[House Report 104-764]
[From the U.S. Government Printing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-764
_______________________________________________________________________
LAND EXCHANGE, WENATACHEE NATIONAL FOREST, WASHINGTON
_______
September 4, 1996.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 2518]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 2518) to authorize the Secretary of Agriculture to
exchange certain lands in the Wenatachee National Forest,
Washington, for certain lands owned by Public Utility District
No. 1 of Chelan County, Washington, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. LAND EXCHANGE.
(a) Exchange.--Subject to subsection (c), the Secretary of
Agriculture (referred to in this section as the ``Secretary'') shall
convey all right, title, and interest of the United States in and to
the National Forest System lands described in subsection (b)(1) to
Public Utility District No. 1 of Chelan County, Washington (referred to
in this section as the ``Public Utility District''), in exchange for
the conveyance to the Department of Agriculture by the Public Utility
District of all right, title, and interest of the Public Utility
District in and to the lands described in subsection (b)(2).
(b) Descriptions of Lands.--
(1) National forest system lands.--The National Forest System
lands referred to in subsection (a) are 122 acres, more or
less, that are partially occupied by a wastewater treatment
facility referred to in subsection (c)(4)(A) with the following
legal description:
(A) The NE\1/4\ of SW\1/4\ of section 27 of township
27 north, range 17 east, Willamette Meridian, Chelan
County, Washington.
(B) The N\1/2\ of SE\1/4\ of SW\1/4\ of such section
27.
(C) The W\1/2\ of NW\1/4\ of SE\1/4\ of such section
27.
(D) The NW\1/4\ of SW\1/4\ of SE\1/4\ of such section
27.
(E) The E\1/2\ of NW\1/4\ of the SE\1/4\ of such
section 27.
(F) That portion of the S\1/2\ of SE\1/4\ of SW\1/4\
lying north of the northerly edge of Highway 209 right-
of-way of such section 27.
(2) Public utility district lands.--The lands owned by the
Public Utility District are 109.15 acres, more or less, with
the following legal description:
(A) S\1/2\ of SW\1/4\ of section 35 of township 26
north, range 17 east, Willamette Meridian, Chelan
County, Washington.
(B) The area specified by Public Utility District No.
1 as Government Lot 5 in such section 35.
(c) Requirements for Exchange.--
(1) Title acceptance and conveyance.--Upon offer by the
Public Utility District of all right, title, and interest in
and to the lands described in subsection (b)(2), if the title
is found acceptable by the Secretary, the Secretary shall
accept title to such lands and interests therein and shall
convey to the Public Utility District all right, title, and
interest of the United States in and to the lands described in
subsection (b)(1).
(2) Appraisals required.--Before making an exchange pursuant
to subsection (a), the Secretary shall conduct appraisals of
the lands that are subject to the exchange to determine the
fair market value of the lands. Such appraisals shall not
include the value of the wastewater treatment facility referred
to in paragraph (4)(A).
(3) Additional consideration.--If, on the basis of the
appraisals made under paragraph (1), the Secretary determines
that the fair market value of the lands to be conveyed by one
party under subsection (a) is less than the fair market value
of the lands to be conveyed by the other party under subsection
(a), then, as a condition of making the exchange under
subsection (a), the party conveying the lands with the lesser
value shall pay the other party the amount by which the fair
market value of the lands of greater value exceeds the fair
market value of the lands of lesser value.
(4) Conveyance of wastewater treatment facility.--(A) As part
of an exchange made under subsection (a), the Secretary shall
convey to the Public Utility District of Chelan County,
Washington, all right, title, and interest of the United States
in and to the wastewater treatment facility (including the
wastewater treatment plant and associated lagoons) located on
the lands described in subsection (b)(1) that is in existence
on the date of the exchange.
(B) As a condition for the exchange under subsection (a), the
Public Utility District shall provide for a credit equal to the
fair market value of the wastewater treatment facility conveyed
pursuant to subparagraph (A) (determined as of November 4,
1991), that shall be applied to the United States' share of any
new or modified wastewater treatment facilities constructed by
the Public Utility District after November 4, 1991.
(d) Additional Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the exchange under
this section as the Secretary determines appropriate to protect the
interests of the United States.
PURPOSE OF THE BILL
The purpose of H.R. 2518 is to authorize the Secretary of
Agriculture to exchange certain lands in the Wenatchee National
Forest, Washington, for certain lands owned by Public Utility
District No. 1 of Chelan County, Washington.
BACKGROUND AND NEED FOR LEGISLATION
H.R. 2518 provides for the transfer of 122 acres of
National Forest System lands and a sewage treatment plant to
the Public Utility District No. 1 (PUD) of Chelan County in
exchange for 109 acres of unencumbered land owned by the PUD on
the Wenatchee River. The PUD property is surrounded on three
sides by national forest and is located on an anadromous fish
stream which is also a proposed wild and scenic river.
The sewage treatment plant was built 20 years ago by the
PUD under a permit from the Wenatchee National Forest for the
treatment of sewage from the Lake Wenatchee Ranger Station and
a Forest Service campground. In recent years, due to the
failure of a septic tank and associated drain field systems of
several local businesses and private residences, the Forest
Service agreed to explore options for expanding the use of the
agency's sewage treatment plant. For the short term, one local
business has been allowed to connect to the treatment plant and
agreed to pay its fair share of the treatment cost. To provide
a long term solution, the PUD agreed to provide wastewater
treatment services in the Lake Wenatchee area. The most logical
way to achieve this is for the PUD to take over the existing
Forest Service plant and enlarge and modernize it.
Ninety acres of the Forest Service's parcel was appraised
at $417,000, and the sewage treatment facility was appraised at
an additional $370,000 in 1993. The 109 acres owned by the PUD
was appraised at $622,000. The Forest Service would also
receive the right to use the new facilities. Based on the 1993
appraisal, the Forest Service would have to pay $205,000 to
equalize values and an additional $60,000 to complete the ``buy
in'' of the updated facilities. This legislation requires the
Secretary of Agriculture to conduct an appraisal to determine
the current fair market value of the lands and requires payment
needed to equalize any difference in land value.
COMMITTEE ACTION
H.R. 2518 was introduced on October 20, 1995, by
Congressman Richard ``Doc'' Hastings (R-WA). The bill was
referred to the Committee on Resources, and within the
Committee to the Subcommittee on National Parks, Forests and
Lands. On June 6, 1996, the Subcommittee held a hearing on H.R.
2518, where the Administration supported H.R. 2518 but
recommended a technical correction. On June 27, 1996, the
Subcommittee met to mark up H.R. 2518. An amendment to increase
the acreage of the Forest Service parcel to be exchanged from
90 to 122 acres was offered by Congressman James V. Hansen (R-
UT), and adopted by voice vote. The bill was then ordered
favorably reported to the Full Committee. On July 17, 1996, the
Full Resources Committee met to consider H.R. 2518. A technical
amendment to clarify how credits received by the Federal
Government would be applied for any new or modified wastewater
treatment facilities was offered by Congressman Hastings, and
adopted by voice vote. The bill as amended was then ordered
favorably reported to the House of Representatives by voice
vote in the presence of a quorum.
SECTION-BY-SECTION ANALYSIS
Section 1. Land exchange
This section provides for the transfer of 122 acres of
National Forest System lands and a sewage treatment plant to
the Public Utility District No. 1 (PUD) of Chelan County in
exchange for 109 acres of unencumbered land owned by the PUD on
the Wenatchee River. It requires the Secretary of Agriculture
to conduct an appraisal to determine the current fair market
value of the lands and requires payment needed to equalize any
difference in land value.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
With respect to the requirements of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives, and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee on Resources' oversight findings and
recommendations are reflected in the body of this report.
INFLATIONARY IMPACT STATEMENT
Pursuant to clause 2(l)(4) of rule XI of the Rules of the
House of Representatives, the Committee estimates that the
enactment of H.R. 2518 will have no significant inflationary
impact on prices and costs in the operation of the national
economy.
COST OF THE LEGISLATION
Clause 7(a) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs which would be incurred in carrying out
H.R. 2518. However, clause 7(d) of that Rule provides that this
requirement does not apply when the Committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 403 of the Congressional Budget Act of 1974.
COMPLIANCE WITH HOUSE RULE XI
1. With respect to the requirement of clause 2(l)(3)(B) of
rule XI of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, H.R.
2518 does not contain any new budget authority, credit
authority, or an increase or decrease in revenues or tax
expenditures. If enacted, H.R. 2518 would require the Secretary
of Agriculture to pay PUD approximately $225,000 to equalize
the value of the lands exchanged under this bill. In addition,
the bill would reduce discretionary spending by approximately
$370,000 by providing a credit for the Department of
Agriculture.
2. With respect to the requirement of clause 2(l)(3)(D) of
rule XI of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform and
Oversight on the subject of H.R. 2518.
3. With respect to the requirement of clause 2(l)(3)(C) of
rule XI of the Rules of the House of Representatives and
section 403 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
2518 from the Director of the Congressional Budget Office.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 23, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
reviewed H.R. 2518, a bill to authorize the Secretary of
Agriculture to exchange certain lands in the Wenatchee National
Forest, Washington, for certain lands owned by Public Utility
District No. 1 of Chelan County, Washington, and for other
purposes. The bill was ordered reported by the House Committee
on Resources on July 17, 1996. Enacting H.R. 2518 could
increase direct spending; therefore, pay-as-you-go procedures
would apply to the bill. CBO estimates that the change in
direct spending would total less than $500,000. Enacting the
bill also could lead to a net reduction in discretionary
spending, but we estimate that such a change would also total
less than $500,000.
H.R. 2518 would authorize a land and property exchange,
subject to certain conditions, between the Department of
Agriculture and Public Utility District No. 1 (PUD) of Chelan
County, Washington. The bill provides that if the PUD offers to
convey about 109 acres to the department, then the Secretary of
Agriculture would be directed to convey to the PUD about 122
acres of National Forest System lands, some of which are
partially occupied by a wastewater treatment facility. The bill
also would direct the Secretary to convey ownership of the
wastewater treatment facility to the PUD as part of the
exchange. The land exchanges are to be of equal fair market
value, excluding the value of the wastewater treatment
facility, and the bill would require cash equalization payments
if the values are unequal. Based on information from the U.S.
Forest Service, we estimate that completing the exchange would
require the Forest Service to pay the PUD about $225,000 to
equalize the exchange values. Therefore, we estimate that
enacting the bill could increase spending, but that any such
change would total less than $500,000.
As a condition for the land exchange and the conveyance of
the wastewater treatment facility, the bill provides that the
PUD give the Secretary a credit equal to the fair market value
of the wastewater treatment facility as of November 4, 1991.
According to the Forest Service, the wastewater treatment
facility was valued at about $370,000 as of that date (when the
agency permitted the PUD to take over operation of the
federally-owned facility). The PUD has since modernized the
facility. The credit would be applied to the United States'
share of the costs to use the wastewater treatment facility.
Therefore, if the PUD agreed to the exchanges specified in the
bill, the Forest Service would be able to use a credit of about
$370,000 towards its expected hook-up charges, thereby reducing
discretionary spending by that amount.
H.R. 2518 contains no private-sector or intergovernmental
mandates as defined in the Unfunded Mandates Reform Act of 1995
(Public Law 104-4) and would impose no costs on state, local or
tribal, governments. The exchange authorized by this bill would
be voluntary on the part of the public utility district.
If you wish further details on this estimate, we will be
pleased to provide them. The staff contacts are Victoria V.
Heid (for federal costs), and Majorie Miller (for the state,
local, and tribal impact).
Sincerely,
June E. O'Neill, Director.
compliance with public law 104-4
H.R. 2518 contains no unfunded mandates.
changes in existing law
If enacted, H.R. 2518 would make no changes in existing
law.