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[Senate Report 109-302]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 545
109th Congress                                                   Report
                                 SENATE
 2d Session                                                     109-302

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      WATERSHED RESTORATION AND ENHANCEMENT AGREEMENTS ACT OF 2006

                                _______
                                

                 July 31, 2006.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2003]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2003) to make permanent the authorization 
for watershed restoration and enhancement agreements, 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 ``Watershed Restoration and Enhancement 
Agreements Act of 2006''.

SEC. 2. WATERSHED RESTORATION AND ENHANCEMENT AGREEMENTS.

  Section 323 of the Department of the Interior and Related Agencies 
Appropriations Act, 1999 (16 U.S.C. 1011 note; Public Law 105-277), is 
amended--
          (1) in subsection (a), by striking ``each of fiscal years 
        2006 through 2011'' and inserting ``fiscal year 2006 and each 
        fiscal year thereafter'';
          (2) by redesignating subsection (d) as subsection (e); and
          (3) by inserting after subsection (c) the following:
  ``(d) Applicable Law.--Chapter 63 of title 31, United States Code, 
shall not apply to--
          ``(1) a watershed restoration and enhancement agreement 
        entered into under this section; or
          ``(2) an agreement entered into under the first section of 
        Public Law 94-148 (16 U.S.C. 565a-1).''.

                         Purpose of the Measure

    The purpose of S. 2003 is to make permanent the 
authorization for watershed restoration and enhancement 
agreements contained in section 323 of the Department of the 
Interior and Related Agencies Appropriations Act, 1999 (16 
U.S.C. 1011).

                          Background and Need

    In 1998, Congress included language in the Fiscal Year 1999 
Omnibus Appropriations Act to use appropriated Forest Service 
funds for watershed restoration and enhancement agreements on 
private or public lands that benefit the resources of National 
Forest System lands. As a result, the Forest Service developed 
a very successful cooperative conservation watershed 
restoration program.
    Congress originally authorized the program only through 
fiscal year 2001. It reauthorized it in 2001 through fiscal 
year 2005, and again last year through fiscal year 2011. S. 
2003 would permanently authorize these agreements.
    The projects authorized by these agreements have improved 
watershed health and fish habitats through the control of 
invasive species, culvert replacement, and other riparian zone 
improvement projects. In addition to ecological restoration, 
use of the authority has improved cooperative relationships 
between the Forest Service, private land owners, State 
agencies, and other Federal agencies.

                          Legislative History

    S. 2003 was introduced on November 14, 2005, by Senator 
Wyden. Section 323 of the Department of the Interior and 
Related Agencies Appropriations Act, 1999 (16 U.S.C. 1011) 
authorized the cooperative watershed program through fiscal 
year 2001. Section 331 of the Department of the Interior and 
Related Agencies Appropriations Act, 2002 (P.L. 107-63) 
reauthorized the program through fiscal year 2005. And section 
343 of the Department of the Interior and Related Agencies 
Appropriations Act, 2006 Interior Appropriations bill (P.L. 
109-54) reauthorized the program through fiscal year 2011. The 
Subcommittee on Public Lands and Forests held a hearing on May 
10, 2006, on S. 2003. The Committee on Energy and Natural 
Resources ordered S. 2003 favorably reported with an amendment 
in the nature of a substitute on May 24, 2006.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 24, 2006, by a unanimous voice 
vote of a quorum present recommends that the Senate pass S. 
2003, if amended as described herein.

                          Committee Amendment

    The Committee adopted an amendment in the nature of a 
substitute that clarifies that the 1977 Federal Grant and 
Cooperative Agreement Act shall not apply to the watershed 
restoration and enhancement agreements carried out under the 
authority granted by this Act or the cooperative agreement 
authority granted by the first section of Public Law 94-148.

                      Section-by-Section Analysis

    Section 1 provides the short title.
    Section 2 amends section 323 of the Department of the 
Interior and Related Agencies Appropriations Act, 1999 as 
previously amended, by striking `` each of fiscal years 2006 
through 2011'' and inserting `` fiscal year 2006 and each 
fiscal year thereafter.''
    Subsection 2(d)--clarifies that Chapter 63 of Title 31, 
United States Code (originally enacted as the 1977 Federal 
Grant and Cooperative Agreement Act of 1977 shall not apply to 
the watershed restoration and enhancement agreements carried 
out under section 323 of the Department of the Interior and 
Related Agencies Appropriations Act, 1999 (16 U.S.C. 1011 note; 
Public Law 105-277), or the cooperative agreement authority 
granted by the first section of Public Law 94-148 (16 U.S.C. 
565a-1).

                   Cost and Budgetary Considerations

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

S. 2003--Watershed Restoration and Enhancement Agreements Act of 2006

    S. 2003 would make the authority of the Forest Service to 
use appropriated funds to execute certain cooperative 
agreements with nonfederal partners permanent. Those agreements 
are used to facilitate watershed restoration projects on public 
or private land. Under existing law, the authority to use 
appropriations for this purpose will expire after fiscal year 
2011. CBO estimates that enacting S. 2003, by itself, would 
have no impact on the federal budget. The bill would not 
authorize additional appropriations for watershed restoration 
projects and would not affect revenues or direct spending.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Deborah Reis. 
This estimate was approved by Peter H. Fontaine, Deputy 
Assistant Director, Budget Analysis Division.

                      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. 2003.
    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. 2003.

                        Executive Communications

    The views of the Administration were included in testimony 
received by the Committee at a hearing on the bill on May 10, 
2006, as follows:

  Statement of Joel Holtrop, Deputy Chief for National Forest System, 
                       Department of Agriculture

    Mr. Chairman and members of the Subcommittee: Thank you for 
the opportunity to appear before you today to provide the 
Department's views on S. 2003--Watershed Restoration and 
Enhancement Agreements Act of 2005. I am Joel Holtrop, Deputy 
Chief for the National Forest System, USDA Forest Service.

 s. 2003--watershed restoration and enhancement agreements act of 2005

    This bill would amend Section 323 of the Department of the 
Interior and Related Agencies Appropriations Act of 1999 
(commonly referred to as the ``Wyden amendment''), to 
permanently authorize the Secretary of Agriculture to use 
Forest Service appropriations to enter into cooperative 
watershed restoration and enhancement agreements with 
governments or private nonprofit entities and landowners to 
carry out activities on NFS lands or on non-Federal lands 
within the same watersheds. Agreements are authorized for the 
protection, restoration, and enhancement of fish and wildlife 
habitat and other resources and/or the reduction of risk from 
natural disaster on public or private land to benefit resources 
in the watershed. The current authorization includes provisions 
on terms and conditions regarding technical assistance, sharing 
of costs, ensuring that expenditures are in the public 
interest, and that the public investment on non-Federal lands 
is protected.
    The Department supports enactment of S. 2003, and would 
like to work with the Subcommittee on a short amendment to 
provide additional authority to more fully implement its 
provisions.
    The Forest Service has successfully used the Wyden 
amendment since its original enactment and subsequent 
reauthorizations. Benefits include improved, maintained and 
protected ecosystem conditions through collaborative 
administration and implementation of projects as well as 
increased operational effectiveness and efficiency through 
coordination of efforts, services, and products to accomplish 
the highest priority work.
    Of the many possible examples, work on the Siuslaw National 
Forest in Oregon illustrates the benefits of working across 
landscapes using this authority. Since 1998, the forest has 
implemented 26 projects, leveraging $321,000 in Federal 
investments with $387,000 in partner contributions to restore 
floodplains, riparian areas, and estuaries; install in-stream 
structures; monitor activities; and share information. 
Strategic use of this tool has brought a tremendous benefit to 
watersheds affecting National Forest System lands.
    Two bills have been introduced in the 109th Congress that 
contain similar language to this provision. Last September, the 
Department testified in strong support of H.R. 3818, which 
includes authority for watershed restoration and enhancement 
agreements as part of a comprehensive Forest Service 
partnership bill. H.R. 3818, entitled the ``Forest Service 
Partnership Enhancement Act,'' was based on the 
Administration's draft legislation transmitted to Congress 
under the same title. A similar bill, also with the same title, 
S. 2676, has recently been introduced by Senators Crapo and 
Lincoln.
    These bills contain authority--not included in S. 2003--
that would be important to the Forest Service's future success 
to cooperatively carry out watershed restoration and 
enhancement agreements. That authority clarifies that watershed 
restoration and enhancement agreements are mutual benefit 
agreements. While the Department supports enactment of S. 2003, 
we would like the Subcommittee to consider the benefits of 
providing express authority for mutual benefit agreements as 
proposed by the Administration.

                        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. 2003, 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):

  DEPARTMENT OF INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT, 1999

       (16 U.S.C. 1011; Public Law 105-277, Div. A, Sec. 101(e))

    Sec. 323. (a) Watershed Restoration and Enhancement 
Agreements.--For [each of fiscal years 2006 through 2011] 
fiscal year 2006 and each fiscal year thereafter, to the extent 
funds are otherwise available, appropriations for the Forest 
Service may be used by the Secretary of Agriculture for the 
purpose of entering into cooperative agreements with willing 
Federal, tribal, State and local governments, private and 
nonprofit entities and landowners for the protection, 
restoration and enhancement of fish and wildlife habitat, and 
other resources on public or private land, the reduction of 
risk from natural disaster where public safety is threatened, 
or a combination thereof or both that benefit these resources 
within the watershed.

           *       *       *       *       *       *       *

    (c) Terms and Conditions.--In order for the Secretary to 
enter into a watershed restoration and enhancement agreement--
          (1) the agreement shall--
                  (A) include such terms and conditions 
                mutually agreed to by the Secretary and the 
                landowner, state and local government, or 
                private or nonprofit entity;
                  (B) improve the viability of and otherwise 
                benefit the fish, wildlife, and other resources 
                on national forests lands within the watershed;
                  (C) authorize the provision of technical 
                assistance by the Secretary in the planning of 
                management activities what will further the 
                purposes of the agreement;
                  (D) provide for the sharing of costs of 
                implementing the agreement among the Federal 
                Government, the landowner(s), and other 
                entities, as mutually agreed on by the affected 
                interests; and
                  (E) ensure that any expenditure by the 
                Secretary pursuant to the agreement is 
                determined by the Secretary to be in the public 
                interest; and
          (2) the Secretary may require such other terms and 
        conditions as are necessary to protect the public 
        investment on non-Federal lands, provided such terms 
        and conditions are mutually agreed to by the Secretary 
        and other landowners, State and local governments or 
        both.
    (d) Applicable Law.--Chapter 63 of title 31, United States 
Code, shall not apply to--
          (1) a watershed restoration and enhancement agreement 
        entered into under this section; or
          (2) an agreement entered into under the first section 
        of Public Law 94-148 (16 U.S.C. 565a-1).
    [d] (e) Reporting Requirements.--Not later than December 
31, 1999, the Secretary shall submit a report to the Committees 
on Appropriations of the House and Senate, which contains--
          (1) A concise description of each project, including 
        the project purpose, location on federal and non-
        federal land, key activities, and all parties to the 
        agreement.
          (2) the funding and/or other contributions provided 
        by each party for each project agreement.

                                  
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