29–006 

112TH CONGRESS REPT. 112–737 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

FEDERAL FORESTS COUNTY REVENUE, SCHOOLS, AND 

JOBS ACT OF 2012 

DECEMBER 31, 2012.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HASTINGS of Washington, from the Committee on Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 4019] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 4019) to increase employment and educational opportunities in, and improve the economic stability of, counties containing 

Federal forest land, while also reducing the cost of managing such 

land, by providing such counties a dependable source of revenue 

from such land, and for other purposes, having considered the 

same, report favorably thereon with an amendment and recommend 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; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Federal Forests County Revenue, 

Schools, and Jobs Act of 2012’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—COUNTY, SCHOOLS, AND REVENUE TRUST FOR FEDERAL FOREST LAND 

Sec. 101. Definitions. 

Sec. 102. County, Schools, and Revenue Trust. 

Sec. 103. Opt out option. 

Sec. 104. Determination of annual revenue requirement and minimum sale level. 

Sec. 105. County, Schools, and Revenue Trust Projects. 

Sec. 106. Distribution of amounts from trust projects. 

Sec. 107. Payments to beneficiary counties from County, Schools, and Revenue Trust. 

Sec. 108. Initial payments pending implementation of trust projects. 

TITLE II—PAYMENT IN LIEU OF TAXES AMENDMENTS 

Sec. 201. Extension. 

Sec. 202. Inclusion in definition of payment law. 

Sec. 203. Congressional notification and publication of information. 


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TITLE III—FOREST SERVICE RECREATION RESIDENCE PROGRAM 

Sec. 301. Definitions. 

Sec. 302. Cabin user fees. 

Sec. 303. Cabin transfer fees. 

Sec. 304. Right of appeal and judicial review. 

Sec. 305. Effect. 

Sec. 306. Regulations. 

TITLE I—COUNTY, SCHOOLS, AND REVENUE 

TRUST FOR FEDERAL FOREST LAND 

SEC. 101. DEFINITIONS. 

In this title: 

(1) ANNUAL REVENUE REQUIREMENT.—The term ‘‘annual revenue requirement’’, with respect to a unit of the National Forest System, means the amount 

equal to 60 percent of the average annual gross receipts derived from the unit 

during the 20-year period beginning with fiscal year 1980, as determined under 

section 104. 

(2) BENEFICIARY COUNTY.— 

(A) IN GENERAL.—The term ‘‘beneficiary county’’ means a political subdivision of a State that, on account of containing National Forest System 

land, was eligible to receive payments through the State under title I of the 

Secure Rural Schools and Community Self-Determination Act of 2000 (16 

U.S.C. 7111 et seq.). 

(B) EXCLUSION OF CERTAIN COUNTIES.—The term does not include a political subdivision of a State that elects not to participate under section 103. 

A political subdivision that opts out of participation may still receive payments as provided in the sixth paragraph under the heading of ‘‘FOREST 

SERVICE’’ in the Act of May 23, 1908 (35 Stat. 260; 16 U.S.C. 500) and 

section 13 of the Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500). 

(3) CATASTROPHIC EVENT.—The term ‘‘catastrophic event’’ means an event 

that the Secretary determines will cause or has caused severe damage to National Forest System land, including severe fire, insect or disease infestations, 

windthrow, or other extreme weather or natural disaster. 

(4) CHARGEABLE VOLUME.— 

(A) IN GENERAL.—The term ‘‘chargeable volume’’ means only the volume 

of timber and other forest products that is counted toward meeting the allowable sale quantity of a unit of National Forest System land based on the 

regionally applicable utilization and merchantability standards. 

(B) EXCLUSION.—The term does not include post and pole sales and personal use firewood. 

(5) COMMUNITY WILDFIRE PROTECTION PLAN.—The term ‘‘community wildfire 

protection plan’’ has the meaning given that term in section 101 of the Healthy 

Forests Restoration Act of 2003 (16 U.S.C. 6511). 

(6) COUNTY, SCHOOLS, AND REVENUE TRUST PROJECT.—The terms ‘‘County, 

Schools, and Revenue Trust Project’’ and ‘‘trust project’’ mean a project designated by the Secretary as a project to generate amounts to help meet the annual revenue requirement. 

(7) FEDERAL LAND.—The term ‘‘Federal land’’ means— 

(A) land within the National Forest System; and 

(B) such portions of the revested Oregon and California Railroad and reconveyed Coos Bay Wagon Road grant land as are or may hereafter come 

under the jurisdiction of the Department of the Interior, which have heretofore or may hereafter be classified as timberlands, and power-site land 

valuable for timber, that shall be managed, except as provided in section 

3 of the Act of August 28, 1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest production. 

(8) MINIMUM SALE LEVEL.—The term ‘‘minimum sale level’’, for a unit of the 

National Forest System for a fiscal year, means a quantity equal to 50 percent 

of the average annual chargeable timber volume (as measured in net sawtimber 

volume) sold from the unit during the period beginning with fiscal year 1980 

through fiscal year 2000, as determined under section 104. 

(9) NATIONAL FOREST SYSTEM.—The term ‘‘National Forest System’’ has the 

meaning given that term in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1609(a)), except that the term 

does not include the National Grasslands and land utilization projects designated as National Grasslands administered pursuant to the Act of July 22, 

1937 (7 U.S.C. 1010–1012). 


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(10) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture or 

the designee of the Secretary of Agriculture. 

(11) SECRETARY CONCERNED.—The term ‘‘Secretary concerned’’ means— 

(A) the Secretary of Agriculture or the designee of the Secretary of Agriculture with respect to National Forest System land; and 

(B) the Secretary of the Interior or the designee of the Secretary of the 

Interior with respect to the Federal land described in paragraph (7)(B). 

(12) STATE.—The term ‘‘State’’ includes the Commonwealth of Puerto Rico. 

(13) TRUST.—The terms ‘‘County, Schools, and Revenue Trust’’ and ‘‘Trust’’ 

mean the County, Schools, and Revenue Trust established in the Treasury 

under section 102. 

(14) TRUSTEE.—The term ‘‘Trustee’’ means the Secretary, acting as the trustee 

of the County, Schools, and Revenue Trust. 

SEC. 102. COUNTY, SCHOOLS, AND REVENUE TRUST. 

(a) ESTABLISHMENT OF TRUST.—There is established in the Treasury a fund to be 

known as the ‘‘County, Schools, and Revenue Trust’’. 

(b) TRUST PURPOSE.—The purpose of the Trust is to provide a dependable source 

of revenue for each beneficiary county containing National Forest System land. 

(c) FIDUCIARY RESPONSIBILITY.—The Trustee has a fiduciary responsibility to beneficiary counties to use County, Schools, and Revenue Trust Projects to generate 

amounts sufficient to satisfy the annual revenue requirement established for units 

of the National Forest System. 

(d) TRUST ASSETS.— 

(1) INITIAL DEPOSITS.—To allow the transition necessary to implement this 

title, there is hereby appropriated to the Trust, out of amounts in the Treasury 

not otherwise appropriated, an amount equal to $875,000,000 to provide payments under section 108 during fiscal years 2012 and 2013. 

(2) PORTION OF RECEIPTS FROM TRUST PROJECTS.—There shall be credited to 

the Trust all amounts required by section 106(a)(1) to be deposited in the Trust 

from County, Schools, and Revenue Trust Projects. 

(e) LIMITATIONS.—The assets of the Trust shall not— 

(1) be subject to garnishment by, or otherwise paid to, a creditor of a beneficiary county; 

(2) be expended other than for the purposes authorized in subsections (b) and 

(c) of section 107; or 

(3) be used in lieu of or to otherwise offset State funding sources for local 

schools, facilities, or educational purposes. 

(f) REPORTING.—Not later than 90 days after the end of each fiscal year (beginning with fiscal year 2014), the Secretary shall submit to Congress a report specifying the deposits into, and distributions from, the Trust during the preceding fiscal 

year. 

SEC. 103. OPT OUT OPTION. 

(a) ELECTION.—A political subdivision of a State that otherwise satisfies the definition of beneficiary county may elect not to participate under this title. 

(b) TIME AND DURATION OF ELECTION.—An election to opt out under subsection 

(a) is effective for a single fiscal year and must be submitted to the Secretary before 

the start of that fiscal year. 

(c) EFFECT OF ELECTION.— 

(1) NO TRUST PROJECTS.—No County, Schools, and Revenue Trust Project may 

be commenced on National Forest System land located in any political subdivision that has opted out under subsection (a). Other activities on the National 

Forest System land in the political subdivision may be carried out in accordance 

with other laws applicable to the National Forest System land. 

(2) COMPLETION OF EXISTING PROJECTS.—Trust projects underway before the 

effective date of the opt out may be completed. 

SEC. 104. DETERMINATION OF ANNUAL REVENUE REQUIREMENT AND MINIMUM SALE LEVEL. 

Not later than 60 days after the date of the enactment of this Act, the Secretary 

shall determine for each unit of the National Forest System— 

(1) the annual revenue requirement for the unit; and 

(2) the minimum sale level for the unit. 

SEC. 105. COUNTY, SCHOOLS, AND REVENUE TRUST PROJECTS. 

(a) NEED FOR PROJECTS.—Effective for fiscal year 2014 and each fiscal year thereafter, the Secretary shall carry out County, Schools, and Revenue Trust Projects in 

units of the National Forest System as necessary to achieve the annual revenue requirement for the unit. The Secretary is authorized and encouraged to commence 

the implementation of trust projects before fiscal year 2014 to begin generating 


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amounts for deposit in the Trust to supplement the funds made available under section 102(d)(1). 

(b) DESIGNATION OF PROJECTS.— (1) IN GENERAL.—Except as otherwise provided in this subsection, the Secretary may designate any project involving National Forest System land (other 

than National Forest System land located in a political subdivision that opted 

out under section 103) as a County, Schools, and Revenue Trust Project. 

(2) TYPES OF PROJECTS.—Trust projects may include a timber sale, issuance 

of a grazing permit, issuance of a special use permit involving land use, mineral 

development, power generation, or recreational use, and projects implementing 

a community wildfire protection plan. 

(3) EXCLUSION OF CERTAIN LAND FROM TRUST PROJECTS.—A trust project shall 

not be designated on National Forest System land— 

(A) that is a component of the National Wilderness Preservation System; or (B) on which the removal of vegetation is specifically prohibited by Federal law. 

(4) MAXIMUM NUMBER OF DESIGNATED PROJECTS.—The maximum number of 

trust projects designated by the Secretary for a unit of the National Forest System for a fiscal year may not exceed the number of projects necessary to meet 

the annual revenue requirement for the unit. 

(5) STANDARDS FOR TRUST PROJECTS.—A County, Schools, and Revenue Trust 

Project shall be consistent with standards and guidelines contained in the land 

and resource management plan or land use plan for the unit of the National 

Forest System in which the project will occur, except that the Secretary may 

modify such standards and guidelines for a specific trust project. 

(c) SPECIAL AUTHORITY TO RESPOND TO CATASTROPHIC EVENTS.—Notwithstanding 

subsection (b)(4), the Secretary may designate any project conducted in response to 

a catastrophic event as a County, Schools, and Revenue Trust Project. 

(d) PUBLIC REVIEW AND REQUIRED ENVIRONMENTAL ANALYSIS.— 

(1) PUBLIC NOTICE AND COMMENT.— 

(A) PROPOSED PROJECT.—The Secretary shall publish in the Federal Register notice of a proposed County, Schools, and Revenue Trust Project. The 

public may submit to the Secretary specific written comments that relate 

to the trust project within 30 days after the date of the publication of the 

notice. 

(B) FINAL DECISION.—Not later than 120 days after the date on which notice was published under subparagraph (A) with regard to a proposed County, Schools, and Revenue Trust Project, and after taking into account any 

comments received under such subparagraph, the Secretary shall designate 

the final trust project and publish in the Federal Register notice of the final 

designated trust project. 

(C) OBJECTIONS.—Only persons who submitted comments regarding a 

proposed County, Schools, and Revenue Trust Project under subparagraph 

(A) may submit to the Secretary specific written objections that relate to 

the final designated trust project. Any objections regarding the final trust 

project must be submitted within 30 days after the date of the publication 

of the notice under subparagraph (B). 

(2) ENVIRONMENTAL REPORT REQUIREMENT.— 

(A) IN GENERAL.—Except as provided under subparagraph (C), the Secretary shall prepare an environmental report for each final designated 

County, Schools, and Revenues Trust Project within 180 days after the date 

on which notice was published under paragraph (1)(A) with regard to the 

project. 

(B) ELEMENTS OF REPORT.—The environmental report for a trust project 

shall include at a minimum the following: 

(i) To the extent the Secretary considers appropriate and feasible, an 

evaluation of the environmental impacts of the proposed project, including the effect, if any, on threatened or endangered species listed under 

the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). 

(ii) Public comments received by the Secretary regarding the project 

under subparagraph (A) of paragraph (1), objections to the project submitted under subparagraph (C) of such paragraph, and any response to 

the comments and objections. 

(iii) Any modifications to the project to ensure that the annual revenue requirement is met. 

(C) SPECIAL DEADLINES FOR PROJECTS IN RESPONSE TO CATASTROPHIC

EVENT.—In the case of a trust project proposed in response to a catastrophic 

event, the Secretary shall complete the environmental report required by 


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this paragraph within 30 days after the date on which notice was published 

under paragraph (1)(A) with regard to the proposed project. The Secretary 

shall adjust the deadlines for public comments specified in subparagraphs 

(A) and (C) of paragraph (1) as necessary to achieve the expedited reporting 

requirement imposed by this subparagraph. 

(D) COST TO PREPARE ENVIRONMENTAL REPORT.—The costs to prepare the 

environmental report for a trust project shall not exceed an amount equal 

to one-third of the estimated value of the receipts to be generated by the 

trust project. 

(3) SOLE MEANS FOR ADMINISTRATIVE REVIEW.—The procedures provided by 

this subsection are the sole means by which a person may seek administrative 

review of a County, Schools, and Revenue Trust Project. 

(4) NO JUDICIAL REVIEW.—There shall be no judicial review of the environmental report for a County, Schools, and Revenue Trust Project. 

(e) COMPLIANCE.—Compliance with this section shall be deemed to be compliance 

with the requirements of the Forest and Rangeland Renewable Resources Planning 

Act of 1974 (16 U.S.C. 1601 et seq.), the National Environmental Policy Act of 1969 

(42 U.S.C. 4331 et seq.), section 14 of the National Forest Management Act of 1976 

(16 U.S.C. 472a), the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), and 

the Multiple-Use Sustained-Yield Act of 1960 (16 U.S.C. 528 et seq.). 

SEC. 106. DISTRIBUTION OF AMOUNTS FROM TRUST PROJECTS. 

(a) PERCENTAGE DISTRIBUTION.—The amounts derived from a County, Schools, 

and Revenue Trust Project shall be distributed as follows: 

(1) 65 percent shall be deposited in the County, Schools, and Revenue Trust. 

(2) 35 percent shall be deposited in the general fund of the Treasury for use 

as provided in subsection (b). 

(b) USE OF FUNDS FOR FOREST SERVICE.— 

(1) IN GENERAL.—Amounts deposited under subsection (a)(2) shall be available, in such amounts as may be provided in advance in appropriation Acts, for 

the Forest Service. 

(2) FUNDS FOR PERFORMANCE BASED CASH AWARDS.—Of the amount made 

available under paragraph (1) for a fiscal year, the Secretary shall make available to the responsible officials for units of the National Forest System up to 

one percent of the amount for the purpose of providing performance-based cash 

awards under section 4505a of title 5, United States Code, to employees of the 

Forest Service who assist a unit in exceeding its minimum sale level for the fiscal year. 

SEC. 107. PAYMENTS TO BENEFICIARY COUNTIES FROM COUNTY, SCHOOLS, AND REVENUE 

TRUST. 

(a) DISTRIBUTION METHOD.—As soon as practicable at the end of each fiscal year, 

the Secretary shall distribute all amounts that were deposited in the County, 

Schools, and Revenue Trust from trust projects for that fiscal year to the States for 

distribution to beneficiary counties in the manner provided by section 102(c)(1) of 

the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 

7112(c)(1)). 

(b) USE OF FUNDS.—The use of amounts received by a beneficiary county under 

this section shall be subject to subsections (c)(2) and (d) of section 102 of the Secure 

Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7112). 

SEC. 108. INITIAL PAYMENTS PENDING IMPLEMENTATION OF TRUST PROJECTS. 

(a) FISCAL YEAR 2012.— 

(1) BENEFICIARY COUNTIES.—As soon as practicable after the end of fiscal year 

2012, the Secretary of Agriculture shall distribute to each beneficiary county a 

payment equal to the amount distributed to the beneficiary county for fiscal 

year 2010 under section 102(c)(1) of the Secure Rural Schools and Community 

Self-Determination Act of 2000 (16 U.S.C. 7112(c)(1)). 

(2) COUNTIES THAT WERE ELIGIBLE FOR DIRECT COUNTY PAYMENTS.—As soon 

as practicable after the end of fiscal year 2012, the Secretary of the Interior 

shall distribute to each county that received a payment for fiscal year 2010 

under section 102(a)(2) of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7112(a)(2)) a payment equal to the amount distributed to the county for fiscal year 2010 under section 102(c)(1) of the Secure 

Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 

7112(c)(1)). 

(b) FISCAL YEAR 2013.—As soon as practicable at the end of fiscal year 2013, the 

Secretary concerned shall distribute to each beneficiary county that received a payment under subsection (a)(1) and to each county that received a payment under subVerDate Mar 15 2010 05:11 Jan 09, 2013 Jkt 029006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6621 E:\HR\OC\HR737P1.XXX HR737P1

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section (a)(2) a payment equal to 75 percent of the amount distributed to the county 

under subsection (a). 

(c) SOURCE OF FUNDS.—The amounts required to be distributed under this section 

shall be derived from funds in the County, Schools, and Revenue Trust. 

(d) USE OF FUNDS.—The distribution under this section of amounts to a beneficiary county shall be subject to subsections (c)(2) and (d) of section 102 of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7112). 

The distribution under this section of amounts to a county described in subsection 

(a)(2) shall be subject to subsection (d) of such section. 

TITLE II—PAYMENT IN LIEU OF TAXES 

AMENDMENTS 

SEC. 201. EXTENSION. 

Section 6906 of title 31, United States Code, is amended by striking ‘‘2012’’ and 

inserting ‘‘2017’’. 

SEC. 202. INCLUSION IN DEFINITION OF PAYMENT LAW. 

Section 6903(a)(1) of title 31, United States Code, amended— 

(1) by striking ‘‘and’’ at the end of subparagraph (I); 

(2) by striking the period at the end of subparagraph (J) and inserting ‘‘; and’’; 

and 

(3) by adding at the end the following new subparagraph: 

‘‘(K) title I of the Federal Forests County Revenue, Schools, and Jobs Act 

of 2012.’’. 

SEC. 203. CONGRESSIONAL NOTIFICATION AND PUBLICATION OF INFORMATION. 

Section 6903 of title 31, United States Code, is amended by adding at the end the 

following new subsections: 

‘‘(e) CONGRESSIONAL NOTIFICATION.—The Secretary of the Interior shall submit to 

the Committee on Energy and Natural Resources of the Senate and the Committee 

on Natural Resources of the House of Representatives a list of States that have not 

submitted to the Secretary the data required to calculate payments under this chapter by January 15 of each year. 

‘‘(f) PUBLICATION.—The Secretary of the Interior shall— 

‘‘(1) publish in the Federal Register and on the Department of the Interior 

website a list of States that have not submitted to the Secretary the data required to calculate payments under this chapter by February 1 of each year; 

and 

‘‘(2) update the list published on the Department of the Interior website under 

paragraph (1) to reflect any changes in the list. 

‘‘(g) ISSUANCE OF PAYMENTS.—Not later than May 1 of each fiscal year, the Secretary of the Interior shall issue the payments authorized under this chapter.’’. 

TITLE III—FOREST SERVICE RECREATION 

RESIDENCE PROGRAM 

SEC. 301. DEFINITIONS. 

In this title: 

(1) AUTHORIZATION; AUTHORIZE.—The terms ‘‘authorization’’ and ‘‘authorize’’ 

mean the issuance of a special use permit for the use and occupancy of National 

Forest System land by a cabin owner under the Recreation Residence Program. 

(2) CABIN.—The term ‘‘cabin’’ means a privately built and owned recreation 

residence and related improvements on National Forest System land that— 

(A) is authorized for private use and occupancy; and 

(B) may be sold or transferred between private parties. 

(3) CABIN OWNER.—The term ‘‘cabin owner’’ means— 

(A) a person authorized by the Secretary to use and to occupy a cabin; 

and 

(B) a trust, heir, or assign of a person described in subparagraph (A). 

(4) CABIN TRANSFER FEE.—The term ‘‘cabin transfer fee’’ means a fee that is 

paid to the United States on the transfer of a cabin between private parties for 

money or other consideration that results in the issuance of a new permit. 

(5) CABIN USER FEE.—The term ‘‘cabin user fee’’ means an annual fee paid to 

the United States by a cabin owner in accordance with an authorization for the 

use and occupancy of a cabin. 


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(6) CURRENT APPRAISAL CYCLE.—The term ‘‘current appraisal cycle’’ means the 

completion of Forest Service review and acceptance of— 

(A) initial typical lot appraisals; and 

(B) second appraisals, if ordered by cabin owners and approved by the 

Forest Service. 

(7) CURRENT CABIN USER FEE.—The term ‘‘current cabin user fee’’ means the 

most recent cabin user fee, as adjusted under section 302(c). 

(8) LOT.—The term ‘‘lot’’ means a parcel of National Forest System land on 

which a person is authorized to build, use, occupy, and maintain a cabin. 

(9) NATIONAL FOREST SYSTEM.—The term ‘‘National Forest System’’ has the 

meaning given that term in section 11 of the Forest and Rangeland Renewable 

Resources Planning Act of 1974 (16 U.S.C. 1609). 

(10) RECREATION RESIDENCE PROGRAM.—The term ‘‘Recreation Residence Program’’ means the Recreation Residence Program established under the last 

paragraph under the heading ‘‘FOREST SERVICE’’ in the Act of March 4, 1915 

(16 U.S.C. 497). 

(11) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture, 

acting through the Chief of the Forest Service. 

(12) TYPICAL LOT.—The term ‘‘typical lot’’ means a cabin lot, or group of cabin 

lots, in a tract that is selected for use in an appraisal as being representative 

of, and that has similar value characteristics as, other lots or groups of lots 

within the tract. 

SEC. 302. CABIN USER FEES. 

(a) PAYMENT OF CABIN USER FEES.—Cabin owners shall pay an annual cabin user 

fee established by the Secretary in accordance with this section. 

(b) INITIAL CABIN USER FEES.— (1) ESTABLISHMENT.—The Secretary shall establish initial cabin user fees in 

accordance with this subsection. 

(2) ASSIGNMENT TO VALUE TIERS.—On completion of the current appraisal 

cycle, as required by paragraph (4), the Secretary shall assign each permitted 

lot on National Forest System land to 1 of 9 tiers based on the following considerations: 

(A) Before assigning the lots to tiers, all appraised lot values shall be adjusted, or normalized, for price changes occurring after the appraisal, in accordance with the National Association of Homebuilders/Wells Fargo Housing Opportunity Index. 

(B) Second appraisal values that meet Forest Service standards for approval shall supersede initial lot appraisal values for the normalization and 

ranking process under subparagraph (A). 

(C) The tiers shall be established, on a national basis, according to relative lot value, with lots having the lowest adjusted appraised value assigned to tier 1 and lots having the highest adjusted appraised value assigned to tier 9. 

(D) The number of lots (by percentage) assigned to each tier is contained 

in the table set forth in paragraph (3). 

(E) Data from incomplete appraisals may not be used to establish the fee 

tiers under this subsection. 

(F) Until assigned to a tier under this subsection, the Secretary shall assess (and may adjust annually subject to clause (ii)) an interim fee for permitted cabin lots (including lots with incomplete appraisals) in an amount 

equal to the lesser of— (i) $4,500; or 

(ii) the amount of the current cabin user fee, as determined under the 

Cabin User Fee Fairness Act of 2000 (16 U.S.C. 6201 et seq.), which 

amount the Secretary may increase annually by not more than 25 percent, except that the increased fee shall not exceed the otherwise scheduled fee determined under the Cabin User Fee Fairness Act of 2000. 

(3) AMOUNT OF INITIAL CABIN USER FEES.—The initial cabin user fees, based 

on the assignments under paragraph (2), are as follows: 

Fee Tier Approximate Percent of Permits 

Nationally Fee Amount 

Tier 1 8 percent $500

Tier 2 16 percent $1,000

Tier 3 20 percent $1,500


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Fee Tier Approximate Percent of Permits 

Nationally Fee Amount 

Tier 4 20 percent $2,000

Tier 5 12 percent $2,500

Tier 6 8 percent $3,000

Tier 7 6 percent $3,500

Tier 8 6 percent $4,000

Tier 9 4 percent $4,500. 

(4) DEADLINE FOR COMPLETION OF CURRENT APPRAISAL CYCLE.—Not later than 

3 years after the date of enactment of this Act, the Secretary shall complete the 

current appraisal cycle. 

(5) EFFECTIVE DATE.—The initial cabin user fees required by this subsection 

shall take effect beginning with the first calendar year beginning after the completion of the current appraisal cycle. 

(c) ANNUAL ADJUSTMENTS OF CABIN USER FEE.—Once initial cabin user fees have 

been assessed, based on the tier assignments under subsection (b)(2), the Secretary 

shall use changes in the Implicit Price Deflator for the Gross Domestic Product published by the Bureau of Economic Analysis of the Department of Commerce, applied 

on a 5-year rolling average, to assess an annual adjustment to cabin user fees. 

(d) EFFECT OF DESTRUCTION, SUBSTANTIAL DAMAGE, OR LOSS OF ACCESS.— 

(1) IN GENERAL.—The Secretary shall reduce the cabin user fee to $100 per 

year for a cabin if— 

(A) the cabin is destroyed or suffers substantial damage in an amount 

that is greater than 50 percent of replacement cost of the cabin; or 

(B) access to the cabin is significantly impaired, whether by catastrophic 

events, natural causes, or governmental actions. 

(2) TERM OF REDUCED FEE.—The reduced fee under paragraph (1) shall be in 

effect until the later of— 

(A) the last day of the year in which the destruction or impairment occurs; or 

(B) the date on which the cabin may be lawfully reoccupied and normal 

access has been restored. 

SEC. 303. CABIN TRANSFER FEES. 

(a) PAYMENT OF CABIN TRANSFER FEES.—In conjunction with the transfer of ownership of any cabin and the issuance of a new permit, the cabin owner transferring 

the cabin shall file with the Secretary a sworn statement declaring the amount of 

money or other value received, if any, for the transfer of the cabin. 

(b) AMOUNT.—As a condition of the issuance by the Secretary of a new authorization for the use and occupancy of the cabin, the cabin owner transferring the cabin 

shall pay to the Secretary a cabin transfer fee in an amount determined as follows: 

Consideration Received by Transfer Transfer Fee Amount 

$0 to $250,000 $1,000 

$250,000.01 to $500,000.00 $1,000 plus 5 percent of consideration in excess of $250,000 up to $500,000 

$500,000.01 and above $1,000 plus 5 percent of consideration in excess of $250,000 up to $500,000 plus 10 

percent of consideration in excess of 

$500,000. 

(c) INDEX.—The Secretary shall use changes in the Implicit Price Deflator for the 

Gross Domestic Product published by the Bureau of Economic Analysis of the Department of Commerce, applied on a 5-year rolling average, to determine and apply 

an annual adjustment to the cabin transfer fee threshold amounts set forth in the 

table contained in subsection (b). 

SEC. 304. RIGHT OF APPEAL AND JUDICIAL REVIEW. 

(a) RIGHT OF APPEAL.— 


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(1) IN GENERAL.—Notwithstanding any action of a cabin owner to exercise 

rights in accordance with section 305, the Secretary shall by regulation grant 

to the cabin owner the right to an administrative appeal of the determination 

of a new cabin user fee, fee tier, cabin transfer fee, or whether or not to reduce 

a cabin user fee under section 302(d). 

(2) APPLICABLE LAW.—An appeal under paragraph (1) shall be pursuant to the 

appeal process provided under subpart C of part 251 of title 36, Code of Federal 

Regulations (or a successor regulation). 

(b) JUDICIAL REVIEW.— 

(1) IN GENERAL.—A cabin owner that contests a final decision of the Secretary 

under this title may bring a civil action in United States district court. 

(2) VENUE.—The venue for an action brought before the United States district 

court under this subsection shall be in the Federal judicial district in which the 

cabin is located or the permit holder resides. 

(3) EFFECT ON MEDIATION.—Nothing in this title precludes a person from 

seeking mediation for an action under this title. 

SEC. 305. EFFECT. 

(a) IN GENERAL.—Nothing in this title limits or restricts any right, title, or interest of the United States in or to any land or resource. 

(b) SPECIAL RULE FOR ALASKA.—In determining a cabin user fee in the State of 

Alaska, the Secretary shall not establish or impose a cabin user fee or a condition 

affecting a cabin user fee that is inconsistent with 1303(d) of the Alaska National 

Interest Lands Conservation Act (16 U.S.C. 3193(d)). 

SEC. 306. REGULATIONS. 

Not later than December 31, 2013, the Secretary shall issue regulations to carry 

out this title. 

PURPOSE OF THE BILL

The purpose of H.R. 4019, as ordered reported, is to increase employment and educational opportunities in, and improve the economic stability of, counties containing Federal forest land, while 

also reducing the cost of managing such land, and by providing 

such counties a dependable source of revenue from such land. 

BACKGROUND AND NEED FOR LEGISLATION

Title I—County, Schools, and Revenue Trust for Federal Forest 

Land 

Under federal law passed in 1908, the U.S. Forest Service has 

historically shared 25% of all timber revenues with rural counties 

containing National Forest land to compensate them for large 

amounts of federal land that cannot be taxed. Since that time, 

these ‘‘25% payments’’ have provided counties with much-needed 

funding for essential services such as education and infrastructure. 

However, by the late 1990s timber harvests dramatically declined 

due to federal over-regulation and harmful lawsuits, prompting 

Congress in 2000 to pass the Secure Rural Schools and Community 

Self-Determination Act (SRS). 

SRS was created to provide ‘‘transition payments’’ over a six-year 

period while Congress worked to increase timber production, or 

rural counties found an alternative source of revenue. SRS has 

since been extended, although the authorization ended on September 30, 2011, and the final payments were distributed on December 31, 2011. In the absence of SRS, county payments will revert to 25% of current timber receipts—approximately $60 million, 

an 80% decrease from the 2011 SRS payment of $320 million. 

H.R. 4019 would finally enact the long-term solution that Congress had intended by creating a dependable source of revenue 

through an increase in forest management receipts. The bill would 


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establish an annual revenue requirement based on an average percentage of historical receipt levels. The Forest Service would be required to meet the annual revenue requirement through the use of 

forest management projects under a streamlined environmental review process. The bill also provides for a short transition period to 

allow time to implement the proposal and begin generating receipts 

from Forest Service management activities. 

Title II—Payment in Lieu of Taxes Amendments 

The Payment in Lieu of Taxes (PILT) program, administered by 

the Department of the Interior (DOI), was established in 1976 to 

compensate local governments for lost property tax revenues on 

non-taxable federal land. County budgets are drafted with the expectation that DOI will distribute PILT funds on time to help pay 

for vital programs such as road construction, schools, local law enforcement and fire departments. Under current law, DOI is only required to make PILT payments by the end of the fiscal year, and 

the timing of the payments has fluctuated over the years with different administrations. In 2010, DOI announced a decision to delay 

payments. Since the data for every State is required to calculate 

PILT payments, problems receiving timely and accurate data from 

every State prompted the delay. While the payments were dispersed earlier than announced, there is an inherent need to ensure 

that payments can be made in a timely fashion. 

Title II of H.R. 4019 provides mandatory full funding for PILT 

through 2017, and will require the Department of the Interior to 

issue payments to counties not later than May 1 of each fiscal year. 

It will also require the Department of Interior to notify Congress 

and publish the list of States that do not meet the annual January 

15 deadline for submitting the data required for calculating PILT 

payments. These measures will ensure that annual PILT payments 

will be made in a timely fashion. 

Since its inception, counties felt that PILT did not fully keep 

pace with inflation, and an amendment to adjust the payment level 

for inflation was enacted in 1994. Payments prior to 2008, however, 

were subject to annual appropriations over the last decade and full 

funding did not regularly occur so each county received only a pro 

rata share of the appropriation. A provision in the 2008 TARP bill 

(Public Law 110–343) provided for mandatory spending of the fully 

authorized PILT level over a five year period so that all counties 

will receive 100% of the authorized payment in fiscal years 2008 

through 2012. 

Title III—Forest Service Recreation Residence Program 

A summer cabin program has existed in the National Forests for 

almost a century, but recent changes in the way fees are set for the 

permits for the cabins will put them beyond the reach of many of 

the 14,000 cabin owners. Title III of H.R. 4019 will provide a fair, 

simple and predictable structure for setting fees based on the actual value received, moderate the runaway fee hikes and reduce 

the administrative burden on the Forest Service. 

Under current law, cabin owners are charged fees based on 50% 

of the value of the National Forest land on which the cabin is located. The current system for setting fees for ownership of cabins 

on National Forest land does not accurately reflect the value of the 


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limited use-permits involved. A limited and temporary permit is 

not comparable to the rights of fee-simple ownership. Because the 

many restrictions and conditions on the permits are not sufficiently 

included in the valuations, the fees often go far beyond what average families can afford, forcing many cabin owners to sell or abandon their cabins. Appraisals completed last year under the current 

Cabin User Fee Fairness Act (CUFFA) law indicate 45% of owners 

have seen fee increases of 200% or higher, 20% exceed $5,000, 8.5% 

exceed $7,000, and 3.7% exceed $10,000. These CUFFA fees far exceed market rates when compared to similar leased (or permitted) 

recreation land uses. Title III would establish rates that more fairly reflect true market rates and revenues. 

Title III of H.R. 4019, or the Cabin Fee Act (CFA) establishes a 

nine-tiered fee structure, indexed annually, that is fair to the cabin 

owner and the Treasury and will preserves cabin value or the ability to sell the cabin if the current owner cannot pay the fee. Instead 

of annual fees ranging from $125 to the clearly unaffordable 

$76,000 under current law, fees under CFA will range from $500 

to $4500 per year. 

CFA requires the assignment of each permitted lot on which the 

cabin is located to one of nine fee tiers, based on the rank order 

of current appraised values. The lowest 8% of appraised lot values 

are assigned to the $500 tier. The highest 4% are assigned to the 

$4,500 tier. Following this process, user fee revenue is projected to 

be about $30M when fully implemented. User fees are to be adjusted annually by a rolling average of the Implicit Price Deflator 

for the Gross Domestic Product index. 

Fee Tier Approximate percent 

of permits nationally Fee amount 

1 ................................................................................................................................... 8 $500 

2 ................................................................................................................................... 16 1,000 

3 ................................................................................................................................... 20 1,500 

4 ................................................................................................................................... 20 2,000 

5 ................................................................................................................................... 12 2,500 

6 ................................................................................................................................... 8 3,000 

7 ................................................................................................................................... 6 3,500 

8 ................................................................................................................................... 6 4,000 

9 ................................................................................................................................... 4 4,500 

A Transfer Fee, intended to capture the value influence of the 

National Forest location would be paid when that value influence 

is actually realized at the time of sale. The Transfer Fee has two 

components. First, a flat fee of $1,000 is collected for all cabin sales 

and transfers. Second, if the sale price exceeds $250,000, an additional 5% is collected on the sale price exceeding $250,000 up to 

$500,000, and an additional 10% on sale amounts exceeding 

$500,000. 

Cabin marketability is not encumbered, because cabin owners 

will have full knowledge of the indexed annual user fee and both 

a seller and buyer can factor the Transfer Fee into their negotiations at the time of sale. CFA provides cost savings to the Forest 

Service by the elimination of expensive appraisals and the loss of 

the substantial revenue from abandoned cabins that will occur if 

CUFFA stands unchanged. 

With the elimination of the appraisal process under CUFFA, the 

Forest Service will save approximately $1 million annually. The 


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complexity and expense of the appraisal process will be replaced 

with a cost-effective fee system and greatly simplified program administration. 

COMMITTEE ACTION

H.R. 4019 was introduced on February 14, 2012, by Congressman 

Doc Hastings (R–WA). The bill was referred to the Committee on 

Natural Resources and in addition to the Committee on Agriculture. Earlier, on September 22, 2011, the Subcommittee on National Parks, Forests and Public Lands held a hearing on a draft 

version of the bill. On February 16, 2012, the Full Natural Resources Committee met to consider the bill. Congressman Rob 

Bishop (R–UT) offered an en bloc amendment to the bill; the 

amendment was adopted by voice vote. Congressman Don Young 

(R–AK) offered amendment designated .112 to the bill; the amendment was withdrawn. Congressman Don Young (R–AK) offered 

amendment designated .113 to the bill; the amendment was withdrawn. Congressman Ben Luja ́n (D–NM) offered amendment designated .057 to the bill; the amendment was withdrawn. Congressman Edward Markey (D–MA) offered amendment designated .096 

to the bill; the amendment was not adopted by a bipartisan roll call 

vote of 17 to 25, as follows: 


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Date: February 16, 2012 

Committee on Natural Resources 

U.S. House of Representatives 

ll2'h Congress 

Recorded Vole #: 1 

Meeling on I Amendment: HR 4019 - An Amendment offered by Mr. Markey.096 was NOT AGREED TO by 

a roll call vote of 17 yeas and 25 nays. 

fEMBERS Yea Nay Pres MEMBERS Yea Nay , 

Pres 

Mr. Hastings, WA Chairman X Mr. Heinrich, NM X 

Mr. Markey, MA Ranking X I Mr. Benishek, MI X 

Mr. Young, AK Mr. Llljan. NM X 

Mr. Kildee. M1 X Mr. Rivera, FL X 

, 

Mr. Duncan of TN Mr. Sarbanes. MD 

Mr. DeFazio. OR X Mr. Duncan of SC X 

Mr. Gohmert, TX X Ms. Sutton. OH X 

Mr. Faleomavaega. AS Mr. Tipton, CO X 

_ 

Mr. Bishop, UT X Ms. Tsongas, MA X .... 

Mr. Pallone. NJ X Mr. Gosar, AZ 

. Mr, Lamborn, CO X Mr. Pierluisi. PR X 

Mrs. Napolitano. CA X Mr, Labrador, ID X 

Mr. Wittman, VA X , Mr. Garamendi, CA X 

Mr. Holt. NJ X Ms. Noem,SD X 

Mr, Broun, GA I X Ms. Hanabusa. HI X , 

Mr. Grijalva. AZ X Mr. Southerland, FL X 

Mr. Fleming, LA X Mr, Flores, TX X 

-.. 

Ms. Bordallo. GU X Mr. Harris, MD X 

Mr, Coffman, CO X Mr. Landry, LA X 

Mr. Costa. CA X Mr, Runyan, NJ X 

Mr, McClintock, CA X Mr. Johnson, OH i X 

Mr. Boren. OK X Mr. Amodei, NV X 

~.mpson,PA X 

Mr. Sablan. CNM1 X 

Mr, Denham, CA X 

TOTALS 17 25 , 
14 

Congressman Rau ́l Grijalva (D–AZ) offered amendment designated .050 to the bill; the amendment was not adopted by a roll 

call vote of 18 to 24, as follows: 


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Date: February 16, 2012 

Committee on Natural Resources 

U.S. House of Representatives 

112'h Congress 

Recorded Vote #: 2 

Meeting on / Amendment: HR 4019 .. An Amendment offered by Mr. Grijalva.OSO was NOT AGREED TO by 

a roll call vote of 18 yeas and 24 nays. 

MEMBERS Yea Nay Pres MEMBERS Yea I Nay Pres 

Mr. Hastings, W A Chairman X Mr. Heinrich, NM X I 

Mr. Markey, MA Ranking X Mr. Benishek, MI X 

Mr. Young, AK Mr. Lujan, NM X 

r-----' I Mr. KUdee, MI X Mr. Rivera, FL X 

I Mr. Duncan of TN Mr. Sarbanes, MD 

I Mr. DeFazio, OR X Mr. Duncan ofSC X 

Mr. Gohmert, TX X Ms. Sutton, OH X 

~ Faleomavaega, AS Mr. Tipton, CO X 

Mr. Bishop, UT X Ms. Tsongas, MA I X I 

Mr. Pallone, NJ X Mr. Gosar, AZ 

Mr. Lamborn, CO X Mr. Pierluisi, PR X 

Mrs. Napolitano, CA : X Mr. Labrador, ID X 

Mr. Wittman, V A X I 

Mr. Garamendi. CA X 

Mr. Holt,NJ X Ms. Noem, SD X 

Mr. Brouu, GA X Ms. Hanabusa, HI X 

Mr. Grijalva, AZ X Mr. Southerland, FL X 

Mr. Fleming, LA X Mr. Flores, TX X 

Ms. Bordallo, GU X Mr. Harris, MD X 

Mr. Coffman, CO X Mr. Landry, LA X I 

.. 

Mr. Costa, CA X Mr. Runyan, NJ X 

Mr. McClintock, CA I X Mr. Johnson, OH X 

Mr. Boren, OK X Mr. Amodei, NV X 

Mr. Thompson, PA 1----_. X 

Mr. Sablan, CNMI X 

Mr. Denham, CA X I 

t---" 

I TOTALS 18 24 

I 
16 

Congressman Martin Heinrich (D–NM) offered an amendment in 

the nature of a substitute to the bill; the amendment was not 

adopted by a roll call vote of 18 to 25, as follows: 


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Date: February 16, 2012 

Committee on Natnral Resources 

u.s. House of Representatives 

11th Congress 

Recorded Vote #: 3 

Meeting on I Amendment: HR 4019 - An Amendment in the Nature of a Substitute offered by Mr. Heinrich 

was NOT AGREED TO by a roll call vote of 18 yeas and 25 nays. 

MEMBERS Yea Nay Pres MEMBERS Yea Nay Pres 

Mr. Hastings, WA Chairman X Mr. Heinrich, NM X 

Mr. Markey. MA Ranking X Mr. Benishek, MI X .. 

Mr. Young,AK X Mr. Lujan. NM X 

I Mr. Kildee, MJ X ! Mr, Rivera, FL X 

Mr, Duncan of TN Mr. Sarbanes, MD 

. Mr. DeFazia. OR X Mr. Duncan of SC X ._. 

Mr, Gohmert, TX X Ms. Sutton, OH X 

Mr. Faleomavaega, AS Mr. Tipton, CO X 

Mr. Bishop, UT X Ms. Tsongas. MA X 

Mr. Pallone, NJ X Mr. Gosar, AZ 

Mr, Lamborn, CO X Mr. Pierluisi, PR X 

Mrs. Napolitano, CA X Mr. Labrador, ID X 

Mr. Wittman, VA X Mr. Garamendi, CA X 

Mr. Holt,NJ X Ms. Noem,SD X 

Mr. Broun, GA X Ms. Hanabusa, HI X 

Mr. Grijalva, AZ X Mr. Southerland, FL X --_ .. __ . 

Mr. Fleming, LA X Mr. Flores, TX X 

Ms. Bordallo, G U X Mr. Harris, MD X 

Mr. Coffman, CO X Mr. Landry, LA X I 

Mr. Costa. CA X Mr, Runyan, NJ X 

Mr. McClintock, CA X Mr. Johnson, OH X -.--.. 

Mr. Boren, OK X Mr. Amodei, NV X 

Mr. Thompson, PA X 

Mr. Sablan. CNMI X I 

Mr. Denham, CA X 

TOTALS 18 25 

I 

I 

J 
18 

The bill, as amended, was then adopted and ordered favorably 

reported to the House of Representatives by a bipartisan roll call 

vote of 26 to 17, 1 present, as follows: 


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Date: February 16, 2012 

Committee on Natural Resources 

u.s. House of Representatives 

II2'h Con),'!"ess 

Recorded Vote #: 4 

Meeting on I Amendment: HR 4019 - Adopted and favorably reported to the House of Representatives. as 

amended, by a roll call vote of 26 yeas and 17 nays. 

MEMBERS . Yea Nay Pres MEMBERS Yea Nay 

Mr. Hastings, W A Chairman X Mr. Heinrich. NM 1 X 

Mr. Markey, MA Ranking X Mr. Benishek, MI X I 

Mr. Young, AK X Mr. Lujan, NM X 

, Mr. Kildee, MI X Mr. Rivera, FL X 

Mr. Duncan of TN Mr. Sarbanes, MD 

Mr. DeFaZio, OR X Mr. Duncan of SC X 

Mr, Gohmert, TX X Ms. Sutton. OH X 

Mr. Faleomavaega, AS X Mr. Tipton, CO X I I 

Mr. Bishop, UT X Ms. Tsongas. MA I X I 

Mr. Pallone. NJ I X Mr. Gosar, AZ 

Mr. Lamborn, CO X Mr. Pierluisi, PR X 

I Mrs. Napolitano. CA X Mr. Labrador, ID X 

Mr. Wittman, V A X Mr. Garamendi. CA X 

Mr. Holt. NJ X Ms. Noem, SD X 

Mr. Broun, GA X Ms. Hanabusa. HI X 

, Mr. Grijalva. AZ X Mr. Southerland, FL X 

Mr. Fleming, LA X Mr. Flores, TX X 

, Ms. Bordallo, GU X Mr. Harris, MD X 

Mr. Coffman, CO X Mr. Landry, LA X 

Mr. Costa. CA X , Mr, Runyan, NJ X 

Mr. McClintock, CA X Mr. Johnson, OH X 

Mr. Boren. OK X Mr. Amode~ NV j X 

Mr. Thompson, PA X 

Mr. Sablan, CNMI 

I 

X I 

Mr. Denham, CA X 

I TOTALS 26 17 I 

I 

Pres 

I 

I 

I 

I 

I 
20 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII 

of the Rules of the House of Representatives, the Committee on 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

COMPLIANCE WITH HOUSE RULE XIII 

1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the Rules of 

the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(2)(B) of that rule provides 

that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. Under clause 

3(c)(3) of rule XIII of the Rules of the House of Representatives and 

section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 

H.R. 4019—Federal Forests County Revenue, Schools, and Jobs Act 

of 2012 

Summary: H.R. 4019 would require the Forest Service to generate a minimum level of receipts each year from certain activities 

conducted in national forests and to spend a portion of those receipts to make annual payments to certain counties. The bill also 

would reauthorize the Department of the Interior (DOT) to make 

mandatory annual payments through 2017 to counties that contain 

certain federal lands. Finally, the bill would establish a new schedule for the fees paid to the federal government by individuals who 

own cabins located on Forest Service lands. 

Based on information provided by the affected federal agencies, 

state timber agencies, and individuals working in the timber industry, CBO estimates that enacting the legislation would increase net 

direct spending by about $2.6 billion over the 2012–2022 period; 

therefore, pay-as-you-go procedures apply. In addition, the bill 

would increase discretionary spending for certain Forest Service activities by about $200 million a year over the 2014–2022 period, assuming appropriation of the estimated amounts. Enacting H.R. 

4019 would not affect revenues. 

H.R. 4019 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the federal government: The estimated budgetary impact of H.R. 4019 is shown in the following table. The costs 

of this legislation fall within budget functions 300 (natural resources and environment) and 800 (general government). 


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By fiscal year, in millions of dollars— 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013– 

2017 

2013– 

2022 

CHANGES IN DIRECT SPENDING 

Forest Service Net Receipt Sharing: 

Estimated Budget Authority ............. 500 95 2 2 2 2 2 2 2 2 602 611 

Estimated Outlays ............................ 500 95 2 2 2 2 2 2 2 2 602 611 

Reauthorization of Mandatory Payments in 

Lieu of Taxes: 

Estimated Budget Authority ............. 398 375 396 403 410 0 0 0 0 0 1,982 1,982 

Estimated Outlays ............................ 398 375 396 403 410 0 0 0 0 0 1,982 1,982 

Cabin Fee Program: 

Estimated Budget Authority ............. 2 ¥2 * 1 2 4 4 4 5 5 3 25 

Estimated Outlays ............................ 2 ¥2 * 1 2 4 4 4 5 5 3 25 

Total Changes: 

Estimated Budget Authority .... 900 468 399 406 414 6 6 6 7 7 2,587 2,618 

Estimated Outlays ................... 900 468 399 406 414 6 6 6 7 7 2,587 2,618 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ................... 0 200 200 200 200 200 200 200 200 200 800 1,800 

Estimated Outlays ..................................... 0 150 200 200 200 200 200 200 200 200 750 1,750 

Note: Components may not sum to totals because of rounding; *= between ¥$500,000 and $500,000. 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted during 2012 and that the necessary amounts 

will be appropriated for each fiscal year. 

Direct Spending.—CBO estimates that enacting H.R. 4019 would increase net direct spending by $2.6 billion over the 2012–2022 period. That net increase stems from provisions that would increase 

offsetting receipts from timber production and mineral leasing on 

federal lands, increase payments that the Forest Service makes to 

share those receipts with certain counties, reauthorize certain 

other mandatory payments to counties that contain nontaxable federal lands within their jurisdictions, and reduce offsetting receipts 

from fees paid to the federal government by individuals who own 

cabins on Forest Service lands. 

Forest Service Net Receipt Sharing.—A portion of the receipts 

generated from the sale of resources on federal land (which offset 

direct spending) are paid to states and counties; those payments, 

known as receipt-sharing payments, are based on formulas specific 

to the type of federal land involved. Title I would increase the gross 

receipts generated from lands administered by the Forest Service 

(by $2.5 billion) as well as associated direct spending (by $3.1 billion). On net, CBO estimates that enacting title I would increase 

net direct spending by $611 million over the 2012–2022 period. 

The bill would establish the County, Schools, and Revenue Trust 

Fund, an accounting mechanism to record receipts from certain income-generating activities on lands administered by the Forest 

Service. Under the bill, 65 percent of amounts credited to the fund 

in a given year would become available in the following year, without further appropriation, to make payments to local jurisdictions 

where such lands are located, according to formulas specified in existing law and referenced by the bill. The bill also specifies that the 

remaining 35 percent of receipts in the fund would be deposited in 

the general fund of the Treasury and would be unavailable for 

spending. However, in CBO’s view, counties would remain eligible 

for additional payments totaling 25 percent of gross receipts under 

provisions of existing law. Thus, under the bill, 030 estimates that 


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a total of 90 percent of receipts credited to the proposed fund would 

be paid to counties, with 10 percent being credited to the general 

fund. 

The bill would capitalize the proposed fund with $875 million 

that would be available, without further appropriation, for the Forest Service to make payments to counties in 2013 and 2014, before 

receipt-sharing payments from the proposed trust fund would 

begin. Those payments would be based on the amounts paid to eligible counties in 2010 under the Secure Rural Schools and Community Self-Determination Act of 2000 and would total $500 million 

in 2013 and $375 million in 2014. 

To support the increased payments to counties after the 2013– 

2014 period, the bill would require the Forest Service to significantly increase gross receipts from activities such as timber sales 

and mineral leasing. Starting in 2014, the agency would be required to generate receipts totaling a minimum of $548 million a 

year—more than double the amount of receipts we estimate the 

agency would generate under current law but significantly less 

than historically high levels of receipts generated in other years, 

particularly during the 1990s. 

While the amount of annual receipts from Forest Service activities is primarily determined by market forces, CBO expects that 

several provisions in H.R. 4019 would increase the likelihood that 

the agency could meet the minimum receipt targets established in 

the bill. In particular, the bill would exempt certain receipt-generating projects carried out under the bill from compliance with certain laws, including the Endangered Species Act and the National 

Environmental Policy Act. CBO expects that those proposed exemptions would significantly increase access by the timber industry to 

the most valuable federal timber resources. For purposes of this estimate, CBO assumes that the Forest Service would meet the annual target by increasing the amount of commercially valuable timber offered for sale and prioritizing activities that generate receipts 

over those that promote environmental stewardship. 

Relative to current law, CBO estimates that the bill’s annual receipt requirement would increase gross receipts by $280 million annually, starting in 2014 when the requirement would take effect. 

Because of the one-year lag between when receipts are collected 

and payments to counties are made, that net increase in receipts 

in 2014 would help to offset the cost of payments to counties in 

that year. Starting in 2015, however, CBO estimates that net deposits of Forest Service receipts—that is, the portion of receipts 

credited to the general fund and not automatically spent—would be 

slightly less under the bill than under current law. Under current 

law, CBO estimates such deposits would total $57 million annually. 

Under the bill, however, CBO estimates net deposits would total 

only $55 million (10 percent of the bill’s annual receipt target), resulting in a net cost of $2 million a year over the 2015–2022 period. 

Reauthorization of Mandatory Payments In Lieu of Taxes.—Title 

II would reauthorize, through fiscal year 2017, a program that provides mandatory payments to certain counties that contain federal 

lands. Those payments are intended to compensate counties for the 

loss of revenues from public lands, which are not subject to local 

property taxes. The amount paid to each county is based on the 

amount of federal land within the county, the population of the 


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county, the amount of federal payments to the county in the prior 

year, and changes in the Consumer Price Index. Based on information from DOI, CBO estimates that reauthorizing mandatory payments in lieu of taxes would increase direct spending by about $2 

billion over the 2013–2017 period. 

Cabin Fee Program.—Title III would establish a new schedule for 

fees assessed on privately owned cabins located on Forest Service 

lands. Under current law, owners of the roughly 14,000 affected 

cabins pay an annual fee to the federal government equal to 5 percent of the appraised value of the occupied land. Based on information provided by the agency, CBO estimates that fee collections 

from those cabins will total roughly $20 million in 2012 and that 

those annual collections will increase to $38 million by 2022. Collections will increase over that period as the agency completes appraisals of the affected Forest Service lands, implements new fees 

based on those appraisals, and annually adjusts fees on all cabins 

to account for inflation. 

Under the bill, cabin owners would pay specified annual fees 

ranging from $500 to $4,500 per cabin, depending on the appraised 

value of the occupied land. Those fees would go into effect after the 

Forest Service completes its current appraisal cycle, which CBO expects will occur in 2013. Once the new fee system is implemented, 

CBO estimates that new cabin fee collections would total about $29 

million in 2014, rising to $33 million by 2022. Because title III 

would cap annual cabin fees at $4,500 and prevent scheduled fee 

increases from being implemented as they would be under current 

law, CBO estimates that enacting H.R. 4019 would, in general, 

lower annual receipts over the 2013–2022 period. For 2014 and 

2015 CBO estimates that enacting the bill would increase receipts 

because we expect that cabin fees would be increased more gradually under current law than under the bill over that period. On net, 

CBO estimates that enacting the new cabin fees required under 

title III would reduce offsetting receipts (an increase in direct 

spending) by about $30 million over the 2013–2022 period. 

Title III also would require the Forest Service to collect a proposed new transfer fee from cabin owners who sell their cabins. 

The amount of the fee would be based on the sales price. CBO estimates that implementing this provision would increase offsetting 

receipts (a credit against direct spending) by about $5 million over 

the 2013–2022 period, based on information provided by the Forest 

Service regarding the number of new lease permits issued each 

year and the values of the affected cabins. 

Spending Subject to Appropriation.—CBO estimates that implementing H.R. 4019 would require a significant increase in the 

amount of funds appropriated to the Forest Service to administer 

timber sales, replace harvested trees, and mitigate the environmental impacts of timber harvesting. Under current law, the agency spends, without annual appropriation, about $130 million a year 

from receipts generated in the national forests to fund those activities. Under the bill, CBO expects that any receipts that would have 

been used to fund such activities over the 2014–2022 period would 

be paid to counties or deposited in the U.S. Treasury. We also expect that the bill would significantly increase timber sales over 

that period. Thus, CBO estimates that implementing H.R. 4019 


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would cost about $200 million a year, assuming appropriation of 

the necessary amounts. 

Pay-as-you-go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in direct spending that are subject to those pay-as-you-go 

procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4019 AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON NATURAL RESOURCES ON FEBRUARY 14, 2012 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012– 

2017 

2012– 

2022 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Impact .... 0 900 468 399 406 414 6 6 6 7 7 2,587 2,618 

Intergovernmental and private-sector impact: H.R. 4019 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. Local governments would benefit from increased payments 

of about $6 billion over the 2013–2022 period as a result of leasing 

and other activities on federal lands. 

Previous CBO estimate: On February 7, 2012, CBO transmitted 

a cost estimate for H.R. 3397, the Cabin Fee Act of 2011, as ordered reported by the House Committee on Natural Resources on 

November 17, 2011. Title III of H.R. 4019 contains provisions similar to those in H.R. 3397, and the CBO cost estimates for those 

provisions are the same. 

Estimate prepared by: Federal costs: Jeff LaFave; Impact on 

State, local, and tribal governments: Melissa Merrell; Impact on 

the private sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

2. Section 308(a) of Congressional Budget Act. As required by 

clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and section 308(a) of the Congressional Budget Act of 1974, 

this bill does not contain any new budget authority, credit authority, or an increase or decrease in revenues or tax expenditures. 

Based on information provided by the affected federal agencies, 

state timber agencies, and individuals working in the timber industry, CBO estimates that enacting the legislation would increase net 

direct spending by about $2.6 billion over the 2012–2022 period; 

therefore, pay-as-you-go procedures apply. In addition, the bill 

would increase discretionary spending for certain Forest Service activities by about $200 million a year over the 2014–2022 period, assuming appropriation of the estimated amounts. 

3. General Performance Goals and Objectives. As required by 

clause 3(c)(4) of rule XIII, the general performance goal or objective 

of this bill, as ordered reported, is to increase employment and educational opportunities in, and improve the economic stability of, 

counties containing Federal forest land, while also reducing the 

cost of managing such land, and by providing such counties a dependable source of revenue from such land. 


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EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

COMPLIANCE WITH PUBLIC LAW 104–4 

This bill contains no unfunded mandates as defined under Public 

Law 104–4. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any local or tribal law. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as 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): 

TITLE 31, UNITED STATES CODE 

* * * * * * * 

SUBTITLE V—GENERAL ASSISTANCE 

ADMINISTRATION 

* * * * * * * 

CHAPTER 69—PAYMENT FOR ENTITLEMENT LAND 

* * * * * * * 

§ 6903. Payments 

(a) In this section— 

(1) ‘‘payment law’’ means— 

(A) * * * 

* * * * * * * 

(I) section 3 of the Act of July 31, 1947 (30 U.S.C. 603); 

øand¿ 

(J) section 10 of the Act of June 28, 1934 (known as the 

Taylor Grazing Act) (43 U.S.C. 315i)ø.¿; and 

(K) title I of the Federal Forests County Revenue, 

Schools, and Jobs Act of 2012. 

* * * * * * * 

(e) CONGRESSIONAL NOTIFICATION.—The Secretary of the Interior 

shall submit to the Committee on Energy and Natural Resources of 

the Senate and the Committee on Natural Resources of the House 

of Representatives a list of States that have not submitted to the 

Secretary the data required to calculate payments under this chapter by January 15 of each year. 

(f) PUBLICATION.—The Secretary of the Interior shall— 


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(1) publish in the Federal Register and on the Department of 

the Interior website a list of States that have not submitted to 

the Secretary the data required to calculate payments under 

this chapter by February 1 of each year; and 

(2) update the list published on the Department of the Interior website under paragraph (1) to reflect any changes in the 

list. 

(g) ISSUANCE OF PAYMENTS.—Not later than May 1 of each fiscal 

year, the Secretary of the Interior shall issue the payments authorized under this chapter. 

* * * * * * * 

§ 6906. Funding 

For each of fiscal years 2008 through ø2012¿ 2017— 

(1) * * * 

* * * * * * * 

Æ 


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