[House Report 112-655]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-655
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MINNESOTA EDUCATION INVESTMENT AND EMPLOYMENT ACT
_______
September 10, 2012.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Hastings of Washington, from the Committee on Natural Resources,
submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 5544]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 5544) to authorize and expedite a land exchange
involving National Forest System land in the Laurentian
District of the Superior National Forest and certain other
National Forest System land in the State of Minnesota that has
limited recreational and conservation resources and lands owned
by the State of Minnesota in trust for the public school system
that are largely scattered in checkerboard fashion within the
Boundary Waters Canoe Area Wilderness and have important
recreational, scenic, and conservation resources, 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 all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Minnesota Education Investment and
Employment Act''.
SEC. 2. LAND EXCHANGE, BOUNDARY WATERS CANOE AREA WILDERNESS AND
SUPERIOR NATIONAL FOREST, MINNESOTA.
(a) Findings.--Congress makes the following findings:
(1) The State of Minnesota owns multiple parcels of land in
the Boundary Waters Canoe Area Wilderness in the Superior
National Forest that were granted to the State through sections
16 and 36 of the Enabling Act of 1857 to be held in trust for
the benefit of the public school system in the State (in this
section referred to as ``State trust lands'').
(2) The State trust lands were acquired by the State long
before the establishment of either the National Forest System
or the wilderness area and are scattered in a largely
checkerboard fashion amid the Superior National Forest and the
wilderness area.
(3) The presence of State trust lands in the wilderness area
makes land and resource management in the wilderness area more
difficult, costly, and controversial for the United States and
the State.
(4) Although the State trust lands were granted to the State
to generate financial support for the public school system
through the sale or development of natural resources,
development of those resources in the wilderness area may be
incompatible with managing the wilderness area for
recreational, natural, and conservation purposes.
(5) The United States owns land and interests in land in
other parts of the State that can be transferred to the State
in exchange for the State trust lands without jeopardizing
Federal management objectives or needs.
(6) It is in the public interest to exchange, on terms that
are fair to the United States and the State, National Forest
System land in the State that has limited recreational and
conservation resources for State trust lands located in the
wilderness area with important recreational, scenic, and
conservation resources for permanent public management and use.
(7) The Legislature of the State of Minnesota, meeting in its
87th Legislative Session, passed (and on April 27, 2012, the
Governor of Minnesota approved) S.F No. 1750 (Chapter 236),
section 4 of which adds section 92.80 to the Minnesota Statutes
to expedite the exchange of a portion of the State trust lands
located within the Boundary Waters Canoe Area Wilderness.
(b) Land Exchange Required.--The Secretary of Agriculture shall
consummate a land exchange with the State of Minnesota pursuant to
section 4 of S.F No. 1750 (Chapter 236) of the Legislature of the State
of Minnesota (section 92.80 of the Minnesota Statutes) to acquire all
right, title, and interest of the State in and to certain State trust
lands identified as provided in such section in exchange for all right,
title, and interest of the United States in and to National Forest
System land in the State for inclusion in the State trust lands.
(c) Valuation of Lands for Exchange.--Subdivision 4 of section 4 of
S.F No. 1750 (Chapter 236) of the Legislature of the State of Minnesota
(section 92.80 of the Minnesota Statutes) shall control for purposes of
the examination and value determination of the lands to be exchanged.
(d) Survey and Administrative Costs.--The exact acreage and legal
description of the land to be exchanged under subsection (b) shall be
determined by a survey satisfactory to the Secretary. The State of
Minnesota shall be responsible for the costs of the survey and all
other administrative costs related to the land exchange.
(e) Boundaries and Management of Acquired Land.--
(1) Land acquired by secretary.--
(A) In general.--The land acquired by the Secretary
under subsection (b) shall be added to and administered
as part of the Boundary Waters Canoe Area Wilderness
established pursuant to section 3 of the Wilderness Act
(16 U.S.C. 1132(a)), and the Secretary shall modify the
boundaries of the wilderness area to reflect inclusion
of the acquired lands. Subject to subparagraph (B), the
land acquired by the Secretary shall be managed in
accordance with the Wilderness Act (16 U.S.C. 1131 et
seq.) and other laws and regulations applicable to the
National Wilderness Preservation System.
(B) No effect on existing fishing and hunting
rights.--The acquisition of land by the United States
under subsection (b) and inclusion of the land in the
Boundary Waters Canoe Area Wilderness shall not alter
or otherwise affect--
(i) any fishing and hunting rights in
existence with respect to the land immediately
before the conveyance of the land to the United
States; or
(ii) the use of such rights after conveyance.
(2) Land acquired by state.--The land acquired by the State
of Minnesota under subsection (b) shall be deemed to be State
trust lands and shall be held in trust for the benefit of the
public school system in the State. It is the sense of Congress
that, whenever the land acquired by the State of Minnesota
under subsection (b) is not being used for revenue-generating
activities, the State should make the land available for other
compatible uses, including hunting, fishing, hiking, biking,
snowmobiling, and trail riding.
(3) Boundaries of superior national forest.--The Secretary
shall modify the boundaries of the Superior National Forest to
reflect the land exchange conducted under this section.
(f) Relation to Other Laws.--
(1) Land and water conservation fund act.--For purposes of
section 7 of the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l-9), the boundaries of the Superior National
Forest, as modified by subsection (e)(3), shall be considered
to be boundaries of the Superior National Forest as of January
1, 1965.
(2) Not a major federal action.--The land exchange conducted
under this section shall not be considered to be a major
Federal action.
(g) No Impact on Other Land Exchanges.--The land exchange described
in subsection (b) does not affect any land exchange involving National
Forest System land in the State of Minnesota underway as of the date of
the enactment of this Act.
(h) Report.--If the Secretary fails to complete the land exchange
described in subsection (b) before the end of the 18-month period
beginning on the date of the enactment of this Act, the Secretary shall
submit to Congress, not later than 30 days after the end of such
period, a report--
(1) specifying the reasons why the exchange has not been
completed; and
(2) stating the date by which the Secretary anticipates the
conveyance will be completed.
PURPOSE OF THE BILL
The purpose of H.R. 5544, as ordered reported, is to
authorize and expedite a land exchange involving National
Forest System land in the Laurentian District of the Superior
National Forest and certain other National Forest System land
in the State of Minnesota that has limited recreational and
conservation resources and lands owned by the State of
Minnesota in trust for the public school system that are
largely scattered in checkerboard fashion within the Boundary
Waters Canoe Area Wilderness and have important recreational,
scenic, and conservation resources.
BACKGROUND AND NEED FOR LEGISLATION
The Minnesota Education Investment and Employment Act (H.R.
5544) would authorize a land exchange between the Superior
National Forest and the State of Minnesota. Like many
territories-turned-states, Minnesota retained a number of
parcels of school trust land upon entering statehood for sale
and/or development to raise funds for education, many of which
were sold in the 1880s for agriculture and development. There
now remains approximately 2.5 million acres of school trust
land in the State of Minnesota, located primarily in ten
northern counties. Unfortunately, several thousand acres of
school trust land were included within the border of the
Boundary Waters Canoe Area Wilderness (BWCAW) when it was
established by Congress in 1978.
Access and development of these school trust lands is
effectively prohibited by being located within a
congressionally-designated wilderness area. The Wilderness Act
of 1964 prohibits road-building and the use of motorized or
mechanized equipment across federal land that would be
necessary for the State to make any use of these lands. H.R.
5544 would provide a solution to this longstanding issue by
exchanging the acres of school trust land locked away within
the BWCAW for an in-kind amount of land from the Superior
National Forest.
Opponents of a land exchange have advocated for the Forest
Service to simply purchase the parcels within the BWCAW using
the Land and Water Conservation Fund. However, given that the
value of the parcels is estimated to be in excess of $100
million, an acquisition is not fiscally feasible.
H.R. 5544 directs the Secretary of Agriculture to enter
into a land exchange with the State of Minnesota for the trust
lands located within the BWCAW pursuant to the terms outlined
by law recently enacted by the State of Minnesota (S.F. 1750),
that requires equal value for the parcels to be exchanged. In
addition, the legislation specifies that the State of Minnesota
is responsible for all survey and administrative costs of the
exchange, and that lands acquired by the State remain open to
recreational activities while not in use for revenue
generation.
During Full Committee consideration of the bill, the
Committee adopted an amendment offered by Congressman Rob
Bishop (R-UT) to make a technical correction and extend the
deadline for completion of the exchange from one year to 18
months.
COMMITTEE ACTION
H.R. 5544 was introduced on May 8, 2012, by Congressman
Chip Cravaack (R-MN). The bill was referred to the House
Committee on Natural Resources, and within the Committee to the
Subcommittee on National Parks, Forests and Public Lands. On
June 8, 2012, the Subcommittee on National Parks, Forests and
Public Lands held a hearing on the bill. On August 1, 2012, the
Full Resources Committee met to consider the bill. The
Subcommittee on National Parks, Forests and Public Lands was
discharged by unanimous consent. Congressman Rob Bishop (R-UT)
offered an amendment designated #1 to the bill; the amendment
was adopted by voice vote. Congressman Raul Grijalva (D-AZ)
offered an amendment designated .AM2 to the bill; the amendment
was not adopted by a roll call vote of 19 to 25, as follows:
The bill, as amended, was then adopted and ordered
favorably reported to the House of Representatives by a roll
call vote of 25 to 19, as follows:
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 Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(1) 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)(2)(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. 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:
H.R. 5544--Minnesota Education Investment and Employment Act
Summary: H.R. 5544 would require the Secretary of
Agriculture to exchange unspecified national forest lands for
86,000 acres of land owned by the state of Minnesota, located
within the federal Boundary Waters Canoe Area Wilderness
(BWCAW). Based on information provided by the Forest Service,
CBO estimates that enacting the legislation would increase
direct spending by $6 million over the 2014-2022 period;
therefore, pay-as-you-go procedures apply. Enacting H.R. 5544
would not affect revenues.
The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The state of Minnesota would benefit from the land exchange
authorized in the bill. Any costs to the state would be
incurred voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5544 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013-2017 2013-2022
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CHANGES IN DIRECT SPENDING
Estimated Budget Authority........................ 0 * * 1 1 1 1 1 1 1 2 6
Estimated Outlays................................. 0 * * 1 1 1 1 1 1 1 2 6
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Notes: Amounts may not sum to totals because of rounding.
* = less than $500,000.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted late in 2012.
H.R. 5544 would require the Secretary of Agriculture to
complete a land exchange that would increase the amount of
federally owned land within the BWCAW. Under the Thye-Blatnick
Act, the Forest Service makes annual payments to three counties
in Minnesota that encompass portions of the BWCAW. Those
payments are calculated as a percentage of the appraised value
of federally owned lands within the BWCAW. In 2012, the Forest
Service owned 600,000 acres of land within the BWCAW and paid
the affected counties $6 million. Based on information provided
by the Forest Service, CBO expects that, under the bill, the
amount of federally owned land within the BWCAW would increase
by 86,000 acres (about 15 percent) over the 2013-2016 period,
and we estimate that payments to the affected counties would
increase by a total of $6 million over the 2014-2022 period.
In addition, CBO expects that the Forest Service would
convey lands within the Superior National Forest, which are
located outside the BWCAW, to the state of Minnesota to
complete the land exchange required under the bill. Because
those lands could generate offsetting receipts (a credit
against direct spending) from timber sales or other activities
over the next 10 years, enacting the bill could reduce
offsetting receipts. However, CBO estimates that any loss of
receipts would probably not exceed $500,000 in any year.
Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. CBO estimates that enacting H.R. 5544 would increase
direct spending by $6 million over the 2014-2022 period.
Enacting H.R. 5544 would not affect revenues.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5544 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON AUGUST 1, 2012
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By fiscal year, in millions of dollars--
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012-2017 2012-2022
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NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact............ 0 0 0 0 1 1 1 1 1 1 1 2 6
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Intergovernmental and private-sector impact: H.R. 5544
contains no intergovernmental or private-sector mandates as
defined in UMRA. The state of Minnesota would benefit from the
land exchange authorized in the bill. Any costs to the state
would be incurred voluntarily.
Estimate prepared by: Federal costs: Jeff LaFave; Impact on
state, local, and tribal governments: Melissa Merrell; Impact
on the private sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
2. Section 308(a) of 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, credit authority, or an increase or decrease in
revenues or tax expenditures. According to the Congressional
Budget Office, enactment of the legislation would increase
direct spending by $6 million over 2014-2022. In addition, CBO
estimates that the bill could also reduce offsetting receipts
of not more than $500,000 in any year.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill, as ordered reported, is to authorize
and expedite a land exchange involving National Forest System
land in the Laurentian District of the Superior National Forest
and certain other National Forest System land in the State of
Minnesota that has limited recreational and conservation
resources and lands owned by the State of Minnesota in trust
for the public school system that are largely scattered in
checkerboard fashion within the Boundary Waters Canoe Area
Wilderness and have important recreational, scenic, and
conservation resources.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
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.
DISSENTING VIEWS
Proponents of H.R. 5544 argue that state trust lands within
the Boundary Waters Canoe Area Wilderness (BWCAW) should be
exchanged for federal lands outside that area so that the state
can generate more revenue through mining and logging. The
legislation contains a number of controversial provisions,
however, and ignores the fact that the relevant Minnesota
counties are already being compensated for the presence of
federal land within their boundaries. As a result, H.R. 5544
should be rejected.
H.R. 5544 mandates the exchange of land between the State
of Minnesota and the U.S. Forest Service without identifying
which federal lands will go into state ownership. Further, the
legislation uses non-traditional methods to appraise those
lands, putting taxpayers at risk. Finally, H.R. 5544 waives
public input and consultation, making the bill controversial
and potentially setting an unacceptable precedent. These
defects were raised by the Forest Service in testimony against
this legislation.
Counties in Minnesota continue to be compensated by the
federal government for the designation of the BWCAW. In
addition to payments that other counties receive through the
Secure Rural Schools and Payment in Lieu of Taxes (PILT)
programs, Cook, Lake, and St. Louis counties receive mandatory
annual payments totaling $6 million to compensate for the loss
of property tax revenues resulting from federal ownership of
land within the BWCAW.
During Committee consideration of this legislation, Ranking
Member Grijalva offered an amendment to provide public
participation and taxpayer protections while allowing the
exchange to proceed. The amendment was defeated by a party-line
vote.
There are ways to facilitate land exchanges that bring
people together to a common solution. This bill is not one of
them and should be rejected.
Edward J. Markey.
Raul Grijalva.