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[Senate Report 106-400]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 790
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-400

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

 
                       LAKE TAHOE RESTORATION ACT

                                _______
                                

               September 7, 2000.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1925]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1925) to promote environmental 
restoration around the Lake Tahoe basin, 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 ``Lake Tahoe Restoration Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
          (1) Lake Tahoe, one of the largest, deepest, and clearest 
        lakes in the world, has a cobalt blue color, a unique alpine 
        setting, and remarkable water clarity, and is recognized 
        nationally and worldwide as a natural resource of special 
        significance;
          (2) in addition to being a scenic and ecological treasure, 
        Lake Tahoe is one of the outstanding recreational resources of 
        the United States, offering skiing, water sports, biking, 
        camping, and hiking to millions of visitors each year, and 
        contributing significantly to the economies of California, 
        Nevada, and the United States;
          (3) the economy in the Lake Tahoe basin is dependent on the 
        protection and restoration of the natural beauty and recreation 
        opportunities in the area;
          (4) Lake Tahoe is in the midst of an environmental crisis; 
        the Lake's water clarity has declined from a visibility level 
        of 105 feet in 1967 to only 70 feet in 1999, and scientific 
        estimates indicate that if the water quality at the Lake 
        continues to degrade, Lake Tahoe will lose its famous clarity 
        in only 30 years;
          (5) sediment and algae-nourishing phosphorous and nitrogen 
        continue to flow into the Lake from a variety of sources, 
        including land erosion, fertilizers, air pollution, urban 
        runoff, highway drainage, streamside erosion, land disturbance, 
        and ground water flow;
          (6) methyl tertiary butyl ether--
                  (A) has contaminated and closed more than \1/3\ of 
                the wells in South Tahoe; and
                  (B) is advancing on the lake at a rate of 
                approximately 9 feet per day;
          (7) destruction of wetlands, wet meadows, and stream zone 
        habitat has compromised the Lake's ability to cleanse itself of 
        pollutants;
          (8) approximately 40 percent of the trees in the Lake Tahoe 
        basin are either dead or dying, and the increased quantity of 
        combustible forest fuels has significantly increased the risk 
        of catastrophic forest fire in the Lake Tahoe basin;
          (9) as the largest land manager in the Lake Tahoe basin, with 
        77 percent of the land, the Federal Government has a unique 
        responsibility for restoring environmental health to Lake 
        Tahoe;
          (10) the Federal Government has a long history of 
        environmental preservation at Lake Tahoe, including--
                  (A) congressional consent to the establishment of the 
                Tahoe Regional Planning Agency in 1969 (Public Law 91-
                148; 83 Stat. 360) and in 1980 (Public Law 96-551; 94 
                Stat. 3233);
                  (B) the establishment of the Lake Tahoe Basin 
                Management Unit in 1973; and
                  (C) the enactment of Public Law 96-586 (94 Stat. 
                3381) in 1980 to provide for the acquisition of 
                environmentally sensitive land and erosion control 
                grants;
          (11) the President renewed the Federal Government's 
        commitment to Lake Tahoe in 1997 at the Lake Tahoe Presidential 
        Forum, when the committed to increased Federal resources for 
        environmental restoration at Lake Tahoe and established the 
        Federal Interagency Partnership and Federal Advisory Committee 
        to consult on natural resources issues concerning the Lake 
        Tahoe basin;
          (12) the States of California and Nevada have contributed 
        proportionally to the effort to protect and restore Lake Tahoe, 
        including--
                  (A) expenditures--
                          (i) exceeding $200,000,000 by the State of 
                        California since 1980 for land acquisition, 
                        erosion control, and other environmental 
                        projects in the Lake Tahoe basin; and
                          (ii) exceeding $30,000,000 by the State of 
                        Nevada since 1980 for the purposes described in 
                        clause (i); and
                  (B) the approval of a bond issue by voters in the 
                State of Nevada authorizing the expenditure by the 
                State of an additional $20,000,000; and
          (13) significant additional investment from Federal, State, 
        local, andprivate sources is needed to stop the damage to Lake 
Tahoe and its forests, and restore the Lake Tahoe basin to ecological 
health.
    (b) Purposes.--The purposes of this Act are--
          (1) to enable the Forest Service to plan and implement 
        significant new environmental restoration activities and forest 
        management activities to address the phenomena described in 
        paragraphs (4) through (8) of subsection (a) in the Lake Tahoe 
        basin;
          (2) to ensure that Federal, State, local, regional, tribal, 
        and private entities continue to work together to improve water 
        quality and manage Federal land in the Lake Tahoe Basin 
        Management Unit; and
          (3) to provide funding to local governments for erosion and 
        sediment control projects on non-Federal land if the projects 
        benefit the Federal land.

SEC. 3. DEFINITIONS.

    In this Act:
          (1) Environmental threshold carrying capacity.--The term 
        ``environmental threshold carrying capacity'' has the meaning 
        given the term in Article II of the Tahoe Regional Planning 
        Compact set forth in the first section of Public Law 96-551 (94 
        Stat. 3235).
          (2) Fire risk reduction activity.--
                  (A) In general.--The term ``fire risk reduction 
                activity'' means an activity that is necessary to 
                reduce the risk of wildfire to promote forest 
                management and simultaneously achieve and maintain the 
                environmental threshold carrying capacities established 
                by the Planning Agency in a manner consistent, where 
                applicable, with chapter 71 of the Tahoe Regional 
                Planning Agency Code of Ordinances.
                  (B) Included activities.--The term ``fire risk 
                reduction activity'' includes--
                          (i) prescribed burning;
                          (ii) mechanical treatment;
                          (iii) road obliteration or reconstruction; 
                        and
                          (iv) such other activities consistent with 
                        Forest Service practices as the Secretary 
                        determines to be appropriate.
          (3) Planning agency.--The term ``Planning Agency'' means the 
        Tahoe Regional Planning Agency established under Public Law 91-
        148 (83 Stat. 360) and Public Law 96-551 (94 Stat. 3233).
          (4) Priority list.--The term ``priority list'' means the 
        environmental restoration priority list developed under section 
        6.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture, acting through the Chief of the Forest Service.

SEC. 4. ADMINISTRATION OF THE LAKE TAHOE BASIN MANAGEMENT UNIT.

    (a) In General.--The Lake Tahoe Basin Management Unit shall be 
administered by the Secretary in accordance with this Act and the laws 
applicable to the National Forest System.
    (b) Relationship to Other Authority.--
          (1) Private or non-federal land.--Nothing in this Act grants 
        regulatory authority to the Secretary over private or other 
        non-Federal land.
          (2) Planning agency.--Nothing in this Act affects or 
        increases the authority of the Planning Agency.
          (3) Acquisition under other law.--Nothing in this Act affects 
        the authority of the Secretary to acquire land from willing 
        sellers in the Lake Tahoe basin under any other law.

SEC. 5. CONSULTATION WITH PLANNING AGENCY AND OTHER ENTITIES.

    (a) In General.--With respect to the duties described in subsection 
(b), the Secretary shall consult with and seek the advice and 
recommendations of--
          (1) the Planning Agency;
          (2) the Tahoe Federal Interagency Partnership established by 
        Executive Order No. 13057 (62 Fed. Reg. 41249) or a successor 
        Executive order;
          (3) the Lake Tahoe Basin Federal Advisory Committee 
        established by the Secretary on December 15, 1998 (64 Fed. Reg. 
        2876) (until the committee is terminated);
          (4) Federal representatives and all political subdivisions of 
        the Lake Tahoe Basin Management Unit; and
          (5) the Lake Tahoe Transportation and Water Quality 
        Coalition.
    (b) Duties.--The Secretary shall consult with and seek advice and 
recommendations from the entities described in subsection (a) with 
respect to--
          (1) the administration of the Lake Tahoe Basin Management 
        Unit;
          (2) the development of the priority list;
          (3) the promotion of consistent policies and strategies to 
        address the Lake Tahoe basin's environmental and recreational 
        concerns;
          (4) the coordination of the various programs, projects, and 
        activities relating to the environment and recreation in the 
        Lake Tahoe basin to avoid unnecessary duplication and 
        inefficiencies of Federal, State, local, tribal, and private 
        efforts; and
          (5) the coordination of scientific resources and data, for 
        the purpose of obtaining the best available science as a basis 
        for decisionmaking on an ongoing basis.

SEC. 6. ENVIRONMENTAL RESTORATION PRIORITY LIST.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a priority list of potential 
or proposed environmental restoration projects for the Lake Tahoe Basin 
Management Unit.
    (b) Development of Priority List.--In developing the priority list, 
the Secretary shall--
          (1) use the best available science, including any relevant 
        findings and recommendations of the watershed assessment 
        conducted by the Forest Service in the Lake Tahoe basin; and
          (2) include, in order of priority, potential or proposed 
        environmental restoration projects in the Lake Tahoe basin 
        that--
                  (A) are included in or are consistent with the 
                environmental improvement program adopted by the 
                Planning Agency in February 1998 and amendments to the 
                program;
                  (B) would help to achieve and maintain the 
                environmental threshold carrying capacities for--
                          (i) air quality;
                          (ii) fisheries;
                          (iii) noise;
                          (iv) recreation;
                          (v) scenic resources;
                          (vi) soil conservation;
                          (vii) forest health;
                          (viii) water quality; and
                          (ix) wildlife;
          (3) in determining the order of priority of potential and 
        proposed environmental restoration projects under paragraph 
        (2), the focus shall address projects (listed in no particular 
        order) involving--
                  (A) erosion and sediment control, including the 
                activities described in section 2(g) of Public Law 96-
                586 (94 Stat. 3381) (as amended by section 7 of this 
                Act);
                  (B) the acquisition of environmentally sensitive land 
                from willing sellers under Public Law 96-586 (94 Stat. 
                3381) or land acquisition under any other Federal law;
                  (C) fire risk reduction activities in urban areas and 
                urban-wildland interface areas, including high 
                recreational use areas and urban lots acquired from 
                willing sellers under Public Law 96-586 (94 Stat. 
                3381);
                  (D) cleaning up methyl tertiary butyl ether 
                contamination; and
                  (E) the management of vehicular parking and traffic 
                in the Lake Tahoe Basin Management Unit, especially--
                          (i) improvement of public access to the Lake 
                        Tahoe basin, including the promotion of 
                        alternatives to the private automobile;
                          (ii) the Highway 28 and 89 corridors and 
                        parking problems in the area; and
                          (iii) cooperation with local public 
                        transportation systems, including--
                                  (I) the Coordinated Transit System; 
                                and
                                  (II) public transit systems on the 
                                north shore of Lake Tahoe.
    (c) Monitoring.--The Secretary shall provide for continuous 
scientific research on and monitoring of the implementation of projects 
on the priority list, including the status of the achievement and 
maintenance of environmental threshold carrying capacities.
    (d) Consistency With Memorandum of Understanding.--A project on the 
priority list shall be conducted in accordance with the memorandum of 
understandingsigned by the Forest Supervisor and the Planning Agency on 
November 10, 1989, including any amendments to the memorandum as long 
as the memorandum remains in effect.
    (e) Review of Priority List.--Periodically, but not less than every 
3 years, the Secretary shall--
          (1) review the priority list;
          (2) consult with--
                  (A) the Tahoe Regional Planning Agency;
                  (B) interested political subdivisions; and
                  (C) the Lake Tahoe Water Quality and Transportation 
                Coalition; and
          (3) make any necessary changes with respect to--
                  (A) the findings of scientific research and 
                monitoring in the Lake Tahoe basin;
                  (B) any change in an environmental threshold as 
                determined by the Planning Agency;
                  (C) any change in general environmental conditions in 
                the Lake Tahoe basin; and
                  (D) submit to Congress a report on any changes made.
    (f) Cleanup of Hydrocarbon Contamination.--
          (1) In general.--The Secretary shall, subject to the 
        availability of appropriations, make a payment of $1,000,000 to 
        the Tahoe Regional Planning Agency and the South Tahoe Public 
        Utility District to develop and publish a plan, not later than 
        1 year after the date of enactment of this Act, for the 
        prevention and cleanup of hydrocarbon contamination (including 
        contamination with MTBE) of the surface water and ground water 
        of the Lake Tahoe basin.
          (2) Consultation.--In developing the plan, the Tahoe Regional 
        Planning Agency and the South Tahoe Public Utility District 
        shall consult with the States of California and Nevada and 
        appropriate political subdivisions.
          (3) Willing sellers.--The plan shall not include any 
        acquisition of land or an interest in land except an 
        acquisition from a willing seller.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated, for the implementation of projects on the priority list 
and the payment identified in subsection (f), $20,000,000 for the first 
fiscal year that begins after the date of enactment of this Act and for 
each of the 9 fiscal years thereafter.

SEC. 7. ENVIRONMENTAL IMPROVEMENT PAYMENTS.

    Section 2 of Public Law 96-586 (94 Stat. 3381) is amended by 
striking subsection (g) and inserting the following:
    ``(g) Payments to Localities.--
          ``(1) In general.--The Secretary of Agriculture shall, 
        subject to the availability of appropriations, make annual 
        payments to the governing bodies of each of the political 
        subdivisions (including any public utility the service area of 
        which includes any part of the Lake Tahoe basin), any portion 
        of which is located in the area depicted on the final map filed 
        under section 3(a).
          ``(2) Use of payments.--Payments under this subsection may be 
        used--
                  ``(A) first, for erosion control and water quality 
                projects; and
                  ``(B) second, unless emergency projects arise, for 
                projects to address other threshold categories after 
                thresholds for water quality and soil conservation have 
                been achieved and maintained.
          ``(3) Eligibility for Payments.--
                  ``(A) In general.--To be eligible for a payment under 
                this subsection, a political subdivision shall annually 
                submit a priority list of proposed projects to the 
                Secretary of Agriculture.
                  ``(B) Components of list.--A priority list under 
                subparagraph (A) shall include, for each proposed 
                project listed--
                          ``(i) a description of the need for the 
                        project;
                          ``(ii) all projected costs and benefits; and
                          ``(iii) a detailed budget.
                  ``(C) Use of payments.--A payment under this 
                subsection shall be used only to carry out a project or 
                proposed project that is part of the environmental 
                improvement program adopted by the Tahoe Regional 
                Planning Agency in February 1998 and amendments to the 
                program.
                  ``(D) Federal obligation.--All projects funded under 
                this subsection shallbe part of Federal obligation 
under the environmental improvement program.
          ``(4) Division of funds.--
                  ``(A) In general.--The total amounts appropriated for 
                payments under this subsection shall be allocated by 
                the Secretary of Agriculture based on the relative need 
                for and merits of projects proposed for payment under 
                this section.
                  ``(B) Minimum.--To the maximum extent practicable, 
                for each fiscal year, the Secretary of Agriculture 
                shall ensure that each political subdivision in the 
                Lake Tahoe basin receives amounts appropriate for 
                payments under this subsection.
          ``(5) Authorization of appropriations.--In addition to the 
        amounts authorized to be appropriated to carry out section 6 of 
        the Lake Tahoe Restoration Act, there is authorized to be 
        appropriated for making payments under this subsection 
        $10,000,000 for the first fiscal year that begins after the 
        date of enactment of this paragraph and for each of the 9 
        fiscal years thereafter.''.

SEC. 8. FIRE RISK REDUCTION ACTIVITIES.

    (a) In General.--In conducting fire reduction activities in the 
Lake Tahoe basin, the Secretary shall, as appropriate, coordinate with 
State and local agencies and organizations, including local fire 
departments and volunteer groups.
    (b) Ground Disturbance.--The Secretary shall, to the maximum extent 
practicable, minimize any ground disturbances caused by fire risk 
reduction activities.

SEC. 9. AVAILABILITY AND SOURCE OF FUNDS.

    (a) In General.--Funds authorized under this Act and the amendment 
made by this Act--
          (1) shall be in addition to any other amounts available to 
        the Secretary for expenditure in the Lake Tahoe basin; and
          (2) shall not reduce allocations for other Regions of the 
        Forest Service.
    (b) Matching Requirement.--Except as provided in subsection (c), 
funds for activities under section 6 and section 7 of this Act shall be 
available for obligation on a 1-to-1 basis with funding of restoration 
activities in the Lake Tahoe basin by the States of California and 
Nevada.
    (c) Relocation Costs.--The Secretary shall provide \2/3\ of 
necessary funding to local utility districts for the costs of 
relocating facilities in connection with environmental restoration 
projects under section 6 and erosion control projects under section 2 
of Public Law 96-586.

SEC. 10. AMENDMENT OF PUBLIC LAW 96-586.

    Section 3(a) of Public Law 96-586 (94 Stat. 3383) is amended by 
adding at the end of the following:
          ``(5) Willing sellers.--Land within the Lake Tahoe Basin 
        Management Unit subject to acquisition under this section that 
        is owned by a private person shall be acquired only from a 
        willing seller.''.

SEC. 11. RELATIONSHIP TO OTHER LAWS.

    Nothing in this Act exempts the Secretary from the duty to comply 
with any applicable Federal law.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this Act.

                         Purpose of the Measure

    The purpose of S. 1925 is to promote environmental 
restoration around the Lake Tahoe Basin.

                          Background and Need

    S. 1925 requires the Forest Service to develop an annual 
priority list of environmental restoration projects in the Lake 
Tahoe Basin. The projects will improve water quality, forest 
health, soil conservation, air quality, and fish and wildlife 
habitat around Lake Tahoe. In developing potential restoration 
projects, the Forest Service is required to rely on the best 
available science, and to consider top priority projects 
targeted by local governments, businesses, and environmental 
interests. The bill authorizes $200 million over 10 years for 
the Forest Service to implement these projects on federal 
lands.
    The bill requires the Forest Service to give special 
attention on its priority list to five key activities: (1) 
acquisition of environmentally sensitive land; (2) erosion and 
sediment control; (3) fire risk reduction; (4) cleaning up 
Methyl Tertiary Butyl Ether (MTBE) contamination; and (5) 
traffic and parking management, including promotion of public 
transportation.
    S. 1925 also authorizes an additional $100 million over 10 
year for local government erosion control activities on non-
federal lands.

                          Legislative History

    S. 1925 was referred to the Committee on Energy and Natural 
Resources on November 16, 1999. The Committee on Energy and 
Natural Resources held a hearing on S. 1925 on February 10, 
2000. At the business meeting on July 13, 2000, the Committee 
on Energy and Natural Resources ordered S. 1925 reported 
favorably with an amendment in the nature of a substitute.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 13, 2000, by a voice vote of a 
quorum present recommends that the Senate pass S. 1925 if 
amended as described herein.

                          Committee Amendment

    During the consideration of S. 1925, the Committee adopted 
an amendment that makes several technical and clarifying 
changes.

                      Section-by-Section Analysis

    Section 1 states that the Act may be cited as the ``Lake 
Tahoe Restoration Act.''
    Section 2 give the findings and purposes of the Act.
    Section 3 defines terms used in the Act.
    Section 4(a) requires the Secretary of Agriculture to 
administer the Lake Tahoe Basin Management Unit in accordance 
with this Act and the laws applicable to the National Forest 
System.
    Subsection (b) clarifies that the Act: does not give the 
Secretary of Agriculture regulatory authority over private or 
non-Federal lands; does not change the authority of the Tahoe 
Regional Planning Agency; and does not affect the Secretary of 
Agriculture's authority to acquire land from willing sellers.
    Section 5 (a) requires the Secretary of Agriculture, with 
respect to the activities described in subsection (b), to 
consult with: (1) the Tahoe Regional Planning Agency; (2) the 
Tahoe Federal Interagency Partnership; (3) the Lake Tahoe Basin 
Federal Advisory Committee; (4) Federal representatives and all 
political subdivisions of the Lake Tahoe Basin Management Unit; 
and (5) the Lake Tahoe Transportation and Water Quality 
Coalition.
    Subsection (b) requires the Secretary of Agriculture to 
consult with the entities described in subsection (a) with 
respect to: (1) the administration of the Lake Tahoe Basin 
Management Unit; (2) the development of a priority list of 
environmental restoration projects; (3) the promotion of 
policies that address the Basin's environmental and 
recreational concerns; (4) the coordination of environmental 
and recreation activities to avoid duplicate efforts; and (5) 
the coordination of scientific resources and data.
    Section 6(a) requires the Secretary of Agriculture to 
develop a priority list of potential environmental restoration 
projects within one year of enactment.
    Paragraph (b)(1) requires the Secretary of Agriculture to 
develop the priority list using the best available science.
    Subparagraph (2)(A) requires the priority list to include 
projects consistent with the environmental improvement program 
adopted by the Tahoe Regional Planning Agency.
    Subparagraph (B) requires the priority projects to achieve 
the environmental threshold carrying capacities for: (i) air 
quality; (ii) fisheries; (iii) noise; (iv) recreation; (v) 
scenic resources; (vi) soil conservation; (vii) forest health; 
(viii) water quality; and (ix) wildlife.
    Paragraph (3) requires that in determining the order of 
priority of proposed environmental restoration projects 
pursuant to paragraph (2), the focus shall address (in no 
particular order): (A) erosion and sediment control; (B) the 
acquisition of environmentally sensitive land from willing 
sellers; (C) fire risk reduction in urban areas and urban-
wildland interface areas; (D) cleaning up MTBE contamination; 
and (E) the management of vehicular parking and traffic in the 
Lake Tahoe Basin Management Unit, especially improving public 
access, promotion of transit systems, and traffic and parking 
problems in the Highway 28 and 89 corridors.
    Subsection (c) requires the Secretary of Agriculture to 
monitor implementation of projects on the priority list.
    Subsection (d) requires projects to be conducted with the 
memorandum of understanding signed by the Forest Supervisor and 
the Tahoe Regional Planning Agency.
    Subsection (e) requires the Secretary of Agriculture to 
periodically review the priority list in consultation with the 
Tahoe Regional Planning Agency; interested political 
subdivisions; and the Lake Tahoe Water Quality and 
Transportation Coalition and make any necessary changes.
    Subsection (f) authorizes the Secretary of Agriculture to 
make a payment of $1,000,000 to the Tahoe Regional Planning 
Agency and the South Tahoe Public Utility District to develop a 
plan for the prevention and cleanup of hydrocarbon 
contamination (including MTBE contamination) of surface and 
ground water in consultation with both California and Nevada 
and appropriate political subdivisions.
    Subsection (g) authorizes $20 million per year, for ten 
years, to be appropriated for the implementation of projects.
    Section 7 amends Public Law 96-586 by replacing subsection 
(g) with new language as follows:

          Subsection (g)(1) requires the Secretary of 
        Agriculture to make annual payments to political 
        subdivisions in the area subject to the availability of 
        appropriations.
          Paragraph (2) requires payments to be used first, for 
        erosion control and water quality projects; and second 
        for projects to address other threshold categories.
          Paragraph (3) requires that an annual priority list 
        be submitted to be eligible for payment, and that the 
        payment be used only to carry out a project that is 
        part of the environmental improvement program adopted 
        by the Tahoe Regional Planning Agency.
          Paragraph (4) requires that the payments be allocated 
        based on the relative need for and merits of projects, 
        and that each political subdivision receive the amounts 
        appropriated to the maximum extent practicable.
          Paragraph (5) authorizes $10 million per year, for 10 
        years, to be appropriated for payments under this 
        subsection.

    Section 8 requires the Secretary of Agriculture to 
coordinate with State and local agenciesconcerning fire risk 
reduction activities, and to the extent practicable minimize any ground 
disturbances caused by them.
    Section 9 requires that any funds authorized under this Act 
are in addition to other amounts available to the Secretary of 
Agriculture for expenditure in the Lake Tahoe basin, and shall 
not reduce allocations for other Regions of the Forest Service. 
Funds require a 1-to-1 match by California and Nevada for 
activities under section 6, except that the Secretary of 
Agriculture will provide \2/3\ of funds for relocation of 
utility facilities.
    Section 10 amends Public Law 96-586 to require land 
acquisition from only willing sellers.
    Section 11 states that this Act does not exempt the 
Secretary of Agriculture from any applicable Federal law.
    Section 12 authorizes appropriations to carry out this Act.

                   Cost and Budgetary Considerations

    The Congressional Budget Office (CBO) estimate of the costs 
of this measure follows:

S. 1925--Lake Tahoe Restoration Act

    Summary: CBO estimates that implementing S. 1925 would cost 
$132 million over the 2001-2005 period, assuming appropriation 
of the authorized amounts. The bill would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply. S. 1925 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA). State and local governments might incur some costs to 
match the federal funds authorized by this bill, but those 
costs would be voluntary.
    S. 1925 would establish a program to restore the ecological 
health of the Lake Tahoe basin in California and Nevada, and 
would authorize the appropriation of $300 million for that 
purpose. The bill would require the Forest Service to develop 
and prioritize a list of projects to clean up and restore water 
quality in the basin and would authorize the appropriation of 
$200 million over 10 years to carry out such projects on 
federal lands. The bill also would authorize the appropriation 
of $100 million over 10 years for payments to local governments 
(including public utilities) within the Lake Tahoe basin to 
support similar cleanup activities on nonfederal lands.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1925 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Authorization Level................................................       30       30       30       30       30
Estimated Outlays..................................................       16       26       30       30       30
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
1925 will be enacted by the start of fiscal year 2001 and that 
the authorized amounts will be provided as specified by the 
bill. Estimates of outlays are based on historical spending 
patterns for similar programs.
    S. 1925 would authorize the appropriation of $20 million a 
year over the 2001-2010 period for environmental restoration 
projects on federal lands within the lake Tahoe basin. Based on 
information from the Forest Service, we estimate that outlays 
for those projects would total about $84 million over the 2001-
2005 period. The amount authorized for those projects in 2001 
would cover the cost of a one-time payment of $1 million to the 
Tahoe Regional Planning Agency and the South Tahoe Public 
Utility District to develop a plan for preventing and 
responding to hydrocarbon contamination of surface and ground 
water. We assume that the payment would occur during fiscal 
year 2001. In addition, the bill would direct the Forest 
Service to make payments to local governments and public 
utilities to support erosion control and water quality 
activities on nonfederal lands and would authorize the 
appropriation of $10 million a year for 10 years for that 
purpose. Based on information from the Forest Service, CBO 
estimates that such payments would total $47 million over the 
2001-2005 period.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 125 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Local governments in the Lake Tahoe area would 
benefit from the payments authorized by the bill. State and 
local governments might incur some costs to match the federal 
funds, but those costs would be voluntary.
    Previous CBO estimate: On July 24, 2000, CBO transmitted a 
cost estimate for S. 1925 as ordered reported by the Senate 
Committee on Energy and Natural Resources on July 13, 2000. 
This estimate supersedes that previous estimate. Specifically, 
it corrects an error in the total amount authorized to be 
appropriated under the bill, which was overstated by $1 million 
in the previous estimate. Projected spending under this 
legislation over the next five years is not affected by this 
change.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Marjorie Miller; 
Impact on the Private Sector: Sarah Sitarek.
    Estimate approved by: Robert A. Sunshine, 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. 1925.
    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. 1925, as ordered reported.

                        Executive Communications

    On July 13, 2000 the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
Agriculture and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 1925. These 
reports had not been received at the time the report on S. 1925 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the Forest 
Service at the Subcommittee hearing follows:

Statement of Jack Craven, Director of Lands, Forest Service, Department 
                             of Agriculture

    Mr. Chairman and members of the committee, thank you for 
the opportunity to be here today to present the 
Administration's views on S. 1925, proposed legislation that 
will promote environmental restoration in the Lake Tahoe basin.
    The Administration supports S. 1925, a bill that will 
promote environmental restoration in the Lake Tahoe basin. This 
bill will direct the Forest Service to consult with the Tahoe 
Regional Planning Agency, Tahoe Interagency Partnership, and 
Tahoe Federal Advisory Committee regarding the administration 
of the Lake Tahoe Basin Management Unit. The bill will provide 
for the development of an environmental restoration priority 
list, the coordination of environmental and scientific 
activities and the strengthening of the intergovernmental 
partnerships in the basin.
    This bill will also facilitate our work on the following 
objectives that emerged from the 1997 Presidential Forum on the 
Lake Tahoe basin: (1) the Administration's commitment to 
improve coordination among federal agencies and state and local 
governments and organizations, and (2) the Administration will 
take meaningful actions on water quality, transportation, 
forest management, and recreation to protect Lake Tahoe, and 
with it, the area's economy and quality of life.
    Lake Tahoe, one of the largest, deepest, and clearest lakes 
in the world is recognized nationally and worldwide as a 
natural resource of special significance. However, the clarity 
of the lake is declining and the water quality of the lake 
continues to degrade. Some of the primary reasons for this 
decline are from the sediment that continues to flow into the 
lake from soil erosion, land disturbance, streamside erosion 
and from air pollution. Over the years, there has been a 
significant loss in the quality and quantity of wetlands, wet 
meadows and streamside riparian areas that would naturally trap 
sediment before entering the lake. There are also ecosystem 
restoration needs that should be addressed to reduce the chance 
of large wildfires in the urban-forest environment in the 
basin.
    We will collaborate with the various agencies and 
organizations in developing the environmental restoration 
priority list to focus resources on projects that will have the 
greatest benefit in addressing the environmental problems in 
the basin. Since National Forest System lands comprise 78 
percent of the watershed acreage of Lake Tahoe, the Forest 
Service is a pivotal partner in restoring environmental health 
to Lake Tahoe. This bill will facilitate the partnerships 
between the Forest Service and the various agencies and 
political subdivisions in the basin to work together to address 
the environmental concerns that are contributing to the water 
quality decline in the basin.
    We would like to work with your staff to address several 
minor technical changes to clarify the language concerning 
authorities in section 6.
    The Administration has appreciated working with the 
sponsors in crafting a bill with so much support.

                                summary

    In conclusion, the Administration supports S. 1925.
    I would be happy to answer any questions you and the 
members of the Committee might have.

                        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. 1925, 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):

                      THE ACT OF DECEMBER 23, 1980

AN ACT To provide for the orderly disposal of certain Federal lands in 
Nevada and for the acquisition of certain other lands in the Lake Tahoe 
Basin, and for other purposes

           *       *       *       *       *       *       *

SEC. 2 * * *

    [(g)(1) The Secretary of Agriculture is authorized and 
directed to make annual payments to the governing bodies of 
each of the political subdivisions any portion of which is 
located in the area depicted on the final map filed pursuant to 
section 3(a). Such payments may be used only for water 
pollution control soil erosion mitigation, or acquisition by 
local government authorities of lands and interest in land 
within the Lake Tahoe Basin, or for any combination of the 
foregoing purposes.
    [(2) The total amounts appropriated for payments pursuant 
to this subsection shall be allocated proportionately among 
such political subdivision in any fiscal year on the basis of 
the relative amounts of acreage acquired under this Act in each 
such political subdivision.
    [(3) In addition to the amounts authorized to be 
appropriated to carry out the provisions of section 3 of the 
Act. There is authorized to be appropriated for making payments 
under this subsection a sum equal to 15 per centum of the 
amount appropriated under such section 3.]
    (g) Payments to Localities.--
          (1) In general.--The Secretary of Agriculture shall, 
        subject to the availability of appropriations, make 
        annual payments to the governing bodies of each of the 
        political subdivisions (including any public utility 
        the service area of which includes any part of the Lake 
        Tahoe basin), any portion of which is located in the 
        area depicted on the final map filed under section 
        3(a).
          (2) Use of payments.--Payments under this subsection 
        may be used--
                  (A) first, for erosion control and water 
                quality projects; and
                  (B) second, unless emergency projects arise, 
                for projects to address other threshold 
                categories after thresholds for water quality 
                and soil conservation have been achieved and 
                maintained.
          (3) Eligibility for payments.--
                  (A) In general.--To be eligible for a payment 
                under this subsection, a political subdivision 
                shall annually submit a priority list of 
                proposed projects to the Secretary of 
                Agriculture.
                  (B) Components of list.--A priority list 
                under subparagraph (A) shall include, for each 
                proposed project listed--
                          (i) a description of the need for the 
                        project;
                          (ii) all projected costs and 
                        benefits; and
                          (iii) a detailed budget.
                  (C) Use of payments.--A payment under this 
                subsection shall be used only to carry out a 
                project or proposed project that is part of the 
                environmental improvement program adopted by 
                the Tahoe Regional Planning Agency in February 
                1998 and amendments to the program.
                  (D) Federal obligation.--All projects funded 
                under this subsection shall be part of Federal 
                obligation under the environmental improvement 
                program.
          (4) Division of funds.--
                  (A) In general.--The total amounts 
                appropriated for payments under this subsection 
                shall be allocated by the Secretary of 
                Agriculture based on the relative need for and 
                merits of projects proposed for payment under 
                this section.
                  (B) Minimum.--To the maximum extent 
                practicable, for each fiscal year, the 
                Secretary of Agriculture shall ensure that each 
                political subdivision in the Lake Tahoe basin 
                receives amounts appropriated for payments 
                under this subsection.
          (5) Authorization of appropriations.--In addition to 
        the amounts authorized to be appropriated to carry out 
        section 6 of the Lake Tahoe Restoration Act, there is 
        authorized to be appropriated for making payments under 
        this subsection $10,000,000 for the first fiscal year 
        that begins after the date of enactment of this 
        paragraph and for each of the 9 fiscal years 
        thereafter.

           *       *       *       *       *       *       *

SEC. 3 * * *

          (4) Lands within the boundaries of the area subject 
        to acquisition under this section which are owned by 
        any State or local government may be acquired only by 
        donation.
          (5) Willing sellers.--Land within the Lake Tahoe 
        Basin Management Unit subject to acquisition under this 
        section that is owned by a private person shall be 
        acquired only from a willing seller.

           *       *       *       *       *       *       *

                                
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