Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

110th Congress                                            Rept. 110-505
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
             PUBLIC LAND COMMUNITIES TRANSITION ACT OF 2007

                                _______
                                

               December 19, 2007.--Ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3058]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 3058) to amend chapter 69 of title 31, United 
States Code, to provide full payments under such chapter to 
units of general local government in which entitlement land is 
located, to provide transitional payments during fiscal years 
2008 through 2012 to those States and counties previously 
entitled to payments under the Secure Rural Schools and 
Community Self-Determination Act of 2000, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.

  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as ``Public Land Communities Transition Act of 
2007''.

SEC. 2. FUNDING FOR PAYMENTS IN LIEU OF TAXES.

  Section 6906 of title 31, United States Code, is amended--
          (1) by inserting ``(a) In General.--'' before ``Necessary''; 
        and
          (2) by adding at the end the following new subsection:
  ``(b) Transition to Full Funding.--Amounts authorized under this 
chapter shall be made available to the Secretary of the Interior, out 
of any other funds in the Treasury not otherwise appropriated and 
without further appropriation, for obligation or expenditure in 
accordance with this chapter as follows:
          ``(1) For fiscal year 2008, 80 percent of the amount 
        authorized under this chapter in the prior fiscal year.
          ``(2) For fiscal year 2009, 90 percent of the amount 
        authorized under this chapter in the prior fiscal year.
          ``(3) For fiscal years 2010 and 2011, 100 percent of the 
        amount authorized under this chapter in the prior fiscal 
        year.''.

SEC. 3. TRANSITIONAL PAYMENTS STATES AND COUNTIES PREVIOUSLY ENTITLED 
                    TO PAYMENTS UNDER SECURE RURAL SCHOOLS AND 
                    COMMUNITY SELF-DETERMINATION ACT OF 2000.

  (a) Transitional Payments.--Chapter 69 of title 31, United States 
Code, is amended by adding at the end the following new section:

``Sec. 6908. Secure rural schools transition payments

  ``(a) Definitions.--In this section:
          ``(1) Adjusted share.--The term `adjusted share' means the 
        number equal to the quotient obtained by dividing--
                  ``(A) the number equal to the quotient obtained by 
                dividing--
                          ``(i) the base share for the eligible county; 
                        by
                          ``(ii) the income adjustment for the eligible 
                        county; by
                  ``(B) the number equal to the sum of the quotients 
                obtained under subparagraph (A) and paragraph (8)(A) 
                for all eligible counties.
          ``(2) Base share.--The term `base share' means the number 
        equal to the average of--
                  ``(A) the quotient obtained by dividing--
                          ``(i) the number of acres of Federal land 
                        described in paragraph (7)(A) in each eligible 
                        county; by
                          ``(ii) the total number acres of Federal land 
                        in all eligible counties in all eligible 
                        States; and
                  ``(B) the quotient obtained by dividing--
                          ``(i) the amount equal to the average of the 
                        3 highest 25-percent payments and safety net 
                        payments made to each eligible State for each 
                        eligible county during the eligibility period; 
                        by
                          ``(ii) the amount equal to the sum of the 
                        amounts calculated under clause (i) and 
                        paragraph (9)(B)(i) for all eligible counties 
                        in all eligible States during the eligibility 
                        period.
          ``(3) County payment.--The term `county payment' means the 
        payment for an eligible county calculated under subsection (c).
          ``(4) Eligible county.--The term `eligible county' means any 
        county that--
                  ``(A) contains Federal land (as defined in paragraph 
                (7)); and
                  ``(B) elects to receive a share of the State payment 
                or the county payment under subsection (f).
          ``(5) Eligibility period.--The term `eligibility period' 
        means fiscal year 1986 through fiscal year 1999.
          ``(6) Eligible state.--The term `eligible State' means a 
        State or territory of the United States that received a 25-
        percent payment for 1 or more fiscal years of the eligibility 
        period.
          ``(7) Federal land.--The term `Federal land' means--
                  ``(A) land within the National Forest System, as 
                defined in section 11(a) of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609(a)) exclusive of the National Grasslands and land 
                utilization projects designated as National Grasslands 
                administered pursuant to the Act of July 22, 1937 (7 
                U.S.C. 1010-1012); and
                  ``(B) such portions of the revested Oregon and 
                California Railroad and reconveyed Coos Bay Wagon Road 
                grant land as are or may hereafter come under the 
                jurisdiction of the Department of the Interior, which 
                have heretofore or may hereafter be classified as 
                timberlands, and power-site land valuable for timber, 
                that shall be managed, except as provided in the former 
                section 3 of the Act of August 28, 1937 (50 Stat. 875; 
                43 U.S.C. 1181c), for permanent forest production.
          ``(8) 50-Percent adjusted share.--The term `50-percent 
        adjusted share' means the number equal to the quotient obtained 
        by dividing--
                  ``(A) the number equal to the quotient obtained by 
                dividing--
                          ``(i) the 50-percent base share for the 
                        eligible county; by
                          ``(ii) the income adjustment for the eligible 
                        county; by
                  ``(B) the number equal to the sum of the quotients 
                obtained under subparagraph (A) and paragraph (1)(A) 
                for all eligible counties.
          ``(9) 50-Percent base share.--The term `50-percent base 
        share' means the number equal to the average of--
                  ``(A) the quotient obtained by dividing--
                          ``(i) the number of acres of Federal land 
                        described in paragraph (7)(B) in each eligible 
                        county; by
                          ``(ii) the total number acres of Federal land 
                        in all eligible counties in all eligible 
                        States; and
                  ``(B) the quotient obtained by dividing--
                          ``(i) the amount equal to the average of the 
                        3 highest 50-percent payments made to each 
                        eligible county during the eligibility period; 
                        by
                          ``(ii) the amount equal to the sum of the 
                        amounts calculated under clause (i) and 
                        paragraph (2)(B)(i) for all eligible counties 
                        in all eligible States during the eligibility 
                        period.
          ``(10) 50-percent payment.--The term `50-percent payment' 
        means the payment that is the sum of the 50-percent share 
        otherwise paid to a county pursuant to title II of the Act of 
        August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f), 
        and the payment made to a county pursuant to the Act of May 24, 
        1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
          ``(11) Full funding amount.--The term `full funding amount' 
        means--
                  ``(A) $520,000,000 for fiscal year 2008; and
                  ``(B) for fiscal years 2009, 2010, and 2011, the 
                amount that is equal to 90 percent of the full funding 
                amount for the preceding fiscal year.
          ``(12) Income adjustment.--The term `income adjustment' means 
        the square of the quotient obtained by dividing--
                  ``(A) the per capita personal income for each 
                eligible county; by
                  ``(B) the median per capita personal income of all 
                eligible counties.
          ``(13) Per capita personal income.--The term `per capita 
        personal income' means the most recent per capita personal 
        income data, as determined by the Bureau of Economic Analysis.
          ``(14) Safety net payments.--The term `safety net payments' 
        means the special payment amounts paid to States and counties 
        required by section 13982 or 13983 of the Omnibus Budget 
        Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500 
        note; 43 U.S.C. 1181f note).
          ``(15) Secretary concerned.--The term `Secretary concerned' 
        means--
                  ``(A) the Secretary of Agriculture or the designee of 
                the Secretary of Agriculture with respect to the 
                Federal land described in paragraph (7)(A); and
                  ``(B) the Secretary of the Interior or the designee 
                of the Secretary of the Interior with respect to the 
                Federal land described in paragraph (7)(B).
          ``(16) State payment.--The term `State payment' means the 
        payment for an eligible State calculated under subsection (b)
          ``(17) 25-Percent payment.--The term `25-percent payment' 
        means the payment to States required by the sixth paragraph 
        under the heading of `forest service' in the Act of May 23, 
        1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act 
        of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).
  ``(b) Calculation of State Payment Amount.--For each of fiscal years 
2008 through 2011, the Secretary of Agriculture shall calculate for 
each eligible State an amount equal to the sum of the products obtained 
by multiplying--
          ``(1) the adjusted share for each eligible county within the 
        eligible State; by
          ``(2) the full funding amount for the fiscal year.
  ``(c) Calculation of County Payment Amount.--For each of fiscal years 
2008 through 2011, the Secretary of the Interior shall calculate for 
each eligible county that received a 50-percent payment during the 
eligibility period an amount equal to the product obtained by 
multiplying--
          ``(1) the 50-percent adjusted share for the eligible county; 
        by
          ``(2) the full funding amount for the fiscal year.
  ``(d) Payment Amounts for Eligible States.--The Secretary of the 
Treasury shall pay to each eligible State an amount equal to the sum of 
the amounts elected under subsection (f) by each county within the 
eligible State for--
          ``(1) if the county is eligible for the 25-percent payment, 
        the share of the 25-percent payment; or
          ``(2) the share of the State payment of the eligible county.
  ``(e) Payment Amounts for Eligible Counties.--The Secretary of the 
Treasury shall pay to each eligible county an amount equal to the 
amount elected under subsection (f) by the county for--
          ``(1) if the county is eligible for the 50-percent payment, 
        the 50-percent payment; or
          ``(2) the county payment for the eligible county.
  ``(f) Election to Receive Payment Amount.--
          ``(1) Election; submission of results.--
                  ``(A) In general.--The election to receive a share of 
                the State payment, the county payment, a share of the 
                State payment and the county payment, a share of the 
                25-percent payment, the 50-percent payment, or a share 
                of the 25-percent payment and the 50-percent payment, 
                as applicable, shall be made at the discretion of each 
                affected county by August 1, 2008, and thereafter in 
                accordance with paragraph (2)(A), and transmitted to 
                the Secretary concerned by the Governor of each 
                eligible State.
                  ``(B) Failure to transmit.--If an election for an 
                affected county is not transmitted to the Secretary 
                concerned by the date specified under subparagraph (A), 
                the affected county shall be considered to have elected 
                to receive a share of the State payment, the county 
                payment, or a share of the State payment and the county 
                payment, as applicable.
          ``(2) Duration of election.--
                  ``(A) In general.--A county election to receive a 
                share of the 25-percent payment or 50-percent payment, 
                as applicable, shall be effective for 2 fiscal years.
                  ``(B) Full funding amount.--If a county elects to 
                receive a share of the State payment or the county 
                payment, the election shall be effective for all 
                subsequent fiscal years through fiscal year 2011.
  ``(g) Source of Payment Amounts.--The payment to an eligible State or 
eligible county under this section for a fiscal year shall be derived 
from--
          ``(1) any revenues, fees, penalties, or miscellaneous 
        receipts, exclusive of deposits to any relevant trust fund, 
        special account, or permanent operating funds, received by the 
        Federal Government from activities by the Bureau of Land 
        Management or the Forest Service on the applicable Federal 
        land;
          ``(2) for fiscal year 2008, any funds appropriated to carry 
        out this section; and
          ``(3) to the extent of any shortfall, out of any amounts in 
        the Treasury of the United States not otherwise appropriated.
  ``(h) Distribution and Expenditure of Payments.--
          ``(1) Distribution method.--A State that receives a payment 
        under this section shall distribute the appropriate payment 
        amount among the appropriate counties in the State in 
        accordance with--
                  ``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
                  ``(B) section 13 of the Act of March 1, 1911 (36 
                Stat. 963; 16 U.S.C. 500).
          ``(2) Expenditure purposes.--Subject to paragraph (3), 
        payments received by a State under this section and distributed 
        to counties in accordance with paragraph (1), and payments 
        received directly by an eligible county under this section, 
        shall be expended in the same manner in which 25-percent 
        payments or 50-percent payments, as applicable, are required to 
        be expended.
          ``(3) Reservation of portion of payments.--Each eligible 
        county receiving a payment under this section or a portion of a 
        State's payment under this section shall reserve not less than 
        15 percent of the amount received for expenditure in accordance 
        with titles II and III of the Secure Rural Schools and 
        Community Self-Determination Act of 2000 (16 U.S.C. 500 note; 
        Public Law 106-393).
  ``(i) Time for Payment.--The payments required under this section for 
a fiscal year shall be made as soon as practicable after the end of 
that fiscal year.''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 69 of title 31, United States Code, is amended by adding at the 
end the following new item:

``6908. Secure rural schools transition payments.''.
  (c) Extension of Titles II and III of Secure Rural Schools and 
Community Self-Determination Act of 2000.--
          (1) Extension.--The Secure Rural Schools and Community Self-
        Determination Act of 2000 (16 U.S.C. 500 note; Public Law 106-
        393) is amended--
                  (A) in sections 203(a), 204(e)(3)(B)(vi), 207(a), 
                208, and 303 by striking ``2007'' and inserting 
                ``2011'';
                  (B) in sections 208 and 303, by striking ``2008'' and 
                inserting ``2012''.
          (2) Definition of participating county.--The Secure Rural 
        Schools and Community Self-Determination Act of 2000 is 
        amended--
                  (A) in section 201(1), by inserting before the period 
                the following: ``or that is required to reserve funds 
                under section 6908(h)(3) of title 31, United States 
                Code, or section 4(e) of the Public Land Communities 
                Transition Act of 2007''; and
                  (B) in section 301(1), by inserting before the period 
                the following: ``or that is required to reserve funds 
                under section 6908(h)(3) of title 31, United States 
                Code, or section 4(e) of the Public Land Communities 
                Transition Act of 2007''.
          (3) Definition of project funds.--The Secure Rural Schools 
        and Community Self-Determination Act of 2000 is amended----
                  (A) in section 201(2), by inserting before the period 
                the following: ``or reserves under section 6908(h)(3) 
                of title 31, United States Code, or section 4(e) of the 
                Public Land Communities Transition Act of 2007 for 
                expenditure in accordance with this title''; and
                  (B) in section 301(2), by inserting before the period 
                the following: ``or reserves under section 6908(h)(3) 
                of title 31, United States Code, or section 4(e) of the 
                Public Land Communities Transition Act of 2007 for 
                expenditure in accordance with this title''.

SEC. 4. SPECIAL REQUIREMENTS REGARDING TRANSITION PAYMENTS TO CERTAIN 
                    STATES.

  (a) Definitions.--In this section:
          (1) Adjusted amount.--The term ``adjusted amount'' means, 
        with respect to a covered State--
                  (A) for fiscal year 2008--
                          (i) the sum of the amounts paid for fiscal 
                        year 2006 under section 102(a)(2) of the Secure 
                        Rural Schools and Community Self-Determination 
                        Act of 2000 (16 U.S.C. 500 note; Public Law 
                        106-393), as in effect on September 29, 2006, 
                        for the eligible counties in the covered State 
                        that have elected under section 6908 of title 
                        31, United States Code, as added by section 3 
                        of this Act, to receive a share of the State 
                        payment for fiscal year 2008; and
                          (ii) the sum of the amounts paid for fiscal 
                        year 2006 under section 103(a)(2) Secure Rural 
                        Schools and Community Self-Determination Act of 
                        2000 (16 U.S.C. 500 note; Public Law 106-393), 
                        as in effect on September 29, 2006, for the 
                        eligible counties in the State of Oregon that 
                        have elected under section 6908 of title 31, 
                        United States Code, as added by section 3 of 
                        this Act, to receive the county payment for 
                        fiscal year 2008;
                  (B) for fiscal year 2009, 90 percent of--
                          (i) the sum of the amounts paid for fiscal 
                        year 2006 under such section 102(a)(2) for the 
                        eligible counties in the covered State that 
                        have elected under such section 6908 to receive 
                        a share of the State payment for fiscal year 
                        2009; and
                          (ii) the sum of the amounts paid for fiscal 
                        year 2006 under such section 103(a)(2) for the 
                        eligible counties in the State of Oregon that 
                        have elected under such section 6908 to receive 
                        the county payment for fiscal year 2009;
                  (C) for fiscal year 2010, 81 percent of--
                          (i) the sum of the amounts paid for fiscal 
                        year 2006 under section such 102(a)(2) for the 
                        eligible counties in the covered State that 
                        have elected under such section 6908 to receive 
                        a share of the State payment for fiscal year 
                        2010; and
                          (ii) the sum of the amounts paid for fiscal 
                        year 2006 under such section 103(a)(2) for the 
                        eligible counties in the State of Oregon that 
                        have elected under such section 6908 to receive 
                        the county payment for fiscal year 2010; and
                  (D) for fiscal year 2011, 73 percent of--
                          (i) the sum of the amounts paid for fiscal 
                        year 2006 under such section 102(a)(2) for the 
                        eligible counties in the covered State that 
                        have elected under such section 6908 to receive 
                        a share of the State payment for fiscal year 
                        2011; and
                          (ii) the sum of the amounts paid for fiscal 
                        year 2006 under such section 103(a)(2) for the 
                        eligible counties in the State of Oregon that 
                        have elected under such section 6908 to receive 
                        the county payment for fiscal year 2011.
          (2) Covered state.--The term ``covered State'' means each of 
        the States of California, Louisiana, Oregon, Pennsylvania, 
        South Carolina, South Dakota, Texas, and Washington.
          (3) Eligible county.--The term ``eligible county'' has the 
        meaning given that term in section 6908 of title 31, United 
        States Code, as added by section 3 of this Act.
  (b) Transition Payments.--For each of fiscal years 2008 through 2011, 
in lieu of the payment amounts that otherwise would have been made 
under section 6908 of title 31, United States Code, as added by section 
3 of this Act, the Secretary of the Treasury shall pay the adjusted 
amount to each covered State and the eligible counties within the 
covered State, as applicable.
  (c) Distribution of Adjusted Amount.--It is the intent of Congress 
that the method of distributing the payments under subsection (b) among 
the counties in a covered State (other than California) for each of 
fiscal years 2008 through 2011 be in the same proportion that the 
payments were distributed to the eligible counties in that State in 
fiscal year 2006.
  (d) Distribution of Payments in California.--The following payments 
shall be distributed among the eligible counties in the State of 
California in the same proportion that payments under section 102(a)(2) 
of the Secure Rural Schools and Community Self-Determination Act of 
2000 (16 U.S.C. 500 note; Public Law 106-393), as in effect on 
September 29, 2006, were distributed to the eligible counties for 
fiscal year 2006:
          (1) Payments to the State of California under subsection (b).
          (2) The shares of the eligible counties of the State payment 
        for California under section 6908 of title 31, United States 
        Code, as added by section 3 of this Act, for fiscal year 2011.
  (e) Treatment of Payments.--Any payment made under subsection (b) 
shall be considered to be a payment made under section 6908 of title 
31, United States Code, as added by section 3 of this Act, except that 
each eligible county receiving a payment under such subsection or a 
portion of such payment under subsection (c) or (d) shall reserve not 
less than 15 percent of the amount received for expenditure in 
accordance with titles II and III of the Secure Rural Schools and 
Community Self-Determination Act of 2000 (16 U.S.C. 500 note; Public 
Law 106-393), as required by subsection (h)(3) of such section 6908.

SEC. 5. CONSERVATION OF RESOURCES FEES.

  (a) Establishment of Fees.--
          (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary of the Interior by 
        regulation shall establish--
                  (A) a conservation of resources fee for producing 
                Federal oil and gas leases in the Gulf of Mexico; and
                  (B) a conservation of resources fee for nonproducing 
                Federal oil and gas leases in the Gulf of Mexico.
          (2) Producing lease fee terms.--The fee under paragraph 
        (1)(A)--
                  (A) subject to subparagraph (C), shall apply to 
                covered leases that are producing leases;
                  (B) shall be set at $9 per barrel for oil and $1.25 
                per million Btu for gas, respectively, in 2005 dollars; 
                and
                  (C) shall apply only to production of oil or gas 
                occurring--
                          (i) in any calendar year in which the 
                        arithmetic average of the daily closing prices 
                        for light sweet crude oil on the New York 
                        Mercantile Exchange (NYMEX) exceeds $34.73 per 
                        barrel for oil and $4.34 per million Btu for 
                        gas in 2005 dollars; and
                          (ii) on or after October 1, 2006.
          (3) Nonproducing lease fee terms.--The fee under paragraph 
        (1)(B)--
                  (A) subject to subparagraph (C), shall apply to 
                leases that are nonproducing leases;
                  (B) shall be set at $3.75 per acre per year in 2005 
                dollars; and
                  (C) shall apply on and after October 1, 2006.
          (4) Treatment of receipts.--Amounts received by the United 
        States as fees under this subsection shall be treated as 
        offsetting receipts.
  (b) Covered Lease Defined.--In this section the term ``covered 
lease'' means a lease for oil or gas production in the Gulf of Mexico 
that is--
          (1) in existence on the date of enactment of this Act;
          (2) issued by the Department of the Interior under section 
        304 of the Outer Continental Shelf Deep Water Royalty Relief 
        Act (43 U.S.C. 1337 note; Public Law 104-58); and
          (3) not subject to limitations on royalty relief based on 
        market price that are equal to or less than the price 
        thresholds described in clauses (v) through (vii) of section 
        8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)).
  (c) Royalty Suspension Provisions.--The Secretary of the Interior 
shall agree to a request by any lessee to amend any lease issued for 
Central and Western Gulf of Mexico tracts during the period of January 
1, 1998, through December 31, 1999, to incorporate price thresholds 
applicable to royalty suspension provisions, or amend existing price 
thresholds, in the amount of $34.73 per barrel (2005 dollars) for oil 
and for natural gas of $4.34 per million Btu (2005 dollars).

SEC. 6. SENSE OF CONGRESS ON DISTRIBUTION OF SECURE RURAL SCHOOLS 
                    TRANSITION PAYMENTS TO ELIGIBLE COUNTIES.

  It is the sense of Congress that amounts made available by a State to 
an eligible county under section 6908 of title 31, United States Code, 
as added by section 3 of this Act, or under section 4 of this Act to 
support public schools in that county should be in addition to, and not 
in lieu of, general funds of the State made available to support public 
schools in that county, and that the State should not adjust education 
funding allocations to reflect the receipt of amounts under such 
section 6908 or section 4.

  Amend the title so as to read:

      A bill to amend chapter 69 of title 31, United States 
Code, to provide for the transition to full payments under such 
chapter to units of general local government in which 
entitlement land is located, to provide transitional payments 
during fiscal years 2008 through 2011 to those States and 
counties previously entitled to payments under the Secure Rural 
Schools and Community Self-Determination Act of 2000, and for 
other purposes.

                          Purpose of the Bill

    The purpose of H.R. 3058, as ordered reported, is to amend 
chapter 69 of title 31, United States Code, to provide full 
payments under such chapter to units of general local 
government in which entitlement land is located, to provide 
transitional payments during fiscal years 2008 through 2011 to 
those States and counties previously entitled to payments under 
the Secure Rural Schools and Community Self-Determination Act 
of 2000, and for other purposes.

                  Background and Need for Legislation

    Since 1908, 25 percent of Forest Service revenues, such as 
those from timber sales, mineral resources and grazing fees, 
have been returned to the States in which national forest lands 
are located.
    Because receipts from timber sales have fluctuated over 
time, the 106th Congress in 2000 enacted the Secure Rural 
Schools and Community Self-Determination Act (Public Law 106-
393), commonly referred to as the ``county payments bill,'' to 
restore stability to the annual payments made to States and 
counties containing National Forest System lands and certain 
public domain lands managed by the Bureau of Land Management. 
The 1908 statute initially providing for these revenue-sharing 
payments specified that the county payments were to be used for 
public schools and roads. Globalization and changed federal 
forest management priorities have reduced the revenue-sharing 
payments to counties and created budgetary uncertainty for 
areas reliant on these revenue-sharing payments. The Secure 
Rural Schools and Community Self-Determination Act sought to 
address this instability by providing funding for a period of 
seven years, but requiring reauthorization after that time.
    Funding for these payments amounted to roughly $400 million 
per year, paid from the General Treasury. The FY 2007 payments 
to States totaled $409 million, with the majority of the money 
directed to counties in Oregon, Washington, and California. 
Counties in these States were disproportionately impacted given 
their historic reliance of timber revenue-sharing payments.
    Anticipating the need for reauthorization, the 
Administration in February of 2006 released their 
reauthorization plan as part of the FY 2007 budget proposal. 
The Administration's reauthorization proposal would be funded 
through the sale of more than 300,000 acres of National Forest 
System lands. This proposal was met with considerable concern 
by the Congress and the public. In the 109th Congress, 
Representatives Greg Walden (R-OR) and Peter DeFazio (D-OR) 
introduced H.R. 517, a bill to reauthorize County Payments 
through FY 2013, which was reported out of the then Committee 
on Resources, but was not considered by the full House. In the 
110th Congress, efforts to include a multi-year county payments 
extension in the Emergency Supplemental Appropriations Act fell 
short, and instead a one-year extension was enacted. 
Considerable emphasis has been given to the need for action 
from the authorizing Committees on a multi-year county payments 
bill.
    Payments in Lieu of Taxes (PILT) are federal payments to 
local governments that help offset the cost of services and 
infrastructure incurred by local jurisdictions where certain 
Federal lands are located. PILT was first authorized in 1976 
and has been amended several times, the most recent being in 
1994. The PILT program is administered by the Department of the 
Interior and funds are appropriated by the Congress each year. 
The FY 2007 PILT payment totaled $232 million, with the largest 
state recipients being New Mexico, California, and Utah.
    H.R. 3058 mirrors a proposal overwhelmingly supported in 
the Senate when Senator Ron Wyden (D-OR) offered similar 
language as an amendment to the Emergency Supplemental 
Appropriations bill earlier this year.

                            Committee Action

    H.R. 3058 was introduced on July 17, 2007 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 July 23, 2007, 
the Subcommittee on National Parks, Forests, and Public Lands 
held a hearing on the bill.
    On September 26, 2007, the Subcommittee was discharged from 
further consideration of the legislation, and the Full Natural 
Resources Committee met to consider the bill. Representative 
Peter DeFazio (D-OR) offered an amendment in the nature of a 
substitute to utilize a $2.875 OCS conservation of resources 
fee as an offset to the overall cost of H.R. 3058. The DeFazio 
amendment in the nature of a substitute also reduced the cost 
of the legislation to meet the OCS offset by authorizing the 
PILT and county payments for four years instead of five, and by 
ramping up PILT payments to 100% of authorized levels by 2010 
and 2011. Lastly, the DeFazio amendment in the nature of a 
substitute extended Title II and Title III of the Secure Rural 
Schools and Community Self-Determination Act through 2011, and 
added Louisiana, Pennsylvania, South Carolina, South Dakota, 
and Texas to the States receiving transition payments.
    Representative Cathy McMorris-Rodgers (R-WA) offered an 
amendment to the amendment in the nature of a substitute that 
expressed the Sense of Congress that amounts made available by 
a State to an eligible county under H.R. 3058 to support public 
schools in that county should be treated in addition to, and 
not in lieu of, general funds of the State made available to 
support public schools in that county. The amendment was 
adopted by unanimous consent.
    Representative Rob Bishop (R-UT) offered a non-germane 
amendment to the amendment in the nature of a substitute that 
proposed an offset to H.R. 3058 funded by opening up the Arctic 
National Wildlife Refuge (ANWR) to drilling, expediting salvage 
timber projects on federal lands, changing the distribution of 
oil shale revenues and providing for geothermal resources 
production. The amendment was not adopted by a roll call vote 
of 10 to 17, as follows:


    The DeFazio amendment in the nature of a substitute, as 
amended, was agreed to by voice vote. The bill, as amended, was 
then ordered favorably reported to the House of Representatives 
by voice vote.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides that this Act may be cited as ``Public 
Land Communities Transition Act of 2007''.

Section 2. Funding for payments in lieu of taxes

    Section 2 provides for payments under the Payments in Lieu 
of Taxes program at 80% of the authorized level in 2008, 90% in 
2009, and 100% percent of the authorized levels in 2010 and 
2011.

Section 3. Transitional payments States and Counties previously 
        entitled to payments under Secure Rural Schools and Community 
        Self-Determination Act of 2000.

    Section 3 provides for four years of transition payments to 
forest counties previously entitled to payments under the 
Secure Rural Schools and Community Self-Determination Act of 
2000. The section includes a new formula for distribution of 
county payments that is based on the historical allocation, the 
concentration of public land in the county, and the current 
economic condition of the county. The bill transitions counties 
from these payments by ramping down the total payments by 10% 
each year. The Committee notes that this phase-down fulfills 
the principles of the National Forest County Schools Coalition 
that the safety-net payments would be a temporary program. 
Section 3 also extends Title II and Title III of the Secure 
Rural Schools and Community Self-Determination Act through 
2011. The Committee included these titles since they provide a 
framework and incentive for community groups to collaborate 
with the Forest Service on forest management projects and have 
proven successful in the past.

Section 4. Special requirements regarding transition payments to 
        certain States

    Section 4 provides additional transition funding for 
Oregon, Washington, California, Louisiana, Texas, Pennsylvania, 
South Dakota, and South Carolina to assist in their adjustment 
to the new funding formula.

Section 5. Conservation of resources fees

    Section 5 provides for an offset of the cost of the bill to 
satisfy PAYGO requirements. The offset utilizes $2.875 billion 
that would be generated from new fees on certain outer-
continental shelf (OCS) oil and gas leases.

            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.

                  Federal Advisory Committee Statement

    The functions of the advisory committee that is proposed to 
be reauthorized in the bill are not currently being nor could 
they be performed by one or more agencies, an advisory 
committee already in existence or by enlarging the mandate of 
an existing advisory committee.

                   Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants 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, any new 
budget authority included in this bill will include a 
comparison of the total estimated funding level for the 
relevant programs to the appropriate levels under current law, 
as described in the cost estimate obtained from the Director of 
the Congressional Budget Office, which follows below.
    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 amend 
chapter 69 of title 31, United States Code, to provide full 
payments under such chapter to units of general local 
government in which entitlement land is located, to provide 
transitional payments during fiscal years 2008 through 2011 to 
those States and counties previously entitled to payments under 
the Secure Rural Schools and Community Self-Determination Act 
of 2000, 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. 3058--Public Land Communities Transition Assistance Act of 2007

    Summary: H.R. 3058 would provide direct spending authority 
for certain payments to states and counties made by the Forest 
Service and the Department of the Interior (DOI). The bill also 
would impose a new ``conservation of resources'' fee on certain 
oil and gas leases on lands on the Outer Continental Shelf 
(OCS).
    CBO estimates that enacting H.R. 3058 would increase net 
direct spending by $409 million over the 2008-2012 period, but 
reduce such spending by about $4.2 billion over the 2008-2017 
period. Enacting the bill would not affect revenues but could 
result in savings in discretionary spending by reducing the 
need for annual appropriations for payments in lieu of taxes 
(PILT). Assuming that appropriations are reduced accordingly, 
CBO estimates that discretionary spending would fall by $975 
million through 2012.
    H.R. 3058 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA).
    By establishing the ``conservation of resources'' fee, H.R. 
3058 would impose a private-sector mandate, as defined in UMRA. 
CBO estimates that those fees, in aggregate, would be 
approximately $500 million in 2008. Consequently, the cost of 
the mandate to the private sector would exceed the annual 
threshold established in UMRA ($131 million in 2007, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3058 is shown in the following table. 
The costs of this legislation fall within budget functions 800 
(general government) and 950 (undistributed offsetting 
receipts).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                            2008     2009     2010     2011     2012     2013     2014     2015     2016     2017   2008-2012  2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     DIRECT SPENDING

Spending Under Current Law:
    Forest Service and BLM Payments to
     States and Counties:
        Estimated Budget Authority......      101       98      101      103      105      106      109      110      112      115        508      1,060
        Estimated Outlays...............      101       98      101      103      105      106      109      110      112      115        508      1,060
Proposed Changes:
    Transition Payments to States and
     Counties:
        Estimated Budget Authority......        0      585      514      450      393        0        0        0        0        0      1,942      1,942
        Estimated Outlays...............        0      585      514      450      393        0        0        0        0        0      1,942      1,942
    Payments in Lieu of Taxes:
        Estimated Budget Authority......      286      294      376      386        0        0        0        0        0        0      1,342      1,342
        Estimated Outlays...............      286      294      376      386        0        0        0        0        0        0      1,342      1,342
    Conservation of Resources Fees:
        Estimated Budget Authority......     -500     -300     -325     -875     -875     -975     -975     -925     -875     -825     -2,875     -7,450
        Estimated Outlays...............     -500     -300     -325     -875     -875     -975     -975     -925     -875     -825     -2,875     -7,450
        Total Changes:
            Estimated Budget Authority..     -214      579      565      -39     -482     -975     -975     -925     -875     -825        409     -4,166
            Estimated Outlays...........     -214      579      565      -39     -482     -975     -975     -925     -875     -825        409     -4,166
Spending Under H.R. 3058:
    Estimated Budget Authority..........     -113      677      666       64     -377     -869     -866     -815     -763     -710        917     -3,106
    Estimated Outlays...................     -113      677      666       64     -377     -869     -866     -815     -763     -710        917     -3,106

                                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........     -237     -242     -246     -250        0        0        0        0        0        0       -975       -975
Estimated Outlays.......................     -237     -242     -246     -250        0        0        0        0        0        0       -975       -975
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3058 will be enacted before the end of calendar year 2007. 
Estimated payments to states and counties under sections 2 and 
3 of the bill are based on information provided by the Forest 
Service and DOI.

Direct spending

    CBO estimates that providing direct spending authority for 
PILT and for additional payments under the secure rural schools 
program as provided by H.R. 3058 would increase direct spending 
by about $3.3 billion over the 2008-2012 period. (Authority for 
the payments would expire after that.) We estimate that new 
spending would be offset by new fees on OCS lessees of about 
$7.5 billion over the 2008-2017 period. The net result of 
enacting those provisions would be an increase in direct 
spending of $409 million over the 2008-2012 period, and a 
reduction of nearly $4.2 billion over the 2008-2017 period.
    Secure Rural Schools Transition Payments. Section 3 would 
provide new direct spending authority for the Forest Service 
and the Bureau of Land Management (BLM) to make payments to 
states and counties to support rural schools.
    Payments Under Current Law. Currently, the Forest Service 
and BLM share a portion of their offsetting receipts with 
states and counties in order to compensate those local 
governments that have tax-exempt federal lands within their 
jurisdictions. (Generally, state and local governments may not 
impose taxes on federal lands unless specifically authorized to 
do so by federal statute.) The Forest Service shares receipts 
generated mainly from selling forest and grassland resources. 
Those receipts must be used by state and local governments for 
school and road programs. BLM also shares receipts with 
counties from various types of activities on BLM lands.
    CBO estimates that states and counties would receive about 
$1.1 billion over the next 10 years under current law.
    Payments Under H.R. 3058. Section 3 would authorize new 
payments to state and local governments, called secure rural 
school transition payments. Based on information provided by 
the Forest Service, CBO estimates that states and counties 
would receive a total of $3 billion over the 2008-2017 period, 
about $1.9 billion more than they will receive under existing 
receipt-sharing laws.
    Payments in Lieu of Taxes. Section 2 would provide new 
direct spending authority for DOI to make annual payments in 
lieu of taxes for fiscal years 2008 through 2011. CBO estimates 
that enacting this provision would increase direct spending by 
about $1.3 billion over the 2008-2017 period.
    PILT Under Current Law. The PILT program compensates local 
governments for losses in their tax bases (and thus tax 
revenues) caused by having certain federal lands within their 
jurisdictions. Currently, funding for the program is provided 
in annual appropriations acts; in recent years, such funding 
has fallen short of the full amount that local governments 
would be authorized to receive under the PILT statute. That 
full authorization amount is calculated each year by DOI based 
on factors such as population and the number of acres owned by 
certain federal agencies, and is reduced by the amount of 
certain other federal payments received by the locality. If 
necessary, the department then calculates individual payments 
to local jurisdictions by prorating the aggregate appropriation 
amount among the different localities. In 2007, the PILT 
appropriation was $233 million (about 65 percent of the full 
authorization). A final appropriation for PILT has not been 
enacted for 2008.
    PILT Under H.R. 3058. Section 2 would provide direct 
spending authority for PILT payments to be made by DOI over the 
2008-2011 period, but funding would be phased in over that 
period. Under the provision, eligible local governments would 
receive a:
           2008 payment equal to 80 percent of the full 
        PILT authorization level calculated for 2007;
           2009 payment equal to 90 percent of the 2008 
        full PILT authorization level; and
           2010 and 2011 payments equal to 100 percent 
        of the previous years' PILT authorization level.
    Payments made after 2011 would be subject to appropriation.
    CBO's estimates of payments for 2008 through 2011 are based 
on DOI's most recent estimate of the full authorization level 
for PILT in 2007, which is nearly $360 million. CBO reduced 
those estimated annual payments to reflect the effects on PILT 
authorization levels of making higher payments to counties 
under the Secure Rural Schools Program as authorized by section 
3 of the bill.
    Conservation of Resources Fees. Section 5 would require 
lessees of certain OCS lands to pay a ``conservation of 
resources'' fee and direct that those payments be classified as 
offsetting receipts (a reduction in direct spending). CBO 
estimates that enacting this provision would increase 
offsetting receipts by $7.45 billion over the 2008-2017 period. 
Most of that increase would result from provisions affecting 
certain deepwater OCS leases issued in 1998 and 1999 that 
provided royalty relief regardless of the market price of oil 
or gas.

Spending subject to appropriation

    By providing direct spending authority for PILT for fiscal 
years 2008 through 2011, the bill would reduce the need for 
appropriations for the program over that period. Assuming that 
annual appropriations are reduced accordingly, CBO estimates 
that discretionary spending would be reduced by $975 million 
over the four-year period that mandatory funding under the bill 
would be in effect.
    The potential savings in spending are equal to the CBO 
baseline for PILT appropriations. Such savings are less than 
the estimated increase in direct spending under the bill 
because discretionary appropriations for PILT have historically 
been about 65 percent of the full amount authorized for such 
payments.
    Estimated impact on state, local, and tribal governments: 
H.R. 3058 contains no intergovernmental mandates as defined in 
UMRA. Enacting this bill would benefit the states and counties 
that would receive the authorized payments.
    Estimated impact on the private sector: H.R. 3058 would 
impose fees on certain holders of federal oil and gas leases in 
the Gulf of Mexico. The bill would require DOI to establish a 
``conservation of resources'' fee set at $9 per barrel for oil 
and $1.25 per million Btu for natural gas (both in 2005 
dollars) on production from certain leased acreage. 
Leaseholders could avoid the fee if they renegotiate the 
royalty relief provisions of their original leases with the 
Secretary of the Interior to pay royalties on oil and gas 
production when prices exceed the price thresholds specified in 
the bill ($34.73 per barrel of oil and $4.34 per million Btu of 
natural gas, both in 2005 dollars). DOI also would be required 
to establish a ``conservation of resources'' fee on all acreage 
that is not producing in both new and existing leases. The bill 
would set that fee at $3.75 per acre per year (in 2005 
dollars). Because new leases that include the ``conservation of 
resources'' fees would be entered into voluntarily, the fees 
would only constitute a mandate for leases in existence on the 
date the Public Land Communities Transition Assistance Act is 
enacted.
    The fees on both producing and nonproducing leases would 
apply retroactively to volumes produced since October 1, 2006.
    CBO estimates that the direct cost of the mandate on 
leaseholders of acreage in production would be approximately 
$275 million in 2008, assuming most leaseholders opt to pay 
royalties under a renegotiated lease instead of the proposed 
fee. CBO estimates that the direct cost of the mandate on 
leaseholders of acreage not in production would be 
approximately $225 million in 2008. Consequently, the cost to 
comply with the mandates would exceed the annual threshold 
established in UMRA for private-sector mandates ($131 million 
in 2007, adjusted annually for inflation).
    Previous CBO cost estimates: The provision concerning 
``conservation of resources'' fees are similar to those 
contained in other legislation, including:
     H.R. 6, the CLEAN Energy Act of 2007, as 
introduced on January 12, 2007. CBO's cost estimate was 
transmitted on January 12, 2007.
     H.R. 2419, the Farm, Nutrition, and Bioenergy Act 
of 2007, as passed by the House of Representatives on July 27, 
2007. CBO's cost estimate was transmitted on October 5, 2007.
     H.R. 3221, the Renewable Energy and Conservation 
Tax Act of 2007, as passed by the House of Representatives on 
August 4, 2007. CBO's cost estimate was transmitted on November 
9, 2007.
    Estimate prepared by: Federal costs: Tyler Kruzich, Deborah 
Reis, and Kathleen Gramp; Impact on State, local, and tribal 
governments: Lisa Ramirez-Branum; Impact on the private sector: 
Amy Petz.
    Estimate 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. 3058 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) 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 Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION

           *       *       *       *       *       *       *


                CHAPTER 69--PAYMENT FOR ENTITLEMENT LAND

Sec  
6901.  Definitions.
     * * * * * * *
6908.  Secure rural schools transition payments.

           *       *       *       *       *       *       *


Sec. 6906. Authorization of appropriations

  (a) In General.--Necessary amounts may be appropriated to the 
Secretary of the Interior to carry out this chapter. Amounts 
are available only as provided in appropriation laws.
  (b) Transition to Full Funding.--Amounts authorized under 
this chapter shall be made available to the Secretary of the 
Interior, out of any other funds in the Treasury not otherwise 
appropriated and without further appropriation, for obligation 
or expenditure in accordance with this chapter as follows:
          (1) For fiscal year 2008, 80 percent of the amount 
        authorized under this chapter in the prior fiscal year.
          (2) For fiscal year 2009, 90 percent of the amount 
        authorized under this chapter in the prior fiscal year.
          (3) For fiscal years 2010 and 2011, 100 percent of 
        the amount authorized under this chapter in the prior 
        fiscal year.

           *       *       *       *       *       *       *


Sec. 6908. Secure rural schools transition payments

  (a) Definitions.--In this section:
          (1) Adjusted share.--The term ``adjusted share'' 
        means the number equal to the quotient obtained by 
        dividing--
                  (A) the number equal to the quotient obtained 
                by dividing--
                          (i) the base share for the eligible 
                        county; by
                          (ii) the income adjustment for the 
                        eligible county; by
                  (B) the number equal to the sum of the 
                quotients obtained under subparagraph (A) and 
                paragraph (8)(A) for all eligible counties.
          (2) Base share.--The term ``base share'' means the 
        number equal to the average of--
                  (A) the quotient obtained by dividing--
                          (i) the number of acres of Federal 
                        land described in paragraph (7)(A) in 
                        each eligible county; by
                          (ii) the total number acres of 
                        Federal land in all eligible counties 
                        in all eligible States; and
                  (B) the quotient obtained by dividing--
                          (i) the amount equal to the average 
                        of the 3 highest 25-percent payments 
                        and safety net payments made to each 
                        eligible State for each eligible county 
                        during the eligibility period; by
                          (ii) the amount equal to the sum of 
                        the amounts calculated under clause (i) 
                        and paragraph (9)(B)(i) for all 
                        eligible counties in all eligible 
                        States during the eligibility period.
          (3) County payment.--The term ``county payment'' 
        means the payment for an eligible county calculated 
        under subsection (c).
          (4) Eligible county.--The term ``eligible county'' 
        means any county that--
                  (A) contains Federal land (as defined in 
                paragraph (7)); and
                  (B) elects to receive a share of the State 
                payment or the county payment under subsection 
                (f).
          (5) Eligibility period.--The term ``eligibility 
        period'' means fiscal year 1986 through fiscal year 
        1999.
          (6) Eligible state.--The term ``eligible State'' 
        means a State or territory of the United States that 
        received a 25-percent payment for 1 or more fiscal 
        years of the eligibility period.
          (7) Federal land.--The term ``Federal land'' means--
                  (A) land within the National Forest System, 
                as defined in section 11(a) of the Forest and 
                Rangeland Renewable Resources Planning Act of 
                1974 (16 U.S.C. 1609(a)) exclusive of the 
                National Grasslands and land utilization 
                projects designated as National Grasslands 
                administered pursuant to the Act of July 22, 
                1937 (7 U.S.C. 1010-1012); and
                  (B) such portions of the revested Oregon and 
                California Railroad and reconveyed Coos Bay 
                Wagon Road grant land as are or may hereafter 
                come under the jurisdiction of the Department 
                of the Interior, which have heretofore or may 
                hereafter be classified as timberlands, and 
                power-site land valuable for timber, that shall 
                be managed, except as provided in the former 
                section 3 of the Act of August 28, 1937 (50 
                Stat. 875; 43 U.S.C. 1181c), for permanent 
                forest production.
          (8) 50-Percent adjusted share.--The term ``50-percent 
        adjusted share'' means the number equal to the quotient 
        obtained by dividing--
                  (A) the number equal to the quotient obtained 
                by dividing--
                          (i) the 50-percent base share for the 
                        eligible county; by
                          (ii) the income adjustment for the 
                        eligible county; by
                  (B) the number equal to the sum of the 
                quotients obtained under subparagraph (A) and 
                paragraph (1)(A) for all eligible counties.
          (9) 50-Percent base share.--The term ``50-percent 
        base share'' means the number equal to the average of--
                  (A) the quotient obtained by dividing--
                          (i) the number of acres of Federal 
                        land described in paragraph (7)(B) in 
                        each eligible county; by
                          (ii) the total number acres of 
                        Federal land in all eligible counties 
                        in all eligible States; and
                  (B) the quotient obtained by dividing--
                          (i) the amount equal to the average 
                        of the 3 highest 50-percent payments 
                        made to each eligible county during the 
                        eligibility period; by
                          (ii) the amount equal to the sum of 
                        the amounts calculated under clause (i) 
                        and paragraph (2)(B)(i) for all 
                        eligible counties in all eligible 
                        States during the eligibility period.
          (10) 50-percent payment.--The term ``50-percent 
        payment'' means the payment that is the sum of the 50-
        percent share otherwise paid to a county pursuant to 
        title II of the Act of August 28, 1937 (chapter 876; 50 
        Stat. 875; 43 U.S.C. 1181f), and the payment made to a 
        county pursuant to the Act of May 24, 1939 (chapter 
        144; 53 Stat. 753; 43 U.S.C. 1181f-1 et seq.).
          (11) Full funding amount.--The term ``full funding 
        amount'' means--
                  (A) $520,000,000 for fiscal year 2008; and
                  (B) for fiscal years 2009, 2010, and 2011, 
                the amount that is equal to 90 percent of the 
                full funding amount for the preceding fiscal 
                year.
          (12) Income adjustment.--The term ``income 
        adjustment'' means the square of the quotient obtained 
        by dividing--
                  (A) the per capita personal income for each 
                eligible county; by
                  (B) the median per capita personal income of 
                all eligible counties.
          (13) Per capita personal income.--The term ``per 
        capita personal income'' means the most recent per 
        capita personal income data, as determined by the 
        Bureau of Economic Analysis.
          (14) Safety net payments.--The term ``safety net 
        payments'' means the special payment amounts paid to 
        States and counties required by section 13982 or 13983 
        of the Omnibus Budget Reconciliation Act of 1993 
        (Public Law 103-66; 16 U.S.C. 500 note; 43 U.S.C. 1181f 
        note).
          (15) Secretary concerned.--The term ``Secretary 
        concerned'' means--
                  (A) the Secretary of Agriculture or the 
                designee of the Secretary of Agriculture with 
                respect to the Federal land described in 
                paragraph (7)(A); and
                  (B) the Secretary of the Interior or the 
                designee of the Secretary of the Interior with 
                respect to the Federal land described in 
                paragraph (7)(B).
          (16) State payment.--The term ``State payment'' means 
        the payment for an eligible State calculated under 
        subsection (b)
          (17) 25-Percent payment.--The term ``25-percent 
        payment'' means the payment to States required by the 
        sixth paragraph under the heading of ``forest service'' 
        in the Act of May 23, 1908 (35 Stat. 260; 16 U.S.C. 
        500), and section 13 of the Act of March 1, 1911 (36 
        Stat. 963; 16 U.S.C. 500).
  (b) Calculation of State Payment Amount.--For each of fiscal 
years 2008 through 2011, the Secretary of Agriculture shall 
calculate for each eligible State an amount equal to the sum of 
the products obtained by multiplying--
          (1) the adjusted share for each eligible county 
        within the eligible State; by
          (2) the full funding amount for the fiscal year.
  (c) Calculation of County Payment Amount.--For each of fiscal 
years 2008 through 2011, the Secretary of the Interior shall 
calculate for each eligible county that received a 50-percent 
payment during the eligibility period an amount equal to the 
product obtained by multiplying--
          (1) the 50-percent adjusted share for the eligible 
        county; by
          (2) the full funding amount for the fiscal year.
  (d) Payment Amounts for Eligible States.--The Secretary of 
the Treasury shall pay to each eligible State an amount equal 
to the sum of the amounts elected under subsection (f) by each 
county within the eligible State for--
          (1) if the county is eligible for the 25-percent 
        payment, the share of the 25-percent payment; or
          (2) the share of the State payment of the eligible 
        county.
  (e) Payment Amounts for Eligible Counties.--The Secretary of 
the Treasury shall pay to each eligible county an amount equal 
to the amount elected under subsection (f) by the county for--
          (1) if the county is eligible for the 50-percent 
        payment, the 50-percent payment; or
          (2) the county payment for the eligible county.
  (f) Election To Receive Payment Amount.--
          (1) Election; submission of results.--
                  (A) In general.--The election to receive a 
                share of the State payment, the county payment, 
                a share of the State payment and the county 
                payment, a share of the 25-percent payment, the 
                50-percent payment, or a share of the 25-
                percent payment and the 50-percent payment, as 
                applicable, shall be made at the discretion of 
                each affected county by August 1, 2008, and 
                thereafter in accordance with paragraph (2)(A), 
                and transmitted to the Secretary concerned by 
                the Governor of each eligible State.
                  (B) Failure to transmit.--If an election for 
                an affected county is not transmitted to the 
                Secretary concerned by the date specified under 
                subparagraph (A), the affected county shall be 
                considered to have elected to receive a share 
                of the State payment, the county payment, or a 
                share of the State payment and the county 
                payment, as applicable.
          (2) Duration of election.--
                  (A) In general.--A county election to receive 
                a share of the 25-percent payment or 50-percent 
                payment, as applicable, shall be effective for 
                2 fiscal years.
                  (B) Full funding amount.--If a county elects 
                to receive a share of the State payment or the 
                county payment, the election shall be effective 
                for all subsequent fiscal years through fiscal 
                year 2011.
  (g) Source of Payment Amounts.--The payment to an eligible 
State or eligible county under this section for a fiscal year 
shall be derived from--
          (1) any revenues, fees, penalties, or miscellaneous 
        receipts, exclusive of deposits to any relevant trust 
        fund, special account, or permanent operating funds, 
        received by the Federal Government from activities by 
        the Bureau of Land Management or the Forest Service on 
        the applicable Federal land;
          (2) for fiscal year 2008, any funds appropriated to 
        carry out this section; and
          (3) to the extent of any shortfall, out of any 
        amounts in the Treasury of the United States not 
        otherwise appropriated.
  (h) Distribution and Expenditure of Payments.--
          (1) Distribution method.--A State that receives a 
        payment under this section shall distribute the 
        appropriate payment amount among the appropriate 
        counties in the State in accordance with--
                  (A) the Act of May 23, 1908 (16 U.S.C. 500); 
                and
                  (B) section 13 of the Act of March 1, 1911 
                (36 Stat. 963; 16 U.S.C. 500).
          (2) Expenditure purposes.--Subject to paragraph (3), 
        payments received by a State under this section and 
        distributed to counties in accordance with paragraph 
        (1), and payments received directly by an eligible 
        county under this section, shall be expended in the 
        same manner in which 25-percent payments or 50-percent 
        payments, as applicable, are required to be expended.
          (3) Reservation of portion of payments.--Each 
        eligible county receiving a payment under this section 
        or a portion of a State's payment under this section 
        shall reserve not less than 15 percent of the amount 
        received for expenditure in accordance with titles II 
        and III of the Secure Rural Schools and Community Self-
        Determination Act of 2000 (16 U.S.C. 500 note; Public 
        Law 106-393).
  (i) Time for Payment.--The payments required under this 
section for a fiscal year shall be made as soon as practicable 
after the end of that fiscal year.

           *       *       *       *       *       *       *

                              ----------                              


SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF 2000

           *       *       *       *       *       *       *


              TITLE II--SPECIAL PROJECTS ON FEDERAL LANDS

SEC. 201. DEFINITIONS.

   In this title:
          (1) Participating county.--The term ``participating 
        county'' means an eligible county that elects under 
        section 102(d)(1)(B)(i) or 103(c)(1)(B)(i) to expend a 
        portion of the Federal funds received under section 102 
        or 103 in accordance with this title or that is 
        required to reserve funds under section 6908(h)(3) of 
        title 31, United States Code, or section 4(e) of the 
        Public Land Communities Transition Act of 2007.
          (2) Project funds.--The term ``project funds'' means 
        all funds an eligible county elects under sections 
        102(d)(1)(B)(i) and 103(c)(1)(B)(i) to reserve for 
        expenditure in accordance with this title or reserves 
        under section 6908(h)(3) of title 31, United States 
        Code, or section 4(e) of the Public Land Communities 
        Transition Act of 2007 for expenditure in accordance 
        with this title.

           *       *       *       *       *       *       *


SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

  (a) Submission of Project Proposals to Secretary Concerned.--
          (1) Projects funded using project funds.--Not later 
        than September 30 for fiscal year 2001, and each 
        September 30 thereafter for each succeeding fiscal year 
        through fiscal year [2007] 2011, each resource advisory 
        committee shall submit to the Secretary concerned a 
        description of any projects that the resource advisory 
        committee proposes the Secretary undertake using any 
        project funds reserved by eligible counties in the area 
        in which the resource advisory committee has geographic 
        jurisdiction.

           *       *       *       *       *       *       *


SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY CONCERNED.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Implementation of Approved Projects.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Merchantable material contracting pilot 
        program.--
                  (A)  * * *
                  (B) Annual percentages.--Under the pilot 
                program, the Secretary concerned shall ensure 
                that, on a nationwide basis, not less than the 
                following percentage of all approved projects 
                involving the sale of merchantable material are 
                implemented using separate contracts:
                          (i)  * * *

           *       *       *       *       *       *       *

                          (vi) For fiscal year [2007] 2011, 50 
                        percent.

           *       *       *       *       *       *       *


SEC. 207. AVAILABILITY OF PROJECT FUNDS.

  (a) Submission of Proposed Projects To Obligate Funds.--By 
September 30 of each fiscal year through fiscal year [2007] 
2011, a resource advisory committee shall submit to the 
Secretary concerned pursuant to section 203(a)(1) a sufficient 
number of project proposals that, if approved, would result in 
the obligation of at least the full amount of the project funds 
reserved by the participating county in the preceding fiscal 
year.

           *       *       *       *       *       *       *


SEC. 208. TERMINATION OF AUTHORITY.

  The authority to initiate projects under this title shall 
terminate on September 30, [2007] 2011. Any project funds not 
obligated by September 30, [2008] 2012, shall be deposited in 
the Treasury of the United States.

                       TITLE III--COUNTY PROJECTS

SEC. 301. DEFINITIONS.

   In this title:
          (1) Participating county.--The term ``participating 
        county'' means an eligible county that elects under 
        section 102(d)(1)(B)(ii) or 103(c)(1)(B)(ii) to expend 
        a portion of the Federal funds received under section 
        102 or 103 in accordance with this title or that is 
        required to reserve funds under section 6908(h)(3) of 
        title 31, United States Code, or section 4(e) of the 
        Public Land Communities Transition Act of 2007.
          (2) County funds.--The term ``county funds'' means 
        all funds an eligible county elects under sections 
        102(d)(1)(B)(ii) and 103(c)(1)(B)(ii) to reserve for 
        expenditure in accordance with this title or reserves 
        under section 6908(h)(3) of title 31, United States 
        Code, or section 4(e) of the Public Land Communities 
        Transition Act of 2007 for expenditure in accordance 
        with this title.

           *       *       *       *       *       *       *


SEC. 303. TERMINATION OF AUTHORITY.

  The authority to initiate projects under this title shall 
terminate on September 30, [2007] 2011. Any county funds not 
obligated by September 30, [2008] 2012 shall be available to be 
expended by the county for the uses identified in section 
302(b).

           *       *       *       *       *       *       *