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[Senate Report 113-166]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 392
113th Congress  }                                        {       Report
                                 SENATE
 2d Session     }                                        {      113-166

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

 
                        GRAZING IMPROVEMENT ACT

                                _______
                                

                  May 22, 2014.--Ordered to be printed

                                _______
                                

   Ms. Landrieu, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 258]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 258) to amend the Federal Land Policy and 
Management Act of 1976 to improve the management of grazing 
leases and permits, 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.

  This Act may be cited as the ``Grazing Improvement Act''.

SEC. 2. TERMS OF GRAZING PERMITS AND LEASES.

  Section 402 of the Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1752) is amended--
          (1) in subsection (a)--
                  (A) by striking ``Except as'' and inserting the 
                following:
          ``(1) In general.--Except as''; and
                  (B) in paragraph (1) (as designated by subparagraph 
                (A)), by striking ``ten years subject'' and inserting 
                the following: `` 10 years, up to a maximum term of 20 
                years, if the Secretary concerned--
                          ``(i) has assessed and evaluated the grazing 
                        allotment associated with the permit or lease; 
                        and
                          ``(ii) based on the assessment and evaluation 
                        under clause (i), has determined that the 
                        grazing allotment is--
                                  ``(I) with respect to public land 
                                administered by the Secretary of the 
                                Interior, meeting land health 
                                standards; or
                                  ``(II) with respect to National 
                                Forest System land administered by the 
                                Secretary of Agriculture, meeting 
                                objectives in the applicable land and 
                                resource management plan.
          ``(2) Cancellation, suspension, and modification.--The permit 
        or lease shall be subject'';
          (2) in subsection (c)--
                  (A) by redesignating paragraphs (1), (2), and (3) as 
                subparagraphs (A), (B), and (C), respectively;
                  (B) by striking ``So long as'' and inserting the 
                following:
          ``(1) Renewal of expiring or transferred permit or lease.--
        During any period in which''; and
                  (C) by adding at the end the following:
          ``(2) Continuation of terms under new permit or lease.--The 
        terms and conditions in a grazing permit or lease that has 
        expired, or was terminated due to a grazing preference 
        transfer, shall be continued under a new permit or lease until 
        the date on which the Secretary concerned completes any 
        environmental analysis and documentation for the permit or 
        lease required under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) and other applicable laws.
          ``(3) Completion of processing.--As of the date on which the 
        Secretary concerned completes the processing of a grazing 
        permit or lease in accordance with paragraph (2), the permit or 
        lease may be canceled, suspended, or modified, in whole or in 
        part.
          ``(4) Environmental reviews.--The Secretary concerned shall 
        seek to conduct environmental reviews on an allotment or 
        multiple allotment basis, to the extent practicable, if the 
        allotments share similar ecological conditions, for purposes of 
        compliance with the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.) and other applicable laws.'';
          (3) by redesignating subsection (h) as subsection (j); and
          (4) by inserting after subsection (g) the following:
  ``(h) National Environmental Policy Act of 1969.--
          ``(1) In general.--The issuance of a grazing permit or lease 
        by the Secretary concerned may be categorically excluded from 
        the requirement to prepare an environmental assessment or an 
        environmental impact statement under the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.) if--
                  ``(A) the issued permit or lease continues the 
                current grazing management of the allotment; and
                  ``(B) the Secretary concerned--
                          ``(i) has assessed and evaluated the grazing 
                        allotment associated with the lease or permit; 
                        and
                          ``(ii) based on the assessment and evaluation 
                        under clause (i), has determined that the 
                        allotment--
                                  ``(I) with respect to public land 
                                administered by the Secretary of the 
                                Interior--
                                          ``(aa) is meeting land health 
                                        standards; or
                                          ``(bb) is not meeting land 
                                        health standards due to factors 
                                        other than existing livestock 
                                        grazing; or
                                  ``(II) with respect to National 
                                Forest System land administered by the 
                                Secretary of Agriculture--
                                          ``(aa) is meeting objectives 
                                        in the applicable land and 
                                        resource management plan; or
                                          ``(bb) is not meeting the 
                                        objectives in the applicable 
                                        land resource management plan 
                                        due to factors other than 
                                        existing livestock grazing.
          ``(2) Trailing and crossing.--The trailing and crossing of 
        livestock across public land and National Forest System land 
        and the implementation of trailing and crossing practices by 
        the Secretary concerned may be categorically excluded from the 
        requirement to prepare an environmental assessment or an 
        environmental impact statement under the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.).
  ``(i) Priority and Timing for Completion of Environmental Analyses.--
The Secretary concerned, in the sole discretion of the Secretary 
concerned, shall determine the priority and timing for completing each 
required environmental analysis with respect to a grazing allotment, 
permit, or lease based on--
          ``(1) the environmental significance of the grazing 
        allotment, permit, or lease; and
          ``(2) the available funding for the environmental 
        analysis.''.

SEC. 3. VOLUNTARY RELINQUISHMENT OF GRAZING PERMITS OR LEASES.

  Title IV of the Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1751 et seq.) is amended by adding at the end the following:

``SEC. 405. VOLUNTARILY RELINQUISHMENT PILOT PROGRAM.--

  ``(a) In General.--There is established in the Department of the 
Interior and the Department of Agriculture a pilot program that--
          ``(1) authorizes the voluntary relinquishment of grazing 
        permits or leases in the eligible States specified in 
        subsection (f); and
          ``(2) provides that grazing permits or leases voluntarily 
        relinquished under this section shall be permanently retired 
        from further grazing authorization.
  ``(b) Acceptance by Secretary and Secretary of Agriculture.--
          ``(1) In general.--Subject to paragraph (2), within the 
        eligible States specified in subsection (f)--
                  ``(A) the Secretary shall accept the voluntary 
                relinquishment of any valid permits or leases 
                authorizing grazing on public land; and
                  ``(B) the Secretary of Agriculture shall accept the 
                voluntary relinquishment of any valid permits or leases 
                authorizing grazing on land in the National Forest 
                System.
          ``(2) Limitation.--Notwithstanding paragraph (1), the 
        Secretary and the Secretary of Agriculture shall not accept the 
        voluntarily relinquishment of more than 25 grazing permits or 
        leases per year in each of the eligible States specified in 
        subsection (f).
  ``(c) Termination.--With respect to each permit or lease voluntarily 
relinquished under subsection (a), the Secretary concerned shall--
          ``(1) terminate the grazing permit or lease; and
          ``(2) except as provided in subsection (d), ensure a 
        permanent end to grazing on the land covered by the permit or 
        lease.
  ``(d) Common Allotments.--
          ``(1) In general.--If the land covered by a grazing permit or 
        lease that has been voluntarily relinquished under subsection 
        (a) is also covered by another valid existing grazing permit or 
        lease that is not voluntarily relinquished under subsection 
        (a), the Secretary concerned shall reduce the authorized 
        grazing level on the land covered by the permit or lease to 
        reflect the relinquishment of the grazing permit or lease.
          ``(2) Authorized level.--To ensure that there is a permanent 
        reduction in the level of grazing on the land covered by a 
        grazing permit or lease that has been voluntarily relinquished 
        under subsection (a), the Secretary shall not allow grazing use 
        to exceed the authorized level established under paragraph (1).
          ``(3) Partial relinquishment.--
                  ``(A) In general.--If a person holding a valid 
                grazing permit or lease voluntarily relinquishes less 
                than the full level of grazing use authorized under the 
                permit or lease, the Secretary concerned shall--
                          ``(i) reduce the authorized grazing level to 
                        reflect the voluntarily relinquishment; and
                          ``(ii) modify the grazing permit or lease to 
                        reflect the revised level of use.
                  ``(B) Authorized level.--To ensure that there is a 
                permanent reduction in the authorized level of grazing 
                on the land covered by a permit or lease which has been 
                voluntarily relinquished under subparagraph (A), the 
                Secretary shall not allow grazing use to exceed the 
                authorized level established under that subparagraph.
  ``(e) Annual Report.--
          ``(1) In general.--The Secretary, in collaboration with the 
        Secretary of Agriculture, shall prepare an annual report on the 
        pilot program that assesses the activities undertaken under the 
        pilot program during the preceding year, including the number 
        and location of grazing permits and leases that were 
        voluntarily relinquished during the preceding year.
          ``(2) Submission to congress.--The Secretary shall submit the 
        annual report prepared under paragraph (1) to--
                  ``(A) the Committee on Energy and Natural Resources 
                of the Senate; and
                  ``(B) the Committee on Natural Resources of the House 
                of Representatives.
  ``(f) Eligible States.--The authority of the Secretary and the 
Secretary of Agriculture to accept voluntary relinquishments in 
accordance with this section shall be limited to grazing allotments in 
the States of New Mexico and Oregon.''.

                                Purpose

    The purpose of S. 258 is to amend the Federal Land Policy 
and Management Act of 1976 to modify authorities for grazing on 
Federal land administered by the Bureau of Land Management and 
the Forest Service.

                          Background and Need

    The Bureau of Land Management and Forest Service manage 
livestock grazing on over 155 million acres of public lands and 
94 million acres of National Forest System lands. The BLM 
administers nearly 18,000 grazing permits and leases covering 
over 21,000 allotments. The Forest Service administers an 
additional 6,800 grazing permits covering approximately 8,800 
allotments.
    The BLM administers grazing under the authority of the 
Taylor Grazing Act of 1934 and the Federal Land Policy and 
Management Act of 1976 (FLPMA). The Forest Service also 
administers permits under authority of FLPMA, the Granger-Thye 
Act, the Forest and Rangeland Renewable Resources Planning Act 
of 1974, and for national grasslands, title III of the 
Bankhead-Jones Farm Tenant Act. Grazing permits or leases are 
issued for a term of up to 10 years and are generally renewed 
subject to any changes in terms and conditions the agency 
determines to be necessary.
    Following enactment of FLPMA in 1976, the BLM amended its 
grazing regulations in 1978 (43 Fed. Reg. 29067). For the next 
17 years, federal grazing policies remained largely unchanged. 
In 1995, the Department of the Interior issued comprehensive 
grazing management regulations to increase public involvement 
in rangeland management decisions and to place greater emphasis 
on conservation measures (60 Fed. Reg. 9894). The regulations 
were challenged in Federal court, with the litigation 
ultimately reaching the Supreme Court, Public Lands Council v. 
Babbitt, 529 U.S. 728 (2000), where the Court ruled in favor of 
the United States.
    In 2006, the Department of the Interior again proposed to 
revise its grazing management regulations, in many areas 
undoing the regulatory changes made by the previous 
Administration (71 Fed. Reg. 39042). Those regulations were 
also challenged in Federal court. The court blocked the BLM 
from implementing the regulations, finding they were in 
violation of the National Environmental Policy Act of 1969 
(NEPA), the Endangered Species Act, and FLPMA. Western 
Watersheds Project v. Kraayenbrink, 538 F. Supp. 2d 1302 (D. 
Idaho 2008). The court's decision was subsequently upheld by 
the Ninth Circuit Court of Appeals, (Western Watersheds Project 
v. Kraayenbrink, 632 F.3d 472 (9th Cir. 2010).
    Grazing-related policy issues are often controversial and 
many administrative decisions are appealed and then challenged 
in Federal court. One area in particular that has been the 
subject of much litigation has been the adequacy of agency NEPA 
analysis associated with the issuance or renewal of a grazing 
permit or lease.
    In the 1990s, the Forest Service fell far behind in 
completing necessary NEPA documents prior to renewing a grazing 
permit or lease. When questions arose about the impact on 
permittees not being able to renew a lease because of the 
agency's failure to comply with the law, Congress enacted the 
Rescissions Act of 1995 (Public Law 104-19, section 504). That 
Act directed the Forest Service to establish a schedule for 
completing required NEPA analysis, and pending completion of 
the required analysis, providing for renewal of the grazing 
permit or lease under the same terms and conditions as the 
prior lease. The Forest Service was authorized to modify the 
terms and conditions only after the NEPA analysis had been 
completed. This authority was only applicable through the end 
of FY 1996, but similar authority has been included in 
subsequent Appropriations Acts since 1997.
    As ordered reported, S. 258 seeks to improve agency 
management of grazing activities and to provide greater 
certainty to grazing permittees by authorizing longer-term 
grazing permits, by codifying language included in recent 
Appropriations Acts providing for the automatic renewal of 
grazing permits until the appropriate NEPA analysis and 
documentation is complete; by directing the agencies to conduct 
environmental reviews to the extent practicable on a multiple 
allotment basis, by authorizing the issuance of grazing permits 
or leases to be categorically excluded from NEPA analysis if 
certain rangeland health criteria or objectives in applicable 
land resource management plans are achieved, and by making 
other changes to BLM and Forest Service grazing policies as 
described in the section-by-section analysis, below.

                          Legislative History

    S. 258 was introduced by Senators Barrasso on February 7, 
2013, and is consponsored by 8 Senators. The Subcommittee on 
Public Lands, Forests, and Mining held a hearing on the bill on 
April 25, 2013 (S. Hrg. 113-28). At its business meeting on 
November 21, 2013, the Committee ordered S. 258 favorably 
reported, with an amendment in the nature of a substitute.
    A House companion bill, H.R. 657, sponsored by 
Representative Labrador, was ordered reported by the House 
Natural Resources Committee on June 12, 2013 (H. Rept. 113-
145). The text of H.R. 657 was included in H.R. 2954, the 
Public Access and Lands Improvement Act, which passed the House 
of Representatives by a vote of 220-194 on February 6, 2014.
    In the 112th Congress, Senator Barrasso, introduced similar 
legislation, S. 1129. The Subcommittee on Public Lands and 
Forests held a hearing on S. 1129 on March 22, 2012 (S. Hrg. 
112-642).

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 21, 2013, by a voice vote of 
a quorum present, recommends that the Senate pass S. 258, if 
amended as described herein. Senators Landrieu and Cantwell 
asked to be recorded as voting no.

                          Committee Amendment

    During its consideration of S. 258, the Committee adopted 
an amendment in the nature of a substitute.
    As introduced, S. 258 doubled the term of a grazing permit 
or lease from 10 to 20 years. The substitute amendment 
preserves the requirement that a grazing permit or lease be 
issued for a term of at least 10 years, but gives the Secretary 
concerned discretion to issue a permit or lease for up to 20 
years if the Secretary concerned determines that grazing 
allotment is meeting applicable land health standards.
    The substitute amendment retains language in S. 258 as 
introduced providing for the terms of expired grazing permits 
or leases to be continued under a new permit or lease until the 
Secretary concerned completes necessary review and analysis 
required by the National Environmental Policy Act and other 
environmental laws, but modifies the language to be more 
consistent with terminology and procedures under applicable law 
and regulations.
    The substitute amendment establishes a new pilot program to 
allow for the voluntary relinquishment of up to 25 grazing 
permits or leases per year in each of the States of Oregon and 
New Mexico, and upon relinquishment, for grazing activities to 
be permanently retired from the Federal land covered by the 
permit or lease.
    In addition, the substitute makes clarifying and conforming 
changes. The amendment is described in detail in the section-
by-section analysis, below.

                      Section-by-Section Analysis

    Section 1 contains the short title, the ``Grazing 
Improvement Act.''
    Section 2(1) amends section 402(a) of the Federal Land 
Policy and Management Act of 1976 (FLPMA); (43 U.S.C. 1752(a)) 
to increase the term of grazing permits and leases from 10 
years up to a maximum of 20 years if the Secretary of the 
Interior (with respect to public lands) or the Secretary of 
Agriculture (with respect to National Forest System lands) has 
assessed and evaluated the associated grazing allotment, and 
based on the assessment and evaluation has determined that the 
allotment is meeting land health standards (for lands 
administered by the Bureau of Land Management) or objectives in 
the applicable land and resource management plan (for National 
Forest System lands).
    Paragraph (2) provides that the terms and conditions in a 
grazing permit or lease that has expired, or was terminated due 
to a grazing preference transfer, shall be continued under a 
new grazing permit or lease until the Secretary concerned has 
completed the necessary environmental analysis and 
documentation required under the National Environmental Policy 
Act of 1969 (NEPA; 42 U.S.C. 4321 et seq.) and other applicable 
laws. Upon completion of the NEPA analysis, the grazing permit 
or lease may be canceled, suspended, or modified, in whole or 
in part.
    Paragraph (3) makes a conforming edit to reflect the 
addition of the new subsection made by paragraph (4).
    Paragraph (4) directs the Secretary concerned to seek to 
conduct environmental reviews on an allotment or multiple 
allotment basis, to the extent practicable, if allotments share 
similar ecological conditions for purposes of complying with 
NEPA and other applicable laws and adds new subsections (h) and 
(i). New subsection (h) states that the issuance of a grazing 
permit or lease by the Secretary concerned may be categorically 
excluded from the requirement to prepare and environmental 
analysis or environmental impact statement under NEPA, if the 
permit or lease continues the current grazing management of the 
allotment and the Secretary concerned has assessed and 
evaluated the allotment and determined that it is meeting land 
health standards (for lands administered by the Bureau of Land 
Management) or objectives in the applicable land and resource 
management plan (for National Forest System lands). The 
paragraph includes similar authority to categorically exclude 
trailing and crossing of livestock from NEPA analysis.
    New subsection (i) provides that the Secretary concerned, 
in his or her sole discretion, shall determine the priority and 
timing for completing each required environmental analysis, 
based on the environmental significance of the grazing permit 
or lease and the available funding for the environmental 
analysis.
    Section 3 amends title IV of FLPMA (43 U.S.C. 1751 et seq.) 
to add a new section 405, which establishes a pilot program in 
the Department of the Interior and the Department of 
Agriculture to authorize the voluntary relinquishment of a 
limited number of grazing permits and leases in Oregon and New 
Mexico, and provides that any permits or leases which are 
voluntarily relinquished shall be permanently retired from 
further grazing authorization. Under the pilot program, the 
Secretary of the Interior and the Secretary of Agriculture 
shall not accept the voluntary relinquishment of more than 25 
grazing permits or leases in each of the two States. The 
Secretary of the Interior, in collaboration with the Secretary 
of Agriculture, is directed to prepare an annual report on the 
pilot program identifying the number and location of permits 
and leases that were relinquished during the preceding year.

                   Cost and Budgetary Considerations

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

S. 258--Grazing Improvement Act

    CBO estimates that enacting S. 258 would affect offsetting 
receipts, which are treated as reductions in direct spending; 
therefore, pay-as-you-go procedures apply. However, CBO 
estimates that any such effects would be negligible over the 
2014-2024 period. We also estimate that implementing the 
legislation would have no significant impact on discretionary 
spending. Enacting S. 258 would not affect revenues.
    S. 258 would increase the maximum term of new grazing 
permits on federal lands from 10 years to 20 years and allow 
expired and transferred grazing permits to remain in effect 
until new permits are issued by the Bureau of Land Management 
or the Forest Service. Based on information provided by the 
affected agencies, CBO estimates that enacting that provision 
would have a minimal impact on offsetting receipts each year 
because those agencies have the authority under current law to 
extend expired permits. The bill would allow the affected 
agencies to collect offsetting receipts from transferred 
permits sooner than they would under current law; however, 
because the number of permits that would be affected each year 
accounts for less than 5 percent of all federal grazing 
permits, the net budgetary impact would be negligible. In 2013, 
gross federal collections from all grazing permits totaled 
roughly $20 million.
    Because the bill would allow transferred permits to remain 
in effect under the terms of the original permit until that 
permit expires, CBO expects that the agencies would receive 
fewer requests for new permits in the next few years; however, 
because those permits would need to be renewed in later years, 
CBO estimates that implementing the provision would have no 
significant net effect on agencies' workloads over the 2014-
2019 period.
    The legislation would allow the exclusion of certain 
grazing lands from compliance with the National Environmental 
Policy Act (NEPA). CBO estimates that implementing that 
provision would have no effect on discretionary spending 
because we expect that any reduction in spending on NEPA 
activities on those lands would be offset by spending to reduce 
the agencies' backlog of incomplete NEPA activities on other 
federal lands.
    Finally, S. 258 would require the Secretary of the Interior 
to accept permits that are voluntarily relinquished by current 
permit holders. Under the bill, relinquished permits would be 
terminated and future grazing on land covered by those permits 
would be prohibited. Based on information from the affected 
agencies, CBO expects that a small number of permits would be 
relinquished if the bill is enacted, and we estimate that 
enacting the bill would have a minimal impact on offsetting 
receipts from grazing fees over the 2014-2024 period.
    S. 258 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    On June 20, 2013, CBO transmitted a cost estimate for H.R. 
657, the Grazing Improvement Act, as ordered reported by the 
House Committee on Natural Resources on June 12, 2013. The two 
bills are similar, and the CBO cost estimates are the same.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Theresa Gullo, 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. 258.
    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. 258, as ordered reported.

                   Congressionally Directed Spending

    S. 258, as 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 Forest Service and Bureau of Land 
Management at the July 30, 2013, Subcommittee on Public Lands, 
Forests, and Mining hearing on S. 258 follows:

  Statement of James M. Pena, Associate Deputy Chief, National Forest 
           System, Forest Service, Department of Agriculture

    Mr. Chairman, Ranking Member Barrasso, and members of the 
Committee, thank you for inviting me here today to testify 
regarding S. 258 the Grazing Improvement Act. The Department 
supports this bill. We believe that this bill would increase 
efficiencies, but not at the expense of good land stewardship.
    The Department understands and shares the Committee's 
desire for increasing administrative efficiencies for both the 
Forest Service and the permittee and while the Department 
supports certain provisions, we cannot support S. 258 as 
written. The Department specifically has concerns with 
requirements and definitions in the use of categorical 
exclusions. The Department also recognizes that the Forest 
Service and the Bureau of Land Management operate under 
different authorities, such as the Rescissions Act of 1995, 
which determines how the Forest Service is to apply NEPA for 
grazing allotments. As a result, various provisions in S. 258 
affect the agencies differently. We therefore defer to the 
Department of Interior on those provisions that don't directly 
affect the Forest Service, or the impacts of those provisions 
on Department of the Interior programs.
    The Forest Service enjoys a cooperative relationship with 
the vast majority of the over 6,800 individuals who hold 
permits for grazing, permitting approximately 8.2 million 
animal unit months on nearly 94 million acres of National 
Forests and Grasslands. Grazing permittees have helped provide 
for the effective stewardship of our public lands for many 
decades. While the vast majority of the grazing permittees are 
excellent stewards in caring for range resources, there are 
some areas where permittees need to take action to improve 
range conditions. The Forest Service is working with many 
permittees to make such improvements.
    In addition, the Forest Service's grazing program not only 
helps support the economies of rural communities across the 
west, but it also helps maintain open space on private lands. 
Most permittees utilize and need both public and private lands 
to graze livestock economically. The loss of grazing on public 
lands can result in the loss of grazing on private lands that 
may lead to the conversion of private open space to other uses 
such as subdivision development.
    S. 258 would revise the permitting process for grazing in 
the Federal Land Policy and Management Act of 1976. 
Specifically, the bill would extend the duration of the permit 
from 10 years to 20 years. The bill also would make permanent 
the language used in annual appropriation riders which has 
required expiring permits to be renewed with existing terms and 
conditions if the National Environmental Policy Act (NEPA) has 
not been completed on allotments associated with the permit. It 
further would expand the appropriation riders language to 
include transferred or waived permits or leases.
    The bill would establish and require the use of categorical 
exclusions (CE) and prohibit the agencies from preparing an 
environmental assessment or environmental impact statement 
under NEPA. CEs, which require no public notice, would apply if 
a decision continues the current grazing management on an 
allotment; monitoring has indicated that the current grazing 
management has met or is satisfactorily moving towards meeting 
land use management plan objectives; or the decision is 
consistent with the policy of the Department regarding 
extraordinary circumstances. While we support providing the 
line officer with the option to use a categorical exclusion 
category where the parameters of what constitutes a minor 
adjustment are narrowly defined, we do not support requiring 
use of categorical exclusions. The bill also would provide the 
Secretary with the sole discretion to determine the priority 
and timing for completing the environmental analysis of a 
grazing allotment, notwithstanding the schedule in section 504 
of the Rescissions Act.
    S. 258 also exempts crossing and trailing authorizations as 
well as the transfer of grazing preference from NEPA. We defer 
to the Department of the Interior on these provisions.
    S. 258 would require that grazing permits be issued for a 
term of 20 years rather than the current 10-year term. Permits 
may be issued for a shorter term on land that is pending 
disposal or will be devoted to a public purpose, or where it is 
in the best interest of sound land management on those 
allotments that have not had initial NEPA.
    The Department understands and shares the Committee's 
desire for increasing administrative efficiencies for both the 
Forest Service and the permittee. The Department can support 
the concept of having the flexibility to issue a longer term 
permit where current management is continued and the allotments 
are being monitored to assure they are meeting Forest Plan 
standards. The Department believes that the Secretary 
rightfully should have the sole discretion to determine the 
priority and timing for completing environmental analyses of 
grazing allotments, as is always the case under NEPA. We do 
not, however, support being limited to only using CEs in 
certain instances for grazing permits. We have completed NEPA 
analyses on three-fourths of our grazing allotments. We have 
been able to move forward with our renewed, reissued and 
transferred grazing permit program. Our analyses, with or 
without a CE, have been helpful in determining range 
conditions, a matter of great concern to all permittees and the 
Forest Service. We look forward to continuing to work with the 
committee and sponsors of this bill.
    This concludes my testimony and I would be happy to answer 
any questions that you may have.

  Statement of Jamie Connell, Acting Deputy Director, Bureau of Land 
                 Management, Department of the Interior

    Thank you for the opportunity to present the views of the 
Department of the Interior (Department) on S. 258, the Grazing 
Improvement Act. The Bureau of Land Management (BLM) is 
dedicated to a broad range of stewardship goals, including the 
long-term health and viability of the public rangelands. Our 
Nation's rangelands provide and support a variety of goods, 
services, and values important to Americans. In addition to 
being an important source of forage for livestock, healthy 
rangelands conserve soil, store and filter water, sequester 
carbon, provide a home for an abundance of wildlife, provide 
scenic beauty and are the setting for many forms of outdoor 
recreation.
    The BLM recognizes that the conservation and sustainable 
use of rangelands is important to those who make their living 
on these landscapes--including public rangeland permittees. 
Public land livestock operations are important to the economic 
well-being and cultural identity of the West and to rural 
Western communities. Livestock grazing is an integral part of 
BLM's multiple-use mission, and at the right levels and timing, 
can serve as an important vegetation management tool, improving 
wildlife habitat and reducing risk of catastrophic wildfire.
    The BLM is committed to collaborating with those who work 
on the public lands and takes seriously its challenge to 
conserve and manage healthy rangelands for current and future 
generations.
    The Department shares the Sub-committee's interest in 
identifying opportunities for increasing efficiencies in public 
land grazing administration, as well as finding ways to make 
permit renewal less complex, costly, and time-consuming. The 
BLM would like to work with the Committee to further these 
shared goals. However, the Department cannot support S. 258 as 
it limits the BLM's ability to provide for appropriate 
environmental review and public involvement--critical 
components of the BLM's multiple-use management of the public 
lands. The Department looks forward to continuing a dialogue 
with the Congress on these important matters.

                               background

    The BLM manages over 17,000 livestock grazing permits and 
leases for 12.4 million AUMs (animal unit months) across 155 
million acres of public lands in the West. Since 1999, the BLM 
has evaluated the health of the rangelands based on standards 
and guidelines that were developed with extensive input from 
the ranching community, as well as from scientists, 
conservationists, and other Federal and state agencies. The BLM 
collects monitoring and assessment data to compare current 
conditions with the standards and land use plan objectives. 
This information is used to complete environmental assessments, 
to develop alternative management actions, and to modify 
grazing management as needed.
    The BLM administers the range program through issuance of 
grazing permits or leases. The Federal Land Policy and 
Management Act (FLPMA) provides for a 10-year (or less) term 
for grazing permits. In a typical year, the BLM processes up to 
2,000 permit renewals or transfers. In 1999 and 2000, the BLM 
saw a spike in permit renewals, when over 7,200 permits were 
due for renewal. The BLM was unable to process all those 
permits before expiration, which resulted in a backlog of 
grazing permit renewals that remains today. By the end of the 
2013 Fiscal Year, the BLM anticipates that a backlog of 4,964 
unprocessed permits will remain. Congress has assisted the BLM 
since Fiscal Year 2004 by adding language to Appropriations 
measures that allow grazing leases and permits to continue in 
effect until the agency has completed processing a renewal, 
transfer, or waiver. The BLM is committed to eliminating the 
backlog of grazing permit renewals and to issuing permits in 
the year they expire. An increase in appeals and litigation of 
grazing management decisions continues to pose significant 
workload and resource challenges for the BLM.
    The BLM will continue to focus on grazing permits for the 
most environmentally sensitive allotments, using authorities 
Congress provided in the FY 2012 Consolidated Appropriations 
Act concerning grazing permit renewals and transfers. This 
strategy will allow the BLM to address a wide array of critical 
resource management issues through its land health assessments 
and grazing decisions. Additionally, this strategy will help 
ensure that the backlog of unprocessed permits consists of the 
least environmentally sensitive allotments that are more 
custodial in nature and/or that are already meeting land health 
standards.

                                 s. 258

    S. 258 provides for automatic renewal of all expired, 
transferred, or waived permits, and categorically excludes all 
permit renewals, reissuance, or transfers from preparation of 
an environmental analysis under the National Environmental 
Policy Act (NEPA) if the decision continues current grazing 
management of the allotment. Terms and conditions of the permit 
would continue until a permit is later renewed in full 
compliance with NEPA and other Federal laws. The bill does not 
first require a determination that the permittee is meeting 
land health standards. S. 258 doubles the duration of grazing 
permits from 10 to 20 years, and stipulates that livestock 
crossing and trailing permits and transfers of grazing 
preference are exempt from analysis under NEPA.
    The Department supports the concept of having the 
flexibility to issue longer term permits in certain 
circumstances, as well as the transfer provision that is 
currently in place under the FY 2012 Consolidated 
Appropriations Act. That provision is expected to reduce the 
permit renewal workload in 2013 by about 700 permits. The 
number of transfers needing processing each year is 
unpredictable, posing significant challenges to the BLM as it 
works to manage staff and other resources.
    S. 258 includes provisions that the Department cannot 
support since they provide for automatic permit or lease 
renewal without requiring further analysis or assurances the 
permittee is meeting land health standards. The bill limits the 
BLM's ability to provide for appropriate environmental review 
and public involvement. S. 258 would result in the majority of 
permits being renewed under a categorical exclusion. The 
engagement of the public through the environmental review 
process under NEPA is a crucial component of the BLM's 
multiple-use management of the public lands. In summary, while 
S. 258 contains provisions that would expedite permitting, the 
Department cannot support it because of the overarching impact 
the bill could have on the 155 million acres of public lands 
used for livestock grazing, potentially affecting other valid 
uses and the health of the land itself.

                               conclusion

    Thank you for the opportunity to present testimony on S. 
258. The BLM looks forward to working with the Congress to 
develop improvements to the grazing permit renewal process 
while maintaining the integrity of NEPA, the Nation's bedrock 
environmental and citizen involvement law, and FLPMA, our 
multiple-use statute requiring consideration of many uses and 
values of the public lands. I will be pleased to answer any 
questions.

                        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. 258 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):

             FEDERAL LAND POLICY AND MANAGEMENT ACT OF 1976

                          (PUBLIC LAW 94-579)

                        (43 U.S.C. 1701 ET SEQ.)

AN ACT To establish public land policy; to establish guidelines for its 
administration; to provide for the management, protection, development, 
and enhancement of the public lands; and for other purposes.

           *       *       *       *       *       *       *

TITLE IV--RANGE MANAGEMENT

           *       *       *       *       *       *       *

SEC. 402. GRAZING LEASES AND PERMITS

    (a) [Except as] (1) In General.--Except as as provided in 
subsection (b) of this section, permits and leases for domestic 
livestock grazing on public lands issued by the Secretary under 
the Act of June 28, 1934 (48 Stat. 1269, as amended; 43 U.S.C. 
315 et seq.) or the Act of August 28, 1937 (50 Stat. 874, as 
amended; 43 U.S.C. 1181a-1181j), or by the Secretary of 
Agriculture, with respect to lands within National Forests in 
the sixteen contiguous Western States, shall be for a term of 
[ten years subject] 10 years, up to a maximum term of 20 years, 
if the Secretary concerned--
          (i) has assessed and evaluated the grazing allotment 
        associated with the permit or lease; and
          (ii) based on the assessment and evaluation under 
        clause (i), has determined that the grazing allotment 
        is--
                  (I) with respect to public land administered 
                by the Secretary of the Interior, meeting land 
                health standards; or
                  (II) with respect to National Forest System 
                land administered by the Secretary of 
                Agriculture, meeting objectives in the 
                applicable land and resource management plan.
    (2) Cancellation, Suspension, and Modification.--The permit 
or lease shall be subject to such terms and conditions the 
Secretary concerned deems appropriate and consistent with the 
governing law, including, but not limited to, the authority of 
the Secretary concerned to cancel, suspend, or modify a grazing 
permit or lease, in whole or in part, pursuant to the terms and 
conditions thereof, or to cancel or suspend a grazing permit or 
lease for any violation of a grazing regulation or of any term 
or condition of such grazing permit or lease.

           *       *       *       *       *       *       *

    (C) [So long as] (1) Renewal of Expiring or Transferred 
Permit or Lease.--During any period in which [(1)] (A) the 
lands for which the permit or lease is issued remain available 
for domestic livestock grazing in accordance with land use 
plans prepared pursuant to section 1712 of this title or 
section 1604 of title 16, [(2)] (B) the permittee or lessee is 
in compliance with the rules and regulations issued and the 
terms and conditions in the permit or lease specified by the 
Secretary concerned, and [(3)] (C) the permittee or lessee 
accepts the terms and conditions to be included by the 
Secretary concerned in the new permit or lease, the holder of 
the expiring permit or lease shall be given first priority for 
receipt of the new permit or lease.
    (2) Continuation of Terms Under New Permit or Lease.--The 
terms and conditions in a grazing permit or lease that has 
expired, or was terminated due to a grazing preference 
transfer, shall be continued under a new permit or lease until 
the date on which the Secretary concerned completes any 
environmental analysis and documentation for the permit or 
lease required under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) and other applicable laws.
    (3) Completion of Processing.--As of the date on which the 
Secretary concerned completes the processing of a grazing 
permit or lease in accordance with paragraph (2), the permit or 
lease may be canceled, suspended, or modified, in whole or in 
part.
    (4) Environmental Reviews.--The Secretary concerned shall 
seek to conduct environmental reviews on an allotment or 
multiple allotment basis, to the extent practicable, if the 
allotments share similar ecological conditions, for purposes of 
compliance with the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) and other applicable laws.

           *       *       *       *       *       *       *

    (h) National Environmental Policy Act of 1969.--
          (1) In General.--The issuance of a grazing permit or 
        lease by the Secretary concerned may be categorically 
        excluded from the requirement to prepare an 
        environmental assessment or an environmental impact 
        statement under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.) if--
                  (A) the issued permit or lease continues the 
                current grazing management of the allotment; 
                and
                  (B) the Secretary concerned--
                          (i) has assessed and evaluated the 
                        grazing allotment associated with the 
                        lease or permit; and
                          (ii) based on the assessment and 
                        evaluation under clause (i), has 
                        determined that the allotment--
                                  (I) with respect to public 
                                land administered by the 
                                Secretary of the Interior--
                                          (aa) is meeting land 
                                        health standards; or
                                          (bb) is not meeting 
                                        land health standards 
                                        due to factors other 
                                        than existing livestock 
                                        grazing; or
                                  (II) with respect to National 
                                Forest System land administered 
                                by the Secretary of 
                                Agriculture--
                                          (aa) is meeting 
                                        objectives in the 
                                        applicable land and 
                                        resource management 
                                        plan; or
                                          (bb) is not meeting 
                                        the objectives in the 
                                        applicable land 
                                        resource management 
                                        plan due to factors 
                                        other than existing 
                                        livestock grazing.
          (2) Trailing and Crossing.--The trailing and crossing 
        of livestock across public land and National Forest 
        System land and the implementation of trailing and 
        crossing practices by the Secretary concerned may be 
        categorically excluded from the requirement to prepare 
        an environmental assessment or an environmental impact 
        statement under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).
    (i) Priority and Timing for Completion of Environmental 
Analyses.--The Secretary concerned, in the sole discretion of 
the Secretary concerned, shall determine the priority and 
timing for completing each required environmental analysis with 
respect to a grazing allotment, permit, or lease based on--
          (1) the environmental significance of the grazing 
        allotment, permit, or lease; and
          (2) the available funding for the environmental 
        analysis.
    [(h)] (j) Nothing in this Act shall be construed as 
modifying in any way law existing on October 21, 1976, with 
respect to the creation of right, title, interest or estate in 
or to public lands or lands in National Forests by issuance of 
grazing permits and leases.

           *       *       *       *       *       *       *

SEC. 405. VOLUNTARILY RELINQUISHMENT PILOT PROGRAM.--

    (a) In General.--There is established in the Department of 
the Interior and the Department of Agriculture a pilot program 
that--
          (1) authorizes the voluntary relinquishment of 
        grazing permits or leases in the eligible States 
        specified in subsection (f); and
          (2) provides that grazing permits or leases 
        voluntarily relinquished under this section shall be 
        permanently retired from further grazing authorization.
    (b) Acceptance by Secretary and Secretary of Agriculture.--
          (1) In general.--Subject to paragraph (2), within the 
        eligible States specified in subsection (f)--
                  (A) the Secretary shall accept the voluntary 
                relinquishment of any valid permits or leases 
                authorizing grazing on public land; and
                  (B) the Secretary of Agriculture shall accept 
                the voluntary relinquishment of any valid 
                permits or leases authorizing grazing on land 
                in the National Forest System.
          (2) Limitation.--Notwithstanding paragraph (1), the 
        Secretary and the Secretary of Agriculture shall not 
        accept the voluntarily relinquishment of more than 25 
        grazing permits or leases per year in each of the 
        eligible States specified in subsection (f).
    (c) Termination.--With respect to each permit or lease 
voluntarily relinquished under subsection (a), the Secretary 
concerned shall--
          (1) terminate the grazing permit or lease; and
          (2) except as provided in subsection (d), ensure a 
        permanent end to grazing on the land covered by the 
        permit or lease.
    (d) Common Allotments.--
          (1) In general.--If the land covered by a grazing 
        permit or lease that has been voluntarily relinquished 
        under subsection (a) is also covered by another valid 
        existing grazing permit or lease that is not 
        voluntarily relinquished under subsection (a), the 
        Secretary concerned shall reduce the authorized grazing 
        level on the land covered by the permit or lease to 
        reflect the relinquishment of the grazing permit or 
        lease.
          (2) Authorized level.--To ensure that there is a 
        permanent reduction in the level of grazing on the land 
        covered by a grazing permit or lease that has been 
        voluntarily relinquished under subsection (a), the 
        Secretary shall not allow grazing use to exceed the 
        authorized level established under paragraph (1).
          (3) Partial relinquishment.--
                  (A) In general.--If a person holding a valid 
                grazing permit or lease voluntarily 
                relinquishes less than the full level of 
                grazing use authorized under the permit or 
                lease, the Secretary concerned shall--
                          (i) reduce the authorized grazing 
                        level to reflect the voluntarily 
                        relinquishment; and
                          (ii) modify the grazing permit or 
                        lease to reflect the revised level of 
                        use.
                  (B) Authorized level.--To ensure that there 
                is a permanent reduction in the authorized 
                level of grazing on the land covered by a 
                permit or lease which has been voluntarily 
                relinquished under subparagraph (A), the 
                Secretary shall not allow grazing use to exceed 
                the authorized level established under that 
                subparagraph.
    (e) Annual Report.--
          (1) In general.--The Secretary, in collaboration with 
        the Secretary of Agriculture, shall prepare an annual 
        report on the pilot program that assesses the 
        activities undertaken under the pilot program during 
        the preceding year, including the number and location 
        of grazing permits and leases that were voluntarily 
        relinquished during the preceding year.
          (2) Submission to congress.--The Secretary shall 
        submit the annual report prepared under paragraph (1) 
        to--
                  (A) the Committee on Energy and Natural 
                Resources of the Senate; and
                  (B) the Committee on Natural Resources of the 
                House of Representatives.
    (f) Eligible States.--The authority of the Secretary and 
the Secretary of Agriculture to accept voluntary 
relinquishments in accordance with this section shall be 
limited to grazing allotments in the States of New Mexico and 
Oregon.

           *       *       *       *       *       *       *

                                  
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