[House Report 107-366]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-366

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           FALLON RAIL FREIGHT LOADING FACILITY TRANSFER ACT

                                _______
                                

 March 6, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 1870]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 1870) to provide for the sale of certain real property 
within the Newlands Project in Nevada, to the city of Fallon, 
Nevada, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Fallon Rail Freight Loading Facility 
Transfer Act''.

SEC. 2. CONVEYANCE TO THE CITY OF FALLON, NEVADA.

  (a) Conveyance.--
          (1) In general.--Subject to subsections (b) and (c), the 
        Secretary of the Interior shall convey to the city of Fallon, 
        Nevada, all right, title, and interest of the United States in 
        and to approximately 6.3 acres of real property in the Newlands 
        Reclamation Project, Nevada, generally known as ``380 North 
        Taylor Street, Fallon, Nevada'', and identified for disposition 
        on the map entitled ``Fallon Rail Freight Loading Facility''.
          (2) Map.--The map referred to in paragraph (1) shall be on 
        file and available for public inspection in--
                  (A) the offices of the Commissioner of the Bureau of 
                Reclamation; and
                  (B) the offices of the Area Manager of the Bureau of 
                Reclamation, Carson City, Nevada.
  (b) Consideration.--
          (1) In general.--The Secretary shall require that, as 
        consideration for the conveyance under subsection (a), the city 
        of Fallon, Nevada, shall pay to the United States an amount 
        equal to the fair market value of the real property, as 
        determined--
                  (A) by an appraisal of the real property, conducted 
                not later than 60 days after the date of enactment of 
                this Act by an independent appraiser approved by the 
                Commissioner of Reclamation and paid for by the city of 
                Fallon, Nevada; and
                  (B) without taking into consideration the value of 
                any structures or improvements on the property.
          (2) Credit of proceeds.--The amount paid to the United States 
        under paragraph (1) shall be credited, in accordance with 
        section 204(c) of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 485(c)), to the appropriate 
        fund in the Treasury relating to the Newlands Reclamation 
        Project, Nevada.
  (c) Liability.--The conveyance under subsection (a) shall not occur 
until such data as the Commissioner of Reclamation certifies that all 
liability issues relating to the property (including issues of 
environmental liability) have been resolved.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1870 is to provide for the sale of 
certain real property within the Newlands Project in Nevada, to 
the city of Fallon, Nevada.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 1870 will transfer 6.3 acres of Department of the 
Interior property within the Newlands Project in Nevada, to the 
City of Fallon, Nevada.
    The City of Fallon has 8,700 residents and is located 
approximately 70 miles east of Reno, Nevada. Since 1984, the 
City has leased 6.3 acres of property from the Bureau of 
Reclamation in the downtown area. The City, State, South 
Pacific Railroad, and Department of Transportation use this 
land as a rail freight yard and loading facility. These 
entities have collectively invested more than $1 million in the 
facility.
    In January 2000 the City's lease from the Bureau expired. 
In negotiating to renew the lease, the Bureau introduced a new 
lease provision regarding hazardous material impacts on and 
beyond the boundaries of the leased property. The City would 
not agree to the new provision. After a period of strained 
negotiations, the Bureau, on April 2, 2001, informed the City 
it had terminated its rights under the lease as of January 31, 
2001, and allowed for a one year period to remove all 
structures and improvements on the property.
    An agreement has now been reached between the City of 
Fallon and the Bureau of Reclamation that a transfer of this 
lot to the City, to be compensated at fair market value, is in 
the best interest of both parties. The property is no longer 
needed by the Bureau, and such a transfer would secure the 
ongoing use of the property by the City of Fallon.

                            COMMITTEE ACTION

    H.R. 1870 was introduced on May 16, 2001, by Congressman 
Jim Gibbons (R-NV). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Water and Power. On December 10, 2001, the Subcommittee held a 
field hearing on the bill in Las Vegas, Nevada. On February 14, 
2002, the Subcommittee met to mark up the bill. Congressman Ken 
Calvert (R-CA) offered an amendment in the nature of a 
substitute to clarify fair market value and how to credit the 
proceeds of the sale. The amendment was adopted by unanimous 
consent. The bill was then ordered favorably reported to the 
Full Committee by unanimous consent. On February 27, 2002, the 
Full Resources Committee met to consider the bill. No further 
amendments were offered and the bill as amended was ordered 
favorably reported to the House of Representatives by unanimous 
consent.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office 
(CBO), enactment of this bill would affect offsetting receipts 
but that this effect would be ``negligible''.
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives does not 
apply.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, March 5, 2002.
Hon. James V. Hansen,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1870, the Fallon 
Rail Freight Loading Facility Transfer Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Julie 
Middleton (for federal costs), and Majorie Miller (for the 
state and local impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1870--Fallon Rail Freight Loading Facility Transfer Act

    H.R. 1870 would direct the Secretary of the Interior to 
convey 6.3 acres of real property in the Newlands Reclamation 
Project to the city of Fallon, Nevada. As a condition of the 
conveyance, all liability issues, including environmental 
liability, would need to be resolved. In addition, the city 
would have to pay the fair market value of the property, minus 
the value of existing structural improvements. The proceeds of 
the sale would be credited to the Newlands Reclamation Project 
fund and would be available for future construction costs, 
subject to appropriation action.
    CBO estimates that enacting H.R. 1870 would have no 
significant effect on the federal budget. Based on information 
from the Bureau of Reclamation and the city of Fallon, CBO 
estimates that the federal government would receive about 
$330,000 from the sale of the lands. This amount represents a 
1995 appraisal of the property adjusted for inflation. 
According to the Bureau, the transfer of title to the property 
would take place by the end of fiscal year 2003. Currently, the 
Bureau receives income of $15,000 to $18,000 a year from the 
Premier Chemical Company for the use of a loading facility 
located on the property. Because enacting H.R. 1870 would 
affect offsetting receipts (a form of direct spending), pay-as-
you-go procedures would apply, but CBO estimates that the 
impact on direct spending would be negligible.
    H.R. 2984 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments. 
The conveyance authorized by this bill would be voluntary on 
the part of the city of Fallon, as would any associated costs.
    The CBO staff contacts for this estimate are Julie 
Middleton (for federal costs), and Marjorie Miller (for the 
state and local impact). This estimate was approved by Peter H. 
Fontaine, Deputy Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

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

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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