[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2398 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2398

  To amend the Small Reclamation Projects Act of 1956 to provide for 
    Federal cooperation in non-Federal reclamation projects and for 
       participation by non-Federal agencies in Federal projects.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 4, 1997

 Mr. Calvert introduced the following bill; which was referred to the 
                         Committee on Resources

_______________________________________________________________________

                                 A BILL


 
  To amend the Small Reclamation Projects Act of 1956 to provide for 
    Federal cooperation in non-Federal reclamation projects and for 
       participation by non-Federal agencies in Federal projects.

    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 ``Small Reclamation Water Resources 
Project Act of 1997''.

SEC. 2. AMENDMENT OF SMALL RECLAMATION PROJECTS ACT OF 1956.

    (a) Purpose.--The first section of the Small Reclamation Projects 
Act of 1956 (70 Stat. 1044; 43 U.S.C. 422a) is amended by striking 
``under the'' and inserting ``under this Act and other'' and by adding 
the following at the end thereof: ``Such projects may include, but 
shall not be limited to, irrigation projects. Irrigation shall not be a 
required purpose for projects receiving assistance under this Act.''.
    (b) Definitions.--Section 2 of the Small Reclamation Projects Act 
of 1956 (70 Stat. 1044; 43 U.S.C. 422b) is amended as follows:
            (1) By amending subsection (d) to read as follows:
    ``(d) The term `project' means a project carried out by a non-
Federal organization under the Federal reclamation laws in 1 or more of 
the 17 western reclamation States that is one of the following:
            ``(1) A single or multipurpose water resource development 
        project carried out by a non-Federal organization involving 
        water conservation, energy conservation, fish and wildlife 
        conservation, protection, or enhancement, public safety, public 
        outdoor recreation, environmental education, archaeological 
        surveys, integrated resource planning, watershed management, 
        water quality improvements, rural water supply, augmentation 
        and management of local water supplies, supplemental water for 
        existing supplies, technology transfer, groundwater management 
        or research, nonstructural flood control activities, or total 
        water resources management.
            ``(2) A project for the rehabilitation, betterment, or 
        retrofit of any existing Federal or non-Federal water 
        infrastructure for purposes of--
                    ``(A) significant preservation, protection, 
                enhancement, or extension of water or energy resources, 
                or
                    ``(B) those operational measures, habitat, or 
                physical features associated with the protection, 
                preservation, enhancement, or recovery of those fish 
                and wildlife resources that are considered of 
                importance and interest and which shall include, but 
                not be limited to, migratory species, threatened or 
                endangered species as listed, or proposed for listing, 
                under the Endangered Species Act, or other species, as 
                determined by the Secretary, to be worthy of 
                consideration under these terms.''.
            (2) By adding the following at the end thereof:
    ``(g) The term `water quality improvements' shall mean and involve 
those operational measures and physical features associated with--
            ``(1) the reclamation and reuse of irrigation drainage or 
        municipal and industrial return flows, including wastewater 
        flows;
            ``(2) the reclamation, dilution, or control, of brackish, 
        toxic, or hazardous waters for beneficial reuse or protection 
        of other related water, land, or environmental resources; or
            ``(3) flow augmentation from storage to achieve national or 
        State water quality goals.''.
    (c) Modification of Loan And Grant Programs.--Sections 3 through 8 
of such Act are amended to read as follows:

    ``TITLE I--STATE AND LOCAL PARTICIPATION IN RECLAMATION PROJECTS

``SEC. 101. ESTABLISHMENT OF GRANT AND LOAN PROGRAM

    ``There is hereby established under this title a program within the 
Bureau of Reclamation of the Department of the Interior pursuant to 
which the Secretary of the Interior may make grants and loans to 
organizations to carry out projects as defined in section 2(d).

``SEC. 102. CONTENTS OF PROPOSALS.

    ``(a) In General.--Any organization seeking assistance under this 
title shall submit a proposal to the Secretary in such form and manner 
as the Secretary may prescribe. Any proposal for a project submitted 
under this title shall set forth a plan and estimated cost in detail 
comparable to those included in preauthorization reports required for a 
Federal reclamation project.
    ``(b) Lands and Waters.--Each proposal submitted under this title 
shall include a showing that the project sponsor holds or can acquire 
all lands and interests in land (except public and other lands and 
interest in land owned by the United States which are within the 
administrative jurisdiction of the Secretary and subject to disposition 
by the Secretary) and rights, pursuant to applicable State law, to the 
use of water necessary for the successful construction, operation, and 
maintenance of the project and that it is ready, able, and willing to 
finance otherwise than by loan and grant of Federal funds the non-
Federal portion of the costs of the project (which portion shall 
include all costs of acquiring lands, interests in land, and rights to 
the use of water except as provided in section 103(b)(2).
    ``(c) Federal Share and Project Sponsor Share of Costs.--The 
Secretary shall require each organization to contribute toward the cost 
of the project (other than by loan or grant of Federal funds) not less 
than 25 percent nor more than 40 percent of the allowable estimated 
costs of the project. In determining the amount of such non-Federal 
contribution for the proposed project, the Secretary shall credit 
toward that amount--
            ``(1) the cost of investigations, surveys, engineering, and 
        other services necessary to the preparation of proposals and 
        plans for the proposed project as required by the Secretary;
            ``(2) the costs of lands and rights-of-way acquisition 
        required for the proposed project;
            ``(3) amounts spent by the organization for construction or 
        acquisition of facilities for the proposed project prior to 
        project approval; and
            ``(4) the filing fee required by this Act. Such proposal 
        shall also include an investigation of soil characteristics 
        which might result in toxic or hazardous return flows. The 
        costs of measures to prevent loss of and damage to existing 
        fish and wildlife resources shall be considered as non-Federal 
        project costs and allocated as may be appropriate among project 
        functions. The maximum allowable Federal share per project 
        shall be $30,000,000 plus or minus an adjustment of such amount 
        as may be determined by the Secretary using the Bureau of 
        Reclamation composite construction cost index for January of 
        the year concerned.
    ``(d) Approval or Disapproval.--Not later than one year after the 
time the initial project proposal is submitted to the Secretary, the 
Secretary shall make a determination whether the proposal is 
financially feasible and constitutes a reasonable risk under the 
provisions of this title and either approve or disapprove the proposal. 
The Secretary shall promptly transmit any approved proposals to the 
Congress. Any National Environmental Policy Act documentation for the 
project shall be completed prior to Secretarial transmittal of the 
proposal to the Congress.
    ``(e) Increase in Amount.--At any time prior to the completion of 
construction of the project, the Secretary may increase the amount of 
the requested loan or grant, or both, subject to the limitations 
allowed by subsection (c), using the Bureau of Reclamation composite 
construction cost index to compensate for increases in construction 
costs due to price escalation.

``SEC. 103. CONTRACT TERMS AND CONDITIONS.

    ``(a) Maximum Amounts.--Upon approval of any project proposal 
submitted under this title, the Secretary shall negotiate a contract 
which shall set out--
            ``(1) the maximum amount of any loan to be made to the 
        organization and the time and method of making the same 
        available to the organization; or
            ``(2) the maximum amount of any grant to be accorded the 
        organization.
    ``(b) Grants.--A grant under this title shall not exceed the sum of 
the following:
            ``(1) The costs of investigations, surveys, and engineering 
        and other services necessary to the preparation of proposals 
        and plans for the project allocable to fish and wildlife 
        enhancement or public recreation.
            ``(2) One-half the costs of acquiring lands or interests 
        therein to serve exclusively the purposes of fish and wildlife 
        enhancement or public recreation, plus the costs of acquiring 
        joint use lands and interests therein properly allocable to 
        fish and wildlife enhancement and public recreation.
            ``(3) One-half the costs of basic public outdoor recreation 
        facilities or facilities serving fish and wildlife enhancement 
        purposes exclusively.
            ``(4) One-half the costs of construction of joint use 
        facilities properly allocable to fish and wildlife enhancement 
        or public recreation.
            ``(5) That portion of the estimated cost of constructing 
        the project which, if it were constructed as a Federal 
        reclamation project, would be properly allocable to functions, 
        other than recreation and fish and wildlife enhancement and 
        flood control, which are nonreimbursable under general 
        provisions of law applicable to such projects.
            ``(6) That portion of the estimated cost of constructing 
        the project which is allocable to flood control and which would 
        be nonreimbursable under general provisions of law applicable 
        to projects constructed by the Secretary of the Army.
    ``(c) Loans.--(1) The contract for each loan under this title shall 
contain such terms and conditions as the Secretary deems necessary or 
proper to provide assurance of and security for prompt repayment and to 
ensure achievement of the purposes for which the loan was made. The 
contract shall include a plan for repayment by the organization within 
not less than 15 years nor more than 25 years, except that the 
organization shall have the right to prepay the loan without penalty.
    ``(2) The contract for each loan under this title shall require 
repayment of the principal of each loan, together with interest at a 
rate determined by the Secretary of the Treasury as of the beginning of 
the fiscal year in which the contract is executed on the basis of the 
average market yields on outstanding marketable obligations of the 
United States with remaining periods to maturity comparable to the 
applicable repayment period of the project.
    ``(3) The Secretary, at his discretion, may reduce the interest on 
any loan under this title to not less than one-half the average market 
rate as so determined, or to the extent that he determines that the 
organization is unable to secure financing from other sources under 
reasonable terms and conditions, and shall include letters from lenders 
or other written evidence in support of any finding of an applicant's 
inability to secure such financing in any project proposal transmitted 
to the Congress.
    ``(4) Loans under these terms may be made for all costs allocated 
to commercial irrigation; however, the Secretary shall reduce the 
interest to not less than \1/3\ the average based on the applicant's 
average ability to pay calculations, or further reduce the loan rate if 
he finds at his discretion that there are sufficient benefits to 
approve a reduced loan rate.

                    ``TITLE II--PARTNERSHIP PROGRAM

``SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.

    ``There is hereby established within the Department of the 
Interior's Bureau of Reclamation the Small Reclamation Water Resources 
Management Partnership Program for a small grant and loan program to be 
carried out under this title. Grants under this title shall not exceed 
$5,000,000 for any one project under such program and shall be matched 
on a 50-50 basis. Loans under this title shall not exceed $1,500,000 
per project. The Secretary is authorized to use up to $50,000,000 of 
the amounts available under this Act for the purposes of this title.

``SEC. 202. REPAYMENT OF LOANS.

    ``Once work is certified complete by the Secretary, each loan made 
under this title shall be repaid within a 5-year period and deposited 
in a revolving loan fund that shall be established in the Department of 
the Treasury. Money from the repayment of the loans shall be available 
from the revolving loan program fund without further appropriation to 
carry out the purposes of this title.

``SEC. 203. ACTIVITIES ELIGIBLE UNDER THE SMALL RECLAMATION WATER 
              RESOURCES PARTNERSHIP.

    ``(a) In General.--The following types of activities shall be 
eligible for grants or loans under this title:
            ``(1) Water conservation.--
                    ``(A) Rehabilitation of existing structures;
                    ``(B) wastewater reuse systems;
                    ``(C) groundwater recharge and development systems;
                    ``(D) watershed management programs;
                    ``(E) water quality improvement projects;
                    ``(F) conjunctive use projects;
                    ``(G) metering of systems; and
                    ``(H) public environmental education.
            ``(2) Fish and wildlife enhancement.--
                    ``(A) Fish and wildlife habitat improvement and 
                protection programs;
                    ``(B) grassland/water/wetland areas;
                    ``(C) stabilization of instream flows; and
                    ``(D) Federal or State endangered species habitat 
                protection and enhancement where improvement or 
                enhancement activities are within normal operating 
                criteria.
            ``(3) Public safety.--
                    ``(A) Downstream warning system projects;
                    ``(B) canal fencing or canal modification for 
                public safety; and
                    ``(C) public access facilities.
            ``(4) Public outdoor recreation.--
                    ``(A) Replacement, repair, or improvement of boat 
                ramps, hiking and biking trails, benches, picnic areas, 
                parking facilities associated with Federal reclamation 
                projects; and
                    ``(B) addition of public access facilities.
            ``(5) Archaeological surveys.--Site clearances.
    ``(b) Additional Activities.--The Secretary may add to the list 
referred to in subsection (a) as he deems appropriate, except that any 
such addition shall not take effect until 60 days after the Secretary 
publishes a notice of the proposed addition in the Federal Register and 
has notified the Committee on Resources of the House of Representatives 
and the Committee on Energy and Natural Resources of the United States 
Senate in writing of the proposed addition and the reasons therefor.

``SEC. 204. APPLICATION PROCESS.

    ``(a) Notice of Intent.--Each applicant for a grant or loan under 
this title shall submit a Notice of Intent to the Secretary outlining 
the proposed project and the public benefits thereof. The Secretary 
shall provide a written response to the applicant within 30 days of 
receiving the application either affirming or rejecting Bureau of 
Reclamation interest in participating in the project.
    ``(b) Notice of Federal Interest.--Upon notification of a Bureau of 
Reclamation interest, the applicant shall have the option of proceeding 
with an appropriate loan or grant application giving details of the 
project and the associated public benefits.
    ``(c) Contents.--The contents of any project proposal under this 
title shall include, but need not be limited to, each of the following:
            ``(1) A resolution by the board of directors of the 
        qualifying organization stating--
                    ``(A) the total estimated cost;
                    ``(B) the amount of the grant or loan requested;
                    ``(C) the amount of the local contribution for the 
                grant;
                    ``(D) the sponsor's ability to finance and 
                construct the project; and
                    ``(E) the project objectives.
            ``(2) A summary of the proposal.
            ``(3) A brief description of the anticipated effects of the 
        project on the natural, as well as manmade environment.
            ``(4) Evidence that the applicant has all lands and water 
        rights needed for the project, or can obtain them.
            ``(5) A description of the project plan, including a 
        general map showing the location of proposed physical features, 
        sufficient engineering drawings of major and typical 
        structures, and general standards for design.
            ``(6) A construction schedule, if applicable, with dates 
        and schedule of funding requirements under this title, in 
        sufficient detail to permit analysis of the proposed 
        construction program.
            ``(7) A determination of those portions of the project 
        costs which constitute the Federal grant/loan amounts and the 
        applicant's local contribution.
    ``(d) Costs.--The cost of any investigations and preparation of any 
environmental documentation shall be borne by the project applicant and 
any such costs shall be credited as part of the local cost share for 
grant funding.
    ``(e) Quarterly Listing.--The Secretary shall publish on a 
quarterly basis in the Federal Register a listing of the activities and 
total funding required for work committed under this title.

``SEC. 205. TERMS AND CONDITIONS OF PROJECT WORK.

    ``The Secretary shall examine the proposal submitted under this 
title to determine if the project can reasonably be expected to 
accomplish its purpose. Once approved by the Secretary, funding, 
subject to the availability of appropriations or funds from repayments, 
shall be provided within 60 days for the schedule of work within that 
fiscal year.

                      ``TITLE III--LOAN GUARANTEES

``SEC. 301. ESTABLISHMENT OF LOAN GUARANTEE PROGRAM.

    ``There is hereby established within the Department of the 
Interior's Bureau of Reclamation a demonstration program under this 
title to guarantee loans for projects receiving, or eligible to 
receive, loans or grants under title I or II of this Act.

``SEC. 302. PROGRAM REQUIREMENTS.

    ``(a) In General.--The Secretary may provide support under the 
demonstration program to organizations through the provision of loan 
guarantees to such programmatic needs as authorized under titles I and 
II of this Act under such terms and conditions specified in this 
section and under applicable laws. Any proposal for a project submitted 
under this title shall set forth a plan and estimated cost in detail 
comparable to those included in preauthorization reports required for a 
Federal reclamation project.
    ``(b) Funding Limit.--The Secretary is authorized to use up to 10 
percent of the amounts available under this Act for the loan guarantee 
demonstration program under this title over the 6 fiscal years 
commencing after the enactment of this title.
    ``(c) Selection of Recipients.--The Secretary shall use competitive 
procedures in the selection of entities to receive loan guarantees 
under this section. The criteria used for the selection of the entities 
to receive the loan guarantee under this section shall include, at a 
minimum, the following:
            ``(1) The extent to which the loan guarantees would support 
        new water supplies or more efficient use of existing supplies.
            ``(2) The extent to which the loan guarantees are necessary 
        as a result of no other financing mechanism being available to 
        the requesting entity.
            ``(3) The extent to which the loan guarantee can be repaid 
        in the shortest period possible.
            ``(4) The extent to which the loan guarantee would provide 
        for a project of wide public purpose.
            ``(5) The extent to which the loan guarantee would 
        alleviate a problem with a Federal or State environmental 
        statute or mandate.
            ``(6) The ability of the program to assist other local 
        water purveyors.
            ``(7) The extent to which the program would supplement, 
        rather than duplicate, other available water resource programs.
            ``(8) The likelihood that, within 10 years after the 
        commencement of assistance for a program under this section 
        that assistance from the Bureau of Reclamation will not be 
        necessary to sustain the program.
            ``(9) The extent to which the annual use of loan guarantee 
        ceiling authority has not created an undue fiscal burden on the 
        reclamation program.
    ``(d) Apportionment.--The total amount available for request by the 
Administration for a fiscal year to cover the costs of loan guarantees 
under this section shall be divided between projects receiving or 
eligible to receive loans under titles I and II with title I projects 
receiving 75 percent and title II projects receiving 25 percent.
    ``(e) Maximum.--The maximum allowable guarantee percentage for 
loans guaranteed under this section may not exceed 75 percent of the 
total project cost.
    ``(f) Repayment.--As the project sponsor repays such guaranteed 
loan, the ceiling authority used under this section for such guarantee 
shall revert back to the 10 percent ceiling authorized under this 
section to serve as the basis for future loan guarantees. Applicable 
report and document requirements authorized under amendments contained 
in titles I and II shall similarly apply to loan guarantee projects.
    ``(g) State Law.--For purposes of this Act, any bonds issued under 
this section by an entity receiving loan guarantees under this section 
shall be considered federally guaranteed tax-exempt bonds under 
applicable State law.
    ``(h) Full Faith and Credit.--Any loan guarantee issued pursuant to 
this section shall constitute an obligation, in accordance with the 
terms of such guarantee, of the United States Government, and the full 
faith and credit of the United States is hereby pledged to the full 
performance of the obligations.
    ``(i) Report.--At the end of the third fiscal year after the 
enactment of this Act, the Secretary shall submit a report to Congress 
on the beneficial use and suggested improvements associated with the 
use of loan guarantees as a mechanism for project construction.

                     ``TITLE IV--GENERAL PROVISIONS

``SEC. 401. PROPOSAL FEE.

    ``Each proposal for a loan, grant, or loan guarantee under this Act 
shall be accompanied by a payment of $5,000 plus $1,000 for each 
$1,000,000 of the estimated Federal share of project costs, or portion 
thereof to defray in part the costs of examining the proposal. Fifty 
percent of the payment shall accompany the application and the 
remaining 50 percent shall be due upon approval of the project by the 
Secretary, if approved.

``SEC. 402. MISCELLANEOUS PROVISIONS.

    ``(a) Title.--Title to all project works and facilities constructed 
with assistance under this Act shall remain in the name of the 
organization.
    ``(b) Combined Loans and Grants.--Nothing contained in this Act 
shall preclude the making of more than one loan or grant, or combined 
loan and grant, to an organization so long as no two such loans or 
grants, or combinations thereof, are for the same project, as herein 
defined.
    ``(c) Planning, Construction, Operation, and Maintenance.--The 
recipient of each loan, grant, or loan guarantee under this Act shall 
be solely responsible for planning, constructing, operating, and 
maintaining any project receiving a loan or grant under this title.

``SEC. 403. INFORMATION AVAILABILITY.

    ``Upon request of an organization which has made or intends to make 
a proposal under this Act, the head of any Federal department or agency 
may make available to the organization any existing engineering, 
economic, hydrologic, or other appropriate information and printed 
material that it may have and that will be useful in connection with 
the planning, design, construction, or operation and maintenance of the 
project concerned. The reasonable cost of any plans, specifications, 
and other unpublished material furnished by the Secretary pursuant to 
this section and the cost of making and administering any provision 
under this Act shall, to the extent that they would not be 
nonreimbursable in the case of a project constructed under the Federal 
Reclamation Laws, be treated as a loan and covered in the provisions of 
the contract entered into under section 105 unless they are otherwise 
paid for by the organization.

``SEC. 404. COMPLIANCE WITH FISH AND WILDLIFE COORDINATION ACT.

    ``For those projects where the planning and construction of 
projects undertaken pursuant to this Act is subject to the provisions 
of the Fish and Wildlife Coordination Act, the cost of such provisions 
shall be a Federal expense and the Secretary is authorized, as may be 
provided in Appropriation Acts, to transfer to the Fish and Wildlife 
Service or to the National Marine Fisheries Service, such funds as may 
be necessary to conduct the investigations required to carry out the 
purposes of this Act, except that the Secretary may not use any funds 
appropriated for the purposes of projects or programs under the Bureau 
of Reclamation.''.
    (d) Conforming Amendments.--(1) Sections 9 through 13 of such Act 
are redesignated as sections 405 through 409 respectively.
    (2) Section 406 of such Act, as redesignated by paragraph (1) of 
this subsection, is amended by striking ``section 3'' and inserting 
``title I''.
    (3) Section 402 of such Act, as redesignated by paragraph (1) of 
this subsection, is amended by striking ``section 4(c)'' and inserting 
``title I''.

SEC. 3. REGULATIONS.

    Within 120 days after the enactment of this Act, the Secretary of 
the Interior shall promulgate such regulations as may be necessary to 
carry out the amendments made by this Act.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
the enactment of this Act. Nothing in this Act or in any amendment made 
by this Act shall affect any loan or grant that has been approved 
before the date of the enactment of this Act.
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