be at the 
        Secretary's sole discretion. Notwithstanding any other 
        provision of law, a decision by the Secretary concerned to 
        reject a proposed project shall not be subject to 
        administrative appeal or judicial review. Within 30 days after 
        making the rejection decision, the Secretary concerned shall 
        notify in writing the resource advisory committee that 
        submitted the proposed project of the rejection and the reasons 
        for rejection.
          (2) Notice of project approval.--The Secretary concerned 
        shall publish in the Federal Register notice of each project 
        approved under subsection (a) if such notice would be required 
        had the project originated with the Secretary.
    (d) Source and Conduct of Project.--Once the Secretary concerned 
accepts a project for review under section 204, it shall be deemed a 
federal action for all purposes.
    (e) Implementation of Approved Projects.--
          (1) Cooperation.--Notwithstanding chapter 63 of title 31, 
        United States Code, the Secretary concerned may enter into 
        contracts, grants, and cooperative agreements with States and 
        local governments, private and nonprofit entities, and 
        landowners and other persons to assist the Secretary in 
        carrying out an approved project.
          (2) Best value contracting.--For any project involving a 
        contract authorized by paragraph (1) the Secretary concerned 
        may elect a source for performance of the contract on a best 
        value basis. The Secretary concerned shall determine best value 
        based on such factors as:
                  (A) The technical demands and complexity of the work 
                to be done.
                  (B) The ecological objectives of the project and the 
                sensitivity of the resources being treated.
                  (C) The past experience by the contractor with the 
                type of work being done, using the type of equipment 
                proposed for the project, and meeting or exceeding 
                desired ecological conditions.
                  (D) The commitment of the contractor to hiring highly 
                qualified workers and local residents.
          (3) Merchantable materials sales contracting pilot 
        projects.--Until September 30, 2004, for a portion of the 
        contracts issued under this paragraph, the Secretary concerned 
        shall provide for the disposal of the forest products under a 
        separate contract. Within one year of the completion of the 
        contracts authorized under this paragraph, the Secretary shall 
        report to the Committee on Energy and Natural Resources of the 
        United States Senate and the Committee of Resources of the 
        United States House of Representatives on the environmental and 
        fiscal results of these projects.

SEC. 205. RESOURCE ADVISORY COMMITTEES.

    (a) Establishment and Purpose of Resource Advisory Committees.--
          (1) Establishment.--The Secretary concerned shall establish 
        and maintain a resource advisory committee to perform the 
        duties in subsection (b), except as provided in paragraphs (3) 
        and (4).
          (2) Purpose.--The purpose of a resource advisory committee 
        shall be to improve collaborative relationships and to provide 
        advice and recommendations to the land management agencies 
        consistent with the purposes of this Act.
          (3) Access to resource advisory committees.--To ensure that 
        each unit of Federal land has access to a resource advisory 
        committee, and that there is sufficient interest in 
        participation on a committee to ensure that membership can be 
        balanced in terms of the points of view represented and the 
        functions to be performed, the Secretary concerned may, 
        establish resource advisory committees for part of, or one or 
        more, units of Federal lands.
          (4) Existing advisory committees.--Existing advisory 
        committees meeting the requirements of this section may be 
        deemed by the Secretary concerned, as a resource advisory 
        committee for the purposes of the title. The Secretary of the 
        Interior may deem a resource advisory committee meeting the 
        requirements of part 1780, subpart 1784 of title 43, Code of 
        Federal Regulations, as a resource advisory committee for the 
        purposes of this title.
    (b) Duties.--A resource advisory committee shall--
          (1) review projects proposed by participating counties and 
        other persons;
          (2) propose projects and funding to the Secretary concerned 
        under section 203;
          (3) provide early and continuous coordination with 
        appropriate land management agency officials in recommending 
        projects consistent with purposes of this Act; and
          (4) provide frequent opportunities for citizens, 
        organizations, Tribes, land management agencies, and other 
        interested parties to participate openly and meaningfully, 
        beginning at the early stages of the project development 
        process.
    (c) Appointment by the Secretary.--
          (1) Appointment and term.--The Secretary concerned, shall 
        appoint the members of resource advisory committees for a term 
        of 3 years beginning on the date of appointment. The Secretary 
        concerned may reappoint members to subsequent 3-year terms.
          (2) Basic requirements.--The Secretary concerned shall ensure 
        that each resource advisory committee established meets the 
        requirements of subsection (d).
          (3) Initial appointment.--The Secretary concerned shall make 
        initial appointments to the resource advisory committees not 
        later than 180 days after the date of the enactment of this 
        Act.
          (4) Vacancies.--The Secretary concerned shall make 
        appointments to fill vacancies on any resource advisory 
        committee as soon as practicable after the vacancy has 
        occurred.
          (5) Compensation.--Members of the resource advisory 
        committees shall not receive any compensation.
      (d) Composition of Advisory Committee.--
          (1) Number.--Each resource advisory committee shall be 
        comprised of 15 members.
          (2) Community interests represented.--Committee members shall 
        be representative of the interests of the following three 
        categories:
                  (A) 5 persons who--
                          (i) represent organized labor;
                          (ii) represent developed outdoor recreation, 
                        off highway vehicle users, or commercial 
                        recreation activities;
                          (iii) represent energy and mineral 
                        development interests;
                          (iv) represent the commercial timber 
                        industry; or
                          (v) hold Federal grazing permits, or other 
                        land use permits within the area for which the 
                        committee is organized.
                  (B) 5 persons representing--
                          (i) nationally recognized environmental 
                        organizations;
                          (ii) regionally or locally recognized 
                        environmental organizations;
                          (iii) dispersed recreational activities;
                          (iv) archeological and historical interests; 
                        or
                          (v) nationally or regionally recognized wild 
                        horse and burro interest groups.
                  (C) 5 persons who--
                          (i) hold state elected office or their 
                        designee,
                          (ii) hold county or local elected office;
                          (iii) represent American Indian tribes within 
                        or adjacent to the area for which the committee 
                        is organized;
                          (iv) are school officials or teachers; or
                          (v) represent the affected public at large.
          (3) Balanced representation.--In appointing committee members 
        from the three categories in paragraph (2), the Secretary 
        concerned shall provide for balanced and broad representation 
        from within each category.
          (4) Geographic distribution.--The members of a resource 
        advisory committee shall reside within the state in which the 
        committee has geographic jurisdiction.
          (5) Chairperson.--A majority on each resource advisory 
        committee shall select the chairperson of the committee.
    (e) Approval Procedures.--
          (1) Subject to paragraph (2), each resource advisory 
        committee shall establish procedures for defining a quorum and 
        proposing projects to the Secretary concerned. A quorum must be 
        present to constitute an official meeting of the committee.
          (2) A project may be proposed by a resource advisory 
        committee to the Secretary concerned under section 203(a) if it 
        has been approved by a majority of members of the committee 
        from each of the three categories in subsection (c)(2).
    (f) Other Committee Authorities and Requirements.--
          (1) Staff assistance.--A resource advisory committee may 
        submit to the Secretary concerned a request for periodic staff 
        assistance from Federal employees under the jurisdiction of the 
        Secretary.
          (2) Meetings--All meetings of a resource advisory committee 
        shall be announced at least one week in advance in a local 
        newspaper of record and shall be open to the public.
          (3) Records.--A resource advisory committee shall maintain 
        records of the meetings of the committee and make the records 
        available for public inspection.

SEC. 206. USE OF PROJECT FUNDS.

    (a) Agreement Regarding Schedule and Cost of Project.--
          (1) Agreement between parties.--The Secretary concerned may 
        carry out a project submitted by a resource advisory committee 
        under section 203(a) using project funds or other funds 
        described in section 203(a)(2), if, as soon as practicable 
        after the issuance of a decision document for the project and 
        the exhaustion of all administrative appeals and judicial 
        review of the project decision, the Secretary concerned and the 
        resource advisory committee enter into an agreement addressing, 
        at a minimum, the following:
                  (A) The schedule for completing the project.
                  (B) The total cost of the project, including the 
                level of agency overhead to be assessed against the 
                project.
                  (C) For a multi-year project, the estimated cost of 
                the project for each of the fiscal years in which it 
                will be carried out.
                  (D) The remedies for failure of the Secretary 
                concerned to comply with the terms of the agreement 
                consistent with current Federal law.
          (2) Limited use of federal funds.--The Secretary concerned 
        may decide, at the Secretary's sole discretion, to cover the 
        costs of a portion of an approved project using Federal funds 
        appropriated or otherwise available to the Secretary for the 
        same purposes as the project.
    (b) Transfer of Project Funds.--
          (1) Initial transfer required.--As soon as practicable after 
        the agreement is reached under subsection (a) with regard to a 
        project to be funded in whole or in part using project funds, 
        or other funds described in section 203(a)(2), the Secretary 
        concerned shall transfer to the applicable unit of National 
        Forest System lands or BLM District an amount of project funds 
        equal to--
                  (A) in the case of a project to be completed in a 
                single fiscal year, the total amount specified in the 
                agreement to be paid using project funds, or other 
                funds described in section 203(a)(2); or
                  (B) in the case of a multi-year project, the amount 
                specified in the agreement to be paid using project 
                funds, or other funds described in section 203(a)(2) 
                for the first fiscal year.
          (2) Condition on project commencement.--The unit of National 
        Forest System lands or BLM District concerned, shall not 
        commence a project until the project funds, or other funds 
        described in section 203(a)(2) required to be transferred under 
        paragraph (1) for the project, have been made available by the 
        Secretary concerned.
          (3) Subsequent transfers for multi-year projects.--For the 
        second and subsequent fiscal years of a multi-year project to 
        be funded in whole or in part using project funds, the unit of 
        National Forest System lands or BLM District concerned shall 
        use the amount of project funds required to continue the 
        project in that fiscal year according to the agreement entered 
        into under subsection (a). The Secretary concerned shall 
        suspend work on the project if the project funds required by 
        the agreement in the second and subsequent years fiscal years 
        are not available.

SEC. 207. AVAILABILITY OF PROJECT FUNDS.

    (a) Submission of Proposed Projects To Obligate Funds.--By the end 
of each fiscal year, a resource advisory committee shall submit to the 
Secretary concerned pursuant to section 203(a)(1) a sufficient number 
of project proposals that, if approved, would result in the obligation 
of at least the full amount of the project funds reserved by the 
participating county in the preceding fiscal year.
    (b) Use or Transfer of Unobligated Funds.--
          (1) If a resource advisory committee fails to comply with 
        subsection (a) for a fiscal year, any project funds reserved by 
        the participating county in the preceding fiscal year and 
        remaining unobligated shall be available for use as part of the 
        project submissions in the next fiscal year.
          (2) Any funds not used because a county fails to elect under 
        Section 102(e)(3) or Section 103(d)(3) to expend monies for 
        local projects shall be remitted to the fund created by Section 
        302(b).
    (c) Effect of Rejection of Projects.--Any project funds reserved by 
a participating county in the preceding fiscal year that are 
unobligated at the end of a fiscal year because the Secretary concerned 
has rejected one or more proposed projects shall be available for use 
as part of the project submissions in the next fiscal year.
    (d) Effect of Court Orders.--If an approved project is enjoined or 
prohibited by a Federal court under this Act, the Secretary concerned 
shall use unobligated project funds related to that project in the 
participating county or counties that reserved the funds. The returned 
funds shall be available for the county to expend in the same manner as 
the funds reserved by the county under section 102(e)(1)(B) or 
103(d)(1)(B), whichever applies to the funds involved.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    There are hereby authorized to be appropriated such sums as are 
necessary to carry out this Act for fiscal years 2001 through 2007.

SEC. 302. TREATMENT OF FUNDS AND REVENUES.

    (a) Funds appropriated pursuant to the authorization of 
appropriations in section 301 and funds made available to a Secretary 
concerned under section 206 shall be in addition to any other annual 
appropriations for the Forest Service and the Bureau of Land 
Management.
    (b) Any and all revenues generated from projects pursuant to title 
II, any funds remitted by counties pursuant to Section 102(e)(1)(B) or 
Section 103(d)(1)(B), and any interest accrued from any such funds 
shall be deposited and retained without further appropriation in a 
national fund and available to the Secretary concerned to fund projects 
authorized pursuant to Section 203. The Secretary concerned shall 
prioritize expenditures from this fund and shall identify, in an annual 
report to the Committee on Energy and Natural Resources of the United 
States Senate and the Committee on Resources of the United States House 
of Representatives, all projects receiving funds pursuant to this 
subsection.

SEC. 303. REGULATIONS.

    The Secretaries concerned may jointly issue regulations to carry 
out the purposes of this Act.

SEC. 304. CONFORMING AMENDMENTS.

    Section 13982 of the Omnibus Budget Reconciliation Act of 1993 (116 
U.S.C. 500 note) is repealed. Sections 13982 and 13983 of the Omnibus 
Budget Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
note; 43 U.S.C. 1181fnote) is repealed.

                         Purpose of the Measure

    The purpose of S. 1608 is to provide annual payments for 
the benefit of public schools and roads to counties that 
contain National Forest System lands managed by the Forest 
Service, and for schools, roads and other public purposes for 
revested Oregon and California Railroad and reconveyed Coos Bay 
Wagon Road grant lands (O&C lands), managed predominantly by 
the Bureau of Land Management (BLM). S. 1608 also has as its 
purpose to improve cooperative relationships among the people 
that use and care for Federal lands and the agencies that 
manage these lands.

                          Background and Need

    S. 1608 provides stable payments to states and counties 
that currently receive revenue-sharing payments from the Forest 
Service and BLM.
    In 1908, 1911, and 1937 Congress enacted laws to share with 
rural counties a portion of the revenues derived from 
activities on the national forests and O&C lands situated in 
those counties. Since passage of those laws, counties dependent 
on, and supportive of these Federal lands, received increasing 
levels of these revenues, consisting primarily of timber 
revenues, to provide funding for schools and road maintenance.
    In recent years, however, Federal timber sales have been 
sharply curtailed and, as the volume of timber sold annually 
from most of the Federal lands has decreased precipitously, so 
too have the revenues shared with the affected counties. 
Consequently, the decline in shared revenues has seriously 
impacted educational programs, road maintenance for counties 
containing national forests, and general county services for 
counties containing O&C lands. Over 700 counties in 41 states 
and Puerto Rico receive these payments. However, the amount of 
these revenues have also been affected by national and 
international market factors, domestic interest rates, housing 
starts, and economic recessions in Europe and Japan.
    Today, both the Forest Service and the BLM face significant 
backlogs in infrastructure maintenance and ecosystem 
restoration that are difficult to address through the current 
levels of annual appropriations. At the same time, there is a 
pressing need to build new, and strengthen existing, 
relationships among the various interests active in federal 
land management programs. The need for stable funding for the 
counties, and the interest that some counties' expressed in 
being ``connected'' to the Federal land, logically led to the 
need for this bill.

                          Legislative History

    S. 1608 was introduced on September 21, 1999. The 
Subcommittee on Forests and Public Land Management held 
hearings on S. 1608 on October 5 and October 19, 1999. At the 
business meeting on April 5, 2000, the Committee on Energy and 
Natural Resources ordered S. 1608 reported favorably with an 
amendment in the nature of a substitute.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on April 5, 2000, by a voice vote of a 
quorum present recommends that the Senate pass S. 1608 if 
amended as described herein.

                          Committee Amendment

    The amendment in the nature of a substitute addresses 
several concerns raised about S. 1608. The substitute: (1) 
provides counties the opportunity to remain under the receipts 
formula in current law; (2) reduces the amount of funding 
allocated to resource stewardship investments on Federal lands 
from 25% of the total payment to counties to at least fifteen 
percent but not more than twenty percent; (3) modifies the 
structure of local advisory committees so that they more 
closely resemble the structure of BLM Resource Advisory 
Committees; (4) requires that special projects on Federal lands 
improve the maintenance of existing infrastructure, achieve 
stewardship objectives that enhance forest ecosystems, and 
restore and improve land health and water quality; (5) directs 
any revenues generated from these projects and any unused 
project funds to a national account administered by the 
Secretaries to fund additional projects recommended by local 
advisory committees and approved by the Secretaries of 
Agriculture and the Interior; and (6) directs the land 
management agencies to conduct pilot projects to sell 
merchantable material, from special projects, under a separate 
contract.

                      Section-by-Section Analysis

    Section 1(a) designates the short title of the Act as the 
``Secure Rural Schools and Community Self-Determination Act of 
2000.''
    Subsection (b) provides the table of contents.
    Section 2(a) describes the findings of Congress.
    Subsection (b) provides the purposes of the Act.
    Section 3 provides the definitions used in the Act.

  TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL 
                                 LANDS

    Section 101 (a) directs the Secretary of the Treasury to 
calculate the full payment amount for eligible States and 
eligible counties by averaging the three highest annual 25-
percent payments or 50-percent payments respectively during a 
period from fiscal year 1984 through fiscal year 1999.
    Subsection 101 (b) directs the Secretary of the Treasury to 
make annual inflation adjustments for each fiscal year in which 
payments are required.
    Section 102(a) requires the Secretary of the Treasury to 
make payments to eligible states for each fiscal year beginning 
in fiscal year 2000 as soon as practicable after the end of the 
fiscal year.
    Subsection 102(b) directs that the payment to an eligible 
state for a fiscal year shall consist of the 25-percent payment 
applicable to that state unless the State elects to receive the 
full payment amount.
    Subsection 102(c) provides direction on the election for 
the full payment amount.
    Paragraph (c)(1) allows a State to elect the full payment 
amount at the discretion of each affected county, with each 
county's decision transmitted to the Secretary by the Governor 
of the state. A county's decision shall be effective for two 
fiscal years.
    Paragraph (c)(2) requires that, when a county elects to 
receive the full payment amount, this election shall be 
effective for all subsequent fiscal years.
    Paragraph (c)(3) directs that the payment to an eligible 
State under this subsection for a fiscal year shall be derived 
first from any revenues, fees, penalties, or miscellaneous 
receipts, exclusive of trust fund deposits or special accounts, 
received from activities by the Forest Service on National 
Forest System lands, and second, from any funds in the Treasury 
not otherwise appropriated.
    Subsection 102(d) describes the distribution and 
expenditure of payments.
    Paragraph (d)(1) provides that an eligible state that 
elects to receive the full payment amount shall distribute the 
payment among eligible counties with each eligible county 
receiving the amount calculated based upon the average of the 
three highest 25-percent payments and safety net payments made 
to the eligible counties during the eligibility period.
    Paragraph (d)(2) requires that payments received by 
eligible States be expended in the same manner as 25-percent 
payments, except as provided in subsection (e).
    Subsection (e) sets out the expenditure rules for eligible 
counties to mimic the status quo.
    Subparagraph (e)(1)(A) requires that eligible counties 
spend not less than 80 percent, but not more than 85 percent of 
the funds in the same manner as 25-percent payments were spent 
historically.
    Subparagraph (e)(1)(B) provides that, upon election of an 
eligible county, the balance of the funds not expended in the 
same manner as the 25-percent payments shall be reserved for 
expenditure on projects in accordance with title II, or 
remitted to the fund created by section 302(b).
    Paragraph (e)(2) provides that funds reserved by an 
eligible county under paragraph (e)(1) shall be deposited in a 
special account to be expended in accordance with title II by 
the Secretary of Agriculture without further appropriation.
    Paragraph (e)(3)(A) requires an eligible county to notify 
the Secretary of Agriculture of its election not later than 
September 30 of each fiscal year. If the election is not made, 
85 percent of the funds shall be expended in the same manner as 
the 25-percent payments. The balance will be remitted to the 
fund created by section 302(b).
    Subparagraph (e)(3)(B) provides that, notwithstanding the 
expenditure rules in this section, eligible counties that 
receive payments of less than $100,000 may elect to expend the 
entire amount in the same fashion as 25-percent payments.
    Section 103(a) requires the Secretary of the Treasury to 
make payments to eligible counties that received 50-percent 
payments for each fiscal year beginning in fiscal year 2000 as 
soon as practicable after the end of that fiscal year.
    Subsection 103(b) directs that the payment to an eligible 
county for a fiscal year shall consist of the 50-percent 
payment applicable to that county unless there is an election 
to receive the full payment amount.
    Subsection 103(c) provides direction on the election of the 
full payment amount.
    Paragraph (c)(1) allows a county to elect the full payment 
amount in lieu of a 50-percent payment. This paragraph also 
states that each election to receive the full payment amount 
shall be effective for all subsequent fiscal years.
    Subparagraph (c)(2) directs that payments to an eligible 
county under this subsection shall be derived first from any 
revenues, fees, penalties, or miscellaneous receipts, exclusive 
of trust fund deposits or special accounts, received from 
activities by the BLM on O&C lands, and second from any funds 
in the Treasury not otherwise appropriated.
    Subsection 103(d) describes the expenditure rules for 
eligible counties to mimic the status quo.
    Subparagraph (d)(1)(A) requires that eligible counties 
spend not less than 80 percent, but not more than 85 percent, 
of the funds in the same manner as 50-percent payments.
    Subparagraph (d)(1)(B) provides that, upon election of an 
eligible county, the balance of the funds not expended in the 
same manner as the 50-percent payments shall be reserved for 
expenditure on projects in accordance with title II, or 
remitted to the fund created by section 302(b).
    Paragraph (d)(2) provides that funds reserved by an 
eligible county under paragraph (d)(1) shall be deposited in a 
special account to be expended in accordance with title II by 
the Secretary of the Interior, without further appropriation.
    Paragraph (d)(3) requires an eligible county to notify the 
Secretary of the Interior of its election not later than 
September 30 of each fiscal year. If the election is not made, 
85 percent of the funds shall be expended in the same manner as 
the 50-percent payments. The balance will be remitted to the 
fund created by Section 302(b).

              TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS

    Section 201 provides the definitions used in this title.
    Section 202 provides a general limitation on the use of 
project funds. Project funds shall be expended solely for 
projects that meet the requirements of this title. Project 
funds may be used to enter into cooperative agreements with 
willing federal agencies, state and local government agencies, 
and private landowners for projects consistent with the 
purposes of this title on publicor private land that benefit 
fish and wildlife habitat and other resources.
    Section 203 governs the submission of project proposals to 
the Secretary concerned.
    Paragraph 203(a)(1) provides the deadlines for the 
submission of project proposals by resource advisory 
committees.
    Paragraph (a)(2) allows resource advisory committees to 
submit project proposals involving both project and other 
funds.
    Paragraph (a)(3) allows the pooling of project funds by 
committees to jointly propose projects.
    Subsection 203(b) identifies the necessary information that 
must accompany a proposed project, including: (1) a project 
description; (2) the project purpose and how it will meet the 
purposes of the Act; (3) the anticipated duration of the 
project; (4) the proposed source of funding and the anticipated 
cost; (5) expected outcomes; (6) a detailed monitoring plan; 
and (7) a public interest assessment.
    Subsection 203(c)(1) requires that authorized projects 
should be consistent with the purposes of the Act.
    Paragraph (c)(2) allows a resource advisory committee to 
propose reimbursement for local search and rescue as an 
authorized project, provided that the source of funding is the 
fund created by section 302(b).
    Paragraph (c)(3) allows a resource advisory committee to 
propose reimbursement for local costs associated the salaries 
and benefits of county employees who supervise individuals 
performing mandatory community service on Federal lands.
    Section 204 governs the evaluation and approval of projects 
by the Secretary concerned.
    Subsection 204(a) describes the conditions for approval of 
proposed projects, including that: (1) the project complies 
with all applicable Federal laws and regulations; (2) the 
project is consistent with the applicable resource management 
plan or watershed plans; (3) the project has been approved by 
the appropriate resource advisory committee; and (4) the 
project description has been submitted to the Secretary 
concerned in accordance with section 203.
    Subsection 204(b)(1) provides procedures for the payment of 
environmental reviews associated with projects.
    Subparagraph (b)(1)(A) allows the Secretary concerned to 
request the resource advisory committee submitting a proposed 
project to agree to the use of project funds to pay for any 
environmental review, consultation, or compliance associated 
with the project.
    Paragraph (b)(1)(B) provides that, if the resource advisory 
committee declines to pay for the environmental review, the 
project shall be deemed rejected by the Secretary concerned.
    Subsection 204(c) describes the decisions the Secretary 
concerned may make on proposed projects.
    Paragraph (c)(1) provides that the decision to reject a 
proposed project is made at the sole discretion of the 
Secretary concerned, and shall not be subject to administrative 
appeal or judicial review. The Secretary concerned shall notify 
the resource advisory committee in writing within 30 days after 
reaching the decision to reject a project.
    Paragraph (c)(2) requires the Secretary concerned to 
publish in the Federal Register notice of approval of a project 
that would otherwise require such notice.
    Subsection 204(d) provides that, once the Secretary 
concerned accepts a project for review under this section, it 
shall be deemed a federal action for all purposes.
    Subsection 204(e) provides direction on carrying out 
approved projects.
    Paragraph (e)(1) provides that the Secretary concerned may 
enter into contracts, grants, and cooperative agreements with 
public and private entities to carry out an approved project, 
notwithstanding the limitations imposed by chapter 63 of title 
31 of the United States Code.
    Paragraph (e)(2) allows the Secretary concerned to use best 
value contracting to implement approved projects.
    Paragraph (e)(3) directs the Secretary concerned to develop 
a pilot project for the disposal of forest products under a 
separate contract.
    Section 205 governs the creation and operation of the 
resource advisory committees.
    Subsection 205(a) provides direction on the establishment, 
purpose, and access to resource advisory committees. Existing 
advisory committees meeting the requirements of this section 
may be deemed by the Secretary concerned as a resource advisory 
committee for the purpose of title II.
    Subsection 205(b) describes the duties of the resource 
advisory committees including: (1) reviewing projects proposed 
by counties and others; (2) proposing projects and funding to 
the Secretary concerned; (3) providing coordination with the 
land managing agencies; and (4) providing opportunities for 
interested parties to participate in project development.
    Subsection 205(c) provides the procedures for the 
appointment, term, and compensation of resource advisory 
committee members.
    Subsection 205(d) provides direction on the composition of 
the resource advisory committees including the number of 
members (15), the interests that must be represented, the 
balance andgeographic distribution of interests that must be 
achieved, and the selection of a chairperson.
    Subsection 205(e) provides direction for the approval of 
projects by resource advisory committees.
    Paragraph 205(f)(1) authorizes the Secretary concerned to 
make staff assistance available to the resource advisory 
committees.
    Paragraph (f)(2) requires resource advisory committee 
meetings to be announced one week in advance in a local 
newspaper, and be open to the public.
    Paragraph (f)(3) requires resource advisory committees to 
keep, and make available for public inspection, meeting 
records.
    Subsection 206 governs the use of project funds.
    Subsection 206(a) directs the Secretary to enter into 
agreements with resource advisory committees to implement 
approved projects.
    Paragraph (a)(1) requires the agreement to include: (1) a 
schedule for project completion; (2) the total project cost, 
including agency overhead; (3) the annual cost for multi-year 
projects; and (4) the remedies for failure by the Secretary 
concerned to implement the agreement.
    Paragraph (a)(2) provides the Secretary concerned the 
discretion to cover the cost of a portion of an approved 
project using funds appropriated or otherwise available for the 
same purposes as the project.
    Subsection 206(b) governs the transfer of project funds.
    Paragraph (b)(1) requires that, as soon as practicable 
after an agreement is reached under subsection (a), the 
Secretary concerned shall transfer to the applicable national 
forest unit or BLM district the amount specified in the 
agreement to be paid or, in the case of multi-year projects, 
the amount specified for the first fiscal year.
    Paragraph (b)(2) specifies that a project should not 
commence until the Secretary concerned has transferred the 
necessary project funds.
    Paragraph (b)(3) specifies that the Secretary concerned 
shall suspend work on a multi-year project if the project funds 
required by the agreement for the second or any subsequent 
fiscal year are not available.
    Section 207 governs the availability of project funds.
    Subsection 207(a) requires a resource advisory committee to 
submit to the Secretary concerned a sufficient number of 
projects which, if approved, would result in the obligation of 
the full amount reserved by participating counties for the 
projects by the end of each fiscal year.
    Subsection 207(b) provides that, if a resource advisory 
committee fails to comply with subsection (a) for a fiscal 
year, the remaining funds unobligated shall remain available 
for projects in the following fiscal years. However, any funds 
remaining if a county elects to suspend funding for projects 
shall be remitted to the fund created by section 302(b).
    Subsection 207(c) provides that any funds remaining at the 
end of a fiscal year due to a rejection by the Secretary 
concerned shall remain available to be expended in the 
following fiscal years.
    Subsection 207(d) provides that, if an approved project is 
enjoined or prohibited by court order, the funds for that 
project shall be available to expend on projects in the 
following fiscal years.

                  TITLE III--MISCELLANEOUS PROVISIONS

    Section 301 authorizes appropriations to carry out the Act 
for fiscal years 2001 through 2007.
    Subsection 302(a) provides that funds appropriated pursuant 
to the authorization in section 301 and funds made available to 
the Secretary concerned for projects under section 206 shall be 
in addition to any other annual appropriations.
    Subsection 302(b) provides that any revenues generated from 
projects, any funds remitted by counties who elect not to fund 
projects, and any interest accrued from such funds shall be 
deposited and retained without further appropriations in a 
national fund to be available to the Secretary concerned to 
fund projects authorized under section 203. The Secretary 
concerned shall report annually on the use of this fund to 
Congress.
    Section 303 provides that the Secretaries concerned may 
jointly issue regulations to carry out the purposes of the Act.
    Section 304 repeals sections 13982 and 13983 of the Omnibus 
Budget Reconciliation Act of 1993.

                   Cost and Budgetary Considerations

    The Congressional Budget Office (CBO) estimate of the costs 
of this measure has been requested but was not received at the 
time the report was filed. The Forest Service estimates the 
cost to be approximately $1.8 billion over 6 years. When the 
CBO report is available, the Chairman will request it to be 
printed in the Congressional Record for the advice of the 
Senate.

                      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. 1608.
    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. 1608, as ordered reported.

                        Executive Communications

    On April 6, 2000 the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior, the Department of Agriculture, and the Office of 
Management and Budget setting forth Executive agency 
recommendations on S. 1608. These reports had not been received 
at the time the report on S. 1608 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 Forest Service at the 
Subcommittee hearing follows:

  Statement of James R. Lyons, Under Secretary, Natural Resources and 
                 Environment, Department of Agriculture

    Thank you for your invitation to testify on S. 1608, 
``Secure Rural Schools and Community Self-Determination Act of 
1999.'' I appreciate the opportunity to join you today to 
continue the discussion that the Administration began last year 
on the need to provide a stable, permanent level of payments to 
states for schools and roads.
    The Administration strongly believes: (1) We need to 
provide a permanent, stable payment at a higher level than what 
is provided by current law; (2) The payments need to be 
separated from fluctuating and often controversial timber 
sales; and (3) We need to strengthen the connection between 
communities and the land and water that sustains them.
    The lessons of the past decade demonstrate that tying 
payments to states for essential services, such as schools and 
roads, to forest receipts simply does not work. Between 1989 
and 1998, payments have declined by 36%. The decrease would 
have been even more dramatic if Congress had not provided a 
safety net for counties covered by the Northwest Forest Plan.
    We need to find ways to finance our children's education, 
as we ensure that forests are managed to maintain their health, 
productivity, and diversity. Linking education to timber 
harvest objectives, however, sacrifices critical social 
objectives for other essential ecological objectives. Given our 
national wealth and our abundant national resources, we do not 
need to make such choices. Our objective should be to work 
together to reconnect rural communities to the lands that 
sustain them--not to set in motion new controversies and 
lawsuits.
    With some modifications the Administration generally could 
accept the funding mechanism in S. 1608 as long as Congress 
works with the Administration to identify mutually acceptable 
offsets for the approximately $200 million more needed per 
year.
    However, the Administration strongly opposes the resource 
investment section (section 6) of S. 1608. This section is 
objectionable for the following reasons:
    (1) Section 6 continues to link 50 percent of the receipts 
from timber sales and other revenue generating projects to 
schools and roads. While the funding mechanism in the bill 
attempts to decouple these payments from schools and roads, the 
proposed revolving fund re-couples payments to revenue 
generating projects, primarily timber sales.
    (2) Section 6 requires that the remaining 50 percent of the 
receipts from timber sales or other revenue generating projects 
go back to restoration projects, thus potentially continuing 
the downward spiral of harvesting valuable trees, the kind of 
trees that managers want left standing, to pay for watershed 
health.
    (3) Section 6 places an unreasonable burden on the Forest 
Service by creating expectations that the counties can hold the 
agency financially responsible for failing to complete a 
project or for project delays in timing and outputs which are 
often caused by factors outside of the agency's control.
    (4) Section 6 could undermine the credibility of the 
agency's National Environmental Policy Act (NEPA) process. 
Making agencies financially liable for the cost of 
environmental analysis if the analysis does not allow for 
project approval creates pressure on local managers to approve 
projects to avoid losing funding. The public's perception may 
be that the agency is approving projects regardless of 
environmental impacts.
    The Department stands ready to work with the Committee to 
fix these problems.
Background
    The Administration's over-arching reason for proposing 
legislation for the last two years in its budget submission to 
address payments to states is the need to provide a stable, 
predictable payment that counties can depend on to help fund 
their education and road maintenance needs. Under the current 
statutory provision, commonly known as the twenty-five percent 
fund, the Federal government pays twenty-five percent of most 
Forest Service receipts to the states for distribution to the 
counties in which National Forest lands are located for 
financing public roads and schools.
    The Administration's proposal would:
          (1) provide a stable, predictable payment that 
        counties can depend on to help fund education and 
        maintenance of roads,
          (2) provide increased payments above the payments 
        projected under current law to compensate states for 
        National Forest land that are not available to the 
        local tax base,
          (3) provide a mandatory, permanent payment not 
        subject to the annual appropriation process, and
          (4) sever the connection between timber sales and 
        critically important education and road maintenance 
        needs.
    Historically, the primary source of National Forest 
receipts has been from the sale of timber on National Forests. 
Over the past 10 years, timber harvest from National Forests 
has responded to new scientific information, changing social 
values, and our evolving understanding of how to manage 
sustainable ecosystems. As a result during that same period 
payments to states have fallen 36%, from $361 million in 1989 
to $228 million in 1998. That reduction in payments to states 
would have been far greater if not for an agreement between 
Congress and the Administration to stabilize payments for 
counties in western Oregon, Washington and northern California 
in 1993, the so-called owl county safety-net, the basis for the 
Administration's stabilization proposal.
    Some counties and organizations have resisted separating 
payments from Forest Service receipts. In part, the resistance 
may stem from a belief that timber harvest levels will rise 
dramatically again in the future. But, with the need to do more 
forest stewardship sales and the corresponding shift to less 
profitable products being harvested, even if timber volume 
should increase, slightly, receipts from timber sales will 
likely continue to decrease.
    Since fiscal year (FY) 1993 the proportion of harvest 
volume removed for timber commodity purposes has fallen from 71 
to 52 percent, while the proportion being removed for forest 
stewardship purposes has grown from 23 to 40 percent. In FY 89, 
live trees, and large diameter trees, made up roughly 80 
percent of the overall sales program; in FY 97, they 
represented only 60%.
    In addition, in FY 99 and FY 00, the Administration's 
budget, which Congress accepted proposed timber offers levels 
below 4 billion board feet. We believe that the public will not 
accept the agency will not recommend, and science will not 
condone or justify a return of unsustainable timber harvest 
levels to the 11-12 billion board feet volume of the late 
1980s.
    We need to provide a reasonable payment to compensate 
states for the lands that are not available to the local tax 
base. Payments made through the payments in lieu of taxes 
(PILT) are often not appropriated to their fully authorized 
levels, creating difficulties for counties with a limited tax 
base due the presence of public lands. We need to ensure that 
states continue to benefit from both the intrinsic and economic 
values of public lands by guaranteeing a payment to make 
planning and budgeting predictable for counties. Thus, we 
believe we should provide a permanent, stable payment, based on 
historic levels, that is not subject to the annual 
appropriation process.
Specific concerns
    Overall, while we support more collaboration with the 
public on land management issues, section 6 gives counties a 
direct financial interest in projects which we think is 
contrary to the spirit of our public land statutes.
    Section 6 establishes a new program in which twenty-five 
percent of the full payment amount to counties or 25 percent 
fund payment, whichever is higher must be spent on resource 
investments on Bureau of Land Management or National Forest 
system lands. Resource investments are both commercial and 
noncommercial activities, involving resource management, 
stewardship, restoration, or development. In return, the 
counties and agencies each receive 50 percent of any funds 
generated by these projects. The counties' portion of receipts 
would then go to fund schools and roads and the agencies' 
portions would go toward funding watershed ecosystem 
restoration projects. The Secretary must agree to the project 
and obligate the fund by the end of the fiscal year or the 
counties would lose this 25 percent portion of their payment.
    Since S. 1608 allows counties to receive 50 percent of net 
revenues from any eligible project, it is likely to encourage 
counties to propose controversial projects such as commodity 
timber sales that maximize revenues instead of proposing much 
needed restoration and maintenance projects. This could 
increase the dependency of rural school funding on forest 
receipts and ensure that payments to states will continue to be 
tied to controversial forest management issues. Once again, 
funding for children's education could become directly 
dependent on timber harvest or other revenue generating 
activities.
    In addition, section 6 creates an unnecessary level of 
complexity and potentially could degrade agency credibility. If 
the agencies choose to use county funding to complete NEPA on 
resource investment projects and do not complete them because 
of findings from environmental analysis, lawsuits, or even 
natural events and disasters, then the Secretary may be 
required to reimburse the counties the funds provided for the 
project plus interest, pursuant to a memorandum of 
understanding. This process could undermine the NEPA process by 
creating the perception that the agencies would approve 
eligible projects regardless of the environmental findings. 
Conversely, the agencies could be forced not to agree to 
projects with any level of controversy to avoid reimbursing 
counties thereby angering communities.
    Moreover, since the agencies receive 50 percent of the 
revenues from resource investment funded projects, this 
legislation will create the perception, and perhaps the 
reality, that projects will be approved just to increase agency 
funding.
    In addition, if as intended, counties could hold the 
agencies financially responsible for delays in timing and 
harvest shortfalls, the bill would essentially create the 
perception that private interests have the right to develop 
public assets risk-free. This would only add to the contentious 
debate over forest management, and drive counties and agencies 
farther apart instead of bringing them together to improve 
conditions and relationships on their national forests.
    We fully support strengthening the connection between rural 
communities and the public forests that surround them; but, the 
community-forest connection should promote both healthy forests 
and prosperous communities working from a model that brings 
people together through consensus building, avoiding 
unnecessary controversy.
Recommendations
    We would like to work with the Subcommittee and the bill's 
primary sponsor, to develop less complex project procedures and 
more equitable project funding arrangements. To address our 
concerns we believe the reinvestment program included in S. 
1608 should be revised and recommend the following changes:
    (1) Establish a pilot program for 3-5 years to allow a 
minimal number of counties to implement the investment project 
program. Consider establishing an advisory committee to monitor 
the success of this program and make recommendations to 
Congress on how it should be implemented or expanded.
    (2) Require receipts generated from the investment projects 
to be deposited in the general treasury.
    (3) Allow only restoration and maintenance projects to be 
funded through this bill. This will ensure that receipts for 
commercial timber sales will no longer go towards funding 
schools and roads and watershed health projects.
    (4) Eliminate the provision that creates the expectation 
that agencies should be required to reimburse counties for 
project costs if projects are not completed or approved. 
Relationships between communities and agencies need to be based 
on mutual trust, not on a financial threat subject to 
circumstances outside of agency control or when objective 
environmental analysis dictates against a project going 
forward.
Closing
    In 1908, the twenty-five percent fund worked well as an 
incentive to develop national forests and settle remote lands. 
Moreover, we should not hold funding for schools and roads to 
the same standards of nearly a century ago. As demands on our 
National Forests have increased and timber harvest has 
declined, we need to provide a stable, permanent mechanism for 
making payments to states that do not depend on land management 
decisions.
    Mr. Chairman, the Department supports the objectives of S. 
1608, but we strongly oppose the bill for the reasons outlined 
above. Rather than continue the contentious debate over natural 
resource management of the National Forests, I hope you 
consider our recommendations to provide a permanent, 
predictable payment for schools and roads and to strengthen the 
connection between communities and their public forests. We 
would be pleased to work with the Subcommittee to pursue 
options that might meet our respective goals.
    This concludes my statement; I would be happy to answer any 
questions you and the Members of the Subcommittee might have.

                        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. 1608, 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 provide for reconciliation pursuant to section 7 of the 
Concurrent Resolution on the Budget for Fiscal Year 1994

           *       *       *       *       *       *       *


[SEC. 13982. SHARING OF FOREST SERVICE TIMBER SALE RECEIPTS.

    [(a) Definitions.--As used in this section:
          [(1) Applicable percentage.--The term ``applicable 
        percentage'' means--
                  [(A) for fiscal year 1994, 85 percent; and
                  [(B) for each of fiscal years 1995 through 
                2003, 3 percentage points less than the 
                applicable percentage for the preceding fiscal 
                year.
          [(2) 25-percent payments to states.--The term ``25-
        percent payments to States'' means the 25 percent 
        payments authorized by the Act of May 23, 1908 (35 
        Stat. 260, chapter 192; 16 U.S.C. 500) for the States 
        of Washington, Oregon, and California for the benefit 
        of counties in which national forests are situated and 
        that are affected by decisions related to the northern 
        spotted owl.
          [(3) Special payment amount.--The term ``special 
        payment amount'' means the amount determined by 
        multiplying--
                  [(A) the applicable percentage; by
                  [(B) the annual average of the 25-percent 
                payments to States made to a county pursuant to 
                such Acts during the 5-year period consisting 
                of fiscal years 1986 through 1990.
    [(b) Payments.--
          [(1) In general.--In lieu of making the 25-percent 
        payments to States, the Secretary of the Treasury shall 
        make payments to States, out of any money in the 
        Treasury not otherwise appropriated, for the benefit of 
        counties, that are eligible to receive the 25-percent 
        payments to States as of the date of enactment of this 
        Act in accordance with paragraph (2).
          [(2) Amount of payments.--
                  [(A) Fiscal years 1994 through 1998.--For 
                each of fiscal years 1994 through 1998, the 
                payment to each State for the benefit of each 
                county in the State referred to in paragraph 
                (1) shall be equal to the sum of the special 
                payment amounts for each county in the State.
                  [(B) Fiscal years 1999 through 2003.--
                          [(i) In general.--For each of fiscal 
                        years 1999 through 2003, the payment to 
                        each State for the benefit of each 
                        county in the State referred to in 
                        paragraph (1) shall be equal to the sum 
                        of the payments for each county in the 
                        State as calculated under clause (ii).
                          [(ii) Payments for counties.--The 
                        payment for each county referred to in 
                        clause (i) shall be equal to the 
                        greater of--
                                  [(I) the special payment 
                                amount for the county; or
                                  [(II) the share of the 25-
                                percent payments to States 
                                allocable to the county.

[SEC. 13983. SHARING OF BUREAU OF LAND MANAGEMENT TIMBER SALE RECEIPTS.

    [(a) Definitions.--As used in this section:
          [(1) Applicable percentage.--The term ``applicable 
        percentage'' means--
                  [(A) for fiscal year 1994, 85 percent; and
                  [(B) for each of fiscal years 1995 through 
                2003, 3 percentage points less than the 
                applicable percentage for the preceding fiscal 
                year.
          [(2) 50-percent payments to counties.--The term ``50-
        percent payments to counties'' means the 50-percent 
        share paid to counties in the States of Oregon and 
        California pursuant to title II of the Act of August 
        28, 1937 (50 Stat. 875, chapter 876; 43 U.S.C. 1181f), 
        and the payments made to counties pursuant to the Act 
        of May 24, 1939 (53 Stat. 753, chapter 144; 43 U.S.C. 
        1181f-1 et seq.).
          [(3) Special payment amount.--The term ``special 
        payment amount'' means the amount determined by 
        multiplying--
                  [(A) the applicable percentage; by
                  [(B) the annual average of the 50-percent 
                payments to counties made to a county pursuant 
                to such Acts during the 5-year period 
                consisting of fiscal years 1986 through 1990.
    [(b) Payments.--
          [(1) In general.--In lieu of making the 50-percent 
        payments to counties, the Secretary of the Treasury 
        shall make payments, out of any money in the Treasury 
        not otherwise appropriated, to counties that are 
        eligible to receive the 50-percent payments as of the 
        date of enactment of this Act in accordance with 
        paragraph (2).
          [(2) Amount of payments.--
                  [(A) Fiscal years 1994 through 1998.--For 
                each of fiscal years 1994 through 1998, the 
                Secretary of the Treasury shall pay to each 
                county referred to in paragraph (1) the special 
                payment amount.
                  [(B) Fiscal years 1999 through 2003.--For 
                each of fiscal years 1999 through 2003, the 
                Secretary of the Treasury shall pay to each 
                county referred to in paragraph (1) the greater 
                of--
                          [(i) the special payment amount; or
                          [(ii) the share of the 50-percent 
                        payments to counties allocable to the 
                        county.]

                                  
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