[Senate Report 117-56]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 253
117th Congress     }                                    {       Report
                                 SENATE
 2d Session        }                                    {       117-56

======================================================================



 
        SKI HILL RESOURCES FOR ECONOMIC DEVELOPMENT ACT OF 2021

                                _______
                                

 January 19 (legislative day, January 18), 2022.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1964]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1964), to amend the Omnibus Parks and 
Public Lands Management Act of 1996 to provide for the 
establishment of a Ski Area Fee Retention Account, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment in the nature of a substitute 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 ``Ski Hill Resources for Economic 
Development Act of 2021''.

SEC. 2. ESTABLISHMENT OF SKI AREA FEE RETENTION ACCOUNT.

    (a) In General.--Section 701 of division I of the Omnibus Parks and 
Public Lands Management Act of 1996 (16 U.S.C. 497c) is amended by 
adding at the end the following:
    ``(k) Ski Area Fee Retention Account.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Account.--The term `Account' means the Ski Area 
                Fee Retention Account established under paragraph (2).
                  ``(B) Covered Unit.--The term `covered unit' means 
                the unit of the National Forest System that collects 
                the ski area permit rental charge under this section.
                  ``(C) Secretary.--The term `Secretary' means the 
                Secretary of Agriculture.
          ``(2) Establishment.--The Secretary of the Treasury shall 
        establish a special account in the Treasury, to be known as the 
        `Ski Area Fee Retention Account'.
          ``(3) Deposits.--Subject to paragraphs (4) and (5), a ski 
        area permit rental charge collected by the Secretary under this 
        section shall--
                  ``(A) be deposited in the Account;
                  ``(B) be available to the Secretary for use, without 
                further appropriation; and
                  ``(C) remain available for the period of 4 fiscal 
                years beginning with the first fiscal year after the 
                fiscal year in which the ski area permit rental charge 
                is deposited in the Account under subparagraph (A).
          ``(4) Distribution of Amounts in the Account.--
                  ``(A) Local Distribution of Funds.--
                          ``(I) In General.--Except as provided in 
                        subparagraph (C), the Secretary shall expend 80 
                        percent of the ski area permit rental charges 
                        deposited in the Account from a covered unit at 
                        the covered unit in accordance with clause 
                        (ii).
                          ``(ii) Distribution.--Of the amounts made 
                        available for expenditure under clause (i)--
                                  ``(I) 75 percent shall be used at the 
                                covered unit for activities described 
                                in paragraph (5)(A); and
                                  ``(II) 25 percent shall be used for 
                                activities at the covered unit 
                                described in paragraph (5)(B).
                  ``(B) Agency-Wide Distribution of Funds.--The 
                Secretary shall expend 20 percent of the ski area 
                permit rental charges deposited in the Account from a 
                covered unit at any unit of the National Forest System 
                for an activity described in subparagraph (A) or (B) of 
                paragraph (5).
                  ``(C) Reduction of Percentage.--
                                  ``(I) Reduction.--The Secretary shall 
                                reduce the percentage otherwise 
                                applicable under subparagraph (A)(i) to 
                                not less than 60 percent if the 
                                Secretary determines that the amount 
                                otherwise made available under that 
                                subparagraph exceeds the reasonable 
                                needs of the covered unit for which 
                                expenditures may be made in the 
                                applicable fiscal year.
                          ``(ii) Distribution of Funds.--The balance of 
                        the ski area permit rental charges that are 
                        collected at a covered unit, deposited into the 
                        Account, and not distributed in accordance with 
                        subparagraph (A) or (B) shall be available to 
                        the Secretary for expenditure at any other unit 
                        of the National Forest System in accordance 
                        with the following:
                                  ``(I) 75 percent shall be used for 
                                activities described in paragraph 
                                (5)(A).
                                  ``(II) 25 percent shall be used for 
                                activities described in paragraph 
                                (5)(B).
          ``(5) Expenditures.--Amounts available to the Secretary for 
        expenditure from the Account shall be only used for--
                  ``(A)(i) the administration of the Forest Service ski 
                area program, including--
                          ``(I) the processing of an application for a 
                        new ski area or a ski area improvement project, 
                        including staffing and contracting for the 
                        processing; and
                          ``(II) administering a ski area permit 
                        described in subsection (a);
                  ``(ii) staff training for--
                          ``(I) the processing of an application for--
                                  ``(aa) a new ski area;
                                  ``(bb) a ski area improvement 
                                project; or
                                  ``(cc) a special use permit; or
                          ``(II) administering--
                                  ``(aa) a ski area permit described in 
                                subsection (a); or
                                  ``(bb) a special use permit;
                  ``(iii) an interpretation activity, National Forest 
                System visitor information, a visitor service, or 
                signage;
                  ``(iv) direct costs associated with collecting a ski 
                area permit rental charge or other fee collected by the 
                Secretary related to recreation;
                  ``(v) planning for, or coordinating to respond to, a 
                wildfire in or adjacent to a recreation site, 
                particularly a ski area; or
                  ``(vi) reducing the likelihood of a wildfire 
                starting, or the risks posed by a wildfire, in or 
                adjacent to a recreation site, particularly a ski area, 
                except through hazardous fuels reduction activities; or
          ``(B)(i) the repair, maintenance, or enhancement of a Forest 
        Service-owned facility, road, or trail directly related to 
        visitor enjoyment, visitor access, or visitor health or safety;
                  ``(ii) habitat restoration directly related to 
                recreation;
                  ``(iii) law enforcement related to public use and 
                recreation;
                  ``(iv) the construction or expansion of parking 
                areas;
                  ``(v) the processing or administering of a recreation 
                special use permit;
                  ``(vi) avalanche information and education activities 
                carried out by the Secretary or nonprofit partners;
                  ``(vii) search and rescue activities carried out by 
                the Secretary, a local government, or a nonprofit 
                partner; or
                  ``(viii) the administration of leases under--
                          ``(I) the Forest Service Facility Realignment 
                        and Enhancement Act of 2005 (16 U.S.C. 580d 
                        note; Public Law 109-54); and
                          ``(II) section 8623 of the Agriculture 
                        Improvement Act of 2018 (16 U.S.C. 580d note; 
                        Public Law 115-334).
          ``(6) Limitation.--Amounts in the Account may not be used 
        for--
                  ``(A) the conduct of wildfire suppression; or
                  ``(B) the acquisition of land for inclusion in the 
                National Forest System.
          ``(7) Effect.--
                  ``(A) In General.--Nothing in this subsection affects 
                the applicability of section 7 of the Act of April 24, 
                1950 (commonly known as the `Granger-Thye Act') (16 
                U.S.C. 580d), to ski areas on National Forest System 
                land.
                  ``(B) Supplemental Funding.--Rental charges retained 
                and expended under this subsection shall supplement 
                (and not supplant) appropriated funding for the 
                operation and maintenance of each covered unit.
                  ``(C) Cost Recovery.--Nothing in this subsection 
                affects any cost recovery under any provision of law 
                (including regulations) for processing an application 
                for or monitoring compliance with a ski area permit or 
                other recreation special use permit.''.
    (b) Effective Date.--This section (including the amendments made by 
this section) shall take effect on the date that is 60 days after the 
date of enactment of this Act.

                                Purpose

    The purpose of S. 1964 is to amend the Omnibus Parks and 
Public Lands Management Act of 1996 to provide for the 
establishment of a Ski Area Fee Retention Account.

                          Background and Need

    There are currently 122 ski areas across the country that 
operate on National Forest System land. These ski areas provide 
about 60 percent of the total capacity for downhill skiing in 
the U.S., and support outdoor recreation economies in 14 
states. Ski areas operating on National Forests are required to 
pay annual fees to the U.S. Forest Service for the use of these 
public lands. The fees are calculated according to a formula 
that considers the acres of public lands used by the ski area 
and the profits derived from the use of those lands. Ski areas 
pay an average of $40 million annually to the Forest Service.
    Recreation officers on National Forests often provide 
services (such as reviewing proposals and issuing permits) to 
these ski areas alongside the other businesses that operate on 
National Forests, as well as the public. In the past, delays in 
reviewing proposals have slowed several ski areas' ability to 
replace or update their infrastructure. In addition, the marked 
increase in visitation on these forests requires additional 
resources to address recreation needs, both within and outside 
ski areas. S. 1964 is a response to this need.
    Currently, the ski area fees that are collected on National 
Forests are deposited into the General Fund of the U.S. 
Treasury. The bill establishes a Ski Area Fee Retention Account 
in the U.S. Treasury, in which 100 percent of the fees paid by 
ski resorts for operating on National Forests would be 
deposited and remain available for use by the Forest Service 
for various skiing-related and non-skiing-related uses.

                          Legislative History

    Senators Bennett, Barrasso, Rosen, Cortez Masto, 
Hickenlooper, Risch, and Crapo introduced the SHRED Act on June 
8, 2021. Nine other senators are also cosponsors. The Committee 
on Energy and Natural Resources held a hearing on the bill on 
October 21, 2021. Representative Kuster introduced a companion 
bill (H.R. 3686) in the House of Representatives on June 4, 
2021, with 16 cosponsors. The House Natural Resources 
Subcommittee on National Parks, Forests, and Public Lands held 
a hearing on H.R. 3686 on June 8, 2021.
    Senator Gardner introduced similar legislation, S. 1723, in 
the 116th Congress, with 12 cosponsors. The Committee on Energy 
and Natural Resources held a hearing on S. 1723 on October 31, 
2019.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 18, 2021, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
1964, as amended as described herein.

                          Committee Amendment

    During its consideration of S. 1964, the Committee adopted 
an amendment in the nature of a substitute. Under the amended 
text, 100 percent of the ski area fees that are currently 
deposited into the U.S. Treasury would be retained by the U.S. 
Forest Service for use on National Forest System land, instead 
of 80 percent. Also, the amendment changed the bill's 
distribution formula for the retained receipts as well as the 
eligible uses for this funding. Specifically, the new formula 
distributes a portion of the retained receipts to National 
Forests that do not have a ski area.
    The amendment is described in detail in the section-by-
section analysis, below.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides the short title for the bill, the ``Ski 
Hill Resources for Economic Development Act of 2021''.

Section 2. Establishment of Ski Area Fee Retention Account

    Section 2(a) amends section 701 of division I of the 
Omnibus Parks and Public Lands Management Act of 1996 (16 
U.S.C. 497c) to add a new subsection (k), which establishes the 
``Ski Area Fee Retention Account'' (Account).
    Paragraph (1) of the new subsection (k) defines key terms 
used in the bill.
    Paragraph (2) requires the Secretary of the Treasury to 
establish the Account.
    Paragraph (3) directs the Forest Service to deposit all ski 
area fees into the Account and authorizes the Forest Service to 
use these funds, without needing to be appropriated, for a 
period of 4 fiscal years after the fiscal year in which the 
funds are deposited.
    Paragraph (4)(A) requires that 80 percent of the funds 
deposited into the Account shall remain at the National Forest 
where the fees are collected. Of that amount, 75 percent shall 
be used for certain skiing-related activities and 25 percent 
shall be used for certain activities to support other forms of 
recreation.
    Paragraph (4)(B) authorizes the Forest Service to use the 
remaining 20 percent of the funds on any National Forest, for 
certain skiing-related activities and certain activities that 
support other forms of recreation.
    Paragraph (4)(C) allows the Forest Service to reduce the 
amount of funds kept at the National Forest that collects the 
ski area fees, under subparagraph (A) from 80 percent to 60 
percent if the amount exceeds the reasonable needs of the 
National Forest. The balance of the funds may be transferred to 
other units of the National Forest System. 75 percent of the 
balance is to be used for the skiing-related activities, and 25 
percent is to be used for the activities that support other 
forms of recreation.
    Paragraph (5)(A) lists the eligible skiing-related 
activities, including permit administration and processing of 
proposals for ski area improvement projects, training programs, 
interpretation activities, visitor information and signage, and 
wildfire prevention and planning in or adjacent to any 
recreation site, but especially ski areas.
    Paragraph (5)(B) lists the eligible activities that support 
other forms of recreation, including for the repair or 
improvement of Forest Service facilities, roads, or trails; 
habitat restoration; law enforcement; the construction of 
parking areas; processing recreational special use permits, and 
search and rescue activities carried out by the Forest Service, 
a local government, or a nonprofit partner.
    Paragraph (6) makes clear that funds from the Account 
cannot be used for wildfire suppression or land acquisition.
    Paragraph (7) includes a savings clause to make clear that 
nothing in this bill affects the applicability of the Granger-
Thye Act (16 U.S.C. 580d) to skiing businesses operating in 
government-owned facilities on National Forest System land, and 
nothing affects cost recovery for processing permits. 
Subsection (k)(7) also states that retained fees should not 
supplant appropriated funding.
    Subsection (b) makes the changes to the underlying law 
effective 60 days after the date of enactment of the bill.

                   Cost and Budgetary Considerations

    The Congressional Budget Office has not estimated the costs 
of S. 1964 as passed by the Senate. The Committee has 
requested, but has not yet received, the Congressional Budget 
Office's estimate of the cost of S. 1964 as ordered reported. 
When the Congressional Budget Office completes its cost 
estimate, it will be posted on the Internet at www.cbo.gov.

                      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. 1964. 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. 1964, as ordered reported.

                   Congressionally Directed Spending

    S. 1964, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Forest Service at the October 
21, 2021, hearing on S. 1964 follows:

Statement of Chris French, Deputy Chief, National Forest System, United 
         States Department of Agriculture, U.S. Forest Service

S. 1964--Ski Hill Resources for Economic Development Act (``SHRED'' 
        Act)
    The SHRED Act would amend the Omnibus Parks and Public 
Lands Management Act of 1996 to establish a ski area permit fee 
retention account and to authorize the Forest Service to 
deposit ski area permit fee revenues into that account and 
retain and spend the revenues for specified purposes.
    USDA has previously testified in support of the 
establishment of a ski area permit fee retention account and 
continues to support the authority to retain and spend this 
type of permit fee. The authority to retain and spend ski area 
permit fees would improve customer service through improved ski 
area permit administration. The bill would increase 
efficiencies in administering ski area permits, Agency staff 
training, visitor information, signage, wildfire preparedness 
coordination, and enhanced avalanche-related safety education. 
We appreciate that this new version of the bill would provide 
for some of the retained permit fees to be used for 
administration of other types of commercial recreation permits, 
visitor services, and other purposes.
    In 2019, $57 million in ski area permit fees were submitted 
to the United States Treasury from National Forest System 
lands. The current ten-year average for annual ski area permit 
fees is $40 million. Based on the formula in the bill, we 
expect approximately $27.5 million in ski area permit fees 
would be retained by the Forest Service annually. Retained ski 
area permit fees would be used to improve administration of 
recreation opportunities that contribute to local economic 
activity across 122 ski resort communities operating on 
National Forest System lands, primarily in rural areas, in 14 
states. These recreation opportunities spur industry growth and 
generate revenue for ski areas. It is important that ski area 
permit fees retained under the bill supplement, not supplant, 
cost recovery fees collected and retained under existing 
statutory authorities, including cost recovery fees charged for 
processing applications for new uses at ski areas. USDA would 
like to work with the Committee to ensure the bill language 
accomplishes this intent and that the financial mechanisms in 
the bill also achieve their intended purpose.
    USDA appreciates the Committee's interest in this issue and 
strongly supports efforts to foster recreational use of federal 
lands and further improve our ability to provide excellent 
customer service. We look forward to working with the bill 
sponsor and the Committee to promote these important goals.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1964, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                           Public Law 104-333


         OMNIBUS PARKS AND PUBLIC LANDS MANAGEMENT ACT OF 1996

AN ACT To Provide for the Administration of Certain Presidio Properties 
    at Minimal Cost to the Federal Taxpayer, and for Other Purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

           *       *       *       *       *       *       *


DIVISION I

           *       *       *       *       *       *       *


                            TITLE VII--FEES

SEC. 701. SKI AREA PERMIT RENTAL CHARGE.

           *       *       *       *       *       *       *


    (k) Ski Area Fee Retention Account.--
          (1) Definitions.--In this subsection:
                  (A) Account.--The term ``Account'' means the 
                Ski Area Fee Retention Account established 
                under paragraph (2).
                  (B) Covered Unit.--The term ``covered unit'' 
                means the unit of the National Forest System 
                that collects the ski area permit rental charge 
                under this section.
                  (C) Secretary.--The term ``Secretary'' means 
                the Secretary of Agriculture.
          (2) Establishment.--The Secretary of the Treasury 
        shall establish a special account in the Treasury, to 
        be known as the ``Ski Area Fee Retention Account''.
          (3) Deposits.--Subject to paragraphs (4) and (5), a 
        ski area permit rental charge collected by the 
        Secretary under this section shall--
                  (A) be deposited in the Account;
                  (B) be available to the Secretary for use, 
                without further appropriation; and
                  (C) remain available for the period of 4 
                fiscal years beginning with the first fiscal 
                year after the fiscal year in which the ski 
                area permit rental charge is deposited in the 
                Account under subpargraph (A).
          (4) Distribution of Amounts in the Account.--
                (A) Local distribution of funds.--
                          (i) In general.--Except as provided 
                        in subpargraph (C), the Secretary shall 
                        expend 80 percent of the ski area 
                        permit rental charges deposited in the 
                        Account from a covered unit at the 
                        covered unit in accordance with clause 
                        (ii).
                          (ii) Distribution.--Of the amounts 
                        made available for expenditure under 
                        clause (i)--
                                  (I) 75 percent shall be used 
                                at the covered unit for 
                                activities described in 
                                paragraph (5)(A); and
                                  (II) 25 percent shall be used 
                                for activities at the covered 
                                unit described in paragraph 
                                (5)(B).
                  (B) Agency-wide distribution of funds.--The 
                Secretary shall expend 20 percent of the ski 
                area permit rental charges deposited in the 
                Account from a covered unit at any unit of the 
                National Forest System for an activity 
                described in subparagraph (A) or (B) of 
                paragraph (5).
                  (C) Reduction of Percentage.--
                          (i) Reduction.--The Secretary shall 
                        reduce the percentage otherwise 
                        applicable under subparagraph (A)(i) to 
                        not less than 60 percent if the 
                        Secretary determines that the amount 
                        otherwise made available under that 
                        subparagraph exceeds the reasonable 
                        needs of the covered unit for which 
                        expenditures may be made in the 
                        applicable fiscal year.
                          (ii) Distribution of funds.--The 
                        balance of the ski area permit rental 
                        charges that are collected at a covered 
                        unit, deposited into the Account, and 
                        not distributed in accordance with 
                        subparagraph (A) or (B) shall be 
                        available to the Secretary for 
                        expenditure at any other unit of the 
                        National Forest System in accordance 
                        with the following:
                                  (I) 75 percent shall be used 
                                for activities described in 
                                paragraph (5)(A).
                                  (II) 25 percent shall be used 
                                for activities described in 
                                paragraph (5)(B).
          (5) Expenditures.--Amounts available to the Secretary 
        for expenditure from the Account shall be only used 
        for--
                  (A)(i) the administration of the Forest 
                Service ski area program, including--
                          (I) the processing of an application 
                        for a new ski area or a ski area 
                        improvement project, including staffing 
                        and contracting for the processing; and
                          (II) administering a ski area permit 
                        described in subsection (a);
                  (ii) staff training for--
                          (I) the processing of an application 
                        for--
                                  (aa) a new ski area;
                                  (bb) a ski area improvement 
                                project; or
                                  (cc) a special use permit; or
                          (II) administering--
                                  (aa) a ski area permit 
                                described in subsection (a); or
                                  (bb) a special use permit;
                  (iii) an interpretation activity, National 
                Forest System visitor information, a visitor 
                service, or signage;
                  (iv) direct costs associated with collecting 
                a ski area permit rental charge or other fee 
                collected by the Secretary related to 
                recreation;
                  (v) planning for, or coordinating to respond 
                to, a wildfire in or adjacent to a recreation 
                site, particularly a ski area; or
                  (vi) reducing the likelihood of a wildfire 
                starting, or the risks posed by a wildfire, in 
                or adjacent to a recreation site, particularly 
                a ski area, except through hazardous fuels 
                reduction activities; or
          (B)4(i) the repair, maintenance, or enhancement of a 
        Forest Service-owned facility, road, or trail directly 
        related to visitor enjoyment, visitor access, or 
        visitor health or safety;
                  (ii) habitat restoration directly related to 
                recreation;
                  (ii) law enforcement related to public use 
                and recreation;
                  (iv) the construction or expansion of parking 
                areas;
                  (v) the processing or administering of a 
                recreation special use permit;
                  (vi) avalanche information and education 
                activities carried out by the Secretary or 
                nonprofit partners;
                  (vii) search and rescue activities carried 
                out by the Secretary, a local government, or a 
                nonprofit partner; or
                  (viii) the administration of leases under--
                          (I) the Forest Service Facility 
                        Realignment and Enhancement Act of 2005 
                        (16 U.S.C. 580d note; Public Law 109-
                        54); and
                          (II) section 8623 of the Agriculture 
                        Improvement Act of 2018 (16 U.S.C. 580d 
                        note; 15 Public Law 115-334).
          (6) Limitation.--Amounts in the Account may not be 
        used for--
                  (A) the conduct of wildfire suppression; or
                  (B) the acquisition of land for inclusion in 
                the National Forest System.
          (7) Effect.--
                  (A) In general.--Nothing in this subsection 
                affects the applicability of section 7 of the 
                Act of April 24, 1950 (commonly known as the 
                ``Granger-Thye Act'') (16 U.S.C. 580d), to ski 
                areas on National Forest System land.
                  (B) Supplemental funding.--Rental charges 
                retained and expended under this subsection 
                shall supplement (and not supplant) 
                appropriated funding for the operation and 
                maintenance of each covered unit.
                  (C) Cost recovery.--Nothing in this 
                subsection affects any cost recovery under any 
                provision of law (including regulations) for 
                processing an application for or monitoring 
                compliance with a ski area permit or other 
                recreation special use permit.

           *       *       *       *       *       *       *


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