[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3366 Introduced in House (IH)]

  2d Session
                                H. R. 3366

    To direct the Secretary of the Interior to convey the Collbran 
   Reclamation project to the Ute Water Conservancy District and the 
                     Collbran Conservancy District.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 30, 1996

 Mr. McInnis introduced the following bill; which was referred to the 
 Committee on Resources, and in addition to the Committee on Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To direct the Secretary of the Interior to convey the Collbran 
   Reclamation project to the Ute Water Conservancy District and the 
                     Collbran Conservancy District.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
    (a) Short Title.--This subchapter may be cited as the ``Collbran 
Project Unit Conveyance Act''.
    (b) Definitions.--For purposes of this subchapter:
            (1) Districts.--The term ``Districts'' means the Ute Water 
        Conservancy District and the Collbran Conservancy District 
        (including their successors and assigns), which are political 
        subdivisions of the State of Colorado.
            (2) Federal reclamation laws.--The term ``Federal 
        reclamation laws'' means the Act of June 17, 1902 and Acts 
        amendatory thereof or supplementary thereto (32 Stat. 388, 
        chapter 1093; 43 U.S.C. 371 et seq.) (including regulations 
        adopted pursuant to those Acts).
            (3) Project.--The term ``project'' means the Collbran 
        Reclamation project, as constructed and operated under the Act 
        of July 3, 1952 (66 Stat. 325, chapter 565), including all 
        property, equipment, and assets of or relating to the project 
        that are owned by the United States, including--
                    (A) Vega Dam and Reservoir (but not including the 
                Vega Recreation Facilities);
                    (B) Leon-Park dams and feeder canal;
                    (C) Southside Canal;
                    (D) East Fork diversion dam and feeder canal;
                    (E) Bonham-Cottonwood pipeline;
                    (F) Snowcat shed and diesel storage;
                    (G) Upper Molina penstock and power plant;
                    (H) Lower Molina penstock and power plant;
                    (I) the diversion structure in the tailrace of the 
                Lower Molina power plant;
                    (J) all substations and switchyards;
                    (K) a non-exclusive easement for the use of 
                existing easements or rights-of-way owned by the United 
                States on or across nonfederal lands which are 
                necessary for access to project facilities;
                    (L) title to lands reasonably necessary for all 
                project facilities except for land described in 
                subparagraph (K) or subsection (c)(1) (B) or (C);
                    (M) all permits and contract rights held by the 
                Bureau of Reclamation, including, without limitation, 
                contract or other rights relating to the operation, 
                use, maintenance, repair or replacement of the water 
                storage reservoirs located on the Grand Mesa which are 
                operated as a part of the project;
                    (N) all equipment, parts inventories, and tools;
                    (O) all additions, replacements, betterments, and 
                appurtenances to any of the above; and
                    (P) a copy of all data, plans, designs, reports, 
                records or other materials, whether in writing or in 
                any form of electronic storage relating specifically to 
                the project.
            (4) Vega recreation facilities.--The term ``Vega Recreation 
        Facilities'' includes, but is not limited to, buildings, 
        campgrounds, picnic areas, parking lots, fences, boat docks and 
        ramps, electrical lines, water and sewer systems, trash and 
        toilet facilities, roads and trails, and other structures and 
        equipment used for State park purposes at and near Vega 
        Reservoir such as recreation, maintenance and daily and 
overnight visitor use, and lands above the high water level of Vega 
Reservoir within the area previously defined by the Department of the 
Interior as the ``Reservoir Area Boundary'' which have not historically 
been utilized for Collbran project water storage and delivery 
facilities, together with an easement for public access for 
recreational purposes to Vega Reservoir and the water surface thereof, 
and construction, operation, maintenance and replacement of such 
recreation facilities below the high water line. Such facilities shall 
also include improvements constructed or added as a result of the 
agreements referred to in section (c)(6).
    (c) Conveyance of the Collbran Project.--
            (1) In general.--
                    (A) Conveyance to districts.--The Secretary of the 
                Interior shall convey to the Districts all right, 
                title, and interest of the United States in and to the 
                project, as described in subsection (b)(3), by 
                quitclaim deed and bill of sale, without warranties, in 
                the last quarter of fiscal year 2000, subject only to 
                the requirements of this section. Until such conveyance 
                occurs, the Bureau of Reclamation shall continue to 
                provide for the operation, maintenance, repair and 
                replacement of project facilities and the storage 
                reservoirs on the Grand Mesa to the extent such 
                responsibilities are the responsibility of the Bureau 
                of Reclamation and have not been delegated to the 
                districts prior to the date of enactment of this Act or 
                are delegated or transferred to the districts by 
                agreement thereafter, so that at the time of conveyance 
                such facilities are in the same condition as, or better 
                condition than, the condition of the facilities on the 
                date of enactment of this Act.
                    (B) Easements on national forest system lands.--The 
                Secretary of Agriculture shall grant, in the last 
                quarter of fiscal year 2000, subject only to the 
                requirements of this section--
                            (i) a nonexclusive easement on and across 
                        National Forest System lands to the districts 
                        for ingress and egress on existing access 
                        routes to each existing component of the 
                        project and to the existing storage reservoirs 
                        on the Grand Mesa which are operated as a part 
                        of the project;
                            (ii) a nonexclusive easement on National 
                        Forest System lands for the operation, use, 
                        maintenance, repair, and replacement, but not 
                        enlargement, of the existing storage reservoirs 
                        on the Grand Mesa to the owners and operators 
                        of such reservoirs which are operated as a part 
                        of the project; which easement may be exercised 
                        in the event that the existing land use 
                        authorizations for such storage reservoirs are 
                        restricted, terminated, relinquished, or 
                        abandoned, and which easement shall not be 
                        subject to conditions or requirements that 
                        interfere with or limit the use of such 
                        reservoirs for water supply or power purposes; 
                        and
                            (iii) a nonexclusive easement to the 
                        districts for the operation, use, maintenance, 
                        repair, and replacement, but not enlargement, 
                        of those components of project facilities which 
                        are located on National Forest System lands, 
                        subject to the requirement that the districts 
                        shall provide reasonable notice to and the 
                        opportunity for consultation with the 
                        designated representative of the Secretary of 
                        Agriculture for nonroutine, nonemergency 
                        activities that occur on such easements.
                    (C) Easements to districts for southside canal.--
                The Secretary of the Interior shall grant to the 
                districts, in the last quarter of fiscal year 2000, 
                subject only to the requirements of this section--
                            (i) a nonexclusive easement on and across 
                        lands administered by agencies within the 
                        Department of the Interior for ingress and 
                        egress on existing access routes to and along 
                        the Southside Canal, and
                            (ii) a nonexclusive easement for the 
                        operation, use, maintenance, repair, and 
                        replacement of the Southside Canal, subject to 
                        the requirement that the districts shall 
                        provide reasonable notice to and the 
                        opportunity for consultation with the 
                        designated representative of the Secretary of 
                        the Interior for nonroutine, nonemergency 
                        activities that occur on such easements.
            (2) Reservation.--The transfer of rights and interests 
        pursuant to paragraphs (1) (A), (B), and (C) shall reserve to 
        the United States all minerals, including hydrocarbons, and a 
        perpetual right of public access over, across, under, and to 
        the portions of the project which on the date of enactment of 
        this Act were open to public use for fishing, boating, hunting, 
        and other outdoor recreation purposes and other public uses 
        such as grazing, mineral development, and logging: Provided, 
        That the United States may allow for continued public use and 
        enjoyment of such portions of the project for recreational 
        activities and other public uses conducted as of the date of 
        enactment of this Act.
            (3) Conveyance to state of colorado.--All right, title, and 
        interest in the Vega Recreation Facilities shall remain in the 
        United States until the terms of the agreements referred to in 
        paragraph (6) have been fulfilled by the United States. At such 
        time, all right, title, and interest in the Vega Recreation 
        Facilities shall be conveyed by the Secretary of the Interior 
        to the State of Colorado, Division of Parks and Outdoor 
        Recreation.
            (4) Payment.--
                    (A) In general.--At the time of transfer, the 
                districts shall pay to the United States $12,900,000 
                ($12,300,000 of which represents the net present value 
                of the outstanding repayment obligations for the 
                project), of which--
                            (i) $12,300,000 shall be deposited in the 
                        general fund of the United States Treasury; and
                            (ii) $600,000 shall be deposited in a 
                        special account in the United States Treasury 
                        and shall be available to the United States 
                        Fish and Wildlife Service, region 6, without 
                        further appropriation, for use in funding 
                        Colorado operations and capital expenditures 
                        associated with the Grand Valley Water 
                        Management Project for the purpose of 
                        recovering endangered fish in the Upper 
                        Colorado River Basin, as identified in the 
                        Recovery Implementation Program for Endangered 
                        Fish Species in the Upper Colorado River Basin, 
                        or such other component of the Recovery 
                        Implementation Program within Colorado that is 
                        selected with the concurrence of the Governor 
                        of the State of Colorado.
                    (B) Source of funds.--Funds for the payment to the 
                extent of the amount specified in subparagraph (A) 
                shall not be derived from the issuance or sale, prior 
                to the conveyance, of State or local bonds the interest 
                on which is exempt from taxation under section 103 of 
                the Internal Revenue Code of 1986.
            (5) Operation of project.--
                    (A) In general.--The project was authorized and 
                constructed to place water to beneficial use for 
                authorized purposes within the State of Colorado. The 
                project shall be operated and used by the districts for 
                a period of 40 years after the date of enactment of 
                this Act for the purposes for which the project was 
                authorized under the Act of July 3, 1952 (66 Stat. 325, 
                chapter 565). The districts shall attempt to the extent 
                practicable, taking into consideration historic project 
                operations, to notify the State of Colorado of changes 
                in historic project operations which may adversely 
                affect State park operations.
                    (B) Requirements.--During the 40-year period 
                described in subparagraph (A)--
                            (i) the districts shall annually submit to 
                        the Secretary of Agriculture and the Colorado 
                        Department of Natural Resources a plan for 
                        operation of the project, which plan shall--
                                    (I) report on project operations 
                                for the previous year;
                                    (II) provide a description of the 
                                manner of project operations 
                                anticipated for the forthcoming year, 
                                which shall be prepared after 
                                consultation with the designated 
                                representatives of the Secretary of 
                                Agriculture, the Board of County 
                                Commissioners of Mesa County, Colorado, 
                                and the Colorado Department of Natural 
                                Resources; and
                                    (III) certify that the districts 
                                have operated and will operate and 
                                maintain the project facilities in 
                                accordance with sound engineering 
                                practices; and
                            (ii) subject to subsection (d), all 
                        electric power generated by operation of the 
                        project shall be made available to and be 
                        marketed by the Western Area Power 
                        Administration (including its successors or 
                        assigns).
            (6) Agreements.--Conveyance of the project shall be subject 
        to the agreements between the United States and the State of 
        Colorado dated August 22, 1994, and September 23, 1994, 
        relating to the construction and operation of recreational 
        facilities at Vega Reservoir, which agreements shall continue 
        to be performed by the parties thereto according to the terms 
        of the agreements.
    (d) Operation of the Power Component.--
            (1) Conformity to historic operations.--The power component 
        and facilities of the project shall be operated in substantial 
        conformity with the historic operations of the power component 
        and facilities (including recent operations in a peaking mode).
            (2) Power marketing.--
                    (A) Existing marketing arrangement.--The post-1989 
                marketing criteria, which provide for the marketing of 
                power generated by the power component of the project 
                as part of the output of the Salt Lake City area 
                integrated projects, shall no longer be binding on the 
                project upon conveyance of the project under subsection 
                (c)(1).
                    (B) After termination of existing marketing 
                arrangement.--
                            (i) In general.--After the conveyance, the 
                        districts shall offer all power produced by the 
                        power component of the project to the Western 
                        Area Power Administration or its successors or 
                        assigns (referred to in this section as 
                        ``Western''), which, in consultation with its 
                        affected preference customers, shall have the 
                        first right to purchase such power at the rates 
                        established in accordance with clause (ii). If 
                        Western declines to purchase the power after 
                        consultation with its affected preference 
                        customers, such power shall then be offered at 
                        the same rates first to Western's preference 
                        customers located in the Salt Lake City area 
                        integrated projects marketing area (referred to 
                        in this section as the ``SLCAIP preference 
                        customers''). Thereafter, such power may be 
                        sold to any other party: Provided, however, 
                        That no such sale may occur at rates less than 
                        rates established in accordance with clause 
                        (ii) unless such power is first offered at such 
                        lesser rate first to Western and then to its 
                        SLCAIP preference customers.
                            (ii) The rate for power initially offered 
                        to Western and its SLCAIP preference customers 
                        under this paragraph shall not exceed that 
                        required to produce revenues sufficient to 
                        provide for--
                                    (I) annual debt service and/or 
                                recoupment of the cost of capital for 
                                the amount specified in subsection 
                                (c)(4)(A)(i) of this section, less the 
                                sum of $310,000 (which is the net 
                                present value of the outstanding 
                                repayment obligation of the Collbran 
                                Conservancy District), and
                                    (II) the cost of operation, 
                                maintenance, and replacement of the 
                                power component of the project.
                Such costs and rate shall be determined in a manner 
                consistent with the current principles followed by the 
                Secretary of the Interior and by Western in its annual 
                power and repayment study.
    (e) License.--
            (1) Prior to the conveyance of the project to the 
        districts, the Commission shall issue to the districts a 
        license or licenses as appropriate under part I of the Federal 
        Power Act, as amended (16 U.S.C. 791 et seq.), authorizing for 
        a term of 40 years the continued operation and maintenance of 
        the power component of the project.
            (2) The license issued pursuant to subsection (l)--
                    (A) shall be for the purpose of operating, using, 
                maintaining, repairing, and replacing the power 
                component of the project as authorized by the Act of 
                July 3, 1952 (66 Stat. 325, chapter 565);
                    (B) shall be conditioned upon the requirement that 
                the power component of the project continue to be 
                operated and maintained in accordance with the 
                authorized purposes of the project; and
                    (C) shall be subject only to the provisions of part 
                I of the Federal Power Act, except the word 
                ``constructed'' in section 3(10); the four provisos of 
                section 4(e); section 6 to the extent it requires the 
                licensee's acceptance of those terms and conditions of 
                the Act that this subsection waives; section 10(e) as 
                concerns annual charges for the use and occupancy of 
                Federal lands and facilities; section 10(f); section 
                10(j); section 18; section 19; section 20; and section 
                22 of the Federal Power Act, 16 U.S.C. 796(10), 797(e), 
                799, 803(e), 803(f), 803(j), 811, 812, 813, and 815; 
                and shall not be subject to the standard ``L-Form'' 
                license conditions, published at 54 FPC 1792-1928 
                (1975), the Federal Land Policy and Management Act (43 
                U.S.C. 1701 et seq.), as amended, section 2402 of the 
                Energy Policy Act of 1992 (16 U.S.C. 797c), the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.), the Wild and Scenic Rivers Act 
                (16 U.S.C. 1271 et seq.), the Federal Water Pollution 
                Control Act (commonly known as the ``Clean Water Act'') 
                (33 U.S.C. 1251 et seq.), the National Historic 
                Preservation Act (16 U.S.C. 470 et seq.), the Coastal 
                Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), 
                the Fish and Wildlife Coordination Act (16 U.S.C. 661 
                et seq.), or any other Act otherwise applicable to the 
                licensing of the project.
            (3) The license issued under paragraph (1) is deemed to 
        meet the licensing standards of the Federal Power Act, 
        including section 10(a) and the last sentence of section 4(e), 
        16 U.S.C. 797(e).
            (4) Any power site reservation established by the 
        President, the Secretary of the Interior, or pursuant to 
        section 24 of the Federal Power Act (16 U.S.C. 818) or any 
        other law, which exists on any lands, whether federally or 
        privately owned, that are included within the boundaries of the 
        project shall be vacated by operation of law upon issuance of 
        the license for the project.
            (5) All requirements of part I of the Federal Power Act and 
        of any other Act applicable to the licensing of a hydroelectric 
        project shall apply to the project upon expiration of the 
        license issued under this section.
            (6) For purposes of this section, ``Commission'' means the 
        Federal Energy Regulatory Commission.
            (7) The operation of the project shall be subject to all 
        applicable State and Federal laws subsequent to the issuance of 
        the license pursuant to paragraph (1).
    (f) Inapplicability of NEPA.--Neither the conveyance of the project 
nor the issuance of easements pursuant to this section constitutes a 
major Federal action within the meaning of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), including any regulations 
issued under such Act.
    (g) Inapplicability of Prior Agreements and of Federal Reclamation 
Laws.--On conveyance of the project to the districts--
            (1) the repayment contract dated May 27, 1957, as amended 
        April 12, 1962, between the Collbran Conservancy District and 
        the United States, and the contract for use of project 
        facilities for diversion of water dated January 11, 1962, as 
        amended November 10, 1977, between the Ute Water Conservancy 
        District and the United States, shall be terminated and of no 
        further force or effect; and
            (2) the project shall no longer be subject to or governed 
        by the Federal reclamation laws.
    (h) Districts' Liability.--The districts shall be liable, to the 
extent allowed under State law, for all acts or omissions relating to 
the operation and use of the project by the districts that occur 
subsequent to the conveyance under subsection (c), including damages to 
Federal lands or facilities which result from the failure of project 
facilities.
    (i) Effect on State Law.--Nothing in this section shall be 
construed to impair the effectiveness of any State or local law 
(including regulations) relating to land use.
    (j) Treatment of Sales for Purposes of Certain Laws.--The sales of 
assets under this subchapter shall not be considered a disposal of 
Federal surplus property under the following provisions of law:
            (1) Section 203 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 484).
            (2) Section 13 of the Surplus Property Act of 1944 (50 
        U.S.C. App. 1622).
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