99–010 

Calendar No. 588

107TH CONGRESS REPORT " SENATE ! 2d Session 107–271 

FALLON RAIL FREIGHT LOADING FACILITY TRANSFER ACT

SEPTEMBER 11, 2002.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 1870] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Natural Resources, to which was 

referred the Act (H.R. 1870) to provide for the sale of certain real 

property within the Newlands Project in Nevada, to the city of 

Fallon, Nevada, having considered the same, reports favorably 

thereon without amendment and recommends that the Act do pass. 

PURPOSE OF THE MEASURE

The purpose of H.R. 1870 is to direct the Secretary of the Interior 

to convey approximately 6.3 acres of real property (known as ‘‘380 

North Taylor Street, Fallon, Nevada’’) within the Newlands Reclamation Project, Nevada, to the City of Fallon for its fair market 

value, without taking into consideration the value of any structures 

or improvements. 

BACKGROUND AND NEED

Fallon is a rural agricultural community of 8700 residents located in northern Nevada approximately 70 miles east of Reno. 

Since 1984, the City has leased from the U.S. Bureau of Reclamation approximately 6.3 acres of property that it uses as a rail 

freight yard and loading facility. The City, the State of Nevada, the 

U.S. Department of Transportation, and the Southern Pacific Railroad have collectively made significant investments in this facility. 

On January 1, 2000, the long-term lease agreement between the 

City of Fallon and the Bureau of Reclamation expired. The City 

and the Bureau of Reclamation have determined that allowing the 

City to acquire the property rather than continuing to lease it 

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would be in their mutual interest. This legislation is necessary in 

order to allow for the acquisition of the property by the City of 

Fallon. 

LEGISLATIVE HISTORY

H.R. 1870 was introduced by Representative Gibbons on May 16, 

2001. H.R. 1870 passed the House of Representatives by voice vote 

on March 6, 2002. A companion measure, S. 1310, was introduced 

by Senator Reid and Senator Ensign on August 2, 2001. The Subcommittee on Water and Power held a hearing on S. 1310 and H.R. 

1870 on June 6, 2002. At the business meeting on July 31, 2002, 

the Committee on Energy and Natural Resources ordered H.R. 

1870 favorably reported. 

COMMITTEE RECOMMENDATIONS

The Committee on Energy and Natural Resources, in open business session on July 31, 2002, by a voice vote of a quorum present, 

recommends that the Senate pass H.R. 1870, as described herein. 

SECTION-BY-SECTION ANALYSIS

Section 1 contains the short title. 

Section 2(a) directs the Secretary of the Interior to convey to the 

city of Fallon, Nevada, all right, title, and interest of the United 

States in and to approximately 6.3 acres of real property (known 

as ‘‘380 North Taylor Street, Fallon, Nevada’’) in the Newlands 

Reclamation Project, Nevada, as identified on the referenced map. 

Subsection (b) requires, as consideration for the conveyance, that 

the city of Fallon, Nevada, pay to the United States an amount 

equal to the fair market value of the real property, as determined 

by an appraisal as specified by the subsection, without taking into 

consideration the value of any structures or improvements on the 

property. The amount paid to the United States will be credited to 

the appropriate fund in the Treasury relating to the Newlands Reclamation Project, Nevada. 

Subsection (c) states that the conveyance will not occur unless 

the Commissioner of Reclamation certifies that all liability issues 

relating to the property, including issues of environmental liability, 

have been resolved. 

COST AND BUDGETARY CONSIDERATIONS

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

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, August 6, 2002. 

Hon. JEFF BINGAMAN, Chairman, Committee on Energy and Natural Resources, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1870, the Fallon Rail 

Freight Loading Facility Transfer Act. 

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If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contacts are Julie Middleton (for 

federal costs) and Marjorie Miller (for the state and local impact). 

Sincerely, 

BARRY. B. ANDERSON

(For Dan L. Crippen, Director). 

Enclosure. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 1870—Fallon Rail Freight Loading Facility Transfer Act 

H.R. 1870 would direct the Secretary of the Interior to convey 6.3 

acres of real property in the Newlands Reclamation Project to the 

city of Fallon, Nevada. As a condition of the conveyance, all liability issues, including environmental liability, would need to be resolved. In addition, the city would have to pay the fair market 

value of the property, minus the value of existing structural improvements. The proceeds of the sale would be credited to the 

Newlands Reclamation Project fund and would be available for future construction costs, subject to appropriation action. 

CBO estimates that enacting H.R. 1870 would have no significant effect on the federal budget. Based on information from the 

Bureau of Reclamation and the city of Fallon, CBO estimates that 

the federal government would receive about $330,000 from the sale 

of the lands. This amount represents a 1995 appraisal of the property, adjusted for inflation. According to the Bureau, the transfer 

of title to the property would take place by the end of fiscal year 

2003. Currently, the Bureau receives income of $15,000 to $18,000 

a year from the Premier Chemical Company for the use of a loading facility located on the property. Because enacting H.R. 1870 

would affect offsetting receipts (a form of direct spending), pay-asyou-go procedures would apply, but CBO estimates that the impact 

on direct spending would be negligible. 

H.R. 1870 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. The conveyance authorized by this act would be voluntary on the part of the 

city of Fallon, as would any associated costs. 

On March 5, 2002, CBO prepared a cost estimate for H.R. 1870 

as ordered reported by the House Committee on Resources on February 27, 2001. The two versions of this legislation are identical, 

and our cost estimates are the same. 

The CBO staff contacts for this estimate are Julie Middleton (for 

federal costs) and Majorie Miller (for the state and local impact). 

This estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

H.R. 1870. The bill is not a regulatory measure in the sense of imposing Government-established standards or significant economic 

responsibilities on private individuals and businesses. 

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1Sec. (b)(1)(A) of H.R. 1870(RFS), concerning the appraisal of the property, adds the phrase 

‘‘and paid for by the city of Fallon, Nevada’’. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of H.R. 1870. 

EXECUTIVE COMMUNICATIONS

The pertinent legislative report received by the Committee from 

the Department of the Interior setting forth Executive agency recommendation relating to H.R. 1870 are set forth below:

STATEMENT OF MARK A. LIMBAUGH, DIRECTOR OF EXTERNAL AND INTERGOVERNMENTAL AFFAIRS, BUREAU OF RECLAMATION, U.S. DEPARTMENT OF THE INTERIOR

I am Mark A. Limbaugh, Director of External and Intergovernmental Affairs for the Bureau of Reclamation (Reclamation). I am pleased to present the views of the Department of the Interior on S. 1310 and H.R. 1870, concerning 

the Fallon Rail Freight Loading Facility Transfer. H.R. 

1870, as passed by the House and referred in the Senate, 

is nearly identical to S. 1310. Both bills provide for the 

sale of about 6.3 acres of real property within the 

Newlands Project, Nevada (acquired in 1920 by the United 

States government), to the city of Fallon, Nevada. The Department supports the proposed conveyance, and would 

support S. 1310 with the amendment suggested below. The 

Department supports H.R. 1870, as passed by the House 

and referred in the Senate. 

The House Resources Subcommittee on Water and 

Power held a hearing on H.R. 1870, as introduced, on December 10, 2001 (a copy of our statement is attached for 

the record). The Department did not support the bill as introduced, and recommended specific amendments to provisions on credit of sale proceeds, appraisal, and liability. 

Subsequently, the House subcommittee adopted these 

amendments. An important provision in H.R. 1870, suggested by the Department, requires the city of Fallon to 

pay for the appraisal of the property.1 We encourage the 

Committee to amend S. 1310 to adopt this language, which 

appears in Sec. (b)(1)(A) of H.R. 1870, as passed by the 

House of March 2, 2002, and referred to the Senate. 

This concludes my statement. I would be glad to answer 

any questions.

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by the bill H.R. 1870, as ordered reported.

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