[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1988 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1988

To authorize the transfer of a certain loan contract to the Upper Yampa 
           Water Conservancy Project, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             March 25 (legislative day, February 22), 1994

Mr. Brown (for himself and Mr. Campbell) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To authorize the transfer of a certain loan contract to the Upper Yampa 
           Water Conservancy Project, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stagecoach Reservoir Project Act of 
1993''.

SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT LOAN.

    (a) Agreement.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        conduct appropriate investigations regarding, and is authorized 
        to sell, or accept prepayment on, the loan contract described 
        in paragraph (2) to the Upper Yampa Water Conservancy District 
        in Colorado (referred to in this Act as the ``District'') for 
        the Stagecoach Reservoir Project.
            (2) Loan contract.--The loan contract described in 
        paragraph (1) is numbered 7-07-40-R0480 and was entered into 
        pursuant to the Small Reclamation Projects Act of 1956 (43 
        U.S.C. 422a et seq.).
    (b) Payment.--Any agreement negotiated pursuant to subsection (a) 
shall realize an amount to the Federal Government calculated by 
discounting the remaining payments due on the loans by the interest 
rate determined pursuant to subsection (c).
    (c) Interest Rate.--
            (1) In general.--The Secretary shall determine the interest 
        rate in accordance with the guidelines set forth in Circular A-
        129 issued by the Office of Management and Budget concerning 
        loan sales and prepayment of loans.
            (2) Determination.--In determining the interest rate, the 
        Secretary--
                    (A) shall not equate an appropriate amount of 
                prepayment with the price of the loan if it were to be 
                sold on the open market to a third party; and
                    (B) shall, in following the guidelines set forth in 
                Circular A-129 regarding an allowance for 
                administrative expenses and possible losses, make such 
                an allowance from the perspective of the Federal 
                Government as lender and not from the perspective of a 
                third party purchasing the loan on the open market.
            (3) Adjustment.--If the borrower or purchaser of the loan 
        has access to tax-exempt financing, including tax-exempt bonds, 
        tax-exempt cash reserves, and cash and loans of any kind from 
        any tax-exempt entity, to finance the transaction, and if the 
        Office of Management and Budget grants the Secretary the right 
        to conduct such a transaction, then the interest rate by which 
        the Secretary discounts the remaining payments due on the loan 
        shall be adjusted by an amount that compensates the Federal 
        Government for the direct or indirect loss of future tax 
        revenues.
            (4) Limitation.--Notwithstanding any other provision of 
        law, the interest rate shall not exceed a composite interest 
        rate consisting of the current market yield on Treasury 
        securities of comparable maturities.

SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.

    Upon receipt of the payment specified in section 2(b)--
            (1) the obligation of the District under the loan contract 
        described in section 2(a)(2) shall terminate;
            (2) the Secretary of the Interior shall convey all right 
        and interest of the United States in the Stagecoach Reservoir 
        Project to the District; and
            (3) the District shall absolve the United States, and its 
        officers and agents, of any liability associated with the 
        Stagecoach Reservoir Project.

SEC. 4. TERMINATION OF AUTHORITY.

    (a) In General.--Subject to subsection (b), the authority granted 
by this Act to sell loans shall terminate 2 years after the date of 
enactment of this Act.
    (b) Time To Respond to Offer.--The borrower shall have not less 
than 60 days to respond to any prepayment offer made by the Secretary.

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