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[Senate Report 109-243]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 405
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-243

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            SIERRA NATIONAL FOREST LAND EXCHANGE ACT OF 2006

                                _______
                                

                 April 20, 2006.--Ordered to be printed

   Filed, under authority of the order of the Senate of April 7, 2006

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

                              R E P O R T

                        [To accompany H.R. 409]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 409) to provide for the exchange of land 
within the Sierra National Forest, California, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the Act, 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.

  This Act may be cited as the ``Sierra National Forest Land Exchange 
Act of 2006''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Council.--The term ``Council'' means the Sequoia Council 
        of the Boy Scouts of America.
          (2) Federal land.--The term ``Federal land'' means the parcel 
        of land comprising 160 acres and located in E\1/2\SW\1/4\ and 
        W\1/2\SE\1/4\, sec. 30, T. 9 S., R. 25 E., Mt. Diablo Meridian, 
        California.
          (3) Non-federal land.--The term ``non-Federal land'' means a 
        parcel of land comprising approximately 80 acres and located in 
        N\1/2\NW\1/4\, sec. 29, T. 8 S., R. 26 E., Mt. Diablo Meridian, 
        California.
          (4) Project no. 67.--The term ``Project No. 67'' means the 
        hydroelectric project licensed pursuant to the Federal Power 
        Act (16 U.S.C. 791a et seq.) as Project No. 67.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.

SEC. 3. LAND EXCHANGE, SIERRA NATIONAL FOREST, CALIFORNIA.

  (a) Exchange Authorized.--
          (1) In general.--If, during the 1-year period beginning on 
        the date of enactment of this Act, the owner of the non-Federal 
        land offers to convey to the United States title to the non-
        Federal land and to make a cash equalization payment of $50,000 
        to the United States, the Secretary shall convey to the owner 
        of the non-Federal land, all right, title, and interest of the 
        United States in and to the Federal land, except as provided in 
        subsection (d), subject to valid existing rights, and under 
        such terms and conditions as the Secretary may require.
          (2) Correction and modification of legal descriptions.--
                  (A) In general.--The Secretary, in consultation with 
                the owner of the non-Federal land, may agree to make 
                corrections to the legal descriptions of the Federal 
                land and non-Federal land.
                  (B) Modifications.--The Secretary and the owner of 
                the non-Federal land may agree to make minor 
                modifications to the legal descriptions if the 
                modifications do not affect the overall value of the 
                exchange by more than 5 percent.
  (b) Valuation of Land to Be Conveyed.--For purposes of this section, 
during the period referred to in subsection (a)(1)--
          (1) the value of the non-Federal land shall be considered to 
        be $200,000; and
          (2) the value of the Federal land shall be considered to be 
        $250,000.
  (c) Administration of Land Acquired by United States.--On acquisition 
by the Secretary, the Secretary shall manage the non-Federal land in 
accordance with--
          (1) the Act of March 1, 1911 (commonly known as the ``Weeks 
        Act'') (16 U.S.C. 480 et seq.); and
          (2) any other laws (including regulations) applicable to the 
        National Forest System.
  (d) Conditions on Conveyance of Federal Land.--The conveyance by the 
Secretary under subsection (a) shall be subject to the conditions 
that--
          (1) the recipient of the Federal land convey all 160 acres of 
        the Federal land to the Council not later than 120 days after 
        the date on which the recipient receives title to the Federal 
        land;
          (2) in accordance with section 4(a), the Secretary grant to 
        the owner of Project No. 67 an easement; and
          (3) in accordance with section 4(b), the owner of Project No. 
        67 has the right of first refusal regarding any reconveyance of 
        the Federal land by the Council.
  (e) Disposition and Use of Cash Equalization Funds.--
          (1) In general.--The Secretary shall deposit the cash 
        equalization payment received under subsection (a)(1) in the 
        fund established by Public Law 90-171 (commonly known as the 
        ``Sisk Act'') (16 U.S.C. 484a).
          (2) Use.--Amounts deposited under paragraph (1) shall be 
        available to the Secretary until expended, without further 
        appropriation, for the acquisition of land and any interests in 
        land for the National Forest System in the State of California.
  (f) Cost Collection Funds.--
          (1) In general.--The owner of the non-Federal land shall pay 
        to the Secretary all direct costs associated with processing 
        the land exchange under this section.
          (2) Cost collection account.--
                  (A) In general.--Any amounts received by the 
                Secretary under paragraph (1) shall be deposited in a 
                cost collection account.
                  (B) Use.--Amounts deposited under subparagraph (A) 
                shall be available to the Secretary until expended, 
                without further appropriation, for the costs associated 
                with the land exchange.
                  (C) Refund.--The Secretary shall provide to the owner 
                of the non-Federal land a refund of any amounts 
                remaining in the cost collection account after 
                completion of the land exchange that are not needed to 
                cover expenses of the land exchange.
  (g) Land and Water Conservation Fund.--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 Sierra National Forest shall be considered to be 
the boundaries of the Sierra National Forest as of January 1, 1965.

SEC. 4. GRANT OF EASEMENT AND RIGHT OF FIRST REFUSAL.

  (a) Easement Required.--
          (1) In general.--As part of the exchange authorized by this 
        Act, the Secretary shall, without consideration, grant to the 
        owner of Project No. 67 an easement for the right to enter, 
        occupy, and use for hydroelectric power purposes the Federal 
        land currently within the licensed boundary for Project No. 67.
          (2) Required terms and conditions.--The easement granted 
        under paragraph (1) shall contain such terms and conditions as 
        are agreed to by the Secretary, the Council, and the owner of 
        Project No. 67.
  (b) Right of First Refusal.--As a condition of the conveyance of the 
Federal land under section 3(a)(1) and the reconveyance of the Federal 
land to the Council, the Council shall provide to the owner of Project 
No. 67, under such terms and conditions as are agreed to by the Council 
and the owner of Project No. 67, a right of first refusal to obtain the 
Federal land, or portion of the Federal land, that the Council proposes 
to sell, transfer, or otherwise convey.

SEC. 5. EXERCISE OF DISCRETION.

  In exercising any discretion necessary to carry out this Act, the 
Secretary shall ensure that the public interest is well served.

                         PURPOSE OF THE MEASURE

    The purpose of H.R. 409 is to provide for the exchange of 
land within the Sierra National Forest, California, to benefit 
the Boy Scouts of America.

                          BACKGROUND AND NEED

    The Sequoia Council Boy Scouts currently has a Special Use 
Permit that allows them to operate a summer camp on 
approximately 2\2/3\ acres of the Sierra National Forest, 
California. The Boy Scouts would like to acquire a 160 acre 
parcel of National Forest land that is surrounded by private 
land and includes the 2\2/3\ acres permitted to the Boy Scouts. 
Only about 13 acres of the 160-acre parcel is above water; the 
remaining 147 acres are submerged under Shaver Lake, a 
reservoir operated by Southern California Edison Corporation 
under a Federal permit to produce hydroelectricity.
    A private citizen currently owns an 80-acre inholding in 
the Sierra National Forest. H.R. 409 would direct the exchange 
of the 80-acre private inholding in the National Forest for the 
160-acre parcel of Forest Service land on the shores of and 
underneath Shaver Lake. The private citizen would then convey 
the 160 acres to the Boy Scouts.
    In 1998, the Forest Service and the private landowner 
signed an agreement to initiate the exchange. However, the 
appraised values of the land were a point of contention. In 
2003, the Forest Service and the private inholder came to an 
agreement where the Forest Service's 160-acre parcel is valued 
at $250,000 and the 80-acre inholding is valued at $200,000. 
The private inholder has agreed to pay the difference of 
$50,000 to the Forest Service to finalize the land exchange.

                          LEGISLATIVE HISTORY

    H.R. 409 was introduced by Representative George Radanovich 
on January 26, 2005. H.R. 409 was passed by the House of 
Representatives under suspension of the rules on September 20, 
2005. On September 21, 2005, H.R. 409 was received in the 
Senate and referred to the Committee on Energy and Natural 
Resources. A companion bill, S. 179, was introduced by Senator 
Feinstein on January 26, 2005. The Subcommittee on Public Lands 
and Forests held a hearing on S. 179 on March 8, 2005 (S. Hrg. 
109-19). On March 8, 2006, the Committee on Energy and Natural 
Resources ordered H.R. 409 favorably reported, with an 
amendment in the nature of substitute, by voice vote.
    A similar bill (H.R. 1651) was introduced by Representative 
Radanovich in the 108th Congress. The Subcommittee on Forests 
and Forest Health held a hearing on July 19, 2003, and 
favorably reported the bill, with an amendment (H. Rept. 108-
256). The House passed H.R. 1651, as amended, on a voice vote 
on November 18, 2003. The Subcommittee on Public Lands and 
Forests held a hearing on September 29, 2004 (S. Hrg. 108-748). 
No further action was taken in the 108th Congress.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on March 8, 2006, by voice vote of a 
quorum present recommends that the Senate pass H.R. 409, if 
amended as described herein.

                          COMMITTEE AMENDMENT

    The Committee adopted an amendment in the nature of a 
substitute, which made technical corrections and deleted 
specific direction on the granting of an easement to the 
Southern California Edison Corporation by the Sequoia Council 
of the Boy Scouts of America. Instead, the amendment directs 
the Secretary, the Boy Scouts, and Southern California Edison 
Corporation to agree to an easement before the exchange may be 
implemented. Additionally, the amendment added language that 
directs the Secretary to ensure that the public interest is 
well served in exercising any discretion necessary to carry out 
this Act.

                      SECTION-BY-SECTION ANALYSIS

    Sections 1 and 2--provide the short title and definitions 
for the bill.
    Section 3--directs the Secretary of Agriculture to convey, 
under such terms and conditions as the Secretary may require, 
the Federal lands to the private landowner if the private 
landowner offers the private lands and a cash equalization 
payment of $50,000 within one year after the Act is signed into 
law.
    Subsection (b)--establishes the value of the non-Federal 
land to be $200,000 and the value of the Federal land to be 
$250,000.
    Subsections (c) and (d)--direct the management of the lands 
acquired by the Federal government and provides for the 
conditions on the conveyance of the Federal land, including 
that the private landowner subsequently convey the Federal land 
to the Boy Scouts and that an easement and right of first 
refusal be granted to Southern California Edison.
    Subsection (e)--directs that the cash equalization payment 
be deposited into a Sisk Act account to be expended in the 
State of California for the acquisition of Federal lands.
    Subsection (f)--requires the non-Federal land owner to pay 
for the direct costs of carrying out the land exchange.
    Subsection (g)--incorporates the lands to be acquired by 
the Sierra National Forest in to its boundaries for the 
purposes of the Land and Water Conservation Fund Act of 1965.
    Section 4(a)--directs the Secretary of Agriculture to 
provide Southern California Edison Corporation an easement over 
the Federal lands within the hydroelectric project's 
boundaries, without consideration, to enter, occupy, and use 
those lands for hydroelectric power purposes, under such terms 
and conditions as are mutually agreeable to the Secretary, the 
Boy Scouts, and Southern California Edison Corporation.
    Section 4(b)--directs the Boy Scouts to grant Southern 
California Edison Corporation a right of first refusal.
    Section 5--directs the Secretary to ensure that the public 
interest is well served in exercising any discretion necessary 
to carry out the Act.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

H.R. 409--Sierra National Forest Land Exchange Act of 2006

    CBO estimates that H.R. 409 would increase offsetting 
receipts and direct spending by less than $100,000 in 2007. 
Enacting the legislation would not affect revenues. H.R. 409 
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.
    H.R. 409 would authorize the Secretary of Agriculture to 
exchange 160 acres of federal land in California for 80 acres 
of privately owned land in that state. According to the Forest 
Service, the affected federal land currently generates no 
significant receipts and is not expected to do so over the next 
10 years. Therefore, CBO estimates that conveying the property 
would not affect offsetting receipts from programs to develop 
natural resources.
    Under the legislation, the private landowner would pay to 
the Secretary an amount sufficient to cover all direct costs 
for administering the exchange. Based on information from the 
Forest Service, CBO estimates such payments would not exceed 
$50,000. The private landowner also would pay to the Secretary 
$50,000 to equalize the value of lands involved in the 
exchange. Under the legislation, the Secretary could spend, 
without further appropriation, all amounts received from the 
private landowner to complete the exchange and to acquire other 
nonfederal land and interests in California. CBO estimates that 
any resulting net change in direct spending would be 
negligible.
    As part of the authorized exchange, the Secretary would 
grant, without consideration, to the owner of a hydroelectric 
project an easement for the right to enter, occupy, and use a 
portion of the federal land that would be conveyed. H.R. 409 
also specifies that the owner of that project would have the 
right of first refusal to obtain the affected land if it is 
subsequently sold. CBO estimates that those provisions would 
not affect federal spending.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was approved by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 409.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of H.R. 409.

                        EXECUTIVE COMMUNICATIONS

    The Administration has not testified on H.R. 409, but it 
did testify on S. 179 a companion bill at a Public Lands and 
Forests Subcommittee held on March 8, 2005, as follows:

     Statement of Mark Rey, Under Secretary, Natural Resources and 
                 Environment, Department of Agriculture

    Mr. Chairman and Members of the Subcommittee, thank you for 
giving me the opportunity to present the views of the U.S. 
Department of Agriculture on S. 179, the Sierra National Forest 
Land Exchange.
    The Department supports S. 179. Evaluation of the 
properties was previously conducted. Based on this valuation 
and resource analysis, the Administration believes the public 
is receiving above market value for the Federal property. S. 
179 authorizes the exchange of 160 acres of Federal land on the 
Sierra National Forest in California for 80 acres of non-
Federal land within one year of the date of enactment. The bill 
would provide for the exchange of a private in-holding for two 
isolated parcels of federal land, thus improving management 
efficiency for the Sierra National Forest.
    An existing Federal hydropower project is located on a 
portion of the Federal parcel. The Federal parcel is adjacent 
to and also partially inundated by Shaver Lake. The lake is 
part of the Big Creek System that produces up to 1,056 
megawatts of electricity. The Boy Scouts of America operate a 
scout camp on land adjacent to the Federal parcel and conduct 
some of their activities on the Sierra National Forest for 
which they have a special use permit.
    S. 179 specifies that the value of Federal land is $250,000 
and the value of the non-Federal land is $200,000. The bill 
gives the Secretary the authority to accept a cash equalization 
payment equal to 20 percent of the value of the Federal land or 
25 percent of the value of the non-Federal land. The conveyance 
would be subject to a condition that the recipient of the 
Federal land would agree to convey the land, within four months 
to the Sequoia Council of the Boy Scouts of America. Under 
section 3(a)(1) of the bill, the conveyance would also be made 
subject to valid existing rights. These valid existing rights 
would include the terms of the easement required under section 
4(b).
    Mr. Chairman, this concludes my statement. I would be happy 
to answer any questions you may have for me at this time.

                        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 Act H.R. 409 as ordered 
reported.

                                  
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