[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1719 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1719

 To require the Secretary of the Interior to offer to sell to certain 
 public agencies the indebtedness representing the remaining repayment 
  balance of certain Bureau of Reclamation projects in Texas, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 1, 1996

Mrs. Hutchison introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of the Interior to offer to sell to certain 
 public agencies the indebtedness representing the remaining repayment 
  balance of certain Bureau of Reclamation projects in Texas, 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 ``Texas Reclamation Projects 
Indebtedness Purchase Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Federal reclamation laws.--The term ``Federal 
        reclamation laws'' means the Act of June 17, 1902 (32 Stat. 
        388, chapter 1093), and Acts amendatory or supplementary to 
        that Act, (43 U.S.C. 371 et seq.).
            (2) Non-federal mitigation costs.--The term ``non-Federal 
        mitigation costs'' means costs or expenses incurred by a 
        purchaser, whether paid directly or incurred as a reduction of 
        anticipated project benefits, not otherwise included as costs 
        to be repaid by the Federal Government, to mitigate 
        environmental impacts of a project pursuant to law.
            (3) Present value.--The term ``present value'' means the 
        present value of the unpaid indebtedness of a project, as 
        defined by the project repayment schedule, discounted at the 
        United States Treasury rates on the date of execution of the 
        purchase contract.
            (4) Project.--The term ``project'' means all or part of a 
        project specified in section 4, including all features, 
        functions, and real and personal property authorized by 
        Congress for any such project.
            (5) Public agency.--The term ``public agency'' means--
                    (A) a State agency or political subdivision of the 
                State of Texas created under the laws of the State of 
                Texas; or
                    (B) a home rule city created under the laws of the 
                State of Texas.
            (6) Purchaser.--The term ``purchaser'' means--
                    (A) the party that (as of the date of enactment of 
                this Act) has contracted with the United States for 
                repayment of the indebtedness of a project; or
                    (B) if the party referred to in subparagraph (A) 
                declines to complete the contract in accordance with 
                this Act, the State of Texas, or a public agency, that 
                has contracted with the United States for repayment of 
                the indebtedness of a project in accordance with this 
                Act.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. AGREEMENT FOR SALE OF INDEBTEDNESS OF BUREAU OF RECLAMATION 
              PROJECTS IN TEXAS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall offer to enter into an 
agreement with a purchaser for the purchase of projects in accordance 
with this section.
    (b) Purchase Price.--
            (1) In general.--Subject to the other provisions of this 
        subsection, the purchase price of a project shall be equal to 
        the present value of the project.
            (2) Discount for identified liabilities and unrealized 
        benefits.--In the case of a project with an identified 
        liability, or a project from which actual benefits are less 
        than the benefits that are projected at the time of project 
        authorization, the purchase price of the project shall be 
        discounted to the extent of the identified liability or 
        unrealized benefits, as determined by the State of Texas.
            (3) Discount for bureau payments.--In the case of a project 
        with respect to which the Bureau of Reclamation is obligated to 
        pay a portion of maintenance and operating expenses or payments 
        in lieu of taxes, the purchase price of the project shall be 
        discounted by an amount equal to the anticipated payment by the 
        Bureau of Reclamation for the next 50 years.
            (4) Discount for non-federal costs.--If a purchaser assumes 
        the responsibility for non-Federal mitigation costs of a 
        project, the purchase price of the project shall be discounted 
        to reflect the additional obligations undertaken or costs 
        incurred.
    (c) Conveyance of Land and Improvements.--When the purchase price 
is paid for a project, the Secretary shall convey to the purchaser all 
right, title, and interest of the United States to all land and all 
improvements to the project. An interest may be retained by the United 
States to the extent that the interest is retained under subsection 
(g).
    (d) Operation and Maintenance.--The purchaser shall assume all 
responsibility and liability for operation and maintenance of a 
purchased project.
    (e) Delivery of Projects.--The United States shall provide for the 
performance of work reasonably necessary to provide for the delivery of 
a project, including all facilities and property, in a reasonably safe 
and functional condition and in accordance with good maintenance 
standards.
    (f) Federal Reclamation Law Requirements and Benefits.--On full 
payment of the purchase price required under this section and the 
transfer of a project--
            (1) the purchaser shall be relieved from compliance with 
        the acreage limitation and other requirements of Federal 
        reclamation laws with respect to the project; and
            (2) a project beneficiary shall not be eligible to receive 
        benefits available under Federal reclamation laws, unless 
        otherwise authorized by law, with respect to a project.
    (g) Responsibility and Liability for Project.--On completion of the 
purchase of a project, the purchaser shall--
            (1) assume sole responsibility and liability for the 
        project purchased as of the date of conveyance of title; and
            (2) hold the United States harmless and indemnify the 
        United States against all claims of damage;
except to the extent any title or aspect of project operations has been 
retained by the United States.
    (h) Nonreimbursable Costs.--On completion of the purchase of a 
project, the purchaser shall assume responsibility for continued 
implementation of all nonreimbursable costs of the project originally 
authorized by law.
    (i) Effect on Certain Federal Programs.--A program of the National 
Park Service or the Army Corps of Engineers associated with a project 
shall not be affected by the transfer of a project.

SEC. 4. PROJECTS AND PURCHASE PRICE.

    The Secretary shall offer to enter into an agreement with a 
purchaser under section 3 for the purchase of--
            (1) the Canadian River reclamation project, Texas, 
        authorized by the Act of December 29, 1950 (64 Stat. 1124, 
        chapter 1183; 43 U.S.C. 600b et seq.), for $21,187,881, except 
        that title to portions of the project owned by the National 
        Park Service, and portions required for flood control operation 
        by the Army Corp of Engineers, shall not be transferred;
            (2) the Palmetto Bend Federal reclamation project, Texas, 
        authorized by Public Law 90-562 (43 U.S.C. 616gggg note), for 
        $33,923,245; and
            (3) the Nueces River project, Texas, authorized by title X 
        of Public Law 93-493 (43 U.S.C. 600g note), for $30,715,367.

SEC. 5. RELATIONSHIP TO OTHER LAW.

    (a) NEPA.--The assumption of Federal nonreimbursable responsibility 
for a project by a purchaser shall be considered to comply with the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
Review of the project purchase shall not be required pursuant to the 
Act.
    (b) Repayment of Construction Charges.--Section 213(c) of the 
Reclamation Reform Act of 1982 (43 U.S.C. 390mm(c)) shall not apply to 
a project.
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