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Copyright 1999 Federal News Service, Inc.  
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APRIL 14, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 6280 words

HEADLINE: PREPARED STATEMENT OF
STEVEN J. SHIMBERG
VICE PRESIDENT
OFFICE OF FEDERAL AND INTERNATIONAL AFFAIRS
NATIONAL WILDLIFE FEDERATION
BEFORE THE HOUSE RESOURCES COMMITTEE
SUBJECT - H.R. 1142,
"THE LANDOWNERS EQUAL TREATMENT ACT OF 1999"

BODY:

Mr. Chairman, and Members of the Resources Committee, thank you for this opportunity to testify before you. My name is Steven J. Shimberg; I am here on behalf of the National Wildlife Federation (NWF), the Nation's largest conservation advocacy and education organization, with over 4 million members and supporters, 46 state affiliates and 10 field offices.
My testimony outlines some of the threats to private property, p public resources, and endangered species posed by this Endangered Species Act (ESA) "takings" bill, H.R. 1142, the "Landowners Equal Treatment Act of 1999." Unfortunately, instead of proposing meaningful improvements in the Nation's landmark 25 year old safety net for species, this bill essentially would result in a back-door, indirect repeal of the ESA's application to private property. The American people have made it clear, over and over again, that they support the ESA. The ESA plays a unique, invaluable role in preserving our biological heritage for our children and grandchildren to enjoy. It also protects the biological storehouse that provides current and potential cures for cancer, benefits to crops, scientific, aesthetic, and other values.
As NWF has repeatedly advocated, the ESA can and should be improved with the targeted, common sense amendments discussed below to make the Act more effective at working with private landowners. This bill, however, is a shotgun blast that would cripple the ESA and the irreplaceable fish, wildlife and plant species that depend upon it.
NWF strongly supports the Fifth Amendment's balanced protection of private property. If a court determines that a government limit on the use and value of private property goes so far as to be a taking of private property for public use, just compensation must be paid.
In over 25 years, however, courts have only decided four ESA "takings" cases on the merits, all of which have found that the ESA did not take private property.
NWF strongly opposes H.R. 1142 and other "takings" bills because they threaten a wide range of protections of private property, people, and public resources which do not take private property rights. As discussed below, this and other takings bills would delay, block, or be so prohibitively expensive as to force the government to stop implementing (in effect, repealing) these protections. A comprehensive discussion of the major points raised in this testimony regarding takings bills is contained in the article by NWF Senior Counsel Glenn P. Sugameli, Takings Bills Threaten Private Property, People, and the Environment, 8 FORDHAM ENVTL. L.J. 521 (199798), a copy of which is submitted as an attachment for the Committee's record.Since 1990, NWF and our state affiliates have been in the forefront of the broad coalition to protect the property rights of all people by opposing state and federal takings bills that elevate the interests of a few over the rights of all. NWF and others who oppose takings bills and support the Constitution's balanced approach are the genuine private property protection movement.
As explained in detail below, this bill should be rejected because:
- it would create radical, sweeping, new rights to extinguish species by giving private property owners the right to wipe out every acre of a species' habitat;
- it would result in the extermination of species by imposing unworkable notification requirements that would needlessly block and delay a wide variety of emergency and other actions that are essential to save species;
- it would require windfall payments from taxpayers to corporations, developers and individuals whose property has not been taken, according to every member of the Supreme Court;
- these windfall payments would create a precedent that would bust the budget and would create perverse incentives by rewarding proposals to apply for unrealistic development permits in especially sensitive habitat in order to receive payments;
- it unjustifiably singles out the ESA-- in over 25 years, courts have only decided four ESA "takings" cases on the merits, all of which have found that the ESA did not take private property-- this reflects the ESA's flexibility, which routinely allows economic activities in and around endangered species habitats to go forward;
- it would chill enforcement of the ESA by requiring that windfall payments be made from the annual appropriation of the agency that took mandatory or discretionary action to save a species. This would unjustifiably pressure agency employees to protect their jobs and programs by always erring on the side of not protecting endangered species;
- the only times that the issue has been presented directly to voters in statewide referenda or initiatives, voters have overwhelmingly rejected takings bills;
- widespread opposition to takings bills includes the National Governors Association, National Conference of State Legislatures, National League of Cities, U.S. Conference of Mayors, and other state and local government organizations that have approved resolutions opposing takings payment bills; and a wide range of national religious denominations, labor, taxpayer, conservation and other organizations; and
- there is a better way-- common sense amendments to make the ESA work better for landowners and wildlife and funding to prevent species from becoming endangered.
CREATING NEW RIGHTS TO EXTINGUISH SPECIES
Under H.R. 1142, unless we pay companies to obey the ESA, they would be free to exterminate sea turtles, salmon, grizzlies, manatees, whooping cranes, and other endangered species.
The bill's alleged purpose is incorrect, it does not "ensur(e) that" private property owners' "constitutional and legal property rights will be honored .... "H.R. 1142 would create radical, sweeping, new rights to extinguish species by giving private property owners the right to wipe out every acre of a species' habitat. Developers could bulldoze sea turtle and shorebird nesting beaches, and companies could chop down eagle nesting trees-unless we pay them not to do something they never had the right to do in the first place. The unprecedented new rights under this bill would be created at the expense of public property rights. The laws of each of the 50 states recognize that wildlife within the state's borders represents property owned by the state for and on behalf of the people of each state.

This public property right has always been understood to limit the rights of people and companies to use their property at the expense of wildlife -- from hunting season and bag limit restrictions on landowners' ability to hunt for game on their land to rules designed to safeguard endangered species. This bill appears to be based on the mistaken idea that public rights in wildlife should be completely disregarded.
STRANGLING SPECIES WITH RED TAPE
H.R. 1142 would also create a separate, sweeping immunity from enforcement of ESA safeguards for species unless and until federal agencies have somehow "given 30 days notice to each owner of the property directly affected." Specifically, the bill provides that: "An agency may not take any action that is a Federal use of non-Federal property unless the agency has given 30 days notice to each owner of the property directly affected." The term "federal use of nonFederal property" is very broadly defined.
This limitation on ESA implementation is absolute and without exception. Failure to identify, locate, and notify each of many partial owners of property could permanently bar needed actions to save species. Apparently, it would not matter if the majority of owners requested the agency action, or if the one owner who did not receive notice would have consented, or if the agency was ready and able to provide the windfall payments required by the other provisions of this bill.
Even emergency actions would be subjected to this 30 day notice straightjacket. Agencies would have to stand by helplessly while the last of a salmon run, for example, is exterminated. This absolute requirement appears to allow a property owner to take advantage of the 30 day delay to take actions that would wipe out a species. Conversely, it would seem to apply where an agency action would enhance the property value while incidentally resulting in, for example, "any diminution in the quantity of water received or available for use."
If this bill had been law, it would have blocked the emergency action to save the desert tortoise when it was suffering a lethal respiratory disease several years ago. Today, the community of Clark County, Nevada is working to implement a conservation plan to save this ancient reptile-an opportunity that arguably would have been denied if emergency action to list had not been taken.
Ironically, to fulfill the notification requirement, the bill could require the federal government toinventory every acre of private land for potential habitat. This draconian notification mandate apparently requires an unworkable, unjustifiable, gigantic bureaucratic burden to compile a comprehensive, nationwide federal database of all owners of all potentially affected property. Notifying current owners would require continually updated access to the ever-changing mix of corporate, partner, and individual owners.
H.R. 1142 would result in the extermination of species by needlessly blocking and delaying a wide variety of actions that are essential to save species. Extreme bureaucratic burdens and red tape would even apply to actions that do not diminish property value (or even increase the value), if they result in a "substantial diminution in" uses of property that are either "normal or reasonably expected." Agencies would have to "make every possible effort to avoid, minimize, or mitigate" even extremely minor impacts on property value or use.
WINDFALL PAYMENTS
Essentially every payment from taxpayers under H.R. 1142 to corporations, developers and individuals would be a windfall-- because the payments would be required in situations that would not constitute a taking under the Fifth Amendment as that provision has been read by every member of the Supreme Court. The Court has repeatedly and unanimously rejected the purported takings test that is contained in H.R. 1142 as contrary to the balanced Fifth Amendment approach, holding that a law does not "take" private property solely because it diminishes the property's value, and that takings analysis must look at an overall parcel of property, not just the affected portion.
In contrast, H.R. 1142 would pay companies when there is a 25% reduction in the value of a "portion" of property. This would require payments where there is almost no effect on the overall property value. For example, allowing condominiums or a strip mine on 99.9% of a 1000 acre tract would not be enough, payments would be required for the one acre wetland buffer zone next to a salmon stream.
As more than 370 law professors wrote Congress regarding the similar test in the 1995-96 House and Senate takings bills: "Not only has the Court never adopted that radical view of the Fifth Amendment; no single past or present Justice on the Court has." (Copy submitted for the Committee's recored). In 1993, the Supreme Court's Concrete Pipe ruling (508 U.S. at 642-45) relied upon landmark zoning and land use cases in unanimously reaffirming the Court's long-standing rejection of three premises and standards that lie at the heart of those bills and of H.R. 1142. The Court ruled that because regulatory takings decisions must consider many factors, including impacts on neighboring homeowners and the public, "our cases have long established that mere diminution in the value of property, however serious, is insufficient to demonstrate a taking." Second, the Court reaffirmed that takings analysis must focus on the overall property, not just the affected portion. Third, the Court reiterated the importance of looking at specific facts, including what the property owner reasonably expected.In contrast, H.R. 1142 requires payments when there is: a specific diminution in the value of any affected portion of property, regardless of reasonable expectations or other factors. This radical redefinition of takings fails to consider impacts on other people and property.
Corporations would be paid under the bill even if:
- they paid little, or nothing, for the property;
- the prohibited uses would harm neighboring property and the public health (as in ESA protections for wetland habitat that prevents downstream flooding or an aquifer habitat that serves as a drinking water supply);
- they never had a reasonable expectation that they could violate the ESA; and
- they can still make a massive profit on permissible uses of the property.
H.R. 1142's definition of property extends to impacts of a broad sweep of federal actions on "land, an interest in land, the right to use or receive water, and any personal property .... "The bill applies to actions that limit the uses of any of these types of property either to protect habitat on private or public land or as a condition of a federal permit. So-called "personal property" is owned by corporations and individuals and essentially means tangible property that is not real estate. Thus, the bill would cover, for example, federal permits that limit use of offshore oil drilling equipment to protect whales. While a federal grazing permit has always been held to be a privilege, not a right, this bill could be read as granting permittees new rights to be free from limits on their personal property (livestock) to protect streamside overgrazing on public lands.
Senator Russ Feingold (D-WI) detailed how similar water language in the 1995-96 Senate takings bill "could expand the rights of agricultural water users at considerable cost to the taxpayer." "Fair market value payments of $100 to $250 per acre foot could be required if federal reclamation projects reduced the subsidized water for which users pay from $3.50 to $7.50 per acre foot. (S. Rep. 104-239, at 82 (additional views of Sen. Feingold)).
Enactment of this bill would cause a flood of costly litigation. Looking at only the "affected portion" would trigger a flood of claims. For example, claims could be filed whenever erosion or flooding threats to endangered species (and downstream homes) require one acre of streamside or floodplain buffer out of a 10,000 acre development. As Joseph L. Sax, then-Counselor to the Interior Secretary, testified during the Senate Judiciary Committee hearings on the 1995-96 takings bills: "(A)nybody who thinks when you pass a law that says you can be compensated by the Federal taxpayers when.., any affected portion of your property, is reduced by 33 percent, thinks that isn't going to create a great burgeoning of lawsuits must be smoking something pretty strong." (S. Hrg. 104-535, at 226).
While H.R. 1142 focuses on the ESA, the history of the 1995-96 takings bills demonstrates the immediate, powerful pressure to expand such bills to cover all federal laws. While the House passed bill was limited to the ESA, wetland protections and certain irrigation and water laws, Senate proponents immediately extended their bills to cover all laws (S. 605) or nearly all (S. 1954). The absurd and draconian payments to pollutersers that would have resultedclearly revealed that the purported property rights principles they embodied are contrary to the Constitution's balanced approach and to the views of the American public.

TAKINGS BILLS ARE BUDGET BUSTERS AND CREATE PERVERSE INCENTIVES
Like prior takings bills, H.R. 1142 would force repeal, or block implementation, of basic protections for people, property, and natural resources by making them too expensive to enforce.
Then-Office of Management and Budget (OMB) Director Alice M. Rivlin testified that the OMB estimated that direct spending costs of the 1995 House-passed ESA and wetlands takings bill would be $28 billion over seven years, with the broader Senate bill costing several times that amount: "I want to emphasize that these are not estimates of Fifth Amendment 'takings' due to federal activities, but instead reflect the costs of implementing a radical, harmful, and expensive compensation scheme that would likely encourage unmerited claims." (S. Hrg. 104-299, at 142).
Director Rivlin's estimate was highly conservative. She testified, for example, that while OMB recognized that the bills would encourage people to "game the system, potentially resulting in an enormous number of claims," OMB's estimate "did not include an estimate of the number of land owners that, for example, would want to get under the regulation so that they could make a claim." (Id. at 145). The late, former Senator Paul Tsongas, a strong advocate of a balanced budget, testified on this precise issue: "I can tell you as a former real estate developer who lost money, this is a bonanza because all I would have to do now is figure out where wetlands are before they are designated, buy it, submit an application for a shopping center, after it gets denied, I submit a bill to you and it doesn't cost me anything." (Id. at 147).
Under H.R. 1142, claims would be even easier. For example, speculators could buy land for $50 an acre, a price that fully and openly reflects the applicability of the ESA. A week later, they could then demand payment because the land was "only" worth $75 an acre. Under H.R. 1142, a 50% real world gain would appear to be a 25% "reduction in fair market value," because the artificial "fair market value" of $100 an acre would be calculated "without regard to the presence of any species protected under" the ESA.
H.R. 1142 would distort the economy and investment. Professor Richard J. Lazarus' testimony regarding the 1995-96 takings bills logically applies to this bill as well: "Perverse incentives will abound. Property owners will propose activities not because of any real interest in their undertaking, but rather simply so that the holder of the property right can be denied permission and thus be entitled to compensation. The law would create an economic incentive for land owners to engage in the most environmentally destructive activities possible, short of a classic common law nuisance, in order to force the land owner not to do so." (S. Hrg. 104-299, at 220).
Similarly, then-EPA Deputy General Counsel Gary S. Guzy repeatedly testified that takings bills would "create perverse incentives that discourage cooperation between property owners and regulators to find ways of allowing development while protecting the environment .... Evenmore perversely, the bill rewards proposals that are not realistic or feasible." (Id. at 200).
Thus, for example, developers would apply for permits to fill in especially sensitive habitat in order to collect payments when the permits are denied. H.R. 1142 would strongly encourage these applications to be filed even where the alleged development plan would not make economic sense, as in cases where the overall profit from the tract would be enhanced by retaining a lake and marketing luxury upland lakefront acreage.
The Congressional Budget Office (CBO) estimated only the costs of administering the 1995-96 House and Senate takings bills, stating that: "CBO has no basis for estimating the additional amount of compensation that the government might have to pay for cases where property owners choose to pursue larger claims in court .... CBO expects that the majority of the new suits would involve relatively large claims against agencies that regulate the use of land or water, particularly the U.S. Army Corps of Engineers and the Department of the Interior (DOI)." (S. Rep. No. 104-239, at 40, 43).
Taxpayers for Common Sense, a budget watchdog group, issued a May, 1996 report stating that the cost of S. 605 could be $100 billion over seven years, or, more likely, a virtual blank check. A study by the University of Washington Institute for Public Policy Management revealed that Washington State's defeated takings legislation (Referendum 48) could have cost local governments up to $1 billion annually for takings studies alone and exposed them to payments of as much as $11 billion.
If H.R. 1142 were to pass, the vast majority of payments would be to large corporations and developers who are the subject of most of the regulations and who have the lawyers, appraisers and experts necessary to demonstrate a "right" to payment under the bill's vague standards. The ingenuity and greed of some giant corporations that oppose limits on their ability to profit at the expense of others was dramatically illustrated by a May 1996 Exxon subsidiary's lawsuit claiming that the $125 million Exxon Valdez tanker had been taken.1 The claim challenged a provision of the Oil Pollution Act of 1990, which was passed after the Exxon Valdez had spilled 10.6 million gallons of crude oil, that allowed the ship to operate anywhere in the world except Prince William Sound, where the spill had occurred. A separate March 11, 1999 Court of Federal Claims decision deferred ruling on the merits of a Madtrans, Inc. takings claim for more than $200 million to cover the loss of 37 single-hull tank barges that would be phased out of service in 2003 by the double-hull requirements of the same Act. (Docket No. 96-483 C).
Professor C. Ford Runge's testimony about the 1995-96 takings bills demonstrated how payments regarding land would reflect the highly concentrated nature of land ownership: "(I)f one combines the land holdings of the large farm operators and timber operators, 2.1 million land owners own 1,035 million acres of land. That means that 2.65 percent of all private land owners own 78 percent of all private land. Their size also implies a likely sophistication in dealing with government programs." In contrast, the roughly sixty million owners of residential property own three percent of all private land. (S. Hrg. 104-299, at 205). Takings bills would benefit the former, large landowner group to the general detriment of homeowners who depend upon clean air, safe drinking water, zoning and other laws.
As a practical matter, H.R. 1142 would create an unlimited budget- busting entitlement; the bill's "subject to the availability of appropriations" language would be overwhelmed by pressure to pay all those who meet the bill's radical new payment standard. Surely, those who support this bill would favor paying everyone who they encouraged to file claims. The alternative would be a cruel hoax. After encouraging those who have not lost any property rights to spend the time and expense to hire a lawyer and an appraiser to file and prove a claim under H.R. 1142, not paying would place them in a worse position than they are now. Paying only the first claims would ensure that the biggest companies with the fastest and most expensive lawyers would drain all available funds.
As a result, H.R. 1142 would compel avoidance of these costs through repeal or non-enforcement of ESA protections that benefit people, neighboring property, and public resources. The cost of takings analysis and notifications mandated by H.R. 1142 would have a similar effect.
"TROJAN HORSE" ATTACK ON THE ESA
This bill unjustifiably singles out the ESA. In over 25 years, courts have only decided four ESA "takings" cases on the merits, all of which have found that the ESA did not take private property. (A copy of NWF Senior Counsel Glenn Sugameli's legal analysis of the ESA and takings claims is submitted for the Committee record). This paucity of cases reflects the fact that the ESA's safeguards that affect land use are in fact very flexible (indeed, only one of these four cases involved limitations on the use of land). Congressional Budget Office and Congressional Research Service reviews of takings claims against the federal government have consistently found that the vast majority of pending and recently decided cases have nothing to do with environmental protection laws. The potential value of property is affected by the enactment, amendment and enforcement of every kind of federal, state and local law: from Antitrust, Bankruptcy, Copyright, Drug, Energy, Food safety, through the alphabet all the way to Zoning. As Justice Holmes' opinion for the Court in the first "regulatory taking" decision warned, "(g)overnment hardly could go on if to some extent values incident to property could not be diminished without paying for every such change in the general law." (Pennsylvania Coal Co. v. Mahon, 260 U.S. 393, 413 (1922)). In deciding what is a taking, the Supreme Court has consistently used a balanced approach that reflects this warning.

Harvard Law Professor Frank I. Michelman explained that there is no "remotely principled basis" for the approach of limiting the scope of the 1995 House bill (or the current H.R. 1142) to"land value losses stemming from agency actions under two or three selected laws." (6 Fordham Envtl. L.J. at 416-17). Prominent ideological supporters of federal takings bills agreed with this analysis. For example, Jonathan H. Adler of the Competitive Enterprise Institute testified that: "Any bill that seeks to protect the property rights of Americans must cover all Federal laws that deprive land owners of the reasonable use of their land. There is no principled basis upon which to pick and choose which laws, environmental or otherwise, should be covered." (S. Hrg. 104299, at 222). He repeated this passage in subsequent testimony, but italicized "all" to emphasize the point. (S. Hrg. 104-535, at 205). See also id. at 82 ("There are a huge number of Federal regulations which have the effect of taking private property .... ") (statement of Nancie G. Marzulla, President of Defenders of Property Rights).
Narrowing takings bills like H.R. 1142, without any principled basis, to certain laws reveals that the issue is not property rights, but a Trojan Horse attack on laws that supporters of the bill do not like and that are too popular to repeal directly. Under the guise of protecting property rights, H.R. 1142 would make the ESA too expensive to enforce.
H.R. 1142 is not necessary. The ESA has numerous provisions to ensure that the federal wildlife agencies have the necessary flexibility to give due respect to private property interests. Agencies routinely allow economic activities in and around endangered species habitats to go forward, using tools such as separate "4(d) rules" for threatened species, reasonable and prudent measures, reasonable and prudent alternatives, and incidental take permits and Habitat Conservation Plans. In the unlikely event that private property rights are infringed despite the availability of these flexible tools, the courts provide adequate remedies for property owners to enforce the Constitution's Fifth Amendment clause "nor shall private property be taken for public use, without just compensation."
CHILLING ENFORCEMENT OF THE LAW
H.R. 1142 would chill enforcement of the ESA and harm a wide range of agency programs by requiring that payments "shall, notwithstanding any other provision of law, be made from the annual appropriation of the agency that took the agency action giving rise to the payment .... " This would apply to mandatory agency actions where the agency has no legal choice except to follow the Congressional mandate. Especially where there is any question whether a necessary action to save a species could lawfully be delayed, H.R. 1142 would impose a Hobson's choice upon agency officials. Implementing the ESA in one case could result in windfall payments that would divert scarce agency resources, forcing massive layoffs and cutting off funds needed to enforce the ESA and other laws. Protection of National Wildlife Refuges, Army Corps of Engineers flood control activities and Environmental Protection Agency enforcement of air and water pollution laws could all suffer.
H.R. 1142 would unjustifiably pressure agency employees to protect their jobs and programs by always erring on the side of not protecting endangered species. These species often have no room for delay or error. Extinction is forever. It neither waits for delays nor forgives errors.
VOTER REJECTION OF TAKINGS BILLS
In statewide referenda, voters have overwhelmingly rejected legislatively approved takings bills. By the same 60-40% margin, voters repealed a Washington State takings payment bill in November, 1995, and an Arizona takings impact assessment bill in November, 1994. (In each state, takings bill supporters outspent opponents by 2-to-1).
Supporters of takings recognize that the American people oppose these bills: the Seattle Times reported that "R.J. Smith of the conservative Competitive Enterprise Institute, a Washington, D.C. think tank, said the defeats in Washington and Arizona may have taught another lesson- that property rights leaders shouldn't take the issue directly to voters through initiative or referendum."2 Indeed, there have been no more statewide "takings" initiatives or referenda.
Grassroots opposition to takings bills reflects the fact that these bills would force taxpayers either to give up needed protections or to pay billions of dollars to maintain health, safety and other measures that do not take any property.
WIDESPREAD OPPOSITION TO TAKINGS BILLS
The radical nature of the similar, failed 1995-96 Contract with America ESA and wetlands takings bill generated bi-partisan opposition, a Presidential veto threat and strong opposition from a wide range of national religious, labor, taxpayer, conservation and other groups.
The National Governors Association, National Conference of State Legislatures, National League of Cities, U.S. Conference of Mayors, National Institute of Municipal Law Officers (now the International Municipal Lawyers Association), National Black Caucus of State Legislators, International Association of Fish and Wildlife Agencies, and Western State Land Commissioners Association all have approved resolutions opposing takings payment bills.3
A distinguished Member of this Committee, Rep. Tom Udall (D-NM), was Attorney General of New Mexico when he submitted testimony to the House Committee on the Judiciary opposing takings bills. He attached a letter to Congress from Republican and Democratic Attorneys General representing thirty-three states and territories describing how takings bills: "purport to implement constitutional property rights protections, but in fact they promote a radical new takings theory that would severely constrain the government's ability to protect the environment and public health and safety." (Reproduced in House Rep. 104-46, at 64-68).
Takings bills have ignited broad opposition on all levels of government, across political parties, and among a broad range of groups. Opponents of takings bills include citizens and groups representing civic associations, labor, taxpayer, planning, historic preservation, public health, hunting, conservation, and fishing industry organizations; state and local government officials; and child welfare, civil rights, religious and senior citizen groups. (S. Rep. No. 104-239, at 68). These opponents, who are working to protect people, property and natural resources, range from the League of Women Voters to the United Steelworkers of America, to the American Public Health Association. (S. Rep. No. 104-239, at 68).
A broad range of religious denominations have opposed takings bills from a moral and theological perspective. These include detailed written testimony submitted by the United States Catholic Conference; (S. Hrg. 104-535, at 154-158) statements submitted by the National Council of Churches of Christ in the USA, and by numerous Christian denominations, including the Evangelical Lutheran Church in America, United Methodist Church, Presbyterian Church USA, Mennonite Central Committee U.S., and United Church of Christ; (Protecting Private Property Rights, H. Jud. Comm. Hrg. 104th Cong. at 41-42, 128-33).
President Clinton promised to veto the 1995-96 House, Senate or any similar takings compensation bills. The description in the President's December 13, 1995 letter to the Senate Judiciary Committee applies equally to this takings compensation bill: "S. 605 does not protect legitimate private property rights. The bill instead creates a system of rewards for the least responsible and potentially most dangerous uses of property. It would effectively block implementation and enforcement of existing laws protecting public health, safety, and the environment." (See S. Rep. 104-239, at 55). Strong bipartisan opposition repeatedly blocked Senate consideration of takings legislation in 1996.
A BETTER WAY- COMMON-SENSE ESA REFORMS AND ENACTMENT OF NEW WILDLIFE FUNDING LEGISLATION
NWF fully supports reauthorizing the Endangered Species Act to incorporate what we have learned since the last reauthorization in 1988. Four changes should be made to make the ESA work better for both landowners and wildlife. These changes are included in H.R. 960, the Endangered Species Recovery Act, which was introduced by the distinguished ranking Member of this Committee, Rep. George Miller (D- CA), with 67 original cosponsors on March 3, 1999.
First, Congress should build in real financial incentives for private landowners to go beyond the Act's bare minimum requirements and to take affirmative actions for the benefit of imperiled species.

This can be done through relatively inexpensive tax law changes and funding initiatives targeted toward habitat restoration and active management of habitats.Second, Congress should update the Act's habitat conservation planning (HCP) provisions, so that HCPs work for private landowners and species. The Clinton Administration has launched a revolutionary change in the ESA through its use of HCPs -- locking in long-term land use plans for over 7 million acres in just 5 short years. According to several recent scientific studies, these plans may be undermining the ESA's recovery goal. Congress will need to clarify that HCPs may not undermine recovery, and that they must be sufficiently adaptive so that we can take effective action when they fail to achieve their promised conservation objectives.
Third, Congress should enhance federal agencies' accountability for achieving recovery. Too many species are not making sufficient progress toward recovery, and agencies have become focused on avoiding jeopardy rather than fulfilling their statutory obligations to promote recovery. Agencies with activities affecting imperiled species must make specific and enforceable commitments to help implement recovery plans.
Finally, Congress should increase citizen participation in key decisionmaking processes. NWF recently sponsored a study of HCPs by the University of Michigan, which demonstrated conclusively that plans with major implications for our biological heritage are being designed behind closed doors, without input from conservationists, neighboring landowners, expert scientists and other concerned citizens. Congress should identify ways for these stakeholders to provide their ideas and input early in the process, rather than merely inviting comment after the deal has been struck and after it is too late for any significant changes to be made.
In addition, NWF strongly supports establishing a permanent, dedicated funding source for "nongame" species (the roughly 90% of species that are neither hunted nor classified as threatened or endangered). Several bills pending before Congress, including H.R. 701, the "Conservation and Reinvestment Act of 1999," and H.R. 798, the "Permanent Protection for America's Resources 2000 Act," have the potential for establishing such a permanent funding source. Although NWF has concerns about certain features of these bills, both could provide funding for early intervention measures that prevent nongame species' decline and avoid more costly recovery measures that are frequently incurred once a species has been listed. We look forward to working with the sponsors of those bills to ensure the two proposals are merged in a way that brings out the best in both of them and allows the broad support necessary for passage..
CONCLUSION
H.R. 1142 would harm the property and other rights of average Americans because it would impose standards that are contrary to the Fifth Amendment's balanced protection of private property. The result would be massive costs to taxpayers, a litigation explosion, more bureaucracy and inability to enforce the ESA's protections that benefit people, private property and public resources. We strongly urge that H.R. 1142 be set aside in favor of common sense ESA amendments and separate legislation to provide a permanent, dedicated funding source to prevent species from becoming endangered, both of which can make the Act work even better for both landowners and wildlife.
FOOTNOTES:
1 See David Whitney, Exxon Wants Notorious Tanker Back on Duty in Alaska Waters, Anchorage Daily News, Apr. 5, 1996, at A- 1.
2 Eric Pryne & David Postman, Ref. 48 Defeat Has Louder Echoes: A Property Rights Stall in Congress, Too?, Seattle Times, Nov. 9, 1995, at Al.
3 NGA 1995 Annual Meeting Resolution 18; NCSL policy resolution passed July 28, 1994; NLC Resolution #1 adopted Dec. 4, 1994; USCM Resolution Adopted Jun. 1995; NIMLO Resolution adopted Apr. 8, 1995; NBC SL Resolution adopted Dec. 1995; IAFWA Resolution adopted Mar. 1996; WSLCA Resolution adopted Jan. 12, 1995. The NLC, NCSL and WSLCA Resolutions are reproduced in House Rep. 104-46, at 69-72.
END


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