[House Report 111-394]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-394
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BLM CONTRACT EXTENSION ACT
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January 12, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
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Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
[To accompany H.R. 3759]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 3759) to authorize the Secretary of the Interior
to grant economy-related contract extensions of certain timber
contracts between the Secretary of the Interior and timber
purchasers, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
Amend the title so as to read:
A bill to authorize the Secretary of the Interior to grant
economy related contract extensions of certain timber contracts
between the Secretary of the Interior and timber purchasers,
and for other purposes.
PURPOSE OF THE BILL
The purpose of H.R. 3759 is to authorize the Secretary of
the Interior to grant economy-related contract extensions of
certain timber contracts between the Secretary of the Interior
and timber purchasers.
BACKGROUND AND NEED FOR LEGISLATION
The Nation's recent economic downturn has dramatically
impacted the forest products industry, especially those
companies reliant on wood from federal lands. At the peak of
the housing market in June 2006, housing starts reached more
than 2.2 million; that compares to fewer than 500,000 housing
starts in January 2009. The timber industry has been directly
affected by the fall of the housing market and the continued
uncertainty about its recovery.
Currently, the U.S. Forest Service has several options for
helping timber companies adjust economically unviable timber
contracts, but the Bureau of Land Management (BLM) does not
have the same authorities. As a result, there are many timber
companies which negotiated contracts three years ago with the
BLM but can no longer afford to remove the timber based on the
current contract terms.
In an attempt to help rural economies and struggling timber
companies, H.R. 3759 would allow the Secretary of the Interior
to add three years to the current contract expiration date.
This would give companies the opportunity to wait for a better
economic climate in which to remove timber from BLM lands,
rather than mutually agreeing with the BLM to cancel their
current contracts.
COMMITTEE ACTION
H.R. 3759 was introduced on October 8, 2009 by
Representative Peter DeFazio (D-OR). The bill was referred to
the Committee on Natural Resources, and within the Committee to
the Subcommittee on National Parks, Forests and Public Lands.
On November 5, 2009, the Subcommittee held a hearing on the
bill, at which a representative of the Department of the
Interior testified that the Administration supports the goal of
the legislation.
On November 18, 2009, the Subcommittee was discharged from
further consideration of H.R. 3759 and the full Natural
Resources Committee met to consider the bill. Subcommittee
Chairman Raul Grijalva (D-AZ) offered a long title amendment to
correct an error in the long title. The amendment was agreed to
by unanimous consent. H.R. 3759, as amended, was then favorably
reported to the House of Representatives by unanimous consent.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article I, section 8 and Article IV, section 3 of the
Constitution of the United States grant Congress the authority
to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill, as ordered reported, is to authorize
the Secretary of the Interior to grant economy-related contract
extensions of certain timber contracts between the Secretary of
the Interior and timber purchasers, and for other purposes.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 3759--BLM Contract Extension Act
CBO estimates that enacting H.R. 3759 would not
significantly affect the federal budget. Enacting the bill
would have a negligible impact on direct spending and would not
affect revenues. H.R. 3759 contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act and would not affect the budgets of state, local, or
tribal governments.
H.R. 3759 would permit the Secretary of the Interior to
extend, by up to three years, the expiration date of certain
timber contracts. Under such contracts, timber purchasers
harvest federally owned timber, generating offsetting receipts
(a credit against direct spending) to the federal government.
Based on information from the Bureau of Land Management, CBO
estimates that extending those contracts would not
significantly affect total receipts from timber harvests over
the next 10 years. The amount of timber harvested from federal
lands is largely driven by market conditions. Enacting H.R.
3759 could result in additional receipts from timber contracts
that are extended under the bill, but we expect that those
increases largely would be offset by forgone receipts from
harvesting activity that would otherwise occur under other
contracts.
The CBO staff contacts for this estimate are Deborah Reis
and Megan Carroll. This estimate was approved by Theresa Gullo,
Deputy Assistant Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
EARMARK STATEMENT
H.R. 3759 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.