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have been very willing to pay that on the provision that those funds are staying at LBL and improving the hunting experience that they will have in the future.

So after saying that, I would be willing to answer any questions you might have, Mr. Chairman.

[The prepared statement of Mr. Bond follows:)

Statement of

Bill J. Bond, Manager
Office of Natural Resources and Economic Development

Tenne 88ee Valley Authority

before the Subcommittee on Public Lands, Reserved Water and Resource Conservation

Committee on Energy and Natural Resources

United States Senate

June 27, 1985

I am pleased to appear before you today on behalf of the Tennessee Valley

Authority to discuss the Administration's recreation fee recommendations,

our current recreation fee arrangements (which are established on the

statutory authority of the TVA Act of 1933, and the Land and Water

Conservation Fund Act), and the desirability of further legislation in

this area.

Accompanying me are Philip McKnelly, Chief of Land Between

The Lakes Recreation Program, and Robert Marker, Project Manager of

TVA's Reservoir Recreation Project.

Since its inception, TVA has encouraged the development of high

quality outdoor recreation opportunities in the Tennessee Valley.

As a part of this effort, TVA has built and operates a variety of public

recreational facilities around the reservoir system.

TVA currently

manages 139 reservoir recreation areas, including 34 campgrounds, 60 boat

ramps, 32 day-use areas, and 13 informal areas, across the Valley.

TVA is also responsible for Land Between The Lakes (LBL), a 170,000-acre

outdoor recreation and demonstration facility with over 300 miles of

undisturbed shoreline that is located in westem Kentucky and Tennessee.

At LBL the traditional recreation opportunities, such as picnicking,

camping, hiking, hunting, and fishing, are enhanced by TVA sponsored

educational programs and facilities.

LBL's informal educational

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activities include a living history farm, planetarium, nature center, and

contemporary small farm.

Each is designed to help LBL's two million

visitors better understand natural and cultural history and how their

activities can impact water, wildlife, and entire ecosystems.

LBL also

sponsors formal leadership training, environmental education, and

recreation programs at its resident camps and also provides teacher

training and program development for instructors of handicapped children

and adults, gifted children, and others.

LBL offered more than 6, 200

programs to over 250,000 participants from all 50 states in fiscal year

1984.

TVA began collecting recreation use fees in 1965.

User fees are

established under authority of the TVA Act of 1933 and are consistent

with the Land and Water Conservation Fund Act, as amended.

TVA is among

seven Federal land managing agencies that participate in the Federal

Recreation Fee Program and Interagency Fee Task Force.

This task force

is responsible for ensuring that recreation use fees are comparable with

those established by other public agencies and private sector operations

providing similar services and facilities within the region. For

example, TVA reviews public and private sector camping fees in the

Tennessee Valley each year to determine comparability, and TVA fees are

ad justed accordingly.

Currently, recreational use fees are collected at 34 campgrounds on TVA

reservoirs and at 6 fee campgrounds and group camps in LBL.

Annual use

permits are also sold for hunting in LBL.

In 1984, TVA collected

$831,000 in fee revenues from the following sources.

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In 1984, fee and nonfee reservoir recreation facility operation and

maintenance costs were approximately $2.8 million, while fees totaled

$171,000 (6 percent). At LBL, fee and nonfee operation and maintenance

costs in 1984 were $7,606,000, and fee revenue totaled $661,000 (8.7

percent). Even though TVA recreation fee collection is significant, it

could be increased by charging fees for use of basic access facilities,

visitor centers, and day-use areas.

These nonfee facilities are where

major visitor use now occurs, and we believe the public finds them

sufficiently attractive to accept a fee for their use.

We are pleased that the Administration recommends expanding the

discretionary authority of Federal agencies managing outdoor recreation

facilities to charge admission and user fees to help defray the cost of

providing Federal recreation benefits.

We support this principle and

think that the availability of high-quality outdoor recreation areas could

be enhanced if reasonable plans for users to pay a fair share of the costs

could be developed.

TVA supports increasing the discretionary authority of Federal agencies to

establish admission or user fees at outdoor recreational facilities.

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However, the extent to which the cost of outdoor recreation programs may

be defrayed through fees may vary from agency to agency and, perhaps,

among various recreation facilities managed by the same agency.

For

example, LBL's three family campgrounds charge $6, plus $1 for

electricity, per site.

Fees collected at these campgrounds currently

cover approximately 61 percent of their operation and maintenance costs.

In 1985 TVA established a hunter use fee at LBL of $10 for adults and $5

for juniors and seniors.

We are anticipating revenues sufficient to cover

30 percent of our wildlife management activities and programs, wildlife

habitat development, and hunter services activities.

In addition, LBL

group camp fees currently cover 46 percent of costs.

There are some types

of TVA facilities, such as boat ramps, trails, and picnic areas, where

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fees would probably generate revenues covering only a small fraction of

their operation and maintenance costs.

Among such facilities, it is

unlikely that 25 percent of their operation and maintenance costs could be

collected through fees.

In fact, it would probably not be feasible to

establish use fees at some of these areas due to prohibitive collection

costs.

We also believe that establishment of entrance fees at TVA recreation

areas would not be practical. For example, at LBL we do not have

control of all entrance roads, nor can we monitor or control lake

access.

Further, the cost of collection would in all likelihood exceed

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