[Senate Report 107-271]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 588
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-271
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           FALLON RAIL FREIGHT LOADING FACILITY TRANSFER ACT

                                _______
                                

               September 11, 2002.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural 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 Energy and Natural Resources, to which was 
referred the Act (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, reports 
favorably thereon without amendment and recommends that the Act 
do pass.

                         PURPOSE OF THE MEASURE

    The purpose of H.R. 1870 is to direct the Secretary of the 
Interior to convey approximately 6.3 acres of real property 
(known as ``380 North Taylor Street, Fallon, Nevada'') within 
the Newlands Reclamation Project, Nevada, to the City of Fallon 
for its fair market value, without taking into consideration 
the value of any structures or improvements.

                          BACKGROUND AND NEED

    Fallon is a rural agricultural community of 8700 residents 
located in northern Nevada approximately 70 miles east of Reno. 
Since 1984, the City has leased from the U.S. Bureau of 
Reclamation approximately 6.3 acres of property that it uses as 
a rail freight yard and loading facility. The City, the State 
of Nevada, the U.S. Department of Transportation, and the 
Southern Pacific Railroad have collectively made significant 
investments in this facility. On January 1, 2000, the long-term 
lease agreement between the City of Fallon and the Bureau of 
Reclamation expired. The City and the Bureau of Reclamation 
have determined that allowing the City to acquire the property 
rather than continuing to lease it would be in their mutual 
interest. This legislation is necessary in order to allow for 
the acquisition of the property by the City of Fallon.

                          LEGISLATIVE HISTORY

    H.R. 1870 was introduced by Representative Gibbons on May 
16, 2001. H.R. 1870 passed the House of Representatives by 
voice vote on March 6, 2002. A companion measure, S. 1310, was 
introduced by Senator Reid and Senator Ensign on August 2, 
2001. The Subcommittee on Water and Power held a hearing on S. 
1310 and H.R. 1870 on June 6, 2002. At the business meeting on 
July 31, 2002, the Committee on Energy and Natural Resources 
ordered H.R. 1870 favorably reported.

                       COMMITTEE RECOMMENDATIONS

    The Committee on Energy and Natural Resources, in open 
business session on July 31, 2002, by a voice vote of a quorum 
present, recommends that the Senate pass H.R. 1870, as 
described herein.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 contains the short title.
    Section 2(a) directs the Secretary of the Interior to 
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 (known as ``380 North Taylor Street, Fallon, 
Nevada'') in the Newlands Reclamation Project, Nevada, as 
identified on the referenced map.
    Subsection (b) requires, as consideration for the 
conveyance, that the city of Fallon, Nevada, pay to the United 
States an amount equal to the fair market value of the real 
property, as determined by an appraisal as specified by the 
subsection, without taking into consideration the value of any 
structures or improvements on the property. The amount paid to 
the United States will be credited to the appropriate fund in 
the Treasury relating to the Newlands Reclamation Project, 
Nevada.
    Subsection (c) states that the conveyance will not occur 
unless the Commissioner of Reclamation certifies that all 
liability issues relating to the property, including issues of 
environmental liability, have been resolved.

                   COST AND BUDGETARY CONSIDERATIONS

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, August 6, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for 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 Marjorie Miller (for the 
state and local impact).
            Sincerely,
                                         Barry. B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

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. 1870 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 act would be voluntary on the 
part of the city of Fallon, as would any associated costs.
    On March 5, 2002, CBO prepared a cost estimate for H.R. 
1870 as ordered reported by the House Committee on Resources on 
February 27, 2001. The two versions of this legislation are 
identical, and our cost estimates are the same.
    The CBO staff contacts for this estimate are Julie 
Middleton (for federal costs) and Majorie Miller (for the state 
and local impact). This estimate was approved by Peter H. 
Fontaine, Deputy Assistant Director for Budget Analysis.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 1870. 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 H.R. 1870.

                        EXECUTIVE COMMUNICATIONS

    The pertinent legislative report received by the Committee 
from the Department of the Interior setting forth Executive 
agency recommendation relating to H.R. 1870 are set forth 
below:

        Statement of Mark A. Limbaugh, Director of External and 
 Intergovernmental Affairs, Bureau of Reclamation, U.S. Department of 
                              the Interior

    I am Mark A. Limbaugh, Director of External and 
Intergovernmental Affairs for the Bureau of Reclamation 
(Reclamation). I am pleased to present the views of the 
Department of the Interior on S. 1310 and H.R. 1870, concerning 
the Fallon Rail Freight Loading Facility Transfer. H.R. 1870, 
as passed by the House and referred in the Senate, is nearly 
identical to S. 1310. Both bills provide for the sale of about 
6.3 acres of real property within the Newlands Project, Nevada 
(acquired in 1920 by the United States government), to the city 
of Fallon, Nevada. The Department supports the proposed 
conveyance, and would support S. 1310 with the amendment 
suggested below. The Department supports H.R. 1870, as passed 
by the House and referred in the Senate.
    The House Resources Subcommittee on Water and Power held a 
hearing on H.R. 1870, as introduced, on December 10, 2001 (a 
copy of our statement is attached for the record). The 
Department did not support the bill as introduced, and 
recommended specific amendments to provisions on credit of sale 
proceeds, appraisal, and liability. Subsequently, the House 
subcommittee adopted these amendments. An important provision 
in H.R. 1870, suggested by the Department, requires the city of 
Fallon to pay for the appraisal of the property.\1\ We 
encourage the Committee to amend S. 1310 to adopt this 
language, which appears in Sec. (b)(1)(A) of H.R. 1870, as 
passed by the House of March 2, 2002, and referred to the 
Senate.
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    \1\ Sec. (b)(1)(A) of H.R. 1870(RFS), concerning the appraisal of 
the property, adds the phrase ``and paid for by the city of Fallon, 
Nevada''.
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    This concludes my statement. I would be glad to answer any 
questions.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill H.R. 1870, as 
ordered reported.

                                
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