360
HR 2491 EAS
pay such amounts to the person or persons entitled
thereto, together with interest thereon for the number
of days such overpayment or amounts were held by
the Secretary, with the addition of interest charged
against the United States computed at the rate pub-
lished by the Department of the Treasury as the
‘‘Treasury Current Value of Funds Rate.’’
(i) AUDITS, PAYMENT DEMANDS AND LIMITATIONS.—
(1) The Secretary may conduct, after notice, any
audit reasonably necessary and appropriate to verify
the payments required under this section.
(2) The Secretary shall send or issue any billing
or demand letter for royalty due on locatable minerals
produced and sold from any mining claim subject to
royalty required by this section not later than 3 years
after the date such royalty was due and must specifi-
cally identify the production involved, the royalty al-
legedly due and the basis for the claim. No action,
proceeding or claim for royalty due on locatable min-
erals produced and sold, or relating to such produc-
tion, may be brought by the United States, including
but not limited to any claim for additional royalties
or claim of the right to offset the amount of such ad-
ditional royalties against amounts owed to any per-
son by the United States, unless judicial suit or ad-
361
HR 2491 EAS
ministrative proceedings are commenced to recover
specific amounts claimed to be due prior to the expi-
ration of 3 years from the date such royalty is alleged
to have been due.
(j) TRANSITIONAL RULES.—Any mining claim for
which a patent is issued pursuant to section 5374(c) shall
not be subject to the obligation to pay the royalty pursuant
to this section. Royalty payments for any claim processed
under section 5374(c) shall be suspended pending final de-
termination of the right to patent. For any such claim that
is determined not to qualify for the issuance of a patent
under section 5374(c), royalties shall be payable under this
section on production after the date of enactment of this
Act, plus interest computed at the rate published by the De-
partment of the Treasury as the ‘‘Treasury Current Value
of Funds Rate’’ on production after such date of enactment
and before the date of such determination.
(k) PENALTIES.—Any person who withholds payment
or royalties under this section after a final, nonappealable
determination of liability may be liable for civil penalties
of up to $ 5,000 per day that payment is withheld after
becoming due.
(l) DISBURSEMENT OF REVENUES.—The receipts from
royalties collected under this section shall be disbursed as
follows:
362
HR 2491 EAS
(1) Fifty percent of such receipts shall be paid
into the Treasury of the United States and deposited
as miscellaneous receipts.
(2) Forty percent of such receipts shall be paid
into a State Fund or Federal Fund in accordance
with section 5376; until termination as provided in
section 5379.
(3) Ten percent of such receipts shall be paid by
the Secretary of the Treasury to the State in which
the mining claim from which production occurred is
located.
SEC. 5376. ABANDONED LOCATABLE MINERALS MINE REC-
LAMATION FUND.
(a) STATE FUND.—Any State within which royalties
are collected pursuant to section 5375 from a mining claim
and which wishes to become eligible to receive such proceeds
allocated by paragraph 5375(l)(2) shall establish and main-
tain an interest-bearing abandoned locatable mineral mine
reclamation fund (hereinafter referred to in this chapter as
‘‘State Fund’’) to accomplish the purposes of this chapter.
States with existing abandoned locatable mineral reclama-
tion programs shall qualify to receive proceeds allocated by
section 5375(l)(2).
(b) FEDERAL FUND.—There is established on the books
of the Treasury of the United States an interest-bearing
363
HR 2491 EAS
fund to be known as the Abandoned Locatable Minerals
Mine Reclamation Fund (hereinafter referred to in this
chapter as ‘‘Federal Fund’’) which shall consist of royalty
proceeds allocated by paragraph 5375(l)(2) from mining
claims in a State where a State Fund has not been estab-
lished or maintained under subsection (a).
SEC. 5377. ALLOCATION AND PAYMENTS.
(a) STATE FUND.—Royalties collected pursuant to sec-
tion 5375 and allocated by section 5375(l)(2) shall be paid
by the Secretary of the Treasury to the State Fund estab-
lished pursuant to subsection 5376(a) for the State where
the mining claim from which the production occurred is
located. Payments to States under this subsection with re-
spect to any royalties received by the United States, shall
be made not later than the last business day of the month
in which such royalties are warranted by the United States
Treasury to the Secretary of the Interior as having been
received, except for any portion of such royalties which is
under challenge, which shall be placed in a suspense account
pending resolution of such challenge. Such warrants shall
be issued by the United States Treasury not later than 10
days after receipt of such royalties by the Treasury. Royal-
ties placed in a suspense account which are determined to
be due the United States shall be payable to a State Fund
not later than fifteen days after such challenge is resolved.
364
HR 2491 EAS
Any such amount placed in a suspense account pending res-
olution shall bear interest until the challenge is resolved.
In determining the amount of payments to State Funds
under this section, the amount of such payments shall not
be reduced by any administrative or other costs incurred
by the United States.
(b) FEDERAL FUND.—Royalties collected pursuant to
section 5375, and allocated by paragraph 5375(l)(2), from
mining claims located in a State which has not established
or maintained a State Fund, and such royalties from min-
ing claims located in a State for which the Secretary’s au-
thority has expired under subsection 5379(a), shall be cred-
ited to the Federal Fund and distributed in accordance with
subsection (c).
(c) TRANSITION.—Prior to the time a State establishes
a State Fund pursuant to subsection 5376(a), any royalties
collected from a mining claim within such State shall be
deposited into the Federal Fund and allocated to such State.
Once a State establishes a State Fund under subsection
5376(a), the State allocation in the Federal Fund with ac-
crued interest shall be paid by the Secretary of the Treasury
to the State Fund in accordance with subsection (a). Com-
mencing three years after the date of enactment of this chap-
ter, the Secretary of the Treasury shall distribute royalty
proceeds then accrued or which are thereafter credited to
365
HR 2491 EAS
the Federal Fund equally among all States which maintain
a State Fund established under subsection 5376(a), and for
which the Secretary of the Treasury’s authority has not ex-
pired under subsection 5379(a).
SEC. 5378. ELIGIBLE AREA.
(a) IN GENERAL.—Subject to subsection (b), lands and
water eligible for reclamation under this chapter shall be
Federal lands that—
(1) have been adversely affected by past mineral
activities on lands abandoned and left inadequately
reclaimed prior to the date of enactment of this chap-
ter; and
(2) for which the State determines there is no
identifiable party with a continuing reclamation re-
sponsibility under State or Federal laws.
(b) SPECIFIC SITES AND AREAS NOT ELIGIBLE.—The
following areas shall not be eligible for expenditures from
a State Fund:
(1) any area subject to a plan of operations sub-
mitted or approved prior to, on or after the date of
enactment of this chapter which includes remining or
reclamation of the area adversely affected by past
locatable mineral activities;
(2) any area affected by coal mining eligible for
reclamation expenditures pursuant to section 404 of
366
HR 2491 EAS
the Surface Mining Control and Reclamation Act (30
U.S.C. 1234);
(3) any area designated for remedial action pur-
suant to the Uranium Mill Tailings Radiation Con-
trol Act of 1978 (42 U.S.C. 7912); and
(4) any area that was listed on the National Pri-
orities List pursuant to the Comprehensive Environ-
mental Response, Compensation and Liability Act of
1980 (42 U.S.C. 9605) prior to the date of enactment
of this chapter, or where the Environmental Protec-
tion Agency has initiated or caused to be initiated a
response action pursuant to that Act.
SEC. 5379. SUNSET PROVISIONS.
(a) TERMINATION OF AUTHORITY.—The Secretary of
the Treasury’s authority to allocate funds to a State Fund
under section 5377 shall expire on the date that the State
submits a report to the Congress which states that there are
no areas in the State eligible under subsection 5378(a)
which remain to be reclaimed.
(b) TERMINATION OF FUND.—Upon the termination of
authority as provided in subsection (a) with respect to all
State Funds, the Federal Fund shall also be terminated,
and all royalty proceeds thereafter remaining in the Federal
Fund shall be distributed to the States as provided for in
Section 5375(l)(3).
367
HR 2491 EAS
SEC. 5380. EFFECT ON THE GENERAL MINING LAWS.
The provisions of this chapter shall supersede the gen-
eral mining laws only to the extent such laws conflict with
the requirements of this chapter. Where no such conflict ex-
ists, the general mining laws, including all judicial and
administrative decisions interpreting them, shall remain in
full force and effect.
SEC. 5381. SEVERABILITY.
If any provision of this chapter or the applicability
thereof to any person or circumstances is held invalid, the
remainder of this chapter and the application of such provi-
sion to other persons or circumstances shall not be affected
thereby.
SEC. 5382. MINERAL MATERIALS.
(a) DETERMINATIONS.—Section 3 of the Act of July
23, 1955 (30 U.S.C. 611), is amended as follows:
(1) Insert ‘‘(a)’’ before the first sentence.
(2) Add the following new subsection at the end
thereof:
(b)(1) Subject to valid existing rights, after the date
of enactment of this subsection, notwithstanding the ref-
erence to common varieties in subsection (a) and to the ex-
ception to such term relating to a deposit of materials with
some property giving it distinct and special value, all de-
posits of mineral materials referred to in such subsection,
including the block pumice referred to in such subsection,
368
HR 2491 EAS
shall be subject to disposal only under the terms and condi-
tions of the Materials Act of 1947.
(2) For purposes of paragraph (1), the term ‘‘valid ex-
isting rights’’ means that a mining claim located for any
such mineral material had some property giving it the dis-
tinct and special value referred to in subsection (a), or as
the case may be, met the definition of block pumice referred
to in such subsection, was properly located and maintained
under the general mining laws prior to the date of the en-
actment of this subsection, and was supported by a discov-
ery of a valuable mineral deposit within the meaning of
the general mining laws as in effect immediately prior to
such date of enactment and that such claim continues to
be valid under this Act.’’.
(b) IDENTIFIED DEPOSITS.—The Act entitled ‘‘An Act
to provide for the disposal of materials on the public lands
of the United States’’, approved July 31, 1947 (30 U.S.C.
602), is amended by adding at the end the following:
‘‘(b) IDENTIFIED DEPOSITS.—
‘‘(1) Lands known to contain valuable deposits of
mineral materials subject to this Act and subsequent
amendments and not covered by any contract, permit,
or lease, for uncommon varieties of mineral materials
under this section or by a valid mining claim for an
uncommon variety of a mineral material under the
369
HR 2491 EAS
general mining laws shall be subject to disposition by
lease under this Act by the Secretary through adver-
tisement, competitive bidding, or such other methods
as he may by general regulations adopt, and in such
reasonably compact areas as he shall fix.
‘‘(2) All leases will be conditioned upon—
‘‘(A) the payment by the lessee of such roy-
alty as may be fixed in the lease, not less than
two percent of the quantity or gross value of the
output of mineral materials, and
‘‘(B) the payment in advance of a rental of
25 cents per acre for the first calendar year or
fraction thereof; 50 cents per acre for the second,
third, fourth, and fifth years, respectively; and
$1 per acre per annum thereafter during the
continuance of the lease, such rental for that
year being credited against royalties accruing for
that year.
‘‘(3)(A) Any lease issued under this subsection
shall be for a term of 20 years and so long thereafter
as the lessee complies with the terms and conditions
of the lease and upon the further condition that at the
end of each 20-year period succeeding the date of the
lease such reasonable adjustment of the terms and
conditions thereof may be made therein as may be
370
HR 2491 EAS
prescribed by the Secretary unless otherwise provided
by law at the expiration of such periods.
‘‘(B) Leases shall be conditioned upon a mini-
mum annual production or the payment of a mini-
mum royalty in lieu thereof, except when production
is interrupted by strikes, the elements, or casualties
not attributable to the lessee.
‘‘(C) The Secretary may permit suspension of
operations under any such leases when marketing
conditions are such that the leases cannot be operated
except at a loss.
‘‘(D) The Secretary upon application by the les-
see prior to the expiration of any existing lease in
good standing shall amend such lease to provide for
the same tenure and to contain the same conditions,
including adjustment at the end of each 20-year pe-
riod succeeding the date of said lease, as provided for
in this subsection.
‘‘(c) OTHER LANDS.—
‘‘(1) The Secretary is hereby authorized, under
such rules and regulations as he may prescribe, to
grant to any qualified applicant a prospecting permit
which shall give the exclusive right to prospect for
mineral materials in lands belonging to the United
States which are not subject to subsection (b), and are
371
HR 2491 EAS
not covered by a contract, permit, or lease under this
Act, except that a prospecting permit shall not exceed
a period of 2 years and the area to be included in
such a permit shall not exceed 2,560 acres of land in
reasonably compact form.
‘‘(2) The Secretary shall reserve and may exer-
cise the authority to cancel any prospecting permit
upon failure by the permittee to exercise due diligence
in the prosecution of the prospecting work in accord-
ance with the terms and conditions stated in the per-
mit, and shall insert in every such permit issued
under the provisions of this Act appropriate provi-
sions for its cancellation by him.
‘‘(3)(A) Upon showing to the satisfaction of the
Secretary that valuable deposits of one of the mineral
materials subject to the Materials Act of 1947 have
been discovered by the permittee within the area cov-
ered by his permit, and that such land is valuable
therefor, the permittee shall be entitled to a lease for
any or all of the land embraced in the prospecting
permit, at a royalty of not less than two percent of
the quantity or gross value of the output of the min-
eral materials at the point of shipment to market,
such lease to be taken in compact form by legal sub-
divisions of the public land surveys, or if the land be
372
HR 2491 EAS
not surveyed, by survey executed at the cost of the per-
mittee in accordance with regulations prescribed by
the Secretary.’’.
‘‘(B) ‘‘Persons holding valid mining claims for
uncommon varieties of mineral materials shall be en-
titled to receive a lease under this subsection.’’
(D) MINERAL
MATERIALS
DISPOSAL
CLARIFICA-
TION.—Section 4 July 23, 1955 (30 U.S.C. 612), is amend-
ed as follows:
(1) In subsection (b) insert ‘‘and mineral mate-
rial’’ after ‘‘vegetative’’.
(2) In subsection (c) insert ‘‘and mineral mate-
rial’’ after ‘‘vegetative’’.
(e) AUTHORIZATION FOR DISPOSAL OF MINERAL MA-
TERIALS BY CONTRACT.—Section 2(a) of the Act entitled
‘‘An Act to provide for the disposal of materials on the pub-
lic lands of the United States’’, approved July 31, 1947 (30
U.S.C. 602(a)), is amended—
(1) by striking the period at the end of para-
graph (3) and inserting ‘‘or, if’’; and
(2) by adding after paragraph (3) the following:
‘‘(4) the material is a mineral material.’’.
373
HR 2491 EAS
CHAPTER 6—DEPARTMENT OF THE
INTERIOR
SEC. 5391. AIRCRAFT SERVICES.
(a) USE OF PRIVATE CONTRACTORS.—By not later
than October 1, 1996, the Secretary of the Interior shall
contract with private entities for the provision of all air-
craft services required by the Department of the Interior,
other than those available from existing DOI aircraft whose
primary purpose is fire suppression.
(b) SALE OF FEDERAL AIRCRAFT.—By September 30,
1998, the Secretary of the Interior is authorized and di-
rected to sell all aircraft owned by the Department of the
Interior and all associated equipment and facilities, other
than those whose primary purpose is fire suppression.
(c) EXEMPTIONS.—The disposition of assets under this
section is not subject to section 202 and 203 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 483 and 484) or section 13 of the Surplus Property
Act of 1944 (50 U.S.C. App. 1622).
(d) DISPOSITION OF PROCEEDS.—The proceeds from
dispositions under this section shall be returned to the
Treasury as miscellaneous receipts and all savings from re-
duced overhead and other costs related to the management
of the assets sold shall be returned to the Treasury.
374
HR 2491 EAS
CHAPTER 7—POWER MARKETING
ADMINISTRATIONS
Subchapter A—Bonneville Power
Administration Refinancing
SEC. 5401. DEFINITIONS.
For the purposes of this subchapter—
(1) ‘‘Administrator’’ means the Administrator of
the Bonneville Power Administration;
(2) ‘‘capital investment’’ means a capitalized
cost funded by Federal appropriations that—
(A) is for a project, facility, or separable
unit or feature of a project or facility;
(B) is a cost for which the Administrator is
required by law to establish rates to repay to the
United States Treasury through the sale of elec-
tric power, transmission, or other services;
(C) excludes a Federal irrigation invest-
ment; and
(D) excludes an investment financed by the
current revenues of the Administrator or by
bonds issued and sold, or authorized to be issued
and sold, by the Administrator under section 13
of the Federal Columbia River Transmission
System Act (16 U.S.C. 838k);
375
HR 2491 EAS
(3) ‘‘new capital investment’’ means a capital
investment for a project, facility, or separable unit or
feature of a project, facility, or separable unit or fea-
ture of a project or facility, placed in service after
September 30, 1995;
(4) ‘‘old capital investment’’ means a capital in-
vestment the capitalized cost of which—
(A) was incurred, but not repaid, before Oc-
tober 1, 1995, and
(B) was for a project, facility, or separable
unit or feature of a project or facility, placed in
service before October 1, 1995;
(5) ‘‘repayment date’’ means the end of the pe-
riod within which the Administrator’s rates are to as-
sure the repayment of the principal amount of a cap-
ital investment; and
(6) ‘‘Treasury rate’’ means—
(A) for an old capital investment, a rate de-
termined by the Secretary of the Treasury, tak-
ing into consideration prevailing market yields,
during the month preceding October 1, 1995, on
outstanding interest-bearing obligations of the
United States with periods to maturity com-
parable to the period between October 1, 1995,
376
HR 2491 EAS
and the repayment date for the old capital in-
vestment; and
(B) for a new capital investment, a rate de-
termined by the Secretary of the Treasury, tak-
ing into consideration prevailing market yields,
during the month preceding the beginning of the
fiscal year in which the related project, facility,
or separable unit or feature is placed in service,
on outstanding interest-bearing obligations of the
United States with periods to maturity com-
parable to the period between the beginning of
the fiscal year and the repayment date for the
new capital investment.
SEC. 5402. NEW PRINCIPAL AMOUNTS.
(a) PRINCIPAL AMOUNT.—Effective October 1, 1995,
an old capital investment has a new principal amount that
is the sum of—
(1) the present value of the old payment amounts
for the old capital investment, calculated using a dis-
count rate equal to the Treasury rate for the old cap-
ital investment; and
(2) an amount equal to $100,000,000 multiplied
by a fraction the numerator of which is the principal
amount of the old payment amounts for the old cap-
ital investment and the denominator of which is the
377
HR 2491 EAS
sum of the principal amounts of the old payment
amounts for all old capital investments.
(b) DETERMINATION.—With the approval of the Sec-
retary of the Treasury, based solely on consistency with this
subchapter, the Administrator shall determine the new
principal amounts under this section and the assignment
of interest rates to the new principal amounts under section
5403.
(c) OLD PAYMENT AMOUNT.—For the purposes of this
section, ‘‘old payment amounts’’ means, for an old capital
investment, the annual interest and principal that the Ad-
ministrator would have paid to the United States Treasury
from October 1, 1995, if this subchapter had not been en-
acted, assuming that—
(1) the principal were repaid—
(A) on the repayment date the Adminis-
trator assigned before October 1, 1993, to the old
capital investment, or
(B) with respect to an old capital invest-
ment for which the Administrator has not as-
signed a repayment date before October 1, 1993,
on a repayment date the Administrator shall as-
sign to the old capital investment in accordance
with paragraph 10(d)(1) of the version of De-
378
HR 2491 EAS
partment of Energy Order RA 6120.2 in effect
on October 1, 1993; and
(2) interest were paid—
(A) at the interest rate the Administrator
assigned before October 1, 1993, to the old cap-
ital investment, or
(B) with respect to an old capital invest-
ment for which the Administrator has not as-
signed an interest rate before October 1, 1993, at
a rate determined by the Secretary of the Treas-
ury, taking into consideration prevailing market
yields, during the month preceding the beginning
of the fiscal year in which the related project, fa-
cility, or separable unit or feature is placed in
service, on outstanding interest-bearing obliga-
tions of the United States with periods to matu-
rity comparable to the period between the begin-
ning of the fiscal year and the repayment date
for the old capital investment.
SEC. 5403. INTEREST RATE FOR NEW PRINCIPAL AMOUNTS.
As of October 1, 1995, the unpaid balance on the new
principal amount established for an old capital investment
under section 5402 bears interest annually at the Treasury
rate for the old capital investment until the earlier of the
379
HR 2491 EAS
date that the new principal amount is repaid or the repay-
ment date for the new principal amount.
SEC. 5404. REPAYMENT DATES.
As of October 1, 1995, the repayment date for the new
principal amount established for an old capital investment
under section 5402 is no earlier than the repayment date
for the old capital investment assumed in section
5402(c)(1).
SEC. 5405. PREPAYMENT LIMITATIONS.
During the period October 1, 1995, through September
30, 2000, the total new principal amounts of old capital
investments, as established under section 5402, that the Ad-
ministrator may pay before their respective repayment
dates shall not exceed $100,000,000.
SEC. 5406. INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS DURING CONSTRUCTION.
(a) NEW
CAPITAL
INVESTMENT.—The principal
amount of a new capital investment includes interest in
each fiscal year of construction of the related project, facil-
ity, or separable unit or feature at a rate equal to the one-
year rate for the fiscal year on the sum of—
(1) construction expenditures that were made
from the date construction commenced through the
end of the fiscal year, and
(2) accrued interest during construction.
380
HR 2491 EAS
(b) PAYMENT.—The Administrator is not required to
pay, during construction of the project, facility, or sepa-
rable unit or feature, the interest calculated, accrued, and
capitalized under subsection (a).
(c) ONE-YEAR RATE.—For the purposes of this section,
‘‘one-year rate’’ for a fiscal year means a rate determined
by the Secretary of the Treasury, taking into consideration
prevailing market yields, during the month preceding the
beginning of the fiscal year, on outstanding interest-bearing
obligations of the United States with periods to maturity
of approximately one year.
SEC. 5407. INTEREST RATES FOR NEW CAPITAL INVEST-
MENTS.
The unpaid balance on the principal amount of a new
capital investment bears interest at the Treasury rate for
the new capital investment from the date the related project,
facility, or separable unit or feature is placed in service
until the earlier of the date the new capital investment is
repaid or the repayment date for the new capital invest-
ment.
SEC. 5408. CREDITS TO ADMINISTRATOR’S PAYMENTS TO
THE UNITED STATES TREASURY.
The Confederated Tribe of the Colville Reservation
Grand Coulee Dam Settlement Act (Public Law 103–436;
381
HR 2491 EAS
108 Stat. 4577) is amended by striking section 6 and in-
serting the following:
‘‘SEC. 6. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE
UNITED STATES TREASURY.
‘‘So long as the Administrator makes annual pay-
ments to the tribes under the settlement agreement, the Ad-
ministrator shall apply against amounts otherwise payable
by the Administrator to the United States Treasury a credit
that reduces the Administrator’s payment in the amount
and for each fiscal year as follows: $15,250,000 in fiscal
year 1996; $15,860,000 in fiscal year 1997; $16,490,000 in
fiscal year 1998; $17,150,000 in fiscal year 1999;
$17,840,000 in fiscal year 2000; and $4,100,000 in each
succeeding fiscal year.’’.
SEC. 5409. CONTRACT PROVISIONS.
In each contract of the Administrator that provides for
the Administrator to sell electric power, transmission, or
related services, and that is in effect after September 30,
1995, the Administrator shall offer to include, or as the case
may be, shall offer to amend to include, provisions specify-
ing that after September 30, 1995—
(1) the Administrator shall establish rates and
charges on the basis that—
382
HR 2491 EAS
(A) the principal amount of an old capital
investment shall be no greater than the new
principal amount established under section 5402;
(B) the interest rate applicable to the un-
paid balance of the new principal amount of an
old capital investment shall be no greater than
the interest rate established under section 5403;
(C) any payment of principal of an old
capital investment shall reduce the outstanding
principal balance of the old capital investment
in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid
balance of the new principal amount of an old
capital investment shall be a credit against the
appropriate interest account in the amount of
the payment at the time the payment is ten-
dered;
(2) apart from charges necessary to repay the
new principal amount of an old capital investment as
established under section 5402 and to pay the interest
on the principal amount under section 5403, no
amount may be charged for return to the United
States Treasury as repayment for or return on an old
383
HR 2491 EAS
capital investment, whether by way of rate, rent, lease
payment, assessment, user charge, or any other fee;
(3) amounts provided under section 1304 of title
31, United States Code, shall be available to pay, and
shall be the sole source for payment of, a judgment
against or settlement by the Administrator or the
United States on a claim for a breach of the contract
provisions required by this subchapter; and
(4) the contract provisions specified in this sub-
chapter do not—
(A) preclude the Administrator from recov-
ering, through rates or other means, any tax that
is generally imposed on electric utilities in the
United States, or
(B) affect the Administrator’s authority
under applicable law, including section 7(g) of
the Pacific Northwest Electric Power Planning
and Conservation Act (16 U.S.C. 839e(g)), to—
(i) allocate costs and benefits, includ-
ing but not limited to fish and wildlife
costs, to rates or resources, or
(ii) design rates.
SEC. 5410. SAVINGS PROVISIONS.
(a) REPAYMENT.—This subchapter does not affect the
obligation of the Administrator to repay the principal asso-
384
HR 2491 EAS
ciated with each capital investment, and to pay interest
on the principal, only from the ‘‘Administrator’s net pro-
ceeds,’’ as defined in section 13(b) of the Federal Columbia
River Transmission System Act (16 U.S.C. 838k(b)).
(b) PAYMENT OF CAPITAL INVESTMENT.—Except as
provided in section 5405, this subchapter does not affect the
authority of the Administrator to pay all or a portion of
the principal amount associated with a capital investment
before the repayment date for the principal amount.
Subchapter B—Alaska Power
Marketing Administration Sale
SEC. 5411. SHORT TITLE.
This subchapter may be cited as the ‘‘Alaska Power
Administration Asset Sale and Termination Act’’.
SEC. 5412. DEFINITIONS.
For Purposes of this subchapter:
(1) The term ‘‘Eklutna’’ means Eklutna Hydro-
electric Project and related assets as described in sec-
tion 4 and Exhibit A of the Eklutna Purchase Agree-
ment.
(2) The term ‘‘Eklutna Purchase Agreement’’
means the August 2, 1989, Eklutna Purchase Agree-
ment between the Alaska Power Administration of the
Department of Energy and the Eklutna Purchasers,
385
HR 2491 EAS
together with any amendments thereto adopted before
the date of enactment of this Act.
(3) The term ‘‘Eklutna Purchasers’’ means the
Municipality of Anchorage doing business as Munici-
pal Light and Power, the Chugach Electric Associa-
tion, Inc. and the Matanuska Electric Association,
Inc.
(4) 
The 
term 
‘‘Snettisham’’ 
means 
the
Snettisham Hydroelectric Project and related assets
as described in section 4 and Exhibit A of the
Snettisham Purchase Agreement.
(5) The term ‘‘Snettisham Purchase Agreement’’
means the February 10, 1989, Snettisham Purchase
Agreement between the Alaska Power Administration
of the Department of Energy and the Alaska Power
Authority and its successors in interest, together with
any amendments thereto adopted before the date of en-
actment of this Act.
(6) The term ‘‘Snettisham Purchaser’’ means the
Alaska Industrial Development and Export Authority
or a successor State agency or authority.
SEC. 5413. SALE OF EKLUTNA AND SNETTISHAM HYDRO-
ELECTRIC PROJECTS.
(a) SALE OF EKLUTNA.—The Secretary of Energy is
authorized and directed to sell Eklutna to the Eklutna Pur-
386
HR 2491 EAS
chasers in accordance with the terms of this subchapter and
the Eklutna Purchase Agreement.
(b) SALE OF SNETTISHAM.—The Secretary of Energy
is authorized and directed to sell Snettisham to the
Snettisham Purchaser in accordance with the terms of this
subchapter and the Snettisham Purchase Agreement.
(c) COOPERATION OF OTHER AGENCIES.—The heads
of other Federal departments, agencies, and instrumental-
ities of the United States shall assist the Secretary of En-
ergy in implementing the sales and conveyances authorized
and directed by this subchapter.
(d) PROCEEDS.—Proceeds from the sales required by
this subchapter shall be deposited in the Treasury of the
United States to the credit of miscellaneous receipts.
(e) PREPARATION OF EKLUTNA AND SNETTISHAM FOR
SALE.—The Secretary of Energy is authorized and directed
to use such funds from the sale of electric power by the Alas-
ka Power Administration as may be necessary to prepare,
survey, and acquire Eklutna and Snettisham assets for sale
and conveyance. Such preparations and acquisitions shall
provide sufficient title to ensure the beneficial use, enjoy-
ment, and occupancy by the purchaser.
(f) CONTRIBUTED
FUNDS.—Notwithstanding any
other provision of law, the Alaska Power Administration
is authorized to receive, administer, and expend such con-
387
HR 2491 EAS
tributed funds as may be provided by the Eklutna Pur-
chasers or customers or the Snettisham Purchaser or cus-
tomers for the purposes of upgrading, improving, maintain-
ing, or administering Eklutna or Snettisham. Upon the ter-
mination of the Alaska Power Administration under section
5414(f), the Secretary of Energy shall administer and ex-
pend any remaining balances of such contributed funds for
the purposes intended by the contributors.
SEC. 5414. EXEMPTION AND OTHER PROVISIONS.
(a) FEDERAL POWER ACT.—
(1) After the sales authorized by this subchapter
occur, Eklutna and Snettisham, including future
modifications, shall continue to be exempt from the
requirements of part I of the Federal Power Act (16
U.S.C. 791a et seq.), except as provided in subsection
(b).
(2) The exemption provided by paragraph (1)
shall not affect the Memorandum of Agreement en-
tered into among the State of Alaska, the Eklutna
Purchasers, the Alaska Energy Authority, and Fed-
eral fish and wildlife agencies regarding the protec-
tion, mitigation of, damages to, and enhancement of
fish and wildlife, dated August 7, 1991, which re-
mains in full force and effect.
388
HR 2491 EAS
(3) Nothing in this subchapter or the Federal
Power Act (16 U.S.C. 791 et seq.) preempts the State
of Alaska from carrying out the responsibilities and
authorities of the Memorandum of Agreement.
(b) SUBSEQUENT TRANSFERS.—Except for subsequent
assignment of interest in Eklutna by the Eklutna Pur-
chasers to the Alaska Electric Generation and Transmission
Cooperative Inc. pursuant to section 19 of the Eklutna Pur-
chase Agreement, upon any subsequent sale or transfer of
any portion of Eklutna or Snettisham from the Eklutna
Purchasers or the Snettisham Purchaser to any other per-
son, the exemption set forth in paragraph (1) of subsection
(a) of this section shall cease to apply to such portion.
(c) REVIEW.—
(1) The United States District Court for the Dis-
trict of Alaska shall have jurisdiction to review deci-
sions made under the Memorandum of Agreement and
to enforce the provisions of the Memorandum of
Agreement, including the remedy of specific perform-
ance.
(2) An action seeking review of a Fish and Wild-
life Program (‘‘Program’’) of the Governor of Alaska
under the Memorandum of Agreement or challenging
actions of any of the parties to the Memorandum of
Agreement prior to the adoption of the Program shall
389
HR 2491 EAS
be brought not later than 90 days after the date on
which the Program is adopted by the Governor of
Alaska, or be barred.
(3) An action seeking review of implementation
of the Program shall be brought not later than 90
days after the challenged act implementing the Pro-
gram, or be barred.
(d) EKLUTNA LANDS.—With respect to Eklutna lands
described in Exhibit A of the Eklutna Purchase Agreement:
(1) The Secretary of the Interior shall issue
rights-of-way to the Alaska Power Administration for
subsequent reassignment to the Eklutna Purchasers—
(A) at no cost to the Eklutna Purchasers;
(B) to remain effective for a period equal to
the life of Eklutna as extended by improvements,
repairs, renewals, or replacements; and
(C) sufficient for the operation of, mainte-
nance of, repair to, and replacement of, and ac-
cess to, Eklutna facilities located on military
lands and lands managed by the Bureau of Land
Management, including lands selected by the
State of Alaska.
(2) Fee title to lands at Anchorage Substation
shall be transferred to Eklutna Purchasers at no addi-
tional cost if the Secretary of the Interior determines
390
HR 2491 EAS
that pending claims to, and selections of, those lands
are invalid or relinquished.
(3) With respect to the Eklutna lands identified
in paragraph 1 of Exhibit A of the Eklutna Purchase
Agreement, the State of Alaska may select, and the
Secretary of the Interior shall convey to the State, im-
proved lands under the selection entitlements in sec-
tion 6 of the Act of July 7, 1958 (commonly known
as the Alaska Statehood Act, Public Law 85–508; 72
Stat. 339), and the North Anchorage Land Agreement
dated January 31, 1983. This conveyance shall be
subject to the rights-of-way provided to the Eklutna
Purchasers under paragraph (1).
(e) 
SNETTISHAM
LANDS.—With 
respect 
to 
the
Snettisham lands identified in paragraph 1 of Exhibit A
of the Snettisham Purchase Agreement and Public Land
Order No. 5108, the State of Alaska may select, and the
Secretary of the Interior shall convey to the State of Alaska,
improved lands under the selection entitlements in section
6 of the Act of July 7, 1958 (commonly known as the Alaska
Statehood Act, Public Law 85–508; 72 Stat. 339).
(f) TERMINATION OF ALASKA POWER ADMINISTRA-
TION.—Not later than one year after both of the sales au-
thorized in section 5413 have occurred, as measured by the
391
HR 2491 EAS
Transaction Dates stipulated in the Purchase Agreements,
the Secretary of Energy shall—
(1) complete the business of, and close out, the
Alaska Power Administration;
(2) submit to Congress a report documenting the
sales; and
(3) return unobligated balances of funds appro-
priated for the Alaska Power Administration to the
Treasury of the United States.
(g) REPEALS.—
(1) The Act of July 31, 1950 (64 Stat. 382) is
repealed effective on the date that Eklutna is conveyed
to the Eklutna Purchasers.
(2) Section 204 of the Flood Control Act of 1962
(76 Stat. 1193) is repealed effective on the date that
Snettisham is conveyed to the Snettisham Purchaser.
(3) The Act of August 9, 1955, concerning water
resources investigation in Alaska (69 Stat. 618), is re-
pealed.
(h) DOE ORGANIZATION ACT.—As of the later of the
two dates determined in paragraphs (1) and (2) of sub-
section (g), section 302(a) of the Department of Energy Or-
ganization Act (42 U.S.C. 7152(a)) is amended—
(1) in paragraph (1)—
(A) by striking subparagraph (C); and
392
HR 2491 EAS
(B) by redesignating subparagraphs (D),
(E), and (F) as subparagraphs (C), (D), and (E)
respectively; and
(2) in paragraph (2) by striking out ‘‘and the
Alaska Power Administration’’ and by inserting
‘‘and’’ after ‘‘Southwestern Power Administration,’’.
(i) DISPOSAL.—The sales of Eklutna and Snettisham
under this subchapter are not considered disposal of Federal
surplus property under the Federal Property and Adminis-
trative Services Act of 1949 (40 U.S.C. 484) or the Act of
October 3, 1944, popularly known as the ‘‘Surplus Property
Act of 1944’’ (50 U.S.C. App. 1622).
SEC. 5415. OTHER FEDERAL HYDROELECTRIC PROJECTS.
The provisions of this subchapter regarding the sale
of the Alaska Power Administration’s hydroelectric projects
under section 5413 and the exemption of these projects from
part I of the Federal Power Act under section 5414 do not
apply to other Federal hydroelectric projects.
CHAPTER 8—OUTER CONTINENTAL SHELF
DEEP WATER ROYALTY RELIEF
SEC. 5421. SHORT TITLE.
This chapter may be referred to as the ‘‘Outer Con-
tinental Shelf Deep Water Royalty Relief Act’’.
393
HR 2491 EAS
SEC. 5422. AMENDMENTS TO THE OUTER CONTINENTAL
SHELF LANDS ACT.
Section 8(a)(3) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)), is amended—
(1) by designating the provisions of paragraph
(3) as subparagraph (A) of such paragraph (3); and
(2) by inserting after subparagraph (A), as so
designated, the following:
‘‘(B) In the Western and Central Planning
Areas of the Gulf of Mexico and the portion of
the Eastern Planning Area of the Gulf of Mexico
encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude, the Secretary
may, in order to—
‘‘(i) promote development or increased
production on producing or non-producing
leases; or
‘‘(ii) encourage production of marginal
resources on producing or non-producing
leases;
through primary, secondary, or tertiary recovery
means, reduce or eliminate any royalty or net
profit share set forth in the lease(s). With the les-
see’s consent, the Secretary may make other
modifications to the royalty or net profit share
394
HR 2491 EAS
terms of the lease in order to achieve these pur-
poses.
‘‘(C)(i) Notwithstanding the provisions of
this Act other than this subparagraph, with re-
spect to any lease or unit in existence on the
date of enactment of the Outer Continental Shelf
Deep Water Royalty Relief Act meeting the re-
quirements of this subparagraph, no royalty
payments shall be due on new production, as de-
fined in clause (iv) of this subparagraph, from
any lease or unit located in water depths of 200
meters or greater in the Western and Central
Planning Areas of the Gulf of Mexico, including
that portion of the Eastern Planning Area of the
Gulf of Mexico encompassing whole lease blocks
lying west of 87 degrees, 30 minutes West lon-
gitude, until such volume of production as deter-
mined pursuant to clause (ii) has been produced
by the lessee.
‘‘(ii) Upon submission of a complete appli-
cation by the lessee, the Secretary shall deter-
mine within 180 days of such application wheth-
er new production from such lease or unit would
be economic in the absence of the relief from the
requirement to pay royalties provided for by
395
HR 2491 EAS
clause (i) of this subparagraph. In making such
determination, the Secretary shall consider the
increased technological and financial risk of deep
water development and all costs associated with
exploring, developing, and producing from the
lease. The lessee shall provide information re-
quired for a complete application to the Sec-
retary prior to such determination. The Sec-
retary shall clearly define the information re-
quired for a complete application under this sec-
tion. Such application may be made on the basis
of an individual lease or unit. If the Secretary
determines that such new production would be
economic in the absence of the relief from the re-
quirement to pay royalties provided for by clause
(i) of this subparagraph, the provisions of clause
(i) shall not apply to such production. If the
Secretary determines that such new production
would not be economic in the absence of the relief
from the requirement to pay royalties provided
for by clause (i), the Secretary must determine
the volume of production from the lease or unit
on which no royalties would be due in order to
make such new production economically viable;
except that for new production as defined in
396
HR 2491 EAS
clause (iv)(I), in no case will that volume be less
than 17.5 million barrels of oil equivalent in
water depths of 200 to 400 meters, 52.5 million
barrels of oil equivalent in 400 to 800 meters of
water, and 87.5 million barrels of oil equivalent
in water depths greater than 800 meters. Rede-
termination of the applicability of clause (i)
shall be undertaken by the Secretary when re-
quested by the lessee prior to the commencement
of the new production and upon significant
change in the factors upon which the original de-
termination was made. The Secretary shall make
such redetermination within 120 days of submis-
sion of a complete application. The Secretary
may extend the time period for making any de-
termination or redetermination under this clause
for 30 days, or longer if agreed to by the appli-
cant, if circumstances so warrant. The lessee
shall be notified in writing of any determination
or redetermination and the reasons for and as-
sumptions used for such determination. Any de-
termination or redetermination under this clause
shall be a final agency action. The Secretary’s
determination or redetermination shall be judi-
cially reviewable under section 10(a) of the Ad-
397
HR 2491 EAS
ministrative Procedure Act (5 U.S.C. 702), only
for actions filed within 30 days of the Sec-
retary’s determination or redetermination.
‘‘(iii) In the event that the Secretary fails
to make the determination or redetermination
called for in clause (ii) upon application by the
lessee within the time period, together with any
extension thereof, provided for by clause (ii), no
royalty payments shall be due on new produc-
tion as follows:
‘‘(I) For new production, as defined in
clause (iv) (I) of this subparagraph, no roy-
alty shall be due on such production accord-
ing to the schedule of minimum volumes
specified in clause (ii) of this subparagraph.
‘‘(II) For new production, as defined
in clause (iv) (II) of this subparagraph, no
royalty shall be due on such production for
one year following the start of such produc-
tion.
‘‘(iv) For purposes of this subparagraph, the
term ‘new production’ is—
‘‘(I) any production from a lease from
which no royalties are due on production,
other than test production, prior to the date
398
HR 2491 EAS
of enactment of the Outer Continental Shelf
Deep Water Royalty Relief Act; or
‘‘(II) any production resulting from
lease development activities pursuant to a
Development Operations Coordination Doc-
ument, or supplement thereto that would ex-
pand production significantly beyond the
level anticipated in the Development Oper-
ations Coordination Document, approved by
the Secretary after the date of enactment of
the Outer Continental Shelf Deep Water
Royalty Relief Act.
‘‘(v) During the production of volumes de-
termined pursuant to clauses (ii) or (iii) of this
subparagraph, in any year during which the
arithmetic average of the closing prices on the
New York Mercantile Exchange for light sweet
crude oil exceeds $28.00 per barrel, any produc-
tion of oil will be subject to royalties at the lease
stipulated royalty rate. Any production subject
to this clause shall be counted toward the produc-
tion volume determined pursuant to clause (ii)
or (iii). Estimated royalty payments will be
made if such average of the closing prices for the
previous year exceeds $28.00. After the end of the
399
HR 2491 EAS
calendar year, when the new average price can
be calculated, lessees will pay any royalties due,
with interest but without penalty, or can apply
for a refund, with interest, of any overpayment.
‘‘(vi) During the production of volumes de-
termined pursuant to clause (ii) or (iii) of this
subparagraph, in any year during which the
arithmetic average of the closing prices on the
New York Mercantile Exchange for natural gas
exceeds $3.50 per million British thermal units,
any production of natural gas will be subject to
royalties at the lease stipulated royalty rate. Any
production subject to this clause shall be counted
toward the production volume determined pursu-
ant to clauses (ii) or (iii). Estimated royalty
payments will be made if such average of the
closing prices for the previous year exceeds $3.50.
After the end of the calendar year, when the new
average price can be calculated, lessees will pay
any royalties due, with interest but without pen-
alty, or can apply for a refund, with interest, of
any overpayment.
‘‘(vii) The prices referred to in clauses (v)
and (vi) of this subparagraph shall be changed
during any calendar year after 1994 by the per-
400
HR 2491 EAS
centage, if any, by which the implicit price
deflator for the gross domestic product changed
during the preceding calendar year.’’.
SEC. 5423. NEW LEASES.
Section 8(a)(1) of the Outer Continental Shelf Lands
Act, as amended (43 U.S.C. 1337 (a)(1)), is amended—
(1) by redesignating subparagraph (H) as sub-
paragraph (I);
(2) by striking ‘‘or’’ at the end of subparagraph
(G); and
(3) by inserting after subparagraph (G) the fol-
lowing new subparagraph:
‘‘(H) cash bonus bid with royalty at no less
than 12 and 1/2 per centum fixed by the Sec-
retary in amount or value of production saved,
removed, or sold, and with suspension of royal-
ties for a period, volume, or value of production
determined by the Secretary, which suspensions
may vary based on the price of production from
the lease; or’’.
SEC. 5424. LEASE SALES.
For all tracts located in water depths of 200 meters
or greater in the Western and Central Planning Area of
the Gulf of Mexico, including that portion of the Eastern
Planning Area of the Gulf of Mexico encompassing whole
401
HR 2491 EAS
lease blocks lying west of 87 degrees, 30 minutes West lon-
gitude, any lease sale within seven years of the date of en-
actment of this chapter, shall use the bidding system author-
ized in section 8(a)(1)(H) of the Outer Continental Shelf
Lands Act, as amended by this chapter, except that the sus-
pension of royalties shall be set at a volume of not less than
the following:
(1) 17.5 million barrels of oil equivalent for
leases in water depths of 200 to 400 meters;
(2) 52.5 million barrels of oil equivalent for
leases in 400 to 800 meters of water; and
(3) 87.5 million barrels of oil equivalent for
leases in water depths greater than 800 meters.
SEC. 5425. REGULATIONS.
The Secretary shall promulgate such rules and regula-
tions as are necessary to implement the provisions of this
chapter within 180 days after the enactment of this Act.
SEC. 5426. SAVINGS CLAUSE.
Nothing in this chapter shall be construed to affect any
offshore pre-leasing, leasing, or development moratorium,
including any moratorium applicable to the Eastern Plan-
ning Area of the Gulf of Mexico located off the Gulf Coast
of Florida.
402
HR 2491 EAS
CHAPTER 9—EXPORTS OF ALASKA NORTH
SLOPE OIL
SEC. 5431. EXPORTS OF ALASKAN NORTH SLOPE OIL.
Section 28 of the Mineral Leasing Act (30 U.S.C. 185)
is amended by amending subsection (s) to read as follows:
‘‘EXPORTS OF ALASKAN NORTH SLOPE OIL
‘‘(s)(1) Subject to paragraphs (2) through (6) of this
subsection and notwithstanding any other provision of this
Act or any other provision of law (including any regula-
tion) applicable to the export of oil transported by pipeline
over right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652),
such oil may be exported unless the President finds that
exportation of this oil is not in the national interest. The
President shall make his national interest determination
within five months of the date of enactment of this sub-
section. In evaluating whether exports of this oil are in the
national interest, the President shall at a minimum con-
sider—
‘‘(A) whether exports of this oil would di-
minish the total quantity or quality of petroleum
available to the United States;
‘‘(B) the results of an appropriate environ-
mental review, including consideration of appro-
priate measures to mitigate any potential ad-
verse effects of exports of this oil on the environ-
403
HR 2491 EAS
ment, which shall be completed within four
months of the date of the enactment of this sub-
section; and
‘‘(C) whether exports of this oil are likely to
cause sustained material oil supply shortages or
sustained oil prices significantly above world
market levels that would cause sustained mate-
rial adverse employment effects in the United
States or that would cause substantial harm to
consumers, including noncontiguous States and
Pacific territories. If the President determines
that exports of this oil are in the national inter-
est, he may impose such terms and conditions
(other than a volume limitation) as are nec-
essary or appropriate to ensure that such exports
are consistent with the national interest.
‘‘(2) Except in the case of oil exported to a country
with which the United States entered into a bilateral inter-
national oil supply agreement before November 26, 1979,
or to a country pursuant to the International Emergency
Oil Sharing Plan of the International Energy Agency, any
oil transported by pipeline over right-of-way granted pur-
suant to section 203 of the Trans-Alaska Pipeline Author-
ization Act (43 U.S.C. 1652) shall, when exported, be trans-
ported by a vessel documented under the laws of the United
404
HR 2491 EAS
States and owned by a citizen of the United States (as de-
termined in accordance with section 2 of the Shipping Act,
1916 (46 U.S.C. App. 802)).
‘‘(3) Nothing in this subsection shall restrict the au-
thority of the President under the Constitution, the Inter-
national Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), the National Emergencies Act (50 U.S.C. 1601 et
seq.), or part B of title II of the Energy Policy and Con-
servation Act (42 U.S.C. 6271–76) to prohibit exports.
‘‘(4) The Secretary of Commerce shall issue any rules
necessary for implementation of the President’s national in-
terest determination, including any licensing requirements
and conditions, within 30 days of the date of such deter-
mination by the President. The Secretary of Commerce shall
consult with the Secretary of Energy in administering the
provisions of this subsection.
‘‘(5) If the Secretary of Commerce finds that exporting
oil under authority of this subsection has caused sustained
material oil supply shortages or sustained oil prices signifi-
cantly above world market levels and further finds that
these supply shortages or price increases have caused or are
likely to cause sustained material adverse employment ef-
fects in the United States, the Secretary of Commerce, in
consultation with the Secretary of Energy, shall rec-
ommend, and the President may take, appropriate action
405
HR 2491 EAS
concerning exports of this oil, which may include modifying
or revoking authority to export such oil.
‘‘(6) Administrative action under this subsection is not
subject to sections 551 and 553 through 559 of title 5, Unit-
ed States Code.’’.
CHAPTER 10—SKI AREA PERMIT RENTAL
CHARGES ON NATIONAL FOREST SYS-
TEM LANDS
SEC. 5441. SKI AREA PERMIT RENTAL CHARGE.
(a) The Secretary of Agriculture shall charge a rental
charge for all ski area permits issued pursuant to section
3 of the National Forest Ski Area Permit Act of 1986 (16
U.S.C. 497b), the Act of March 4, 1915 (38 Stat. 1101,
chapter 144; 16 U.S.C. 497), or the 9th through 20th para-
graphs under the heading ‘‘SURVEYING THE PUBLIC LANDS’’
under the heading ‘‘UNDER THE DEPARTMENT OF THE IN-
TERIOR’’ in the Act of June 4, 1897 (30 Stat. 34, chapter
2), on National Forest System lands. Permit rental charges
for permits issued pursuant to the National Forest Ski Area
Permit Act of 1986 shall be calculated as set forth in sub-
section (b). Permit rental charges for existing ski area per-
mits issued pursuant to the Act of March 4, 1915, and the
Act of June 4, 1897, shall be calculated in accordance with
those existing permits: Provided, That a permittee may, at
406
HR 2491 EAS
the permittee’s option, use the calculation method set forth
in subsection (b).
(b)(1) The ski area permit rental charge (SAPRC)
shall be calculated by adding the permittee’s gross revenues
from lift ticket/year-round ski area use pass sales plus reve-
nue from ski school operations (LT+SS) and multiplying
such total by the slope transport feet percentage (STFP) on
National Forest System land. That amount shall be in-
creased by the gross year-round revenue from ancillary fa-
cilities (GRAF) physically located on national forest land,
including all permittee or subpermittee lodging, food serv-
ice, rental shops, parking and other ancillary operations,
to determine the adjusted gross revenue (AGR) subject to
the permit rental charge. The final rental charge shall be
calculated by multiplying the AGR by the following per-
centages for each revenue bracket and adding the total for
each revenue bracket:
(A) 1.5 percent of all adjusted gross revenue
below $3,000,000;
(B) 2.5 percent for adjusted gross revenue be-
tween $3,000,000 and $15,000,000;
(C) 2.75 percent for adjusted gross revenue be-
tween $15,000,000 and $50,000,000; and
(D) 4.0 percent for the amount of adjusted gross
revenue that exceeds $50,000,000.
407
HR 2491 EAS
(2) In cases where ski areas are only partially located
on national forest lands, the slope transport feet percentage
on national forest land referred to in subsection (b) shall
be calculated as generally described in the Forest Service
Manual in effect as of January 1, 1992. Revenues from Nor-
dic ski operations shall be included or excluded from the
rental charge calculation according to the percentage of
trails physically located on national forest land.
(3) In order to ensure that the rental charge remains
fair and equitable to both the United States and ski area
permittees, the adjusted gross revenue figures for each reve-
nue bracket in paragraph (1) shall be adjusted annually
by the percent increase or decrease in the national
Consumer Price Index for the preceding calendar year.
(c) The rental charge set forth in subsection (b) shall
be due on June 1 of each year and shall be paid or pre-
paid by the permittee on a monthly, quarterly, annual or
other schedule as determined appropriate by the Secretary
in consultation with the permittee. Unless mutually agreed
otherwise by the Secretary of Agriculture and the permittee,
the payment or prepayment schedule shall conform to the
permittee’s schedule in effect prior to the date of enactment
of this Act. To reduce costs to the permittee and the Forest
Service, the Secretary shall each year provide the permittee
with a standardized form and worksheets (including annual
408
HR 2491 EAS
rental charge calculation brackets and rates) to be used for
rental charge calculation and submitted with the rental
charge payment.
(d) The ski area permit rental charge set forth in this
section shall become effective on June 1, 1996 and cover re-
ceipts retroactive to June 1, 1995: Provided, however, That
if a permittee has paid rental charges for the period June
1, 1995, to June 1, 1996, under the graduated rate rental
charge system formula in effect prior to the date of enact-
ment of this Act, such rental charges shall be credited to-
ward the new rental charge due on June 1, 1996. In order
to ensure increasing rental charge receipt levels to the Unit-
ed States during transition from the graduated rate rental
charge system formula to the formula of this Act, the rental
charge paid by any individual permittee shall be—
(1) for the 1995–1996 permit year, shall be ei-
ther the rental charge paid for the preceding 1994–
1995 base year or the rental charge calculated pursu-
ant to this Act, whichever is higher;
(2) for the 1996–1997 permit year, the rental
charge paid shall be either the rental charge paid for
the 1994–1995 base year or the rental charge cal-
culated pursuant to this Act, whichever is higher; and
(3) for the 1997–1998 permit year, the rental
charge for the 1994–1995 base year or the rental
409
HR 2491 EAS
charge calculated pursuant to this Act, whichever is
higher.
If an individual permittee’s adjusted gross revenue for the
1995–1996, 1996–1997, or 1997–1998 permit years falls
more than 10 percent below the 1994–1995 base year, the
rental charge paid shall be the rental charge calculated pur-
suant to this Act.
(e) Under no circumstances shall revenue, or
subpermittee revenue (other than lift ticket, area use pass,
or ski school sales) obtained from operations physically lo-
cated on non-national forest land be included in the ski
area permit rental charge calculation.
(f) To reduce administrative costs on ski area permit-
tees and the Forest Service the terms ‘‘revenue’’ and ‘‘sales’’,
as used in this section, shall mean actual income from sales
and shall not include sales of operating equipment, refunds,
rent paid to the permittee by sublessees, sponsor contribu-
tions to special events or any amounts attributable to em-
ployee gratuities or employee lift tickets, discounts, or other
goods or services (except for bartered goods and complimen-
tary lift tickets) for which the permittee does not receive
money.
(g) In cases where an area of national forest land is
under a ski area permit but the permittee does not have
revenue or sales qualifying for rental charge payment pur-
410
HR 2491 EAS
suant to subsection (a), the permittee shall pay an annual
minimum rental charge of $2 for each national forest acre
under permit or a percentage of appraised land value, as
determined to be appropriate by the Secretary.
(h) Where the new rental charge provided for in sub-
section (b)(1) results in an increase in permit rental charge
greater than one half of one percent of the permittee’s ad-
justed gross revenue (as determined under subsection
(b)(1)), the new rental charge shall be phased in over a 5-
year period in a manner providing for increases of approxi-
mately equal increments.
CHAPTER 11—PARK ENTRANCE FEES
SEC. 5451. FEES.
(a) ADMISSION FEES.—Section 4(a) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a(a)) is amended—
(1) in the first sentence of the subsection by
striking ‘‘no more than 21’’;
(2) in the first sentence of paragraph (1)(A)(i)
by striking ‘‘$25’’ and inserting ‘‘$50’’;
(3) in the second sentence of paragraph (1)(B)
by striking ‘‘$15’’ and inserting ‘‘$25’’;
(4) in paragraph (2) by striking the fourth, fifth,
and sixth sentences and inserting ‘‘The fee for a sin-
gle-visit permit at any designated area shall be col-
411
HR 2491 EAS
lected on a per person basis, not to exceed $6 per per-
son, including for persons entering by private, non-
commercial vehicle.’’;
(5) in paragraph (3)—
(A) in the third sentence by inserting
‘‘Great’’ before ‘‘Smoky’’; and
(B) by striking the last sentence;
(6) in paragraph (4)—
(A) by striking the second sentence and in-
serting ‘‘Such permit shall be nontransferable,
shall be issued for a one-time charge, which shall
be set at the same rate as the fee for a Golden
Eagle Passport, and shall entitle the permittee to
free admission into any area designated pursu-
ant to this subsection.’’; and
(B) by striking the third sentence and in-
serting ‘‘No fees of any kind shall be collected
from any persons who have a right of access for
hunting or fishing privileges under a specific
provision of law or treaty or who are engaged in
the conduct of official Federal, State, or local
government business.’’;
(7) by striking paragraph (5) and inserting the
following:
412
HR 2491 EAS
‘‘(5) The Secretary of the Interior and the Sec-
retary of Agriculture shall establish procedures pro-
viding for the issuance of a lifetime admission permit
to any citizen of, or person legally domiciled in, the
United States, if such citizen or person applies for
such permit and is permanently disabled. Such proce-
dures shall ensure that a lifetime admission permit
shall be issued only to persons who have been medi-
cally determined to be permanently disabled. A life-
time admission permit shall be nontransferable, shall
be issued without charge, and shall entitle the permit-
tee and one accompanying individual to general ad-
mission into any area designated pursuant to this
subsection, notwithstanding the method of travel.’’;
(8) by striking paragraph (9) and by redesignat-
ing paragraph (10) as paragraph (9)’’;
(9) by striking all but the last sentence of para-
graph (11) and redesignating paragraph (11) as
paragraph (10); and
(10) by redesignating paragraph (12) as para-
graph (11).
(b) RECREATION FEES.—Section 4 of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–6a)
is amended by striking subsection (b) and inserting the fol-
lowing:
413
HR 2491 EAS
‘‘(b) RECREATION USE FEES.—Each agency develop-
ing, administering, providing, or furnishing at Federal ex-
pense services for such activities as camping, including, but
not limited to, back country camping under permit, guard-
ed swimming sites, boat launch facilities, managed parking
lots, motorized recreation use and other recreation uses, is
authorized, in accordance with this section to provide for
the collection of recreation use fees at the place of use or
any reasonably convenient location. The administering Sec-
retary may establish both daily and annual recreation use
fees.’’.
(c) CRITERIA, POSTING AND UNIFORMITY OF FEES.—
Section 4(d) of the Land and Water Conservation Fund Act
of 1965 (16 U.S.C. 460l–6a(d)) is amended in the first sen-
tence by striking ‘‘recreation fees charged by non-Federal
public agencies,’’ and inserting ‘‘fees charged by other pub-
lic and private entities,’’.
(d) PENALTY.—Section 4(e) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(e)) is
amended by striking ‘‘of not more than $100.’’ and insert-
ing ‘‘as provided by law.’’.
(e) TECHNICAL AMENDMENTS.—Section 4(h) of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l–6a(h)) is amended—
414
HR 2491 EAS
(1) by striking ‘‘Bureau of Outdoor Recreation’’
and inserting ‘‘National Park Service’’;
(2) by striking ‘‘Natural Resources’’ and insert-
ing ‘‘Resources’’; and
(3) by striking ‘‘Bureau’’ and inserting ‘‘Na-
tional Park Service’’.
(f) USE OF FEES.—Section 4(i) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
6a(i)) is amended—
(1) in the first sentence of paragraph (1)(B) by
striking ‘‘fee collection costs for that fiscal year’’ and
inserting ‘‘fee collection costs for the immediately pre-
ceding fiscal year’’ and by striking ‘‘section in that
fiscal year’’ and inserting ‘‘section in such imme-
diately preceding fiscal year’’;
(2) in the second sentence of subparagraph (B)
by striking ‘‘in that fiscal year’’; and
(3) by striking paragraph (4) and inserting the
following:
‘‘(4) Amounts covered into the special account for the
National Park Service shall be allocated among park system
units in accordance with subsection (j) for obligation or ex-
penditure by the Director of the National Park Service for
park operations.’’.
415
HR 2491 EAS
(g) TIME OF REIMBURSEMENT.—Section 4(k) of the
Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l–6a(k)) is amended by striking the last sentence.
(h) COMMERCIAL TOUR USE FEES.—Section 4(n) of
the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l–6a(n)) is amended—
(1) by striking the first sentence of paragraph
(1) and inserting ‘‘In the case of each unit of the Na-
tional Park System for which an admission fee is
charged under this section, the Secretary of the Inte-
rior shall establish, by October 1, 1996, a commercial
tour use fee in lieu of a per person admission fee to
be imposed on each vehicle entering the unit for the
purpose of providing commercial tour services within
the unit.’’; and
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘, with written notification
of such adjustments provided to commercial tour op-
erators 12 months in advance of implementation.’’.
(i) CONFORMING AMENDMENTS.—
(1) Title I of the Department of the Interior and
Related Agencies Appropriations Act, 1994, is amend-
ed by striking the second proviso under the heading
‘‘ADMINISTRATIVE PROVISIONS’’ under the heading
416
HR 2491 EAS
‘‘NATIONAL PARK SERVICE’’ (related to recovery of
costs associated with special use permits).
(2) Section 3 of the Act entitled ‘‘An Act creat-
ing the Mount Rushmore National Memorial Commis-
sion and defining its purposes and powers’’, approved
February 25, 1929 (45 Stat. 1300, chapter 315), is
amended by striking the last sentence.
(3) Section 5 of Public Law 87–657 (16 U.S.C.
459c–5), is amended by striking subsection (e).
(4) Section 3 of Public Law 87–750 (16 U.S.C.
398e) is amended by striking subsection (b).
(5) Section 4(e) of Public Law 92–589 (16
U.S.C. 460bb–3) is amended by striking the first sen-
tence.
(6) Section 6 of Public Law 95–348 (16 U.S.C.
410dd) is amended by striking subsection (j).
(7) Section 207 of Public Law 96–199 (16
U.S.C. 410ff–6) is repealed.
(8) Section 106 of Public Law 96–287 (16
U.S.C. 410gg–5) is amended by striking the last sen-
tence.
(9) Section 204 of Public Law 96–287 (94 Stat.
601) is amended by striking the last sentence.
(10) Section 5 of Public Law 96–428 (94 Stat.
1842; 16 U.S.C. 461 note) is repealed.
417
HR 2491 EAS
(11) Public Law 100–55 (101 Stat. 371; U.S.C.
460l–6a note) is repealed.
SEC. 5452. COVERING OF INCREASED FEE REVENUES INTO
SPECIAL ACCOUNTS.
Of the funds deposited in special accounts in the Treas-
ury for the National Park Service, Bureau of Land Man-
agement, and Forest Service as set forth in section 4(i) of
the Land and Water Conservation Fund Act of 1965 (16
U.S.C. 460l–6a(i)), beginning in fiscal year 1997, 80 per-
cent of all receipts earned in the previous year in excess
of the following amounts for each covered agency shall be
made available to that agency without further appropria-
tion:
(1) National Park System:
(A) $82,000,000 for fiscal year 1997.
(B) $85,000,000 for fiscal year 1998.
(C) $88,000,000 for fiscal year 1999.
(D) $91,000,000 for fiscal year 2000.
(E) $94,000,000 for fiscal year 2001.
(F) $97,000,000 for fiscal year 2002.
(G) $100,000,000 for fiscal year 2003.
(H) $112,000,000 for fiscal year 2004.
(I) $106,000,000 for fiscal year 2005.
(2) Bureau of Land Management:
(A) $4,500,000 for fiscal year 1997.
418
HR 2491 EAS
(B) $5,000,000 for fiscal year 1998.
(C) $5,000,000 for fiscal year 1999.
(D) $5,000,000 for fiscal year 2000.
(E) $5,000,000 for fiscal year 2001.
(F) $5,000,000 for fiscal year 2002.
(G) $5,000,000 for fiscal year 2003.
(H) $5,000,000 for fiscal year 2004.
(I) $5,000,000 for fiscal year 2005.
(3) Forest Service:
(A) $20,000,000 for fiscal year 1997.
(B) $20,600,000 for fiscal year 1998.
(C) $21,200,000 for fiscal year 1999.
(D) $21,900,000 for fiscal year 2000.
(E) $22,500,000 for fiscal year 2001.
(F) $23,600,000 for fiscal year 2002.
(G) $24,300,000 for fiscal year 2003.
(H) $25,000,000 for fiscal year 2004.
(I) $25,800,000 for fiscal year 2005.
Beginning in fiscal year 2006, and in each fiscal year
thereafter, the amounts set forth in this section for each cov-
ered agency in fiscal year 2005 shall be increased by 4 per-
cent per year, and 80 percent of all receipts earned in excess
of such amounts for each covered agency shall be made
available to that agency without further appropriation.
419
HR 2491 EAS
SEC. 5453. ALLOCATION AND USE OF FEES.
(a) ALLOCATION.—Beginning in fiscal year 1997, re-
ceipts above the amounts stated in section 5452 in each cov-
ered agency’s special account from the previous fiscal year
shall be allocated as follows:
(1) Seventy-five percent shall be allocated among
the units or areas of each affected agency in the same
proportion as fees collected pursuant to section 4 of
the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l–6a) from a specific unit or area bear
to the total amount of such fees collected from all
units or areas of the same covered agency for each fis-
cal year.
(2) Twenty-five percent shall be allocated among
each covered agency’s units or areas on the basis of
need, as determined by the Secretary.
(b) USE.—Expenditures from the special accounts
shall be used solely for infrastructure related to visitor use
and annual operating expenses related to visitor services
at units or areas of the covered agencies.
CHAPTER 12—CONCESSION REFORM
SEC. 5461. SHORT TITLE.
This chapter may be cited as the ‘‘Visitor Facilities
and Services Enhancement Act of 1995’’.
SEC. 5462. DEFINITIONS.
In this chapter:
420
HR 2491 EAS
(1) ‘‘adjusted gross receipts’’ means gross receipts
less revenue derived from goods and services provided
on other than Federal lands or conveyed to units of
Government for hunting or fishing licenses or for en-
trance or recreation fees, or from such other exclusions
as the Secretary concerned might apply.
(2) ‘‘agency head’’ means the head of an agency
or his or her designated representative.
(3) ‘‘bidder’’ means a person who has submitted,
or may submit, a proposal respecting the facilities or
services, whether or not such bidder is the current
concessioner.
(4) ‘‘concessioner’’ means a person or other en-
tity acting under a concession authorization which
provides public services, facilities, or activities on
Federal lands pursuant to a concession service agree-
ment or concession license.
(5) ‘‘concession authorization’’ means a conces-
sion service agreement or concession license as appli-
cable.
(6) ‘‘concession license’’ means a written contract
between the agency head and the concessioner which
sets forth the terms and conditions under which the
concessioner is authorized to provide recreation serv-
421
HR 2491 EAS
ices or activities on a limited basis as well as the
rights and obligations of the Federal Government.
(7) ‘‘concession service agreement’’ means a writ-
ten contract between the agency head and the conces-
sioner which sets forth the terms and conditions under
which the concessioner is authorized to provide visitor
services, facilities, or activities as well as the rights
and obligations of the Federal Government.
(8) 
‘‘Consumer 
Price 
Index’’ 
means 
the
Consumer Price Index-All Urban Consumers pub-
lished by the Bureau of Labor Statistics of the De-
partment of Labor, and from and after such time as
such index is no longer published, the Consumer Price
Index or other regularly-published cost-of-living index
chosen by the Secretary concerned which reasonably
approximates the Consumer Price Index specified
above.
(9) ‘‘gross receipts’’ means revenue from goods or
services provided by concession services, facilities, or
activities on Federal lands and waters.
(10) ‘‘performance incentive’’ means a credit
based on past performance toward the score awarded
by the Secretary concerned to an incumbent conces-
sioner’s proposal submitted in response to a solicita-
422
HR 2491 EAS
tion for the reissuance of such incumbent conces-
sioner’s contract.
(11) ‘‘proposal’’ means the complete submission
for a concession service agreement offered in response
to the solicitation for such concession service agree-
ment.
(12) ‘‘prospectus’’ means a document or docu-
ments issued by the Secretary concerned and included
with a solicitation which sets forth the minimum re-
quirements for the award of a concession service
agreement.
(13) ‘‘Secretary concerned’’ means —
(A) the Secretary of the Interior with re-
spect to all concession authorizations issued by
the National Park Service, and all concession
authorizations for river runner, outfitter, or
guide concessions issued by the United States
Fish and Wildlife Service and the Bureau of
Land Management; and
(B) the Secretary of Agriculture with re-
spect to all river runner, outfitter, or guide con-
cessions issued by the Forest Service.
(14) ‘‘selected bidder’’ means the bidder selected
by the Secretary concerned for the award of a conces-
423
HR 2491 EAS
sion service agreement until such bidder becomes the
concessioner.
(15) ‘‘solicitation’’ means a request by the Sec-
retary concerned for proposals in response to a pro-
spectus.
SEC. 5463. NATURE AND TYPES OF CONCESSION AUTHOR-
IZATIONS.
(a) IN GENERAL.—The Secretary concerned may enter
into concession authorizations as follows:
(1) CONCESSION SERVICE AGREEMENT.—A con-
cession service agreement shall be entered into for all
concessions where the Secretary concerned determines
that the provision of concession services is in the in-
terest of the Federal Government and issues either a
competitive offering for concession services, facilities
or activities or a noncompetitive offering for such
services, facilities, or activities based on a finding
that due to special circumstances it is not in the pub-
lic interest of the United States to award a concession
service agreement on a competitive basis.
(2) CONCESSION
LICENSE.—Whenever the Sec-
retary concerned makes a determination that public
enjoyment of Federal lands would be enhanced
through the provision of concession services for one-
time, intermittent, or infrequently scheduled activities
424
HR 2491 EAS
and that there exists no need to limit the number of
concessionaires providing such services, the Secretary
shall enter into a concession license with a qualified
concessioner. The Secretary concerned may not limit
the number of concession licenses issued for the same
types of activities in a particular geographic area.
(3) LANDS UNDER MULTIPLE JURISDICTIONS.—
In order to reduce administrative costs the Secretaries
of the Departments concerned shall designate an agen-
cy to be the lead agency concerning concessions which
conduct a single operation on lands or waters under
the jurisdiction of more than one agency. Unless oth-
erwise agreed to by each such Secretary concerned, the
lead agency shall be that agency under whose jurisdic-
tion the concessioner generates the greatest amount of
gross receipts. The agency so designated shall issue a
single concession authorization and collect a single fee
under paragraphs (1) and (2) for such operation.
SEC. 5464. COMPETITIVE SELECTION PROCESS FOR CON-
CESSION SERVICE AGREEMENTS.
(a) AWARD TO BEST PROPOSAL.—The Secretary con-
cerned shall enter into, and reissue, a concession service
agreement with the person whom the Secretary determines
in accordance with this section submits the best proposal
through a competitive process as defined in this section.
425
HR 2491 EAS
(b) SOLICITATION AND PROSPECTUS.—Prior to mak-
ing a solicitation for a concession service agreement, the
Secretary concerned shall prepare a prospectus for such so-
licitation, shall publish notice of its availability at least
once in such local or national newspapers or trade publica-
tions as the Secretary determines appropriate, and shall
make such prospectus available upon request to all inter-
ested parties. The prospectus shall specify the minimum re-
quirements for such concession service agreement, including
but not limited to:
(1) a description of the services and facilities to
be provided by the concessioner.
(2) the level of capital investment required by the
concessioner (if any).
(3) terms and conditions of the concession service
agreement.
(4) minimum facilities and services to be pro-
vided by the Secretary concerned to the concessioner,
if any, including but not limited to public access,
utilities, buildings, and minimum public services.
(5) such other information related to the conces-
sion operation available to the Secretary concerned as
is not privileged or otherwise exempt from disclosure
under Federal law, as the Secretary determines is
426
HR 2491 EAS
necessary to allow for the submission of competitive
proposals; and
(6) Local hiring preferences provisions, if appli-
cable, and notwithstanding any other provision of
law, to increase revenue to the United States by
avoiding additional transportation and related costs
associated with non-resident labor, each contract
awarded by the Department of the Interior for conces-
sioner or commercial use contractor-provided visitor
services performed in whole or in part of a State
which is not contiguous with another State and has
an unemployment rate in excess of the national aver-
age rate of unemployment, as determined by the Sec-
retary of Labor shall include a provision requiring
the concessioner or commercial use contractor to em-
ploy individuals who are residents of such State, and
who, in the case of any craft or trade, possess or
would be able to acquire promptly the necessary skills
for the purpose of performing that portion of the con-
tract in such State.
(7) Minimum fees to the United States.
(c) FACTORS AND MINIMUM STANDARDS IN DETER-
MINING BEST PROPOSAL.—The prospectus shall assign a
weight to each factor identified therein related to the impor-
tance of such factor in the selection process. Points shall
427
HR 2491 EAS
be awarded for each such factor, based on the relative
strength of the proposal concerning that factor. In selecting
the best proposal, the Secretary concerned shall take into
consideration (but shall not be limited to) the following, in-
cluding whether the proposal meets the minimum require-
ments (if any) of the Secretary for each of the following:
(1) Responsiveness to the prospectus.
(2) Quality of visitor services to be provided tak-
ing into account the nature of equipment and facili-
ties to be provided.
(3) Experience and performance in providing the
same or similar accommodations, facilities, or serv-
ices. This factor shall account for not less than 20
percent of the maximum points available under any
prospectus. Where the Secretary concerned determines
it to be warranted to provide for a high quality visi-
tor experience, the prospectus for a concession service
agreement shall provide greater weight to this factor
based on such aspects of the concession service agree-
ment as scope or size, complexity, nature of technical
skills required, and site-specific knowledge of the area.
The similarity of the qualifying experience outlined
in the proposal to the nature of the services required
under the concession service agreement and the length
428
HR 2491 EAS
of such qualifying experience shall be the basis for
awarding points for this factor.
(4) Record of resource protection (as appropriate
for services and activities with potential to impact
natural or cultural resources).
(5) Financial capability.
(6) Fees to the United States.
(d) SELECTION PROCESS.—The process for selecting
the best proposal shall consist of the following:
(1) First, the Secretary concerned shall identify
those proposals which meet the minimum standards
(if any) for the factors identified under subsection (c).
(2) Second, the Secretary concerned shall evalu-
ate all proposals identified under paragraph (1), con-
sidering all factors identified under subsection (c), as
well as performance incentives earned under sub-
section (e) and renewal penalties incurred under sub-
section (f).
(3) Third, the Secretary concerned shall offer the
concession service agreement to the best qualified ap-
plicant as determined by the evaluation under para-
graph (2). Prior to any such offer, the Secretary shall
certify that such applicant has adequate funds to pur-
chase any investment interest.
(e) PERFORMANCE INCENTIVES.—
429
HR 2491 EAS
(1) In evaluating the proposal of an incumbent
concessioner when the Secretary concerned issues a
prospectus for the renewal of the concession service
agreement, such concessioner is entitled to a perform-
ance incentive of—
(A) one percent of the maximum points
available under such prospectus for each year in
which the concessioner’s annual performance is
rated as exceeding the requirements outlined in
the prospectus or ‘‘good’’, and
(B) a one-time 3-year merit term extension
upon a finding that a concessioner has been
rated as ‘‘good’’ in each annual performance
evaluation through the term of the concession
service agreement.
(2) A performance incentive awarded under
paragraph (1)(A) may not exceed 10 percent of the
maximum points available under such prospectus.
(3) The performance incentive specified under
paragraph (1)(A) may only be awarded to a conces-
sioner which meets the monetary definition of a small
business under section 3 of the Small Business Act
(15 U.S.C. 632). The Board of Contract Appeals
within each Department shall adjudicate disputes be-
430
HR 2491 EAS
tween the Federal Government and concessionaires re-
garding performance evaluations.
(f) RENEWAL PENALTY.—In evaluating the proposal
of an incumbent concessioner when the Secretary concerned
issues a prospectus for the renewal of the concession service
agreement, the incumbent concessioner shall be penalized
one percent of the maximum points available under such
prospectus for each year in which the concessioner’s annual
performance is found to be unsatisfactory.
(g) INAPPLICABILITY OF NEPA TO TEMPORARY EX-
TENSIONS
AND SIMILAR REISSUANCE
OF CONCESSIONS
AGREEMENTS.—The temporary extension of a concession
authorization, or reissuance of a concession authorization
to provide concession services similar in nature and amount
to concession services provided under the previous author-
ization, is hereby determined not to be a major Federal ac-
tion for the purposes of the National Environmental Policy
Act of 1969 (42 U.S.C. 4331 et. seq.).
(h) PROVISION
FOR ADDITIONAL RELATED SERV-
ICES.—The Secretary concerned may modify the concession
service agreement to allow concessionaires to provide serv-
ices closely related to such agreement only if the Secretary
concerned determines that such changes would enhance the
safety or enjoyment of visitors and would not unduly re-
strict the award of future concession service agreements.
431
HR 2491 EAS
SEC. 5465. CAPITAL IMPROVEMENTS.
(a) IN GENERAL.—Concessionaires may construct or
finance construction under terms of section 5470 only such
public facilities on Federal lands as are to be used by the
concessioner under the terms of its concession service agree-
ment or facilities which are necessary for the concessioner
to administer such public facilities on Federal lands.
(b) INVESTMENT INTEREST.—
(1) IN
GENERAL.—A concessioner that is re-
quired or authorized under a concession service agree-
ment pursuant to this subchapter to acquire or con-
struct any structure, improvement, or fixture pursu-
ant to such agreement on Federal lands shall have an
investment interest therein, as defined in this sub-
chapter. Any such investment interest shall consist of
all incidents of ownership, except legal title which
shall be vested in the Federal Government. Such in-
vestment interest shall not be extinguished by the ex-
piration of such agreement. Such investment interest
may be assigned, transferred, encumbered or relin-
quished.
(2) LIMITATION.—Such investment interest shall
not be construed to include or imply any authority,
privilege, or right to operate or engage in any busi-
ness or other activity, and the use of any improve-
ment in which the concessioner has an investment in-
432
HR 2491 EAS
terest shall be wholly subject to the applicable provi-
sions of the concession service agreement and of laws
and regulations relating to the area.
(3) 
FEDERAL
PROPERTY.—Notwithstanding
paragraph (1), a concession service agreement may
specify that certain new structures, improvements, or
fixtures required to be constructed under terms of the
concession service agreement shall be property of the
Federal Government subject only to the right of the
concessioner to use such improvements during the
term of such agreement and that the concessioner
shall not be accorded an investment interest therein.
Concession service agreements shall not, to the extent
practicable, provide for a concessioner to obtain an
investment interest in any building or facilities whol-
ly owned by the Federal Government.
(c) SALE OF ASSETS.—If the existing concessioner is
not the selected bidder at the time of reissuance of a conces-
sion service agreement, the Secretary concerned shall re-
quire the new concessioner to buy the investment interest
of the existing concession. In the event that the successor
concessioner is unable to fully pay such investment interest,
any deficiency shall be paid by the Federal Government.
(d) CLOSURE OF CONCESSIONER FACILITIES.—If the
Secretary concerned determines that the public interest, by
433
HR 2491 EAS
reason of public and safety considerations or for other rea-
sons beyond the control of the concessioner, requires the dis-
continuation or closure of facilities in which the conces-
sioner has an investment interest, the Federal Government
shall compensate the concessioner in the amount equal to
the value of the investment interest.
(e) DETERMINATION OF VALUE OF INVESTMENT IN-
TEREST.—For purposes of this subchapter, the investment
interest of any capital improvement at the end of the con-
cession service agreement period shall be an amount equal
to the actual cost of construction or purchase of such invest-
ment interest or such capital improvement adjusted from
the time of completion of such construction by changes in
the Consumer Price Index less depreciation evidenced by the
condition and prospective serviceability in comparison with
a new unit of like kind. The Secretary concerned shall in-
clude the value to be paid by the selected bidder for any
existing investment interest in the prospectus for the related
concession service agreement.
SEC. 5466. DURATION OF CONCESSION AUTHORIZATION.
(a) CONCESSION SERVICE AGREEMENT.—The stand-
ard term of a concession service agreement shall be 10 years.
The Secretary concerned may issue a concession service
agreement for less than 10 years if the Secretary determines
that the average annual gross receipts over the life of the
434
HR 2491 EAS
concession service agreement would be less than $100,000.
The Secretary concerned may not issue a concession service
agreement for less than 5 years. The Secretary concerned
shall issue a concession service agreement for longer than
10 years if the Secretary determines that such longer term
is in the public interest or necessary due to the extent of
investment and associated financing requirements and to
meet the obligations assumed. The term for a concession
service agreement may not exceed 30 years.
(b) CONCESSION LICENSE.—The term for a concession
license may not exceed 2 years.
(c) TEMPORARY
EXTENSION.—The Secretary con-
cerned may agree to temporary extensions of concession
service agreements for up to 2 years on a noncompetitive
basis to avoid interruption of services to the public.
SEC. 5467. RATES AND CHARGES TO THE PUBLIC.
In general, rates and charges to the public shall be set
by the concessioner. For concession service agreements only,
a concessioner’s rates and charges to the public shall be sub-
ject to the approval of the Secretary concerned in those in-
stances where the Secretary determines that sufficient com-
petition for such facilities and services does not exist within
or in close proximity to the area in which the concessioner
operates. In those instances, the concession service agree-
ment shall state that the reasonableness of the concessioner’s
435
HR 2491 EAS
rates and charges to the public shall be reviewed and ap-
proved by the Secretary concerned primarily by comparison
with those rates and charges for facilities and services of
comparable character under similar conditions, with due
consideration for length of season, seasonal variations, aver-
age percentage of occupancy, accessibility, availability and
costs of labor and materials, type of patronage, and other
factors deemed significant by the Secretary concerned. Such
review shall be completed within 90 days of receipt of all
necessary information, or the requirement for the Sec-
retary’s approval shall be waived and such rates and
charges as proposed by the concessioner considered to be ap-
proved for immediate use.
SEC. 5468. TRANSFERABILITY OF CONCESSION AUTHORIZA-
TIONS.
(a) CONCESSION SERVICE AGREEMENTS.—
(1) APPROVAL REQUIRED.—A concession service
agreement is transferable or assignable only with the
approval of the Secretary concerned, which approval
may not be unreasonably withheld or delayed. The
Secretary may not approve any such transfer or as-
signment if the Secretary determines that the prospec-
tive concessioner is or is likely to be unable to com-
pletely satisfy all of the material requirements, term,
and conditions of the agreement or that the terms of
436
HR 2491 EAS
the transfer or assignment would preclude providing
appropriate facilities or services to the public at rea-
sonable rates.
(2) CONSIDERATION PERIOD.—If the Secretary
concerned fails to approve or disapprove a transfer or
assignment under paragraph (1) within 90 days after
the date on which the Secretary receives all necessary
information requested by the Secretary with respect to
such transfer, the transfer or assignment shall be
deemed to have been approved.
(3) NO
MODIFICATION
OF
TERMS
AND
CONDI-
TIONS.—The terms and conditions of the concessions
service agreement shall not be subject to modification
by reason of any transfer or assignment under this
section.
(b) CONCESSION LICENSE.—A concession license may
not be transferred.
SEC. 5469. FEES CHARGED BY THE UNITED STATES FOR
CONCESSION AUTHORIZATIONS.
(a) IN GENERAL.—The Secretary concerned shall
charge a fee for the privilege of providing concession services
pursuant to this subchapter. The fee for any concession serv-
ice agreement may include any of the following:
(1) An annual cash payment for the privilege of
providing concession services.
437
HR 2491 EAS
(2) The amount required for capital improve-
ments required pursuant to section 5465 (a).
(3) Fees for rental or lease of Government-owned
facilities or lands occupied by the concessioner.
(4) Expenditures for maintenance of or improve-
ments to Government-owned facilities occupied by the
concessioner.
(b) ESTABLISHMENT OF AMOUNT.—
(1) MINIMUM ACCEPTABLE FEE.—The Secretary
concerned shall establish a minimum fee for each ap-
plicable category specified in paragraphs (1) through
(4) of subsection (a) which is acceptable to the Sec-
retary under this section and shall include the mini-
mum fee in the prospectus under section 5464. This
fee shall be based on historical data, where available,
as well as industry-specific and other market data
available to the Secretary concerned.
(2) FINAL FEE.—Except as provided in para-
graph (3), the final fee shall be the amount bid by the
selected applicant under section 5464.
(3) SUBSTANTIALLY SIMILAR SERVICES IN A SPE-
CIFIC GEOGRAPHIC AREA.—When the Secretary con-
cerned simultaneously offers authorizations for more
than one river runner, outfitter, or guide concession
operation to provide substantially similar services in
438
HR 2491 EAS
a defined geographic area, the concession fee for all
such concessionaires shall be specified by the Sec-
retary concerned in the prospectus. The Secretary
concerned shall base the fee on historical data, where
available, as well as on industry-specific and other
market data available to the Secretary concerned or
may establish a charge per user day.
(c) ADJUSTMENT OF FEES.—The amount of any fee
for the term of the concession service agreement shall be set
at the beginning of the concession authorization and may
only be modified if stated in the contract on the basis of
inflation, when the annual payment is not determined by
a percentage of adjusted gross receipts (as measured by
changes in the Consumer Price Index), to reflect substantial
changes from the conditions specified in the prospectus, or
in the event of an unforseen disaster.
(d) CONCESSION LICENSE FEE.—The fee for a conces-
sion license shall at least cover the program administrative
costs and may not be changed over the term of the license.
SEC. 5470. DISPOSITION OF FEES.
(a) CONCESSION IMPROVEMENT ACCOUNT.—
(1) IN GENERAL.—The Secretary concerned shall,
whenever the concession service agreement requires or
authorizes the concessioner to perform maintenance or
make improvements to Government-owned facilities
439
HR 2491 EAS
occupied by the concessioner, require the concessioner
to establish a concession improvement account. The
concessioner shall deposit into this account all funds
for maintenance of or improvements to Government-
owned facilities occupied by the concessioner;
(2) TERMS AND CONDITIONS.—The account shall
be maintained by the concessioner in an interest bear-
ing account in a Federally insured financial institu-
tion. The concessioner shall maintain the account sep-
arately from any other funds or accounts and shall
not commingle the money in the account with any
other money.
(3) DISBURSEMENTS.—The concessioner shall
make disbursements from the account for improve-
ments and other activities, only for capital improve-
ments or maintenance of improvements to Govern-
ment-owned facilities occupied by the concessioner as
specified in the concession service agreement.
(4) TRANSFER OF REMAINING BALANCE.—On the
termination of a concession authorization, or on the
transfer of a concession service agreement, any re-
maining balance in the account shall be transferred
by the concessioner to the successor concessioner, to be
used solely as set forth in this subsection. In the event
there is no successor concessioner, the account balance
440
HR 2491 EAS
shall be deposited in the Treasury as miscellaneous
receipts.
(b) When the concessioner is required to make capital
improvements to other than Government-owned facilities oc-
cupied by the concessioner in accordance with a concession
service agreement, the concessioner shall have the option to
control and expend such funds directly.
(c) AMOUNTS RECEIVED RELATING TO PRIVILEGE OF
PROVIDING CONCESSION SERVICES AND RENTAL OF GOV-
ERNMENT-OWNED FACILITIES.—
(1) DEPOSIT
INTO
TREASURY.—The Secretary
concerned shall deposit in the Treasury of the United
States as miscellaneous receipts all funds not depos-
ited in concession improvement accounts or funds for
capital improvements specified in (b) above, includ-
ing specifically amounts received for a fiscal year for
the privilege of providing concession services and the
rental of Government-owned facilities, except that of
the amount of fees paid by vessel operators for the
privilege of entering into Glacier Bay, Alaska, 50 per-
cent of such fees for the 5-year period beginning on
the first full fiscal year following the date of enact-
ment of this subchapter shall be deposited into a spe-
cial account and that such funds shall be available
without further appropriation and may only be used
441
HR 2491 EAS
to conduct research to quantify any effect of such ves-
sel activity on wildlife and other natural resource val-
ues of Glacier Bay National Park. For the National
Park Service such deposits into the Treasury shall
total not less than the amounts specified in the table
in paragraph (2). For the other agencies covered
under this subchapter, the Secretary concerned shall
develop a schedule of anticipated receipts to be depos-
ited to the Treasury and submit such schedule to the
appropriate Congressional committees not later than
18 months after the date of enactment of this Act.
Nothing in this chapter shall be construed to modify
any provision of law relating to sharing of Federal
receipts with any other level of Government.
(2) DEPOSIT
INTO
CONCESSION
IMPROVEMENT
ACCOUNTS.—The table referred to in paragraph (1),
expressed by fiscal year, is as follows:
National Park Service
‘‘Fiscal year:
Amount:
1997 .........................................................................................
$15,800,000
1998 .........................................................................................
$21,100,000
1999 .........................................................................................
$26,700,000
2000 .........................................................................................
$32,300,000
2001 .........................................................................................
$38,200,000
2002 .........................................................................................
$44,400,000.
(d) Beginning in fiscal year 1998, the Inspector Gen-
eral of the Department concerned shall conduct a biennial
audit of concession fees generated pursuant to this chapter.
The Inspector General shall make a determination as to
442
HR 2491 EAS
whether concession fees are being collected and expended in
accordance with this chapter and shall submit copies of each
audit to the Committee on Resources of the House of Rep-
resentatives and the Committee on Energy and Natural Re-
sources of the Senate.
SEC. 5471. REGULATIONS.
The Secretary concerned shall promulgate regulations
to implement this chapter no later than 2 years after the
date of enactment of this Act. Subsequent to the date of en-
actment of this chapter, no new concession authorization
may be issued, nor may any existing concession authoriza-
tion be amended or extended, unless such authorization,
amendment, or extension is fully consistent with sections
5465, 5469(c), and 5470.
SEC. 5472. RELATIONSHIP TO OTHER LAWS.
(a) REPEALS.—
(1) The Act entitled ‘‘An Act relating to the es-
tablishment of concession policies in the areas admin-
istered by the National Park Service and for other
purposes’’ (16 U.S.C. 20–20g) approved October 9,
1965, is repealed.
(b) SAVINGS.—
(1) IN GENERAL.—The repeal of any provision,
the superseding of any provision, and the amendment
of any provision, of an Act referred to in subsection
443
HR 2491 EAS
(a) shall not affect the validity of any authorizations
entered into under any such Act. The provisions of
this chapter shall apply to any such authorizations,
except to the extent such provisions are inconsistent
with the express terms and conditions of such author-
izations.
(2) RIGHT OF RENEWAL.—The right of renewal
explicitly provided for by any concession contract
under any such provision shall be preserved for a sin-
gle renewal of a contract following the enactment of,
or concession authorization under, this chapter.
(3) VALUE
OF
CAPITAL
IMPROVEMENTS
OR
POSSESSORY
INTEREST.—Nothing in this chapter
shall be construed to change the value as of the date
of enactment of this chapter for existing capital im-
provements or possessory interest as identified in con-
cession contracts entered into before the date of enact-
ment of this Act. Subsequent to enactment of this
chapter, the increase in value for any possessory in-
terest established under any concession contract in ef-
fect on the date of enactment of this chapter shall be
as provided for in this chapter unless otherwise spe-
cifically provided in the contract.
(4) ANILCA.—Nothing in this chapter shall be
construed to amend, supersede or otherwise affect any
444
HR 2491 EAS
provision of the Alaska National Interest Lands Con-
servation Act (16 U.S.C. 3101 et seq.) relating to rev-
enue-producing visitor services.
(5) PROCEDURES
FOR
CONSIDERING
EXISTING
CONCESSIONAIRES IN REISSUANCE OF CONTRACTS.—
In the case of a concession contract which has expired
prior to the date of the enactment of this Act, or with-
in 5 years after the date of the enactment of this Act,
an incumbent concessioner shall be entitled to a one-
time bonus of five percent of the maximum points
available in the reissuance of a previous concession
authorization. For any concession contract entered
into prior to the date of enactment of this Act, which
is projected to terminate 5 years or later after the
date of enactment of this Act, any concessioner shall
be entitled to a performance incentive in accordance
with this chapter. The concessioner shall be entitled to
an evaluation of ‘‘good’’ for each year in which the
Secretary concerned does not complete an evaluation
as provided for in this chapter.
445
HR 2491 EAS
TITLE 
VI—FEDERAL 
RETIRE-
MENT AND RELATED PROVI-
SIONS
Subtitle A—Civil Service and Postal
Service Provisions
SEC. 6001. EXTENSION OF DELAY IN COST-OF-LIVING AD-
JUSTMENTS IN FEDERAL EMPLOYEE RETIRE-
MENT BENEFITS THROUGH FISCAL YEAR 2002.
Section 11001(a) of the Omnibus Budget Reconcili-
ation Act of 1993 (Public Law 103–66; 107 Stat. 408) is
amended in the matter preceding paragraph (1) by striking
out ‘‘or 1996,’’ and inserting in lieu thereof ‘‘1996, 1997,
1998, 1999, 2000, 2001, or 2002,’’.
SEC. 6002. INCREASED CONTRIBUTIONS TO FEDERAL CIVIL-
IAN RETIREMENT SYSTEMS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) DEDUCTIONS.—The first sentence of section
8334(a)(1) of title 5, United States Code, is amended
to read as follows: ‘‘The employing agency shall de-
duct and withhold from the basic pay of an employee,
Member, Congressional employee, law enforcement of-
ficer, firefighter, bankruptcy judge, judge of the Unit-
ed States Court of Appeals for the Armed Forces,
United States magistrate, or Claims Court judge, as
446
HR 2491 EAS
the case may be, the percentage of basic pay applica-
ble under subsection (c).’’.
(2) AGENCY CONTRIBUTIONS.—
(A) INCREASE IN AGENCY CONTRIBUTIONS
DURING CALENDAR YEARS 1996 THROUGH 2002.—
Section 8334(a)(1) of title 5, United States Code
(as amended by this section) is further amend-
ed—
(i) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(ii) by adding at the end thereof the
following new subparagraph:
‘‘(B)(i) Notwithstanding subparagraph (A),
the agency contribution under the second sen-
tence of such subparagraph, during the period
beginning on January 1, 1996, through Decem-
ber 31, 2002—
‘‘(I) for each employing agency (other
than the United States Postal Service or the
Washington Metropolitan Airport Author-
ity) shall be 8.51 percent of the basic pay
of an employee, Congressional employee,
and a Member of Congress, 9.01 percent of
the basic pay of a law enforcement officer,
a member of the Capitol Police, and a fire-
fighter, and 8.51 percent of the basic pay of
447
HR 2491 EAS
a Claims Court judge, a United States mag-
istrate, a judge of the United States Court
of Appeals for the Armed Services, and a
bankruptcy judge, as the case may be; and
‘‘(II) for the United States Postal Serv-
ice and the Washington Metropolitan Air-
port Authority shall be 7 percent of the
basic pay of an employee and 7.5 percent of
the basic pay of a law enforcement officer or
firefighter.’’.
(B) NO REDUCTION IN AGENCY CONTRIBU-
TIONS BY THE POSTAL SERVICE.—Agency con-
tributions by the United States Postal Service
under section 8348(h) of title 5, United States
Code—
(i) shall not be reduced as a result of
the amendments made under paragraph (3)
of this subsection; and
(ii) shall be computed as though such
amendments had not been enacted.
(3) INDIVIDUAL
DEDUCTIONS, WITHHOLDINGS,
AND DEPOSITS.—The table under section 8334(c) of
title 5, United States Code, is amended—
(A) in the matter relating to an employee
by striking out
448
HR 2491 EAS
‘‘7 ........
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘7 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(B) in the matter relating to a Member or
employee for Congressional employee service by
striking out
‘‘71⁄2 ....
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(C) in the matter relating to a Member for
Member service by striking out
‘‘8 ........
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘8 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
449
HR 2491 EAS
(D) in the matter relating to a law enforce-
ment officer for law enforcement service and fire-
fighter for firefighter service by striking out
‘‘71⁄2 ....
After December 31,
1974.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1975, to De-
cember 31, 1995.
7.75 ...
January 1, 1996, to De-
cember 31, 1996.
7.9 .....
January 1, 1997, to De-
cember 31, 1997.
8 ........
January 1, 1998, to De-
cember 31, 2002.
7.5 .....
After December 31,
2002.’’;
(E) in the matter relating to a bankruptcy
judge by striking out
‘‘8 ........
After December 31,
1983.’’
and inserting in lieu thereof the following:
‘‘8 ........
January 1, 1984, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(F) in the matter relating to a judge of the
United States Court of Appeals for the Armed
Forces for service as a judge of that court by
striking out
‘‘8 ........
On and after the date of
the enactment of the
Department of De-
fense Authorization
Act, 1984.’’
and inserting in lieu thereof the following:
450
HR 2491 EAS
‘‘8 ........
The date of the enact-
ment of the Depart-
ment of Defense Au-
thorization Act, 1984,
to December 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(G) in the matter relating to a United
States magistrate by striking out
‘‘8 ........
After September 30,
1987.’’
and inserting in lieu thereof the following:
‘‘8 ........
October 1, 1987, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(H) in the matter relating to a Claims
Court judge by striking out
‘‘8 ........
After September 30,
1988.’’
and inserting in lieu thereof the following:
‘‘8 ........
October 1, 1988, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
and
(I) by inserting after the matter relating to
a Claims Court judge the following:
‘‘Member of the Capitol Police ..................................................................................
2.5 .......
August 1, 1920, to June
30, 1926.
3.5 .......
July 1, 1926, to June
30, 1942.
451
HR 2491 EAS
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to October
31, 1956.
6.5 .......
November 1, 1956, to
December 31, 1969.
7.5 .......
January 1, 1970, to De-
cember 31, 1995.
7.75 .....
January 1, 1996, to De-
cember 31, 1996.
7.9 .......
January 1, 1997, to De-
cember 31, 1997.
8 ..........
January 1, 1998, to De-
cember 31, 2002.
7.5 .......
After December 31,
2002.’’.
(4) OTHER SERVICE.—
(A) MILITARY SERVICE.—Section 8334(j) of
title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(5) Effective with respect to any period of military
service after December 31, 1995, the percentage of basic pay
under section 204 of title 37 payable under paragraph (1)
shall be equal to the same percentage as would be applicable
under section 8334(c) for that same period for service as
an employee, subject to paragraph (1)(B).’’.
(B) VOLUNTEER SERVICE.—Section 8334(l)
of title 5, United States Code, is amended—
(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
452
HR 2491 EAS
(ii) by adding at the end thereof the
following new paragraph:
‘‘(4) Effective with respect to any period of service
after December 31, 1995, the percentage of the readjustment
allowance or stipend (as the case may be) payable under
paragraph (1) shall be equal to the same percentage as
would be applicable under section 8334(c) for that same pe-
riod for service as an employee.’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
(1) 
INDIVIDUAL
DEDUCTIONS
AND
WITHHOLDINGS.—
(A) IN GENERAL.—Section 8422(a) of title
5, United States Code, is amended by striking
out paragraph (2) and inserting in lieu thereof
the following:
‘‘(2) The percentage to be deducted and withheld from
basic pay for any pay period shall be equal to—
‘‘(A) the applicable percentage under paragraph
(3), minus
‘‘(B) the percentage then in effect under section
3101(a) of the Internal Revenue Code of 1986 (relat-
ing to rate of tax for old-age, survivors, and disability
insurance).
‘‘(3) The applicable percentage under this paragraph,
for civilian service shall be as follows:
Employee .....................................................................................................................
7 ..........
Before January 1, 1996.
453
HR 2491 EAS
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Congressional employee ............................................................................................
7.5 .......
Before January 1, 1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Member ......................................................................................................................
7.5 .......
Before January 1, 1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Law enforcement officer, firefighter, member of the Capitol Police, or air traf-
fic controller.
7.5 .......
Before January 1, 1996.
7.75 .....
January 1, 1996, to De-
cember 31, 1996.
7.9 .......
January 1, 1997, to De-
cember 31, 1997.
8 ..........
January 1, 1998, to De-
cember 31, 2002.
7.5 .......
After December 31,
2002.
(B) MILITARY SERVICE.—Section 8422(e) of
title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (6),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following:
‘‘(6) The percentage of basic pay under section
204 of title 37 payable under paragraph (1), with re-
spect to any period of military service performed dur-
ing—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
454
HR 2491 EAS
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(C) VOLUNTEER SERVICE.—Section 8422(f)
of title 5, United States Code, is amended—
(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
(ii) by adding at the end the following:
‘‘(4) The percentage of the readjustment allow-
ance or stipend (as the case may be) payable under
paragraph (1), with respect to any period of volunteer
service performed during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(2) NO
REDUCTION
IN
AGENCY
CONTRIBU-
TIONS.—Agency contributions under section 8423 (a)
and (b) of title 5, United States Code , shall not be
reduced as a result of the amendments made under
paragraph (1) of this subsection.
455
HR 2491 EAS
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the first day of the first applica-
ble pay period beginning on or after January 1, 1996.
SEC. 6003. FEDERAL RETIREMENT PROVISIONS RELATING
TO MEMBERS OF CONGRESS AND CONGRES-
SIONAL EMPLOYEES.
(a) RELATING TO THE YEARS OF SERVICE AS A MEM-
BER OF CONGRESS AND CONGRESSIONAL EMPLOYEES FOR
PURPOSES OF COMPUTING AN ANNUITY.—
(1) CSRS.—Section 8339 of title 5, United
States Code, is amended—
(A) in subsection (a) by inserting ‘‘or Mem-
ber’’ after ‘‘employee’’; and
(B) by striking out subsections (b) and (c).
(2) FERS.—Section 8415 of title 5, United
States Code, is amended—
(A) by striking out subsections (b) and (c);
(B) in subsections (a) and (g) by inserting
‘‘or Member’’ after ‘‘employee’’ each place it ap-
pears; and
(C) in subsection (g)(2) by striking out
‘‘Congressional employee’’.
(b) ACCRUAL RATE
FOR MEMBER
AND CONGRES-
SIONAL EMPLOYEE SERVICE PERFORMED BUT NOT VESTED
BEFORE EFFECTIVE DATE.—
456
HR 2491 EAS
(1) APPLICATION.—This subsection shall apply
to an individual who—
(A) is a Member of Congress or Congres-
sional employee on December 31, 1995;
(B) has performed less than 5 years of serv-
ice as a Member of Congress or Congressional
employee on December 31, 1995; and
(C) after December 31, 1995, completes 5
years of service as a Member of Congress or Con-
gressional employee, that includes a period of
service performed as a Member of Congress or
Congressional employee before January 1, 1996.
(2) COMPUTATION OF ANNUITY.— In computing
the annuity of an individual described under para-
graph (1)—
(A) any period of service as a Member of
Congress or Congressional employee performed
before January 1, 1996, shall be computed under
section 8339 or 8415 of title 5, United States
Code (as though the amendments under sub-
section (a) of this section were not enacted); and
(B) the 5 year service requirement under
subsections (b) and (c) of section 8339 or 8415
of such title (as in effect before the date of enact-
ment of this Act) shall be deemed fulfilled.
457
HR 2491 EAS
(c) CAPITOL POLICE.—Section 8339(q) of title 5, Unit-
ed States Code, is amended by striking out ‘‘with subsection
(b), except that, in the case of a member who retires under
section 8335(d) or 8336(m), and who meets the require-
ments of subsection (b)(2),’’ and inserting in lieu thereof
‘‘with subsection (a), except that in the case of a member
who retires under section 8335(d) or 8336(m), and who has
deductions withheld from his pay or has made deposit cov-
ering his last 5 years of civilian service,’’.
(d) ADMINISTRATIVE REGULATIONS.—The Office of
Personnel Management, in consultation with the Secretary
of the Senate and the Clerk of the House of Representatives,
may prescribe regulations to carry out the provisions of this
section and the amendments made by this section for appli-
cable employees and Members of Congress.
(e) EFFECTIVE DATES.—
(1) YEARS
OF
SERVICE; ANNUITY
COMPUTA-
TION.—
(A) SERVICE AFTER EFFECTIVE DATE.—The
amendments made by subsection (a) shall take
effect on January 1, 1996, and shall apply only
with respect to the computation of an annuity
relating to—
(i) the service of a Member of Congress
as a Member or as a Congressional em-
458
HR 2491 EAS
ployee performed on or after January 1,
1996; and
(ii) the service of a Congressional em-
ployee as a Congressional employee per-
formed on or after January 1, 1996.
(B) SERVICE BEFORE EFFECTIVE DATE.—
An annuity shall be computed as though the
amendments made under subsection (a) had not
been enacted with respect to—
(i) the service of a Member of Congress
as a Member or a Congressional employee
or military service performed before Janu-
ary 1, 1996; and
(ii) the service of a Congressional em-
ployee as a Congressional employee or mili-
tary service performed before January 1,
1996.
(C) ALTERNATIVE EFFECTIVE DATE RELAT-
ING TO MEMBERS OF CONGRESS.—If a court of
competent jurisdiction makes a final determina-
tion that a provision of this paragraph violates
the 27th amendment of the United States Con-
stitution, the effective date and application dates
relating to Members of Congress shall be Janu-
ary 1, 1997.
476
HR 2491 EAS
evaluation of the operation of its MediGrant plan under
this title.
‘‘(b) INDEPENDENT.—Each such evaluation with re-
spect to an activity under the MediGrant plan shall be con-
ducted by an entity that is neither responsible under State
law for the submission of the State MediGrant plan (or part
thereof) nor responsible for administering (or supervising
the administration of) the activity. If consistent with the
previous sentence, such an entity may be a college or uni-
versity, a State agency, a legislative branch agency in a
State, or an independent contractor.
‘‘(c) RESEARCH DESIGN.—Each such evaluation shall
be conducted in accordance with a research design that is
based on generally accepted models of survey design and
sampling and statistical analysis.
‘‘SEC. 2104. DESCRIPTION OF PROCESS FOR MEDIGRANT
PLAN DEVELOPMENT.
‘‘Each MediGrant plan shall include a description of
the process under which the plan shall be developed and
implemented in the State (consistent with section 2105).
‘‘SEC. 2105. CONSULTATION IN MEDIGRANT PLAN DEVELOP-
MENT.
‘‘(a) PUBLIC NOTICE PROCESS.—Before submitting a
MediGrant plan or a plan amendment described in sub-
488
HR 2491 EAS
medicare premium assistance percentage speci-
fied in paragraph (2)(B) of the total funds ex-
pended under the plan for all medical assistance
for the fiscal year. The MediGrant plan shall
provide priority for such making such assistance
available for targeted low-income elderly individ-
uals (as defined in paragraph (3)).
‘‘(2) MINIMUM PERCENTAGES.—
‘‘(A) FOR GENERAL SET-ASIDE.—The mini-
mum low-income-elderly percentage specified in
this subparagraph for a State is equal to 85 per-
cent of the average percentage of the expenditures
under title XIX for medical assistance in the
State during Federal fiscal years 1992 through
1994 which was attributable to expenditures for
medical assistance for mandated benefits fur-
nished to individuals—
‘‘(i) whose eligibility for such assist-
ance was based on their being 65 years of
age or older; and
‘‘(ii)(I) whose coverage (at such time)
under a State plan under title XIX was re-
quired under Federal law, or (II) who (at
such time) were residents of a nursing facil-
ity.
490
HR 2491 EAS
on the basis of a disability, including being blind, for
a fiscal year is not less than the minimum low-in-
come-disabled percentage specified in paragraph (2)
of the total funds expended under the plan for medical
assistance for the fiscal year.
‘‘(2) MINIMUM LOW-INCOME-DISABLED PERCENT-
AGE.—The minimum low-income-disabled percentage
specified in this paragraph for a State is equal to 85
percent of the average percentage of the expenditures
under title XIX for medical assistance in the State
during Federal fiscal years 1992 through 1994 which
was attributable to expenditures for medical assist-
ance for mandated benefits furnished to individuals—
‘‘(A) whose coverage (at such time) under a
State plan under title XIX was required under
Federal law; and
‘‘(B) whose coverage (at such time) was on
a basis directly related to disability status, in-
cluding being blind.
‘‘(d) FOR SERVICES PROVIDED AT FEDERALLY QUALI-
FIED HEALTH CENTERS AND RURAL HEALTH CLINICS.—
Subject to subsection (f), a MediGrant plan shall provide
that the amount of funds expended under the plan for medi-
cal assistance for services provided at rural health clinics
(as defined in section 1861(aa)(2)) and Federally-qualified
491
HR 2491 EAS
health centers (as defined in section 1861(aa)(4)), for eligi-
ble low-income individuals for a fiscal year is not less than
85 percent of the average annual expenditures under title
XIX for medical assistance in the State during Federal fis-
cal years 1992 through 1994 which were attributable to ex-
penditures for medical assistance for rural health clinic
services and Federally-qualified health center services (as
defined in section 1905(l)).
‘‘(e) USE OF RESIDUAL FUNDS.—
‘‘(1) IN
GENERAL.—Subject to limitations on
payment under section 2123, any funds not required
to be expended under the set-asides under the previous
subsections may be expended under the MediGrant
plan for any of the following:
‘‘(A) ADDITIONAL MEDICAL ASSISTANCE.—
Medical assistance for eligible low-income indi-
viduals (as defined in section 2171(b)), in addi-
tion to any medical assistance made available
under a previous subsection.
‘‘(B) 
MEDICALLY-RELATED
SERVICES.—
Payment for medically-related services (as de-
fined in paragraph (2)).
‘‘(C) ADMINISTRATION.—Payment for the
administration of the MediGrant plan.
2266
HR 2491 EAS
a State described in paragraph (1)(A) shall prepare
and submit to the Secretary a report that includes ag-
gregate data concerning—
‘‘(A) the number of child care providers that
received funding under this subchapter as sepa-
rately identified based on the types of providers
listed in section 658Q(5);
‘‘(B) the monthly cost of child care services,
and the portion of such cost that is paid for with
assistance provided under this subchapter, listed
by the type of child care services provided;
‘‘(C) the number of payments made by the
State through vouchers, contracts, cash, and dis-
regards under public benefit programs, listed by
the type of child care services provided;
‘‘(D) the manner in which consumer edu-
cation information was provided to parents and
the number of parents to whom such information
was provided; and
‘‘(E) the total number (without duplication)
of children and families served under this sub-
chapter;
during the period for which such report is required to
be submitted.’’; and
(2) in subsection (b)—
2272
HR 2491 EAS
SEC. 12902. DIRECT FEDERAL EXPENDITURES.
(a) ADMINISTRATIVE EXPENSES.—Section 6(a) of the
National School Lunch Act (42 U.S.C. 1755(a)) is amended
by striking the second and fourth sentences.
(b) AMOUNT
OF COMMODITY ASSISTANCE.—Section
6(e) of the Act is amended—
(1) in paragraph (1), by striking subparagraph
(E); and
(2) in paragraph (2), by striking the second sen-
tence and inserting the following: ‘‘Each State agency
shall offer and equitably distribute commodities
among schools participating in the school lunch pro-
gram.’’.
(c) BREAKFAST COMMODITY ASSISTANCE.—Section 6
of the Act is amended—
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection
(f).
(d) COMMODITY ASSISTANCE.—
(1) IN GENERAL.—Section 6(f) of the Act (as re-
designated by subsection (c)) is amended by striking
‘‘12 percent’’ and inserting ‘‘8 percent’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall become effective on July 1, 1996.
2273
HR 2491 EAS
SEC. 12903. VALUE OF FOOD ASSISTANCE.
(a) IN GENERAL.—Section 6(e)(1) of the National
School Lunch Act (42 U.S.C. 1755(e)(1)) is amended—
(1) in subparagraph (A)—
(A) in the first sentence—
(i) by inserting ‘‘for free and reduced
price meals’’ after ‘‘thereof,’’;
(ii) by striking ‘‘11 cents’’ and insert-
ing ‘‘14.5 cents’’; and
(iii) by striking ‘‘1982’’ and inserting
‘‘1998’’; and
(B) by inserting after the first sentence the
following: ‘‘The national average value of do-
nated foods, or cash payments in lieu thereof, for
paid meals, shall be 12 cents, adjusted on July
1, 2001, and each July 1 thereafter to reflect
changes in the Price Index for Food Used in
Schools and Institutions.’’; and
(2) by striking subparagraph (B) and inserting
the following:
‘‘(B) ADJUSTMENTS.—
‘‘(i) IN GENERAL.—Except as provided
in subparagraph (A), the value of food as-
sistance for each meal shall be adjusted each
July 1 by the annual percentage change in
a 3-month average value of the Price Index