[Senate Report 117-56]
[From the U.S. Government Publishing Office]
Calendar No. 253
117th Congress } { Report
SENATE
2d Session } { 117-56
======================================================================
SKI HILL RESOURCES FOR ECONOMIC DEVELOPMENT ACT OF 2021
_______
January 19 (legislative day, January 18), 2022.--Ordered to be printed
_______
Mr. Manchin, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 1964]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1964), to amend the Omnibus Parks and
Public Lands Management Act of 1996 to provide for the
establishment of a Ski Area Fee Retention Account, 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 ``Ski Hill Resources for Economic
Development Act of 2021''.
SEC. 2. ESTABLISHMENT OF SKI AREA FEE RETENTION ACCOUNT.
(a) In General.--Section 701 of division I of the Omnibus Parks and
Public Lands Management Act of 1996 (16 U.S.C. 497c) is amended by
adding at the end the following:
``(k) Ski Area Fee Retention Account.--
``(1) Definitions.--In this subsection:
``(A) Account.--The term `Account' means the Ski Area
Fee Retention Account established under paragraph (2).
``(B) Covered Unit.--The term `covered unit' means
the unit of the National Forest System that collects
the ski area permit rental charge under this section.
``(C) Secretary.--The term `Secretary' means the
Secretary of Agriculture.
``(2) Establishment.--The Secretary of the Treasury shall
establish a special account in the Treasury, to be known as the
`Ski Area Fee Retention Account'.
``(3) Deposits.--Subject to paragraphs (4) and (5), a ski
area permit rental charge collected by the Secretary under this
section shall--
``(A) be deposited in the Account;
``(B) be available to the Secretary for use, without
further appropriation; and
``(C) remain available for the period of 4 fiscal
years beginning with the first fiscal year after the
fiscal year in which the ski area permit rental charge
is deposited in the Account under subparagraph (A).
``(4) Distribution of Amounts in the Account.--
``(A) Local Distribution of Funds.--
``(I) In General.--Except as provided in
subparagraph (C), the Secretary shall expend 80
percent of the ski area permit rental charges
deposited in the Account from a covered unit at
the covered unit in accordance with clause
(ii).
``(ii) Distribution.--Of the amounts made
available for expenditure under clause (i)--
``(I) 75 percent shall be used at the
covered unit for activities described
in paragraph (5)(A); and
``(II) 25 percent shall be used for
activities at the covered unit
described in paragraph (5)(B).
``(B) Agency-Wide Distribution of Funds.--The
Secretary shall expend 20 percent of the ski area
permit rental charges deposited in the Account from a
covered unit at any unit of the National Forest System
for an activity described in subparagraph (A) or (B) of
paragraph (5).
``(C) Reduction of Percentage.--
``(I) Reduction.--The Secretary shall
reduce the percentage otherwise
applicable under subparagraph (A)(i) to
not less than 60 percent if the
Secretary determines that the amount
otherwise made available under that
subparagraph exceeds the reasonable
needs of the covered unit for which
expenditures may be made in the
applicable fiscal year.
``(ii) Distribution of Funds.--The balance of
the ski area permit rental charges that are
collected at a covered unit, deposited into the
Account, and not distributed in accordance with
subparagraph (A) or (B) shall be available to
the Secretary for expenditure at any other unit
of the National Forest System in accordance
with the following:
``(I) 75 percent shall be used for
activities described in paragraph
(5)(A).
``(II) 25 percent shall be used for
activities described in paragraph
(5)(B).
``(5) Expenditures.--Amounts available to the Secretary for
expenditure from the Account shall be only used for--
``(A)(i) the administration of the Forest Service ski
area program, including--
``(I) the processing of an application for a
new ski area or a ski area improvement project,
including staffing and contracting for the
processing; and
``(II) administering a ski area permit
described in subsection (a);
``(ii) staff training for--
``(I) the processing of an application for--
``(aa) a new ski area;
``(bb) a ski area improvement
project; or
``(cc) a special use permit; or
``(II) administering--
``(aa) a ski area permit described in
subsection (a); or
``(bb) a special use permit;
``(iii) an interpretation activity, National Forest
System visitor information, a visitor service, or
signage;
``(iv) direct costs associated with collecting a ski
area permit rental charge or other fee collected by the
Secretary related to recreation;
``(v) planning for, or coordinating to respond to, a
wildfire in or adjacent to a recreation site,
particularly a ski area; or
``(vi) reducing the likelihood of a wildfire
starting, or the risks posed by a wildfire, in or
adjacent to a recreation site, particularly a ski area,
except through hazardous fuels reduction activities; or
``(B)(i) the repair, maintenance, or enhancement of a Forest
Service-owned facility, road, or trail directly related to
visitor enjoyment, visitor access, or visitor health or safety;
``(ii) habitat restoration directly related to
recreation;
``(iii) law enforcement related to public use and
recreation;
``(iv) the construction or expansion of parking
areas;
``(v) the processing or administering of a recreation
special use permit;
``(vi) avalanche information and education activities
carried out by the Secretary or nonprofit partners;
``(vii) search and rescue activities carried out by
the Secretary, a local government, or a nonprofit
partner; or
``(viii) the administration of leases under--
``(I) the Forest Service Facility Realignment
and Enhancement Act of 2005 (16 U.S.C. 580d
note; Public Law 109-54); and
``(II) section 8623 of the Agriculture
Improvement Act of 2018 (16 U.S.C. 580d note;
Public Law 115-334).
``(6) Limitation.--Amounts in the Account may not be used
for--
``(A) the conduct of wildfire suppression; or
``(B) the acquisition of land for inclusion in the
National Forest System.
``(7) Effect.--
``(A) In General.--Nothing in this subsection affects
the applicability of section 7 of the Act of April 24,
1950 (commonly known as the `Granger-Thye Act') (16
U.S.C. 580d), to ski areas on National Forest System
land.
``(B) Supplemental Funding.--Rental charges retained
and expended under this subsection shall supplement
(and not supplant) appropriated funding for the
operation and maintenance of each covered unit.
``(C) Cost Recovery.--Nothing in this subsection
affects any cost recovery under any provision of law
(including regulations) for processing an application
for or monitoring compliance with a ski area permit or
other recreation special use permit.''.
(b) Effective Date.--This section (including the amendments made by
this section) shall take effect on the date that is 60 days after the
date of enactment of this Act.
Purpose
The purpose of S. 1964 is to amend the Omnibus Parks and
Public Lands Management Act of 1996 to provide for the
establishment of a Ski Area Fee Retention Account.
Background and Need
There are currently 122 ski areas across the country that
operate on National Forest System land. These ski areas provide
about 60 percent of the total capacity for downhill skiing in
the U.S., and support outdoor recreation economies in 14
states. Ski areas operating on National Forests are required to
pay annual fees to the U.S. Forest Service for the use of these
public lands. The fees are calculated according to a formula
that considers the acres of public lands used by the ski area
and the profits derived from the use of those lands. Ski areas
pay an average of $40 million annually to the Forest Service.
Recreation officers on National Forests often provide
services (such as reviewing proposals and issuing permits) to
these ski areas alongside the other businesses that operate on
National Forests, as well as the public. In the past, delays in
reviewing proposals have slowed several ski areas' ability to
replace or update their infrastructure. In addition, the marked
increase in visitation on these forests requires additional
resources to address recreation needs, both within and outside
ski areas. S. 1964 is a response to this need.
Currently, the ski area fees that are collected on National
Forests are deposited into the General Fund of the U.S.
Treasury. The bill establishes a Ski Area Fee Retention Account
in the U.S. Treasury, in which 100 percent of the fees paid by
ski resorts for operating on National Forests would be
deposited and remain available for use by the Forest Service
for various skiing-related and non-skiing-related uses.
Legislative History
Senators Bennett, Barrasso, Rosen, Cortez Masto,
Hickenlooper, Risch, and Crapo introduced the SHRED Act on June
8, 2021. Nine other senators are also cosponsors. The Committee
on Energy and Natural Resources held a hearing on the bill on
October 21, 2021. Representative Kuster introduced a companion
bill (H.R. 3686) in the House of Representatives on June 4,
2021, with 16 cosponsors. The House Natural Resources
Subcommittee on National Parks, Forests, and Public Lands held
a hearing on H.R. 3686 on June 8, 2021.
Senator Gardner introduced similar legislation, S. 1723, in
the 116th Congress, with 12 cosponsors. The Committee on Energy
and Natural Resources held a hearing on S. 1723 on October 31,
2019.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on November 18, 2021, by a majority voice
vote of a quorum present, recommends that the Senate pass S.
1964, as amended as described herein.
Committee Amendment
During its consideration of S. 1964, the Committee adopted
an amendment in the nature of a substitute. Under the amended
text, 100 percent of the ski area fees that are currently
deposited into the U.S. Treasury would be retained by the U.S.
Forest Service for use on National Forest System land, instead
of 80 percent. Also, the amendment changed the bill's
distribution formula for the retained receipts as well as the
eligible uses for this funding. Specifically, the new formula
distributes a portion of the retained receipts to National
Forests that do not have a ski area.
The amendment is described in detail in the section-by-
section analysis, below.
Section-by-Section Analysis
Section 1. Short title
Section 1 provides the short title for the bill, the ``Ski
Hill Resources for Economic Development Act of 2021''.
Section 2. Establishment of Ski Area Fee Retention Account
Section 2(a) amends section 701 of division I of the
Omnibus Parks and Public Lands Management Act of 1996 (16
U.S.C. 497c) to add a new subsection (k), which establishes the
``Ski Area Fee Retention Account'' (Account).
Paragraph (1) of the new subsection (k) defines key terms
used in the bill.
Paragraph (2) requires the Secretary of the Treasury to
establish the Account.
Paragraph (3) directs the Forest Service to deposit all ski
area fees into the Account and authorizes the Forest Service to
use these funds, without needing to be appropriated, for a
period of 4 fiscal years after the fiscal year in which the
funds are deposited.
Paragraph (4)(A) requires that 80 percent of the funds
deposited into the Account shall remain at the National Forest
where the fees are collected. Of that amount, 75 percent shall
be used for certain skiing-related activities and 25 percent
shall be used for certain activities to support other forms of
recreation.
Paragraph (4)(B) authorizes the Forest Service to use the
remaining 20 percent of the funds on any National Forest, for
certain skiing-related activities and certain activities that
support other forms of recreation.
Paragraph (4)(C) allows the Forest Service to reduce the
amount of funds kept at the National Forest that collects the
ski area fees, under subparagraph (A) from 80 percent to 60
percent if the amount exceeds the reasonable needs of the
National Forest. The balance of the funds may be transferred to
other units of the National Forest System. 75 percent of the
balance is to be used for the skiing-related activities, and 25
percent is to be used for the activities that support other
forms of recreation.
Paragraph (5)(A) lists the eligible skiing-related
activities, including permit administration and processing of
proposals for ski area improvement projects, training programs,
interpretation activities, visitor information and signage, and
wildfire prevention and planning in or adjacent to any
recreation site, but especially ski areas.
Paragraph (5)(B) lists the eligible activities that support
other forms of recreation, including for the repair or
improvement of Forest Service facilities, roads, or trails;
habitat restoration; law enforcement; the construction of
parking areas; processing recreational special use permits, and
search and rescue activities carried out by the Forest Service,
a local government, or a nonprofit partner.
Paragraph (6) makes clear that funds from the Account
cannot be used for wildfire suppression or land acquisition.
Paragraph (7) includes a savings clause to make clear that
nothing in this bill affects the applicability of the Granger-
Thye Act (16 U.S.C. 580d) to skiing businesses operating in
government-owned facilities on National Forest System land, and
nothing affects cost recovery for processing permits.
Subsection (k)(7) also states that retained fees should not
supplant appropriated funding.
Subsection (b) makes the changes to the underlying law
effective 60 days after the date of enactment of the bill.
Cost and Budgetary Considerations
The Congressional Budget Office has not estimated the costs
of S. 1964 as passed by the Senate. The Committee has
requested, but has not yet received, the Congressional Budget
Office's estimate of the cost of S. 1964 as ordered reported.
When the Congressional Budget Office completes its cost
estimate, it will be posted on the Internet at www.cbo.gov.
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. 1964. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses. No personal information would be collected in
administering the program. Therefore, there would be no impact
on personal privacy. Little, if any, additional paperwork would
result from the enactment of S. 1964, as ordered reported.
Congressionally Directed Spending
S. 1964, 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
The testimony provided by the Forest Service at the October
21, 2021, hearing on S. 1964 follows:
Statement of Chris French, Deputy Chief, National Forest System, United
States Department of Agriculture, U.S. Forest Service
S. 1964--Ski Hill Resources for Economic Development Act (``SHRED''
Act)
The SHRED Act would amend the Omnibus Parks and Public
Lands Management Act of 1996 to establish a ski area permit fee
retention account and to authorize the Forest Service to
deposit ski area permit fee revenues into that account and
retain and spend the revenues for specified purposes.
USDA has previously testified in support of the
establishment of a ski area permit fee retention account and
continues to support the authority to retain and spend this
type of permit fee. The authority to retain and spend ski area
permit fees would improve customer service through improved ski
area permit administration. The bill would increase
efficiencies in administering ski area permits, Agency staff
training, visitor information, signage, wildfire preparedness
coordination, and enhanced avalanche-related safety education.
We appreciate that this new version of the bill would provide
for some of the retained permit fees to be used for
administration of other types of commercial recreation permits,
visitor services, and other purposes.
In 2019, $57 million in ski area permit fees were submitted
to the United States Treasury from National Forest System
lands. The current ten-year average for annual ski area permit
fees is $40 million. Based on the formula in the bill, we
expect approximately $27.5 million in ski area permit fees
would be retained by the Forest Service annually. Retained ski
area permit fees would be used to improve administration of
recreation opportunities that contribute to local economic
activity across 122 ski resort communities operating on
National Forest System lands, primarily in rural areas, in 14
states. These recreation opportunities spur industry growth and
generate revenue for ski areas. It is important that ski area
permit fees retained under the bill supplement, not supplant,
cost recovery fees collected and retained under existing
statutory authorities, including cost recovery fees charged for
processing applications for new uses at ski areas. USDA would
like to work with the Committee to ensure the bill language
accomplishes this intent and that the financial mechanisms in
the bill also achieve their intended purpose.
USDA appreciates the Committee's interest in this issue and
strongly supports efforts to foster recreational use of federal
lands and further improve our ability to provide excellent
customer service. We look forward to working with the bill
sponsor and the Committee to promote these important goals.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1964, as ordered 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):
Public Law 104-333
OMNIBUS PARKS AND PUBLIC LANDS MANAGEMENT ACT OF 1996
AN ACT To Provide for the Administration of Certain Presidio Properties
at Minimal Cost to the Federal Taxpayer, and for Other Purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
* * * * * * *
DIVISION I
* * * * * * *
TITLE VII--FEES
SEC. 701. SKI AREA PERMIT RENTAL CHARGE.
* * * * * * *
(k) Ski Area Fee Retention Account.--
(1) Definitions.--In this subsection:
(A) Account.--The term ``Account'' means the
Ski Area Fee Retention Account established
under paragraph (2).
(B) Covered Unit.--The term ``covered unit''
means the unit of the National Forest System
that collects the ski area permit rental charge
under this section.
(C) Secretary.--The term ``Secretary'' means
the Secretary of Agriculture.
(2) Establishment.--The Secretary of the Treasury
shall establish a special account in the Treasury, to
be known as the ``Ski Area Fee Retention Account''.
(3) Deposits.--Subject to paragraphs (4) and (5), a
ski area permit rental charge collected by the
Secretary under this section shall--
(A) be deposited in the Account;
(B) be available to the Secretary for use,
without further appropriation; and
(C) remain available for the period of 4
fiscal years beginning with the first fiscal
year after the fiscal year in which the ski
area permit rental charge is deposited in the
Account under subpargraph (A).
(4) Distribution of Amounts in the Account.--
(A) Local distribution of funds.--
(i) In general.--Except as provided
in subpargraph (C), the Secretary shall
expend 80 percent of the ski area
permit rental charges deposited in the
Account from a covered unit at the
covered unit in accordance with clause
(ii).
(ii) Distribution.--Of the amounts
made available for expenditure under
clause (i)--
(I) 75 percent shall be used
at the covered unit for
activities described in
paragraph (5)(A); and
(II) 25 percent shall be used
for activities at the covered
unit described in paragraph
(5)(B).
(B) Agency-wide distribution of funds.--The
Secretary shall expend 20 percent of the ski
area permit rental charges deposited in the
Account from a covered unit at any unit of the
National Forest System for an activity
described in subparagraph (A) or (B) of
paragraph (5).
(C) Reduction of Percentage.--
(i) Reduction.--The Secretary shall
reduce the percentage otherwise
applicable under subparagraph (A)(i) to
not less than 60 percent if the
Secretary determines that the amount
otherwise made available under that
subparagraph exceeds the reasonable
needs of the covered unit for which
expenditures may be made in the
applicable fiscal year.
(ii) Distribution of funds.--The
balance of the ski area permit rental
charges that are collected at a covered
unit, deposited into the Account, and
not distributed in accordance with
subparagraph (A) or (B) shall be
available to the Secretary for
expenditure at any other unit of the
National Forest System in accordance
with the following:
(I) 75 percent shall be used
for activities described in
paragraph (5)(A).
(II) 25 percent shall be used
for activities described in
paragraph (5)(B).
(5) Expenditures.--Amounts available to the Secretary
for expenditure from the Account shall be only used
for--
(A)(i) the administration of the Forest
Service ski area program, including--
(I) the processing of an application
for a new ski area or a ski area
improvement project, including staffing
and contracting for the processing; and
(II) administering a ski area permit
described in subsection (a);
(ii) staff training for--
(I) the processing of an application
for--
(aa) a new ski area;
(bb) a ski area improvement
project; or
(cc) a special use permit; or
(II) administering--
(aa) a ski area permit
described in subsection (a); or
(bb) a special use permit;
(iii) an interpretation activity, National
Forest System visitor information, a visitor
service, or signage;
(iv) direct costs associated with collecting
a ski area permit rental charge or other fee
collected by the Secretary related to
recreation;
(v) planning for, or coordinating to respond
to, a wildfire in or adjacent to a recreation
site, particularly a ski area; or
(vi) reducing the likelihood of a wildfire
starting, or the risks posed by a wildfire, in
or adjacent to a recreation site, particularly
a ski area, except through hazardous fuels
reduction activities; or
(B)4(i) the repair, maintenance, or enhancement of a
Forest Service-owned facility, road, or trail directly
related to visitor enjoyment, visitor access, or
visitor health or safety;
(ii) habitat restoration directly related to
recreation;
(ii) law enforcement related to public use
and recreation;
(iv) the construction or expansion of parking
areas;
(v) the processing or administering of a
recreation special use permit;
(vi) avalanche information and education
activities carried out by the Secretary or
nonprofit partners;
(vii) search and rescue activities carried
out by the Secretary, a local government, or a
nonprofit partner; or
(viii) the administration of leases under--
(I) the Forest Service Facility
Realignment and Enhancement Act of 2005
(16 U.S.C. 580d note; Public Law 109-
54); and
(II) section 8623 of the Agriculture
Improvement Act of 2018 (16 U.S.C. 580d
note; 15 Public Law 115-334).
(6) Limitation.--Amounts in the Account may not be
used for--
(A) the conduct of wildfire suppression; or
(B) the acquisition of land for inclusion in
the National Forest System.
(7) Effect.--
(A) In general.--Nothing in this subsection
affects the applicability of section 7 of the
Act of April 24, 1950 (commonly known as the
``Granger-Thye Act'') (16 U.S.C. 580d), to ski
areas on National Forest System land.
(B) Supplemental funding.--Rental charges
retained and expended under this subsection
shall supplement (and not supplant)
appropriated funding for the operation and
maintenance of each covered unit.
(C) Cost recovery.--Nothing in this
subsection affects any cost recovery under any
provision of law (including regulations) for
processing an application for or monitoring
compliance with a ski area permit or other
recreation special use permit.
* * * * * * *
[all]