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                                                       Calendar No. 80


115th Congress}                                            { Report
                                 SENATE
 1st Session  }                                            { 115-117

======================================================================
 
          ALASKA MENTAL HEALTH TRUST LAND EXCHANGE ACT OF 2017

                                _______
                                

                 June 22, 2017.--Ordered to be printed

                                _______
                                

  Ms. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 131]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 131) to provide for the exchange of 
certain National Forest System land and non-Federal land in the 
State of Alaska, and for other purposes, having considered the 
same, reports favorably thereon with an amendment in the nature 
of a substitute and recommends that the bill, as amended, do 
pass.
    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alaska Mental Health Trust Land 
Exchange Act of 2017''.

SEC. 2. PURPOSE.

    The purpose of this Act is to facilitate and expedite the exchange 
of land between the Alaska Mental Health Trust and the Secretary of 
Agriculture in accordance with this Act--
          (1) to secure Federal ownership and protection of non-Federal 
        land in the State of Alaska that has significant natural, 
        scenic, watershed, recreational, wildlife, and other public 
        values by--
                  (A) retaining the undeveloped natural character of 
                the non-Federal land; and
                  (B) preserving recreational trails for hiking, 
                biking, and skiing;
          (2) to create jobs and provide economic opportunities for 
        resource use in more remote areas of the State; and
          (3) to facilitate the goals and objectives of the Alaska 
        Mental Health Trust.

SEC. 3. DEFINITIONS.

    In this Act:
          (1) Alaska mental health trust.--The term ``Alaska Mental 
        Health Trust'' means the Alaska Mental Health Trust Authority, 
        an agency of the State.
          (2) Federal land.--The term ``Federal land'' means the 
        following 7 parcels of National Forest System land, as 
        generally depicted on maps 7 through 9, comprising a total of 
        approximately 20,580 acres:
                  (A) The parcel generally depicted as ``Naukati Phase 
                1'' on map 8, comprising approximately 2,400 acres.
                  (B) The parcel generally depicted as ``West Naukati'' 
                on map 8, comprising approximately 4,182 acres.
                  (C) The parcel generally depicted as ``North 
                Naukati'' on map 8, comprising approximately 1,311 
                acres.
                  (D) The parcel generally depicted as ``East Naukati/
                2016 Naukati addition'' on map 8, comprising 
                approximately 1,067 acres.
                  (E) The parcel generally depicted as ``Central 
                Naukati'' on map 8, comprising approximately 1,858 
                acres.
                  (F) The parcel generally depicted as ``Hollis'' on 
                map 9, comprising approximately 1,538 acres.
                  (G) The parcel generally depicted as ``Shelter Cove 
                Area'' on map 7, comprising approximately 8,224 acres.
          (3) Map.--The term ``map'' means the applicable map prepared 
        by the Alaska Region of the Forest Service to accompany this 
        Act--
                  (A) numbered 1, 2, 3, 4, 5, 6, 7, 8, or 9 and dated 
                March 3, 2017; or
                  (B) numbered 10 and dated March 9, 2017.
          (4) Non-federal land.--The term ``non-Federal land'' means 
        the following 20 parcels of non-Federal land, as generally 
        depicted on maps 1 through 6 and map 10, comprising a total of 
        approximately 18,258 acres:
                  (A) The parcel generally depicted as parcel K-1 on 
                map 1, comprising approximately 1,878 acres.
                  (B) The parcel generally depicted as parcel K-2 on 
                map 1, comprising approximately 707 acres.
                  (C) The parcel generally depicted as parcel K-3 on 
                map 1, comprising approximately 901 acres, including 
                the 12-acre conservation easement described in section 
                4(e)(1).
                  (D) The parcel generally depicted as parcel K-4A on 
                map 1, comprising approximately 3,180 acres.
                  (E) The parcel generally depicted as parcel P-1A on 
                map 2, comprising approximately 3,174 acres, including 
                the administrative site described in section 5(c).
                  (F) The parcel generally depicted as parcel P-1B on 
                map 2, comprising approximately 144 acres.
                  (G) The parcel generally depicted as parcel P-2B on 
                map 2, comprising approximately 181 acres.
                  (H) The parcel generally depicted as parcel P-3B on 
                map 2, comprising approximately 92 acres.
                  (I) The parcel generally depicted as parcel P-4 on 
                map 2, comprising approximately 280 acres.
                  (J) The parcel generally depicted as parcel W-1 on 
                map 3, comprising approximately 204 acres.
                  (K) The parcel generally depicted as parcel W-2 on 
                map 3, comprising approximately 104 acres.
                  (L) The parcel generally depicted as parcel W-3 on 
                map 3, comprising approximately 63 acres.
                  (M) The parcel generally depicted as parcel W-4 on 
                map 3, comprising approximately 700 acres.
                  (N) The parcel generally depicted as parcel S-2 on 
                map 4, comprising approximately 284 acres.
                  (O) The parcel generally depicted as parcel S-3 on 
                map 4, comprising approximately 109 acres.
                  (P) The parcel generally depicted as parcel S-4 on 
                map 4, comprising approximately 26 acres.
                  (Q) The parcel generally depicted as parcel MC-1 on 
                map 5, comprising approximately 169 acres.
                  (R) The parcel generally depicted as parcel J-1B on 
                map 6, comprising approximately 2,261 acres.
                  (S) The parcel generally depicted as parcel J-1A on 
                map 6, comprising approximately 428 acres.
                  (T) The parcel generally depicted as parcel NB-1 on 
                map 10, comprising approximately 3,374 acres.
          (5) Secretary.--The term ``Secretary'' means the Secretary of 
        Agriculture.
          (6) State.--The term ``State'' means the State of Alaska.

SEC. 4. LAND EXCHANGE.

    (a) In General.--If the Alaska Mental Health Trust offers to convey 
to the Secretary, in the 2 phases described in subsection (n), all 
right, title, and interest of the Alaska Mental Health Trust in and to 
the non-Federal land, the Secretary shall--
          (1) accept the offer; and
          (2) offer to exchange with the Alaska Mental Health Trust, in 
        the 2 phases described in subsection (n), all right, title, and 
        interest of the United States in and to the Federal land.
    (b) Condition on Acceptance.--Title to any non-Federal land 
conveyed by the Alaska Mental Health Trust to the Secretary under 
subsection (a) shall be in a form that is acceptable to the Secretary.
    (c) Valid Existing Rights.--The conveyances under subsection (a) 
shall be subject to any valid existing rights, reservations, rights-of-
way, or other encumbrances of third parties in, to, or on the Federal 
land and the non-Federal land as of the date of enactment of this Act.
    (d) Reciprocal Road Easements.--
          (1) In general.--The Secretary and the Alaska Mental Health 
        Trust shall exchange at no cost reciprocal easements on 
        existing roads as necessary to access the parcels each party 
        acquires in the exchange.
          (2) Public access.--The reciprocal easements exchanged under 
        paragraph (1) shall provide for public access.
          (3) Cost share agreement.--The Secretary and the Alaska 
        Mental Health Trust may enter into a separate cost-share 
        agreement to cover the cost of road maintenance with respect to 
        the reciprocal easements exchanged under paragraph (1).
    (e) K-3 Parcel Landfill Buffer.--
          (1) In general.--As a condition of the exchange under 
        subsection (a), in conveying the parcel of non-Federal land 
        described in section 3(4)(C) to the United States, the Alaska 
        Mental Health Trust shall grant to the United States a 300-foot 
        conservation easement abutting that parcel along the interface 
        of the parcel and the City of Ketchikan landfill (as in 
        existence on the date of enactment of this Act), as generally 
        depicted on map 1.
          (2) Development and ownership.--The conservation easement 
        described in paragraph (1) shall provide that the land covered 
        by the easement remains undeveloped and in the ownership of the 
        Alaska Mental Health Trust.
          (3) Equalization.--The value of the conservation easement 
        described in paragraph (1) shall be included in the value of 
        the non-Federal land for purposes of equalizing the values of 
        the Federal land and the non-Federal land under subsection (j).
    (f) Research Easements.--
          (1) In general.--In order to allow time for the completion of 
        research activities of the Forest Service that are ongoing as 
        of the date of enactment of this Act, in conveying the Federal 
        land to the Alaska Mental Health Trust under subsection (a), 
        the Secretary shall reserve research easements for the 
        following Forest Service study plots (as in existence on the 
        date of enactment of this Act):
                  (A) The Sarkar research easement study plot on the 
                parcel of Federal land described in section 3(2)(B), as 
                generally depicted on map 8, to remain in effect for 
                the 10-year period beginning on the date of enactment 
                of this Act.
                  (B) The Naukati commercial thinning study plot on the 
                parcel of Federal land described in section 3(2)(B), as 
                generally depicted on map 8, to remain in effect for 
                the 15-year period beginning on the date of enactment 
                of this Act.
                  (C) The POW Yatuk study plot on the parcel of Federal 
                land described in section 3(2)(A), as generally 
                depicted on map 8, to remain in effect for the 10-year 
                period beginning on the date of enactment of this Act.
                  (D) The POW Naukati study plot on the parcel of 
                Federal land described in section 3(2)(D), as generally 
                depicted on map 8, to remain in effect for the 10-year 
                period beginning on the date of enactment of this Act.
                  (E) The Revilla George study plot on the parcel of 
                Federal land described in section 3(2)(G), as generally 
                depicted on map 8, to remain in effect for the 10-year 
                period beginning on the date of enactment of this Act.
          (2) Prohibited activities.--The Alaska Mental Health Trust 
        shall not construct any new road or harvest timber on any study 
        plot covered by a research easement described in paragraph (1) 
        during the period described in subparagraph (A), (B), (C), (D), 
        or (E) of that paragraph, as applicable.
    (g) Area of Karst Concern.--
          (1) In general.--In conveying the parcels of Federal land 
        described in subparagraphs (A) and (D) of section 3(2) to the 
        Alaska Mental Health Trust under subsection (A), the Secretary 
        shall reserve to the United States a conservation easement that 
        shall protect the aquatic and riparian habitat within the area 
        labeled ``Conservation Easement'', as generally depicted on map 
        8.
          (2) Prohibited activities.--The conservation easement 
        described in paragraph (1) shall prohibit within the area 
        covered by the conservation easement--
                  (A) new road construction and timber harvest within 
                100 feet of any anadromous water bodies (including 
                underground water bodies); and
                  (B) commercial mineral extraction.
    (h) Compliance With Applicable Law.--Prior to completing each phase 
of the land exchange described in subsection (N), the Secretary shall 
complete, for the land to be conveyed in the applicable phase, any 
necessary land surveys and required preexchange clearances, reviews, 
mitigation activities, and approvals relating to--
          (1) threatened and endangered species;
          (2) cultural and historic resources;
          (3) wetland and floodplains; and
          (4) hazardous materials.
    (i) Appraisals.--
          (1) In general.--Not later than 90 days after the date of 
        enactment of this Act--
                  (A) the Secretary and the Alaska Mental Health Trust 
                shall select an appraiser to conduct appraisals of the 
                Federal land and the non-Federal land; and
                  (B) the Secretary shall issue all appraisal 
                instructions for those appraisals.
          (2) Requirements.--
                  (A) In general.--All appraisals under paragraph (1) 
                shall be conducted in accordance with nationally 
                recognized appraisal standards, including--
                          (i) the Uniform Appraisal Standards for 
                        Federal Land Acquisitions; and
                          (ii) the Uniform Standards of Professional 
                        Appraisal Practice.
                  (B) Final appraised value.--
                          (i) In general.--During the 3-year period 
                        beginning on the date on which the final 
                        appraised values of the Federal land and the 
                        non-Federal land for each phase of the exchange 
                        described in subsection (n) are approved by the 
                        Secretary, the Secretary shall not be required 
                        to reappraise or update the final appraised 
                        values of the Federal land and the non-Federal 
                        land.
                          (ii) Exchange agreement.--After the date on 
                        which an agreement to exchange the Federal land 
                        and non-Federal is entered into under this Act, 
                        no reappraisal or updates to the final 
                        appraised values of the Federal land and the 
                        non-Federal land approved by the Secretary 
                        shall be required.
          (3) Public review.--Before completing each phase of the land 
        exchange described in subsection (n), the Secretary shall make 
        available for public review summaries of the appraisals of the 
        Federal land and the non-Federal land for the applicable phase.
    (j) Equal Value Land Exchange.--
          (1) In general.--The value of the Federal land and the non-
        Federal land to be exchanged under subsection (A) shall be--
                  (A) equal; or
                  (B) equalized in accordance with this subsection.
          (2) Surplus of federal land value.--
                  (A) In general.--If the final appraised value of the 
                Federal land exceeds the final appraised value of the 
                non-Federal land in phase 2 of the exchange (after 
                applying any cash equalization credit or debit from 
                phase 1 of the exchange under subsection (n)(2)), the 
                Federal land shall be adjusted by removing 1 or more 
                parcels, or 1 or more portions of parcels, as 
                determined by the Alaska Mental Health Trust, with the 
                concurrence of the Secretary, in accordance with 
                subparagraph (B) until, to the maximum extent 
                practicable, approximate equal value of the Federal 
                land and non-Federal land is achieved.
                  (B) Order of priority.--The parcels of Federal land 
                shall be removed under subparagraph (A) in the reverse 
                order in which the parcels are listed in section 3(2), 
                beginning with subparagraph (G).
          (3) Surplus of non-federal land value.--
                  (A) In general.--If the final appraised value of the 
                non-Federal land exceeds the final appraised value of 
                the Federal land in phase 2 of the exchange (after 
                applying any cash equalization credit or debit from 
                phase 1 of the exchange under subsection (n)(2)), the 
                non-Federal land shall be adjusted by removing 1 or 
                more parcels, or 1 or more portions of parcels, as 
                determined by the Alaska Mental Health Trust, with the 
                concurrence of the Secretary, in accordance with 
                subparagraph (B) until, to the maximum extent 
                practicable, approximate equal value of the Federal 
                land and non-Federal land is achieved.
                  (B) Order of priority.--The parcels of non-Federal 
                land shall be removed under subparagraph (A) in the 
                reverse order in which the parcels are listed in 
                section 3(4), beginning with subparagraph (T).
                  (C) Waiver of cash equalization.--In order to 
                expedite completion of the exchange, if the values of 
                the Federal land and the non-Federal land cannot be 
                equalized under this paragraph, the Alaska Mental 
                Health Trust may, at its sole discretion, elect to 
                waive any cash equalization payment that would 
                otherwise be due from the United States under paragraph 
                (4).
          (4) Remaining difference.--Any remaining difference in value 
        after adjusting the Federal land or non-Federal land under 
        paragraph (2)(A) or (3)(A), respectively, shall be equalized 
        by--
                  (A) removal of a portion of a parcel of the Federal 
                land or the non-Federal land, as applicable, as 
                determined by the Alaska Mental Health Trust, with the 
                concurrence of the Secretary;
                  (B) the payment of a cash equalization, as necessary, 
                by the Secretary or the Alaska Mental Health Trust, as 
                appropriate, in accordance with section 206(b) of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1716(b)); or
                  (C) a combination of the methods described in 
                subparagraphs (A) and (B), as determined by the Alaska 
                Mental Health Trust, with the concurrence of the 
                Secretary.
    (k) Costs.--As a condition of the land exchange under this Act, the 
Alaska Mental Health Trust shall agree to pay, without compensation, 
all costs that are associated with each phase of the exchange described 
in subsection (n), including--
          (1) all costs to complete the land surveys, appraisals, and 
        environmental reviews described in subsection (h) such that the 
        exchange may be completed in accordance with the deadlines 
        described in subsection (n); and
          (2) on request of the Secretary, reimbursement of costs for 
        agency staff, additional agency staff, or third-party 
        contractors appropriate such that the exchange may be completed 
        in accordance with the deadlines described in subsection (n).
    (l) Land Surveys, Approvals, Uses.--
          (1) Survey instructions.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary of the Interior 
        shall issue survey instructions to assist in the timely 
        completion of all land surveys necessary to complete the land 
        exchange under subsection (A) in accordance with the deadlines 
        described in subsection (n).
          (2) Surveys.--Unless otherwise agreed to by the Secretary and 
        the Alaska Mental Health Trust, after consultation with the 
        Secretary of the Interior, land surveys shall not be required 
        for--
                  (A) any portion of the boundaries of the non-Federal 
                land that is contiguous to--
                          (i) National Forest System land, as in 
                        existence on the date of enactment of this Act; 
                        or
                          (ii) land that has been surveyed or lotted as 
                        of the date of enactment of this Act;
                  (B) any portion of the boundaries of the Federal land 
                that is contiguous to--
                          (i) land owned as of the date of enactment of 
                        this Act by--
                                  (I) the Alaska Mental Health Trust; 
                                or
                                  (II) the State; or
                          (ii) land that has been surveyed or lotted as 
                        of the date of enactment of this Act;
                  (C) any portion of the boundaries that the Secretary 
                and the Alaska Mental Health Trust agree, after 
                consultation with the Secretary of the Interior, is 
                adequately defined by a survey, mapping, or aliquot 
                part, or other legal description; and
                  (D) any portion of the boundaries of the non-Federal 
                land that--
                          (i) the United States tentatively conveyed to 
                        the State without survey;
                          (ii) is being reconveyed to the United States 
                        in the land exchange under subsection (A); and
                          (iii) is not surveyed as of the date of 
                        enactment of this Act.
    (m) Parcel Adjustment.--If a portion of a parcel of the Federal 
land or the non-Federal land to be conveyed under subsection (A) cannot 
be conveyed due to the presence of hazardous materials--
          (1) the portion shall be removed from the exchange; and
          (2) the final exchange values shall be equalized in 
        accordance with subsection (J).
    (n) Land Exchange Phases.--
          (1) In general.--The land exchange under subsection (a) shall 
        be completed in 2 phases, as specifically described in 
        paragraphs (2) and (3).
          (2) Phase 1.--
                  (A) In general.--Subject to subparagraph (B), not 
                later than 1 year after the date of enactment of this 
                Act--
                          (i) the Secretary shall convey to the Alaska 
                        Mental Health Trust the parcel of Federal land 
                        described in section 3(2)(A); and
                          (ii) the Alaska Mental Health Trust shall 
                        simultaneously convey to the United States the 
                        parcels of non-Federal land described in 
                        subparagraphs (A) and (B) of section 3(4).
                  (B) Conditions.--Subparagraph (A) shall be subject to 
                the following conditions:
                          (i) The land conveyed under this subparagraph 
                        shall be appraised--
                                  (I) separately from the land 
                                described in paragraph (3); but
                                  (II) in accordance with the 
                                nationally recognized appraisal 
                                standards described in subsection 
                                (i)(2)(A).
                          (ii) Any cash equalization payment that would 
                        otherwise be necessary to be paid by the 
                        Secretary or the Alaska Mental Health Trust on 
                        the completion of the conveyance under this 
                        paragraph shall be--
                                  (I) deferred until the completion of 
                                the conveyance under paragraph (3); and
                                  (II) debited or credited, as 
                                appropriate, to any final land or cash 
                                equalization that may be due from 
                                either party on the completion of the 
                                conveyance under paragraph (3).
          (3) Phase 2.--Subject to subsection (j), not later than 2 
        years after the date of enactment of this Act--
                  (A) the Secretary shall convey to the Alaska Mental 
                Health Trust the Federal land described in 
                subparagraphs (B) through (G) of section 3(2); and
                  (B) the Alaska Mental Health Trust shall 
                simultaneously convey to the United States the non-
                Federal land described in subparagraphs (C) through (T) 
                of section 3(4).

SEC. 5. USE OF THE FEDERAL LAND AND NON-FEDERAL LAND.

    (a) Federal Land Conveyed to the Alaska Mental Health Trust.--On 
conveyance of the Federal land to the Alaska Mental Health Trust under 
this Act, the Federal land shall--
          (1) become the property of the Alaska Mental Health Trust; 
        and
          (2) be available for any use permitted under applicable law 
        (including regulations).
    (b) Non-Federal Land Acquired by the Secretary.--
          (1) In general.--On acquisition of the non-Federal land by 
        the Secretary under this Act, the non-Federal land shall--
                  (A) become part of the Tongass National Forest;
                  (B) be administered in accordance with the laws 
                applicable to the National Forest System; and
                  (C) be managed--
                          (i) to preserve--
                                  (I) the undeveloped natural character 
                                of the non-Federal land, except as 
                                provided in paragraph (3); and
                                  (II) the wildlife, watershed, and 
                                scenic values of the non-Federal land; 
                                and
                          (ii) to provide for recreational 
                        opportunities consistent with the purposes and 
                        values of the non-Federal land to be preserved 
                        under clause (i), including the development or 
                        maintenance of recreational trails as described 
                        in paragraph (3).
          (2) Boundary revision.--On acquisition of the non-Federal 
        land by the Secretary under this Act, the boundaries of the 
        Tongass National Forest shall be modified to reflect the 
        inclusion of the non-Federal land.
          (3) Recreational trails.--Nothing in this subsection 
        precludes the development or maintenance of recreational trails 
        for hiking, biking, or skiing.
    (c) Administrative Site.--On acquisition of the parcel of non-
Federal land described in section 3(4)(E), the Secretary shall set 
aside 42 acres of the parcel, in the location generally depicted on map 
2, as an administrative site for purposes of the future administrative 
needs of the Tongass National Forest.

SEC. 6. WITHDRAWAL.

    Subject to valid existing rights, the non-Federal land acquired by 
the Secretary under this Act shall be withdrawn from all forms of--
          (1) entry, appropriation, or disposal under the public land 
        laws;
          (2) location, entry, and patent under the mining laws; and
          (3) disposition under the mineral leasing, mineral materials, 
        and geothermal leasing laws.

SEC. 7. MISCELLANEOUS PROVISIONS.

    (a) Revocation of Orders; Withdrawal.--
          (1) Revocation of orders.--Any public land order or 
        administrative action that withdraws the Federal land from 
        appropriation or disposal under a public land law shall be 
        revoked to the extent necessary to permit the conveyance of the 
        Federal land.
          (2) Withdrawal.--
                  (A) In general.--If the Federal land or any Federal 
                interest in the non-Federal land is not withdrawn or 
                segregated from entry and appropriation under a public 
                land law (including logging and mineral leasing laws 
                and the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et 
                seq.)) as of the date of enactment of this Act, the 
                Federal land or Federal interest in the non-Federal 
                land shall be withdrawn, without further action by the 
                Secretary, from entry and appropriation.
                  (B) Termination.--The withdrawal under subparagraph 
                (A) shall be terminated--
                          (i) on the date of the completion of the 
                        phase of the land exchange described in section 
                        4(n) covering the applicable Federal land; or
                          (ii) if the Alaska Mental Health Trust 
                        notifies the Secretary in writing that the 
                        Alaska Mental Health Trust elects to withdraw 
                        from the land exchange under section 206(d) of 
                        the Federal Land Policy and Management Act of 
                        1976 (43 U.S.C. 1716(d)), on the date on which 
                        the Secretary receives the notice of the 
                        election.
    (b) Maps, Estimates, Descriptions.--
          (1) Minor errors.--The Secretary and the Alaska Mental Health 
        Trust, by mutual agreement, may correct minor errors in any 
        map, acreage estimate, or description of any land conveyed or 
        exchanged under this Act.
          (2) Conflict.--If there is a conflict between a map, acreage 
        estimate, or description of land in this Act, the map shall be 
        given effect unless the Secretary and the Alaska Mental Health 
        Trust mutually agree otherwise.
          (3) Availability.--On the date of enactment of this Act, the 
        Secretary shall file and make available for public inspection 
        in the office of the Supervisor of the Tongass National Forest 
        each map.

                                PURPOSE

    The purpose of S. 131 is to facilitate and expedite a land 
exchange in Southeast Alaska between the Alaska Mental Health 
Trust and the Secretary of Agriculture, under which the Alaska 
Mental Health Trust would acquire National Forest lands in the 
Tongass National Forest to be used to generate revenue for 
mental health treatment and care, and the United States would 
acquire other lands near communities with important scenic, 
conservation, wildlife, and recreational values.

                          BACKGROUND AND NEED

    The Alaska Mental Health Trust (Trust) is a state 
corporation established in 1956 to administer a perpetual trust 
established for the benefit of Alaskans with mental illness, 
developmental disabilities, chronic alcoholism, Alzheimer's 
disease, and dementia. The Trust controls nearly one million 
acres of land in Alaska, 240,000 acres of which are in 
Southeast. For nearly a decade, the Trust has been seeking to 
exchange approximately 18,000 acres of forested lands that it 
owns near downtown Ketchikan, Juneau, Petersburg, Wrangell, 
Sitka, and Myers Chuck for National Forest lands in Ketchikan 
and on Prince of Wales Island near Naukati and Hollis.
    The Trust formally proposed a land exchange to the U.S. 
Forest Service in 2012. On June 30, 2015, the Forest Service 
and the Trust completed the ``Agreement To Initiate'' for an 
administrative land exchange. That administrative exchange 
process could take five or six years to complete. Given delays 
in Forest Service timber sale planning, there are serious 
concerns that there will not be enough timber available to 
support the existing timber industry in Southeast in the near 
term.
    The 18,000 acres owned by the Trust in Southeast would 
generate the most value for the Trust if used for timber 
production. However, these lands contain some of the last 
remaining parcels of old-growth timber stands along the Inside 
Passage. Conserving the old growth stands would preserve 
wildlife habitat and watersheds and aid recreation and tourism 
in the area. Exchanging the lands owned by the Trust would 
protect a number of popular recreation trails in the region: 
the Deer Mountain Trail in Ketchikan, the Rainbow Falls Trail 
in Wrangell, the Sitka Cross and Haven Hill Trails in Sitka, 
the Mt. Bradley Trail in Juneau, and the Raven Trail in 
Petersburg.
    The legislation will expedite the exchange by breaking it 
into two achievable phases, specifying the exact exchange 
parcels, and addressing and simplifying complex land survey, 
value equalization, cost, and post-exchange management issues. 
S. 131 mandates standard Federal appraisals and requires the 
appraised value of all lands exchanged to be equal. Value 
equalization will be achieved by deleting Federal or Trust 
lands from a priority list specified by Congress. Phase 1, 
required to be completed within one year of passage, will 
exchange 2,400 acres to the Trust at East Naukati on Prince of 
Wales Island in return for the Federal government gaining 3,374 
acres. All other lands will be conveyed within two years after 
the bill's enactment.

                          LEGISLATIVE HISTORY

    Senators Murkowski and Sullivan introduced S. 131 on 
January 12, 2017.
    Companion legislation, H.R. 513, was introduced in the 
House of Representatives by Representative Young on January 12, 
2017.
    In the 114th Congress, Senators Murkowski and Sullivan 
introduced a similar measure, S. 3006, on May 26, 2017. The 
measure was also included in S. 3203, the Alaska Economic 
Development and Access to Resources Act, introduced by Senators 
Murkowski and Sullivan on July 13, 2016. The Committee on 
Energy and Natural Resources held a hearing on S. 3006 and S. 
3203 on September 22, 2016.
    The Committee on Energy and Natural Resources met in open 
business session, on March 30, 2017, and ordered S. 131 
favorably reported, as amended.

                          COMMITTEE AMENDMENT

    During its consideration of S. 131, the Committee adopted 
an amendment in the nature of a substitute to remove lands 
owned by the Trust at Katlian Bay in Sitka from the exchange 
and to add lands owned by the Trust at No Name Bay on Kuiu 
Island. The amendment also provides further direction regarding 
the management of the non-federal lands by the Forest Service 
to preserve scenic, wildlife and recreation values. The 
amendment is further described in the section-by-section 
analysis.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on March 30, 2017, by a voice vote of a 
quorum present, recommends that the Senate pass S. 131, if 
amended as described herein.

                      SECTION BY SECTION ANALYSIS

    Section 1 provides the short title.
    Section 2 provides the purposes of the bill.
    Section 3 defines key terms. In particular, the term 
``Federal Land'' means the 7 parcels of National Forest System 
land, as generally depicted on maps 7 through 9, comprising a 
total of approximately 20,580 acres that would be conveyed to 
the Alaska Mental Health Trust under the exchange, and the term 
``Non-Federal Land'' means the 20 parcels of non-Federal land, 
as generally depicted on maps 1 through 6 and map 10, 
comprising a total of approximately 18,258 acres.
    Section 4 describes the terms of the land exchange.
    Subsection (A) provides that if the Alaska Mental Health 
Trust offers to convey, to the Secretary of Agriculture, the 
lands owned by the Trust and proposed for exchange, the 
Secretary of Agriculture shall accept the offer and convey the 
Federal lands to the Trust, in the two phases described in this 
Act.
    Subsection (B) requires the titles to the lands to be in a 
form acceptable to the Secretary.
    Subsection (C) provides that all conveyances are subject to 
valid existing rights.
    Subsection (D) provides for reciprocal road easements and 
describes the terms of those easements.
    Subsections (E) through (G) describe the terms of several 
easements and agreements, including the requirement that the 
Trust provide a conservation easement abutting a landfill in 
Ketchikan, Alaska, that it maintain research easements for 10 
or 15 years on tracts at Naukati and Sarkar on Prince of Wales 
and another site on Revilla Island, and that it protect karst 
deposits.
    Subsection (H) requires certain environmental reviews on 
the lands to be exchanged be completed prior to completing each 
phase of the land exchange.
    Subsection (I) describes the process for appraising the 
lands to be exchanged and requires that summaries be made 
available to the public before completing each phase of the 
exchange.
    Subsection (J) requires that the value of the Federal land 
and non-Federal land to be exchanged under the Act be equal or 
otherwise equalized in accordance with the terms described in 
this subsection.
    Subsection (K) requires the Trust to pay the costs of the 
exchange.
    Subsections (L) and (M) describe the land survey process 
for the lands to be exchanged and the adjustments that shall be 
made if hazardous materials are found.
    Subsection (N) describes the two land exchange phases.
    Section 5 describes how the Federal land and non-Federal 
land are to be managed post-exchange.
    Section 6 withdraws all lands being acquired by the United 
States from the public land laws; mining laws; and mineral 
leasing, mineral materials, and geothermal leasing laws.
    Section 7 includes miscellaneous provisions related to the 
land exchange, including provisions for the revocation of 
public land orders and previous withdrawals and provisions 
covering the use and minor corrections to the maps referenced 
in the legislation.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:
    S. 131 would require the Forest Service to convey up to 
21,500 acres of federal land to the Alaska Mental Health Trust 
in exchange for up to 18,300 acres of land owned by the trust.
    Under the bill, the Forest Service would be required to 
complete the exchange at the request of the trust under the 
condition that the parcels to be exchanged are of equal value. 
If the parcels are not of equal value, the number of acres 
conveyed by the party with the higher valued land would be 
reduced. Any lands received by the Forest Service in the 
exchange would be managed for conservation purposes.
    CBO expects that the land exchange would be completed in 
2019. Based on an analysis of information from the agency, we 
estimate that under current law the lands that would be 
conveyed by the Forest Service will generate receipts from 
special use permits totaling roughly $200,000 over the 2019-
2027 period. The agency has the authority to spend about 35 
percent of those proceeds. The remaining proceeds, which CBO 
estimates would total less than $150,000, would be deposited in 
the Treasury. Because those receipts deposited in the Treasury 
would not be collected under the bill, CBO estimates that 
enacting S. 131 would increase direct spending by that amount. 
Therefore, pay-as-you-go procedures apply. Enacting the 
legislation would not affect revenues.
    CBO estimates that enacting S. 131 would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2028.
    S. 131 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would benefit the State of Alaska. The land exchange authorized 
in the bill could increase revenue from resource development on 
state trust lands; that revenue would be used to fund mental 
health services in the state. Any costs incurred by the State 
of Alaska associated with the land exchange or with agreements 
with the federal government would result from voluntary 
commitments.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by H. Samuel Papenfuss, 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 S. 131.
    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 provision. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 131, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 131, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    Because S. 131 is similar to legislation considered by the 
Committee in the 114th Congress, the Committee did not request 
Executive Agency views. The testimony provided by the Forest 
Service at the hearing before the Committee on Energy and 
Natural Resources on September 22, 2016, follows:

   Statement of Leslie Weldon; Deputy Chief, National Forest System; 
             Forest Service; U.S. Department of Agriculture

    Madam Chairman and members of the Committee, thank you for 
the opportunity to present the views of the U.S. Department of 
Agriculture (USDA) regarding S. 346, S. 2991, S. 3192, S. 3203, 
S. 3254, and S. 3273.


  s. 3203, ``the alaska economic development and access to resources 
                                 act''


    The USDA Forest Service will address Title V of S. 3203 in 
this testimony. The other titles of the bill are addressed in 
the Department of the Interior's testimony.


                              section 501


    The Department of Agriculture opposes Section 501, which 
exempts National Forest System lands in the State of Alaska 
from the application of the 2001 Roadless Area Conservation 
Rule (the ``Roadless Rule'').
    The Roadless Rule protects and conserves inventoried 
roadless areas of national forests by prohibiting road 
construction, reconstruction, and timber harvest in inventoried 
roadless areas. These activities have a high likelihood of 
altering and fragmenting landscapes, resulting in immediate, 
long-term loss of roadless area values and characteristics. 
Notwithstanding the Rule's prohibitions, a road may be 
constructed or reconstructed, and timber may be cut, sold, or 
removed, in an inventoried roadless area under certain 
circumstances. Application of the Roadless Rule to national 
forests in Alaska has not hindered approval of appropriate 
access or removal of timber in accordance with the Rule.
    The Chief of the Forest Service reviews activities planned 
in inventoried roadless areas to ensure that the agency is 
applying a nationally consistent approach to implementing the 
Roadless Rule and that the agency is complying with its mandate 
to protect roadless area characteristics. The national forests 
in Alaska have requested and received approval for 
approximately 46 projects within inventoried roadless areas 
since 2011, including, among other things, several 
hydroelectric and mineral exploration projects and an intertie 
project. These projects have been cleared by the Chief in a 
timely manner. Consequently, exempting the national forests in 
Alaska from the Roadless Rule is unwarranted.


                              section 502


    This section directs the USDA Forest Service to conduct a 
land exchange with the Alaska Mental Health Trust. The 
Department supports the goal of this legislation to preserve 
significant natural, scenic, and recreational values in 
southeastern Alaska communities through a land exchange with 
the Alaska Mental Health Trust. Since introduction of the bill, 
the USDA Forest Service and executives of the Alaska Mental 
Health Trust Authority have worked diligently to refine the 
technical details of the land exchange. However, the Department 
cannot support the bill as currently written. We would 
appreciate an opportunity to work with the Committee to make 
technical changes in the language to meet the objectives of the 
bill.


                              section 503


    This section directs the USDA Forest Service to convey up 
to 2,000,000 acres of the Tongass National Forest to the State 
of Alaska for use as state forest land. Alaska would pay market 
value for these lands, or convert lands selected by the State 
under section 6 of the Alaska Statehood Act, Pub. L. 85-508, as 
a credit towards conveyance of National Forest System land.
    The Department opposes this section of the bill. Conversion 
of these lands to state forest land jeopardizes the values and 
benefits provided to Alaska by the multiple-use mandate of the 
USDA Forest Service to sustain the health, resilience and 
productivity of the national forests for current and future 
generations. It would also alter the balance struck in the 
Alaska Statehood Act, which limited the State's entitlement to 
lands within national forests in Alaska to 400,000 acres, which 
have already been selected by the State. The Tongass National 
Forest is a major economic driver in southeast Alaska. Its 
17,000 miles of undammed creeks, rivers and lakes provide 
optimal habitat for five species of salmon, which are critical 
to a seafood industry that in 2014 provided 4,372 jobs with 
$259 million in earnings. The Tongass National Forest also is 
the largest intact temperate rainforest on Earth, containing a 
diversity of landscapes, more than 70 species of mammals, 275 
species of birds, and unmatched recreation opportunities. 
Visitors from around the world come to sightsee, fish, hike, 
hunt, camp, view wildlife, and enjoy all that the Tongass 
National Forest offers, contributing over a billion dollars in 
visitor spending to Alaska's tourism industry and generating 
6,923 jobs that provide $189 million in earnings.
    We have invested in collaborative approaches to better 
manage the forest, develop stronger projects, build public 
support for forest management and restoration, and reduce the 
risk of litigation. We continue to work collaboratively with 
communities, industry, environmental groups and others to 
supply wood to local mills, conserve watersheds, accomplish 
forest restoration, and provide employment and opportunities 
along with a range of other benefits.
    There are several collaborative groups currently engaged in 
large-scale landscape planning to develop an ecologically, 
socially, and economically sustainable forest management 
strategy with an emphasis on young growth management, while 
providing the necessary ``bridge'' timber for the existing 
infrastructure on the Tongass National Forest. It is the 
Department's goal to continue these collaborative efforts 
towards sustaining a robust timber economy, while also 
leveraging the multiple other uses of this national forest.

                        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 as ordered 
reported.

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