[Senate Report 108-329]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 685
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-329
======================================================================
 
                   NATIONAL HERITAGE PARTNERSHIP ACT

                                _______
                                

                August 25, 2004.--Ordered to be printed

   Filed, under authority of the order of the Senate of July 22, 2004

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2543]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2543) to establish a program and criteria 
for National Heritage Areas in the United States, 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 ``National Heritage 
Partnership Act''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. National Heritage Areas program.
Sec. 4. Studies.
Sec. 5. Management plans.
Sec. 6. Local coordinating entities.
Sec. 7. Relationship to other Federal agencies.
Sec. 8. Private property and regulatory protections.
Sec. 9. Authorization of appropriations.

SEC. 2. DEFINITIONS.

   In this Act:
          (1) Local coordinating entity.--The term ``local coordinating 
        entity'' means the entity designated by Congress--
                  (A) to develop, in partnership with others, the 
                management plan for a National Heritage Area; and
                  (B) to act as a catalyst for the implementation of 
                projects and programs among diverse partners in the 
                National Heritage Area.
          (2) Management plan.--The term ``management plan'' means the 
        plan prepared by the local coordinating entity for a National 
        Heritage Area designated by Congress that specifies actions, 
        policies, strategies, performance goals, and recommendations to 
        meet the goals of the National Heritage Area, in accordance 
        with section 5.
          (3) National heritage area.--The term ``National Heritage 
        Area'' means an area designated by Congress that is nationally 
        significant to the heritage of the United States and meets the 
        criteria established under section 4(a).
          (4) National importance.--The term ``national importance'' 
        means possession of--
                  (A) unique natural, historical, cultural, 
                educational, scenic, or recreational resources of 
                exceptional value or quality; and
                  (B) a high degree of integrity of location, setting, 
                or association in illustrating or interpreting the 
                heritage of the United States.
          (5) Program.--The term ``program'' means the National 
        Heritage Areas program established under section 3(a).
          (6) Proposed national heritage area.--The term ``proposed 
        National Heritage Area'' means an area under study by the 
        Secretary or other parties for potential designation by 
        Congress as a National Heritage Area.
          (7) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (8) Study.--The term ``study'' means a study conducted by the 
        Secretary, or conducted by 1 or more other interested parties 
        and reviewed by the Secretary, in accordance with the criteria 
        and processes established under section 4, to determine whether 
        an area meets the criteria to be designated as a National 
        Heritage Area by Congress.

SEC. 3. NATIONAL HERITAGE AREAS PROGRAM.

  (a) In General.--The Secretary shall establish a National Heritage 
Areas program under which the Secretary shall provide technical and 
financial assistance to local coordinating entities to support the 
establishment of National Heritage Areas.
  (b) Duties.--Under the program, the Secretary shall--
          (1)(A) conduct studies, as directed by Congress, to assess 
        the suitability and feasibility of designating proposed 
        National Heritage Areas; or
          (B) review and comment on studies undertaken by other parties 
        to make such assessment;
          (2) provide technical assistance, on a reimbursable or non-
        reimbursable basis (as determined by the Secretary), for the 
        development and implementation of management plans for 
        designated National Heritage Areas;
          (3) enter into cooperative agreements with interested parties 
        to carry out this Act;
          (4) provide information, promote understanding, and encourage 
        research on National Heritage Areas in partnership with local 
        coordinating entities;
          (5) provide national oversight, analysis, coordination, and 
        technical assistance and support to ensure consistency and 
        accountability under the program; and
          (6) submit annually to the Committee on Resources of the 
        House of Representatives and the Committee on Energy and 
        Natural Resources of the Senate a report describing the 
        allocation and expenditure of funds for activities conducted 
        with respect to National Heritage Areas under this Act.

SEC. 4. STUDIES.

  (a) Criteria.--In conducting or reviewing a study, the Secretary 
shall apply the following criteria to determine the suitability and 
feasibility of designating a proposed National Heritage Area:
          (1) An area--
                  (A) has an assemblage of natural, historic, cultural, 
                educational, scenic, or recreational resources that 
                together are nationally important to the heritage of 
                the United States;
                  (B) represents distinctive aspects of the heritage of 
                the United States worthy of recognition, conservation, 
                interpretation, and continuing use;
                  (C) is best managed as such an assemblage through 
                partnerships among public and private entities at the 
                local or regional level;
                  (D) reflects traditions, customs, beliefs, and 
                folklife that are a valuable part of the heritage of 
                the United States;
                  (E) provides outstanding opportunities to conserve 
                natural, historical, cultural, or scenic features;
                  (F) provides outstanding recreational or educational 
                opportunities; and
                  (G) has resources and traditional uses that have 
                national importance.
          (2) Residents, business interests, nonprofit organizations, 
        and governments (including relevant Federal land management 
        agencies) within the proposed area are involved in the planning 
        and have demonstrated significant support through letters and 
        other means for National Heritage Area designation and 
        management.
          (3) The local coordinating entity responsible for preparing 
        and implementing the management plan is identified.
          (4) The proposed local coordinating entity and units of 
        government supporting the designation are willing and have 
        documented a significant commitment to work in partnership to 
        protect, enhance, interpret, fund, manage, and develop 
        resources within the National Heritage Area.
          (5) The proposed local coordinating entity has developed a 
        conceptual financial plan that outlines the roles of all 
        participants (including the Federal Government) in the 
        management of the National Heritage Area.
          (6) The proposal is consistent with continued economic 
        activity within the area.
          (7) A conceptual boundary map has been developed and is 
        supported by the public and participating Federal agencies.
  (b) Consultation.--In conducting or reviewing a study, the Secretary 
shall consult with the managers of any Federal land within the proposed 
National Heritage Area and secure the concurrence of the managers with 
the findings of the study before making a determination for 
designation.
  (c) Transmittal.--On completion or receipt of a study for a National 
Heritage Area, the Secretary shall--
          (1) review, comment, and make findings (in accordance with 
        the criteria specified in subsection (a)) on the feasibility of 
        designating the National Heritage Area;
          (2) consult with the Governor of each State in which the 
        proposed National Heritage Area is located; and
          (3) transmit to the Committee on Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate, the study, including--
                  (A) any comments received from the Governor of each 
                State in which the proposed National Heritage Area is 
                located; and
                  (B) a finding as to whether the proposed National 
                Heritage Area meets the criteria for designation.
  (d) Disapproval.--If the Secretary determines that any proposed 
National Heritage Area does not meet the criteria for designation, the 
Secretary shall include within the study submitted under subsection 
(c)(3) a description of the reasons for the determination.
  (e) Designation.--The designation of a National Heritage Area shall 
be--
          (1) by Act of Congress; and
          (2) contingent on the prior completion of a study and an 
        affirmative determination by the Secretary that the area meets 
        the criteria established under subsection (a).

SEC. 5. MANAGEMENT PLANS.

  (a) Requirements.--The management plan for any National Heritage Area 
shall--
          (1) describe comprehensive policies, goals, strategies, and 
        recommendations for telling the story of the heritage of the 
        area covered by the National Heritage Area and encouraging 
        long-term resource protection, enhancement, interpretation, 
        funding, management, and development of the National Heritage 
        Area;
          (2) include a description of actions and commitments that 
        governments, private organizations, and citizens will take to 
        protect, enhance, interpret, fund, manage, and develop the 
        natural, historical, cultural, educational, scenic, and 
        recreational resources of the National Heritage Area;
          (3) specify existing and potential sources of funding or 
        economic development strategies to protect, enhance, interpret, 
        fund, manage, and develop the National Heritage Area;
          (4) include an inventory of the natural, historical, 
        cultural, educational, scenic, and recreational resources of 
        the National Heritage Area related to the national importance 
        and themes of the National Heritage Area that should be 
        protected, enhanced, interpreted, managed, funded, and 
        developed;
          (5) recommend policies and strategies for resource 
        management, including the development of intergovernmental and 
        interagency agreements to protect, enhance, interpret, fund, 
        manage, and develop the natural, historical, cultural, 
        educational, scenic, and recreational resources of the National 
        Heritage Area;
          (6) describe a program for implementation for the management 
        plan, including--
                  (A) performance goals;
                  (B) plans for resource protection, enhancement, 
                interpretation, funding, management, and development; 
                and
                  (C) specific commitments for implementation that have 
                been made by the local coordinating entity or any 
                government agency, organization, business, or 
                individual;
          (7) include an analysis of, and recommendations for, means by 
        which Federal, State, and local programs may best be 
        coordinated (including the role of the National Park Service 
        and other Federal agencies associated with the National 
        Heritage Area) to further the purposes of this Act; and
          (8) include a business plan that--
                  (A) describes the role, operation, financing, and 
                functions of the local coordinating entity and of each 
                of the major activities contained in the management 
                plan; and
                  (B) provides adequate assurances that the local 
                coordinating entity has the partnerships and financial 
                and other resources necessary to implement the 
                management plan for the National Heritage Area.
  (b) Deadline.--
          (1) In general.--Not later than 3 years after the date on 
        which funds are first made available to develop the management 
        plan after designation as a National Heritage Area, the local 
        coordinating entity shall submit the management plan to the 
        Secretary for approval.
          (2) Termination of funding.--If the management plan is not 
        submitted to the Secretary in accordance with paragraph (1), 
        the local coordinating entity shall not qualify for any 
        additional financial assistance under this Act until such time 
        as the management plan is submitted to and approved by the 
        Secretary.
  (c) Approval of Management Plan.--
          (1) Review.--Not later than 180 days after receiving the 
        plan, the Secretary shall review and approve or disapprove the 
        management plan for a National Heritage Area on the basis of 
        the criteria established under paragraph (3).
          (2) Consultation.--The Secretary shall consult with the 
        Governor of each State in which the National Heritage Area is 
        located before approving a management plan for the National 
        Heritage Area.
          (3) Criteria for approval.--In determining whether to approve 
        a management plan for a National Heritage Area, the Secretary 
        shall consider whether--
                  (A) the local coordinating entity represents the 
                diverse interests of the National Heritage Area, 
                including governments, natural and historic resource 
                protection organizations, educational institutions, 
                businesses, recreational organizations, community 
                residents, and private property owners;
                  (B) the local coordinating entity--
                          (i) has afforded adequate opportunity for 
                        public and governmental involvement (including 
                        through workshops and hearings) in the 
                        preparation of the management plan; and
                          (ii) provides for at least semiannual public 
                        meetings to ensure adequate implementation of 
                        the management plan;
                  (C) the resource protection, enhancement, 
                interpretation, funding, management, and development 
                strategies described in the management plan, if 
                implemented, would adequately protect, enhance, 
                interpret, fund, manage, and develop the natural, 
                historic, cultural, educational, scenic, and 
                recreational resources of the National Heritage Area;
                  (D) the management plan would not adversely affect 
                any activities authorized on Federal land under public 
                land laws or land use plans;
                  (E) the local coordinating entity has demonstrated 
                the financial capability, in partnership with others, 
                to carry out the plan;
                  (F) the Secretary has received adequate assurances 
                from the appropriate State and local officials whose 
                support is needed to ensure the effective 
                implementation of the State and local elements of the 
                management plan; and
                  (G) the management plan demonstrates partnerships 
                among the local coordinating entity, Federal, State, 
                and local governments, regional planning organizations, 
                nonprofit organizations, or private sector parties for 
                implementation of the management plan.
          (4) Disapproval.--
                  (A) In general.--If the Secretary disapproves the 
                management plan, the Secretary--
                          (i) shall advise the local coordinating 
                        entity in writing of the reasons for the 
                        disapproval; and
                          (ii) may make recommendations to the local 
                        coordinating entity for revisions to the 
                        management plan.
                  (B) Deadline.--Not later than 180 days after 
                receiving a revised management plan, the Secretary 
                shall approve or disapprove the revised management 
                plan.
          (5) Amendments.--
                  (A) In general.--An amendment to the management plan 
                that substantially alters the purposes of the National 
                Heritage Area shall be reviewed by the Secretary and 
                approved or disapproved in the same manner as the 
                original management plan.
                  (B) Implementation.--The local coordinating entity 
                shall not use Federal funds authorized by this Act to 
                implement an amendment to the management plan until the 
                Secretary approves the amendment.

SEC. 6. LOCAL COORDINATING ENTITIES.

  (a) Duties.--To further the purposes of the National Heritage Area, 
the local coordinating entity shall--
          (1) prepare a management plan for the National Heritage Area, 
        and submit the management plan to the Secretary, in accordance 
        with section 5;
          (2) submit an annual report to the Secretary for each fiscal 
        year for which the local coordinating committee receives 
        Federal funds under this Act, specifying--
                  (A) the specific performance goals and 
                accomplishments of the local coordinating committee;
                  (B) the expenses and income of the local coordinating 
                committee;
                  (C) the amounts and sources of matching funds;
                  (D) the amounts leveraged with Federal funds and 
                sources of the leveraging; and
                  (E) grants made to any other entities during the 
                fiscal year;
          (3) make available for audit for each fiscal year for which 
        the local coordinating entity receives Federal funds under this 
        Act, all information pertaining to the expenditure of the funds 
        and any matching funds; and
          (4) encourage economic viability and sustainability that is 
        consistent with the purposes of the National Heritage Area.
  (b) Authorities.--For the purposes of preparing and implementing the 
approved management plan for the National Heritage Area, the local 
coordinating entity may use Federal funds made available under this Act 
to--
          (1) make grants to political jurisdictions, nonprofit 
        organizations, and other parties within the National Heritage 
        Area;
          (2) enter into cooperative agreements with or provide 
        technical assistance to political jurisdictions, nonprofit 
        organizations, Federal agencies, and other interested parties;
          (3) hire and compensate staff, including individuals with 
        expertise in--
                  (A) natural, historical, cultural, educational, 
                scenic, and recreational resource conservation;
                  (B) economic and community development; and
                  (C) heritage planning;
          (4) obtain funds or services from any source, including other 
        Federal laws or programs;
          (5) contract for goods or services; and
          (6) support activities of partners and any other activities 
        that further the purposes of the National Heritage Area and are 
        consistent with the approved management plan.
  (c) Prohibition on Acquisition of Real Property.--The local 
coordinating entity may not use Federal funds authorized under this Act 
to acquire any interest in real property.

SEC. 7. RELATIONSHIP TO OTHER FEDERAL AGENCIES.

  (a) In General.--Nothing in this Act affects the authority of a 
Federal agency to provide technical or financial assistance under any 
other law.
  (b) Consultation and Coordination.--The head of any Federal agency 
planning to conduct activities that may have an impact on a National 
Heritage Area is encouraged to consult and coordinate the activities 
with the Secretary and the local coordinating entity to the maximum 
extent practicable.
  (c) Other Federal Agencies.--Nothing in this Act--
          (1) modifies, alters, or amends any law or regulation 
        authorizing a Federal agency to manage Federal land under the 
        jurisdiction of the Federal agency;
          (2) limits the discretion of a Federal land manager to 
        implement an approved land use plan within the boundaries of a 
        National Heritage Area; or
          (3) modifies, alters, or amends any authorized use of Federal 
        land under the jurisdiction of a Federal agency.

SEC. 8. PRIVATE PROPERTY AND REGULATORY PROTECTIONS.

  Nothing in this Act--
          (1) abridges the rights of any property owner (whether public 
        or private), including the right to refrain from participating 
        in any plan, project, program, or activity conducted within the 
        National Heritage Area;
          (2) requires any property owner to permit public access 
        (including access by Federal, State, or local agencies) to the 
        property of the property owner, or to modify public access or 
        use of property of the property owner under any other Federal, 
        State, or local law;
          (3) alters any duly adopted land use regulation, approved 
        land use plan, or other regulatory authority of any Federal, 
        State or local agency, or conveys any land use or other 
        regulatory authority to any local coordinating entity;
          (4) authorizes or implies the reservation or appropriation of 
        water or water rights;
          (5) diminishes the authority of the State to manage fish and 
        wildlife, including the regulation of fishing and hunting 
        within the National Heritage Area; or
          (6) creates any liability, or affects any liability under any 
        other law, of any private property owner with respect to any 
        person injured on the private property.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  (a) Studies.--There is authorized to be appropriated to conduct and 
review studies under section 4 $750,000 for each fiscal year, of which 
not more than $250,000 for any fiscal year may be used for any 
individual study for a proposed National Heritage Area.
  (b) Local Coordinating Entities.--
          (1) In general.--There is authorized to be appropriated to 
        carry out section 6 $15,000,000 for each fiscal year, of which 
        not more than--
                  (A) $1,000,000 may be made available for any fiscal 
                year for any individual National Heritage Area, to 
                remain available until expended; and
                  (B) a total of $10,000,000 may be made available for 
                all such fiscal years for any individual National 
                Heritage Area.
          (2) Termination date.--
                  (A) In general.--The authority of the Secretary to 
                provide financial assistance to an individual local 
                coordinating entity under this Act (excluding technical 
                assistance and administrative oversight) shall 
                terminate on the date that is 15 years after the date 
                of the initial receipt of the assistance by the local 
                coordinating committee.
                  (B) Designation.--A National Heritage Area shall 
                retain the designation as a National Heritage Area 
                after the termination date prescribed in subparagraph 
                (A).
          (3) Administration.--Not more than 5 percent of the amount of 
        funds made available under paragraph (1) for a fiscal year may 
        be used by the Secretary for technical assistance, oversight, 
        and administrative purposes.
  (c) Matching Funds.--
          (1) In general.--As a condition of receiving a grant under 
        this Act, the recipient of the grant shall provide matching 
        funds in an amount that is equal to the amount of the grant.
          (2) Administration.--The recipient matching funds--
                  (A) shall be derived from non-Federal sources; and
                  (B) may be made in the form of in-kind contributions 
                of goods or services fairly valued.

                         PURPOSE OF THE MEASURE

    The purpose of S. 2543 is to establish a program and 
criteria for National Heritage Areas in the United States.

                          BACKGROUND AND NEED

    The National Park Service has defined a Natural Heritage 
Area as a ``place designated by the United States Congress 
where natural, cultural, historic and recreational resources 
combine to form a cohesive nationally distinctive landscape 
arising from patterns of human activity shaped by geography.'' 
They are established to commemorate, conserve and promote 
important areas that include natural, scenic, historic, 
cultural or recreational resources. Unlike areas that are under 
the sole jurisdiction of the National Park Service, such as 
national parks or monuments, heritage areas typically remain in 
non-Federal ownership and are managed by local communities and 
partners. To date, Congress has designated 24 National Heritage 
Areas.
    National Heritage Areas receive financial and technical 
assistance through cooperative agreements with the National 
Park Service. They also receive funds from other agencies and 
non-Federal sources. Most heritage areas are authorized to 
receive appropriations of up to $1 million each year, with a 
maximum total appropriation of $10 to $15 million. Generally, 
the authorizing legislation for each heritage area includes a 
requirement that Federal funds must be matched equally by non-
Federal funds. For fiscal years 1997 through 2002 National 
Heritage Areas received $310 million in funding. Of this total, 
approximately $154 million came from State and local 
governments and private sources and $156 million came from the 
Federal Government.
    Although the National Park Service has developed suggested 
criteria for assessing whether an area may qualify as a 
National Heritage Area, there are currently no statutory 
criteria, no systematic process for identifying or evaluating 
potential heritage areas and no formal program for managing 
them. Of the 24 existing heritage areas, ten have been 
designated by Congress without a thorough National Park Service 
review. Of those ten, six, a quarter of the existing heritage 
areas, were designated by Congress despite the agency's 
recommendation that designation be deferred. Not surprisingly, 
the opportunity for Federal funding has resulted in an increase 
in proposals for new heritage areas, with more than 30 heritage 
area proposals currently pending in the 108th Congress. The 
sizable number of new proposals before Congress has raised some 
concern regarding the most effective means to manage the 
program in the future.
    The Government Accountability Office (GAO) recently 
published a report that examined heritage areas and suggested 
ways to improve their accountability (GAO04-593T, March 30, 
2004). The report recommends that standardized criteria be 
adopted for evaluating potential National Heritage Areas. The 
GAO report also suggests, given the magnitude of funds 
appropriated, that certain key management controls be 
instituted to ensure accountability and program consistency. S. 
2543 will establish program requirements and criteria for 
evaluating potential National Heritage Areas as well as place 
limitations on Federal funding for the program.

                          LEGISLATIVE HISTORY

    Senators Thomas and Burns introduced S. 2543 on June 17, 
2004. The Senate Subcommittee on National Parks held a hearing 
on S. 2543 on June 21, 2004. The Committee on Energy and 
Natural Resources ordered S. 2543, as amended, favorably 
reported on July 14, 2004.

                        COMMITTEE RECOMMENDATION

    The Committee on Energy and Natural Resources, in an open 
business session on July 14, 2004, by a unanimous voice vote of 
a quorum present, recommends that the Senate pass S. 2543, if 
amended as described herein.

                          COMMITTEE AMENDMENT

    During its consideration of S. 2543, the Committee adopted 
an amendment in the nature of a substitute. In addition to 
making several clarifying and conforming changes. The amendment 
changed the reference for the standard by which potential 
heritage areas are to be evaluated from one of ``national 
significance'' to ``national importance'' consistent with the 
Administration's recommendations. The amendment also deleted a 
provision in section 4(d) which would have allowed the 
Secretary of the Interior to recommend against designation of 
an area in the study of the area, notwithstanding that the 
proposed area met the criteria for designation. The purpose of 
the study is to provide Congress with an analysis of the merits 
of the proposed area, which may differ from an Administration's 
ultimate recommendation whether to support legislation 
establishing any particular area. The amendment is described in 
detail in the section-by-section analysis below.

                      SECTION-BY-SECTION ANALYSIS

    Section 1(a) entitles this Act the ``National Heritage 
Partnership Act''.
    Subsection (b) contains the table of contents for this Act.
    Section 2 contains definitions of key terms used in the 
Act. This section was amended to define the term ``national 
importance'' in place of ``national significance''.
    Section 3 directs the Secretary of the Interior (Secretary) 
to establish a National Heritage Area (NHA) program and to 
provide technical and financial assistance to local 
coordinating entities.
    Subsection (b) describes the duties of the Secretary under 
the program.
    Section 4(a) describes the criteria to be used by the 
Secretary to determine the feasibility and suitability of a 
proposed NHA. This section also describes the administrative 
process for the transmittal, approval and disapproval of the 
feasibility study. Designation of NHA's shall be contingent 
upon the completion of the feasibility study and approval of 
that study by the Secretary.
    Section 5 describes the requirements for a heritage area's 
management plan. This section also includes procedural 
requirements for the submission, approval, disapproval and 
amendment of the plan.
    Section 6 describes the duties and responsibilities of the 
local coordinating entity for a heritage area. This section 
also describes the purposes under which the coordinating entity 
is authorized to expend Federal funds and prohibits the entity 
from using Federal funds to acquire real property.
    Section 7 states that nothing in this Act affects the 
authority of a Federal agency to providetechnical or financial 
assistance to a NHA. Other Federal agencies are encouraged to consult 
with the Secretary on issues concerning the NHA to the extent 
practicable. Nothing in this Act limits, modifies, alters or amends any 
authorized use of Federal land.
    Section 8 contains several savings provisions.
    Paragraph (1) states that nothing in this Act shall affect 
the rights of any private property owner.
    Paragraph (2) states that nothing in this Act requires a 
private property owner to permit public access.
    Paragraph (3) states that nothing in this Act affects any 
existing land use regulation or alters any land use or provides 
regulatory authority to the coordinating entity.
    Paragraph (4) states that nothing in this Act authorizes or 
implies the reservation or appropriation of water, or water 
rights.
    Paragraph (5) provides that nothing in this Act diminishes 
the authority of a State to manage fish and wildlife.
    Paragraph (6) states that nothing in this Act shall affect 
the liability of any private property owner.
    Section 9(a) authorizes the appropriation of $750,000, for 
each fiscal year, to conduct and review feasibility studies for 
potential heritage areas. Not more than $250,000 is authorized 
for any individual study for any given fiscal year.
    Subsection (b) authorizes and limits annual appropriations 
for heritage areas to $15,000,000 with not more than $1,000,000 
annually for any individual heritage area. A total 
appropriation of $10,000,000 may be made for an individual 
heritage area over all fiscal years. The Secretary's authority 
to provide technical and financial assistance to each heritage 
area is limited to 15 years, but the area is authorized to 
retain the designation of National Heritage Area after Federal 
funding has terminated. The Secretary may extend up to five 
percent of the annual authorized appropriation of $15,000,000 
for the purposes of technical assistance and oversight and 
administration of the program.
    Subsection (c) requires the recipient of any grant made 
under this Act to provide, through non-Federal sources, an 
amount equal to the Federal grant. The non-Federal contribution 
may include in-kind contributions of goods and services.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of the cost of this measures has 
been provided by the Congressional Budget Office.

S. 2543--National Heritage Partnership Act

    S. 2543 would provide a framework for establishing new 
national heritage areas (NHAs). NHAs are cultural or historical 
areas managed locally in cooperation with the National Park 
Service (NPS) but are not units of the National Park System. 
CBO estimates that enacting S. 2543--by itself--would have no 
effect on the federal budget because none of the activities 
authorized by the bill could occur without further authorizing 
legislation. The bill, however, would establish a new procedure 
that could affect how many and how quickly new NHAs could be 
established using future appropriations. Enacting S. 2543 would 
not affect direct spending or revenues.
    This legislation 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.
    S. 2543 would establish criteria and mechanisms for 
assessing, planning, designating, and developing new national 
heritage areas. For each proposed new NHA, Congressional action 
would be required to authorize both the first step, a 
feasibility study, and the final step, a formal NHA 
designation.
    Under the bill, once a feasibility study of a potential NHA 
has been authorized by the Congress, the NPS would either 
conduct the study itself or allow one to be undertaken by an 
interested local entity. Completed and assessed studies would 
then be submitted to the Congress. If legislation to designate 
the NHA is enacted and funds are made available, the chosen 
local coordinating entity for the area would have three years 
to submit a general management plan to the Secretary of the 
Interior for approval.
    The bill would authorize the appropriation of up to 
$250,000 annually for individual feasibility studies (up to a 
total of $750,000 a year). Finally, the bill would authorize 
the appropriation of up to $1 million per NHA per year (up to a 
total of $15 million annually) for financial and technical 
assistance to local coordinating entities. Such funds (up to a 
15-year total of $10 million per NHA) would be used to develop 
and implement management plans and administer the area.
    Because the authority to appropriate funds provided in S. 
2543 would depend on subsequent acts of Congress to authorize 
feasibility studies and designate new NHAs, CBO estimates that 
enacting this legislation alone would have no effect on the 
federal budget.
    The CBO staff contact for this estimate is Deborah Reis. 
The estimate was reviewed by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2543.
    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. 2543.

                        EXECUTIVE COMMUNICATIONS

    On June 24, 2004, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 2543. These 
reports had not been received when this report was filed. The 
testimony provided by the Department of the Interior and the 
Government Accountability Office at the Subcommittee hearing on 
S. 2543 follows:

 Statement of A. Durand Jones, Deputy Director, National Park Service, 
                       Department of the Interior

    Mr. Chairman and members of the subcommittee, it is my 
pleasure to appear before you today to testify on behalf of the 
Department of the Interior on S. 2543, the National Heritage 
Partnership Act. The Department strongly supports this bill, 
but has a few concerns about some of the provisions.
    The Department strongly supports legislation to establish a 
national heritage areas program. We would like to thank 
Chairman Thomas for his leadership over the last year in 
evaluating programmatic issues, identifying areas for 
legislative action, and introducing this bill based on the 
Administration's legislative proposal. This legislation was 
developed through a year-long process of Congressional 
oversight hearings, outside evaluations of the program (such as 
the March 2004 report by the General Accounting Office) and 
meetings among may of the groups interested in this issue.
    S. 2543 provides a much-needed framework for evaluating 
proposed national heritage area designations, offers guidelines 
for successful planning, clarifies the roles and 
responsibilities of all parties, and standardizes timeframes 
and funding for designated areas.
    The Department supports the national heritage areas 
approach to resource conservation through partnerships with 
communities. National heritage areas are intended to preserve 
nationally important natural, cultural, historic, and 
recreational resources through the creation of partnerships 
among Federal, State and local entities. National heritage 
areas are locally driven, initiated and managed by the people 
who live there and do not impose Federal zoning, land use 
controls nor do they require land acquisition. At its best, the 
collaborative approach of this program embodies Secretary of 
the Interior Gale Norton's ``Four Cs''--Communication, 
Consultation and Cooperation, all in the service of 
Conservation.
    S. 2543 supports a conservative strategy that recognizes 
that the people who live in a heritage area are uniquely 
qualified to preserve it. Being designated as a national 
heritage area can benefit visitors, community residents, 
existing National Park units located in the area, and other 
federal lands by expanding the opportunity to interpret and 
protect resources over a larger landscape and by telling our 
shared national story.
    There are three provisions in S. 2543 that we wish to 
discuss in more detail and to offer suggestions for 
improvements.


                        criteria for evaluation


    The standards for evaluating areas proposed for national 
designation are an essential element in establishing a national 
heritage areas program. While many places in this nation have 
special meaning to the people that live there, for many places 
designation as a State or local heritage area may be most 
appropriate. The National Park Service should be the lead 
partner only when the resource within a proposed heritage area 
are of national importance.
    The Department has some concerns about the use of the term 
``national significance'' and the definition provided in S. 
2543. We recommend replacing the term ``national significance'' 
with the term ``national importance'' to avoid confusion. The 
National Park Service specifically uses the term ``national 
significance'' in suitability and feasibility studies for new 
National Park System units. For this reason, the term 
``national importance'' has been informally used by the 
National Park Service to describe the assessment of national 
heritage area resources.
    In addition, having a concise, appropriate, and practical 
definition for ``national significance'' or ``national 
importance'' is critical. We would suggest a revised definition 
as applied in practice to existing and proposed national 
heritage areas:
    ``The term `National Importance' is ascribed to a proposed 
heritage area that illustrates major historic, cultural, 
natural or social themes important to the history of the United 
States and contains resources that are outstanding examples of 
natural and cultural features that contribute to the theme, and 
which possess a high degree of integrity, and are compatible 
with continued community development, public enjoyment, and 
use.''


                     suitability/feasibility study


    The Department believes that a study should be required for 
every proposed national heritage area and the study should be 
evaluated against legislatively established criteria before 
designation. S. 2543 requires that such a study be prepared 
that demonstrates evidence of place-based resources that tell a 
nationally significant story, which has the support and 
involvement of the local community. This requirement has been 
field-tested and has been shown to increase the future success 
of the heritage area.
    The Department recommends a modification to the terminology 
used for studies. In order to be consistent with terminology 
used in past study and designation bills for national heritage 
areas, we recommend that the studies be called ``feasibility 
studies'' instead of ``suitability/feasibility studies.'' This 
would also lessen any confusion with studies for new units of 
the National Park System that are called suitability and 
feasibility studies. We recommend that this change in 
terminology be used throughout the bill when referring to these 
studies.


                         funding and timeframes


    When the first national heritage corridors were designated 
twenty years ago, a Federal commission provided management for 
the areas and the National Park Service provided most of the 
staff. The national heritage corridor or area was conceived as 
a less expensive alternative to the acquisition and operation 
costs of creating a new unit of the National Park System. 
Theseareas were originally authorized for five years with a five-year 
extension; over time, the corridors have been reauthorized for 
additional periods.
    For the 18 national heritage areas established after 1995, 
the National Park Service encouraged management with greater 
involvement by local entities as a more cost-effective use of 
Federal resources. Most of these newer areas are managed by a 
non-profit entity or a State government and include a funding 
formula of not more than $10 million Federal dollars over a 
fifteen-year period. Our legislative proposal recommends 
codifying this approach and for the first time requires that a 
business plan be developed as part of the management planning 
for proposed new areas. This would ensure that from the 
beginning, national heritage areas are working towards and have 
an established plan for self-sufficiency. So far, no existing 
areas has ``graduated'' from the program, even after 20 years 
and in some cases, and nearly $100 million invested overall. 
For this reason, we recognize the need to work with existing 
areas to assist them in a transition strategy as they reach the 
end of their funding authorization. As areas become self-
sufficient, available resources could be reallocated to newly 
designated areas or other priorities.
    The Department is concerned with the new provision in 
section 9 of S. 2543 that caps the heritage areas program at 
$15 million per year. The Administration did not propose a cap 
on the program because we believe it is more appropriate to cap 
the amount of appropriations each area is authorized to 
receive, and to limit the authorized period for appropriations. 
Currently, there are 15 new national heritage areas pending for 
designation in Congress. In addition, there are 24 designated 
national heritage areas, many of which are authorized to 
receive appropriations of $1 million per year. However, we 
would expect to allocate funding among these areas within the 
levels of funds appropriated, which might require providing 
less than the individual authorized ceilings in some instances.


                               conclusion


    Recent studies and our own experiences have shown that the 
national heritage area approach links people and place, nature 
and culture, and the present with the past. National heritage 
areas capitalize on the unique role local communities play in 
preserving their heritage and telling their stories. S. 2543 
respects these principles. It assigns the appropriate roles and 
responsibilities to the key partners that must work together to 
make the program successful. It also recognizes the need to 
target our assistance to those areas where there is a national 
interest and where the local partners meet established criteria 
for success. We look forward to working with the committee to 
enact this important legislation.


                        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 S. 2543 as ordered 
reported.

                                  
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