[Senate Report 107-271]
[From the U.S. Government Publishing Office]
Calendar No. 588
107th Congress Report
SENATE
2d Session 107-271
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FALLON RAIL FREIGHT LOADING FACILITY TRANSFER ACT
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September 11, 2002.--Ordered to be printed
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Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 1870]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 1870) to provide for the sale of certain
real property within the Newlands Project in Nevada, to the
city of Fallon, Nevada, having considered the same, reports
favorably thereon without amendment and recommends that the Act
do pass.
PURPOSE OF THE MEASURE
The purpose of H.R. 1870 is to direct the Secretary of the
Interior to convey approximately 6.3 acres of real property
(known as ``380 North Taylor Street, Fallon, Nevada'') within
the Newlands Reclamation Project, Nevada, to the City of Fallon
for its fair market value, without taking into consideration
the value of any structures or improvements.
BACKGROUND AND NEED
Fallon is a rural agricultural community of 8700 residents
located in northern Nevada approximately 70 miles east of Reno.
Since 1984, the City has leased from the U.S. Bureau of
Reclamation approximately 6.3 acres of property that it uses as
a rail freight yard and loading facility. The City, the State
of Nevada, the U.S. Department of Transportation, and the
Southern Pacific Railroad have collectively made significant
investments in this facility. On January 1, 2000, the long-term
lease agreement between the City of Fallon and the Bureau of
Reclamation expired. The City and the Bureau of Reclamation
have determined that allowing the City to acquire the property
rather than continuing to lease it would be in their mutual
interest. This legislation is necessary in order to allow for
the acquisition of the property by the City of Fallon.
LEGISLATIVE HISTORY
H.R. 1870 was introduced by Representative Gibbons on May
16, 2001. H.R. 1870 passed the House of Representatives by
voice vote on March 6, 2002. A companion measure, S. 1310, was
introduced by Senator Reid and Senator Ensign on August 2,
2001. The Subcommittee on Water and Power held a hearing on S.
1310 and H.R. 1870 on June 6, 2002. At the business meeting on
July 31, 2002, the Committee on Energy and Natural Resources
ordered H.R. 1870 favorably reported.
COMMITTEE RECOMMENDATIONS
The Committee on Energy and Natural Resources, in open
business session on July 31, 2002, by a voice vote of a quorum
present, recommends that the Senate pass H.R. 1870, as
described herein.
SECTION-BY-SECTION ANALYSIS
Section 1 contains the short title.
Section 2(a) directs the Secretary of the Interior to
convey to the city of Fallon, Nevada, all right, title, and
interest of the United States in and to approximately 6.3 acres
of real property (known as ``380 North Taylor Street, Fallon,
Nevada'') in the Newlands Reclamation Project, Nevada, as
identified on the referenced map.
Subsection (b) requires, as consideration for the
conveyance, that the city of Fallon, Nevada, pay to the United
States an amount equal to the fair market value of the real
property, as determined by an appraisal as specified by the
subsection, without taking into consideration the value of any
structures or improvements on the property. The amount paid to
the United States will be credited to the appropriate fund in
the Treasury relating to the Newlands Reclamation Project,
Nevada.
Subsection (c) states that the conveyance will not occur
unless the Commissioner of Reclamation certifies that all
liability issues relating to the property, including issues of
environmental liability, have been resolved.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the cost of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 6, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1870, the Fallon
Rail Freight Loading Facility Transfer Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Julie
Middleton (for federal costs) and Marjorie Miller (for the
state and local impact).
Sincerely,
Barry. B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
H.R. 1870--Fallon Rail Freight Loading Facility Transfer Act
H.R. 1870 would direct the Secretary of the Interior to
convey 6.3 acres of real property in the Newlands Reclamation
Project to the city of Fallon, Nevada. As a condition of the
conveyance, all liability issues, including environmental
liability, would need to be resolved. In addition, the city
would have to pay the fair market value of the property, minus
the value of existing structural improvements. The proceeds of
the sale would be credited to the Newlands Reclamation Project
fund and would be available for future construction costs,
subject to appropriation action.
CBO estimates that enacting H.R. 1870 would have no
significant effect on the federal budget. Based on information
from the Bureau of Reclamation and the city of Fallon, CBO
estimates that the federal government would receive about
$330,000 from the sale of the lands. This amount represents a
1995 appraisal of the property, adjusted for inflation.
According to the Bureau, the transfer of title to the property
would take place by the end of fiscal year 2003. Currently, the
Bureau receives income of $15,000 to $18,000 a year from the
Premier Chemical Company for the use of a loading facility
located on the property. Because enacting H.R. 1870 would
affect offsetting receipts (a form of direct spending), pay-as-
you-go procedures would apply, but CBO estimates that the
impact on direct spending would be negligible.
H.R. 1870 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The conveyance authorized by this act would be voluntary on the
part of the city of Fallon, as would any associated costs.
On March 5, 2002, CBO prepared a cost estimate for H.R.
1870 as ordered reported by the House Committee on Resources on
February 27, 2001. The two versions of this legislation are
identical, and our cost estimates are the same.
The CBO staff contacts for this estimate are Julie
Middleton (for federal costs) and Majorie Miller (for the state
and local impact). This estimate was approved by Peter H.
Fontaine, Deputy Assistant Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 1870. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 1870.
EXECUTIVE COMMUNICATIONS
The pertinent legislative report received by the Committee
from the Department of the Interior setting forth Executive
agency recommendation relating to H.R. 1870 are set forth
below:
Statement of Mark A. Limbaugh, Director of External and
Intergovernmental Affairs, Bureau of Reclamation, U.S. Department of
the Interior
I am Mark A. Limbaugh, Director of External and
Intergovernmental Affairs for the Bureau of Reclamation
(Reclamation). I am pleased to present the views of the
Department of the Interior on S. 1310 and H.R. 1870, concerning
the Fallon Rail Freight Loading Facility Transfer. H.R. 1870,
as passed by the House and referred in the Senate, is nearly
identical to S. 1310. Both bills provide for the sale of about
6.3 acres of real property within the Newlands Project, Nevada
(acquired in 1920 by the United States government), to the city
of Fallon, Nevada. The Department supports the proposed
conveyance, and would support S. 1310 with the amendment
suggested below. The Department supports H.R. 1870, as passed
by the House and referred in the Senate.
The House Resources Subcommittee on Water and Power held a
hearing on H.R. 1870, as introduced, on December 10, 2001 (a
copy of our statement is attached for the record). The
Department did not support the bill as introduced, and
recommended specific amendments to provisions on credit of sale
proceeds, appraisal, and liability. Subsequently, the House
subcommittee adopted these amendments. An important provision
in H.R. 1870, suggested by the Department, requires the city of
Fallon to pay for the appraisal of the property.\1\ We
encourage the Committee to amend S. 1310 to adopt this
language, which appears in Sec. (b)(1)(A) of H.R. 1870, as
passed by the House of March 2, 2002, and referred to the
Senate.
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\1\ Sec. (b)(1)(A) of H.R. 1870(RFS), concerning the appraisal of
the property, adds the phrase ``and paid for by the city of Fallon,
Nevada''.
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This concludes my statement. I would be glad to answer any
questions.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill H.R. 1870, as
ordered reported.