[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 725 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 725

    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 SENATE OF THE UNITED STATES

                              May 8, 1997

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

_______________________________________________________________________

                                 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,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Collbran Project Unit Conveyance 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) District.--The term ``District'' 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 under 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 nonexclusive easement for the use of existing 
                easements or rights-of-way owned by the United States 
                on or across non-Federal land that are necessary for 
                access to project facilities;
                    (L) title to land reasonably necessary for all 
                project facilities (except land described in 
                subparagraph (K) or paragraph (1) or (2) of section 
                3(a));
                    (M) all permits and contract rights held by the 
                Bureau of Reclamation, including contract or other 
                rights relating to the operation, use, maintenance, 
                repair, or replacement of the water storage reservoirs 
                located on the Grand Mesa that are operated as part of 
                the project;
                    (N) all equipment, parts inventories, and tools;
                    (O) all additions, replacements, betterments, and 
                appurtenances to any of the land, interests in land, or 
facilities described in subparagraphs (A) through (N); 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--
                    (A) 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 (such as recreation, 
                maintenance, and daily and overnight visitor use), at 
                and near Vega Reservoir;
                    (B) lands above the high water level of Vega 
                Reservoir within the area previously defined by the 
                Secretary as the ``Reservoir Area Boundary'' that 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 of Vega Reservoir 
                and for construction, operation, maintenance, and 
                replacement of facilities for recreational purposes 
                below the high water line; and
                    (C) improvements constructed or added under the 
                agreements referred to in section 3(f).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. CONVEYANCE.

    (a) In General.--
            (1) Conveyance to districts.--
                    (A) In general.--On or before the date that is 1 
                year after the date of enactment of this Act, the 
                Secretary shall convey to the Districts all right, 
                title, and interest of the United States in and to the 
                project by quitclaim deed and bill of sale, without 
                warranties, subject only to the requirements of this 
                Act.
                    (B) Action pending conveyance.--Until the 
                conveyance under subparagraph (A) occurs, the Director 
                of the Bureau of Reclamation shall continue to exercise 
                the responsibility to provide for the operation, 
                maintenance, repair, and replacement of project 
                facilities and the storage reservoirs on the Grand Mesa 
                to the extent that the responsibility is the 
                responsibility of the Bureau of Reclamation and has not 
                been delegated to the Districts before the date of 
                enactment of this Act or is delegated or transferred to 
                the Districts by agreement after that date, so that at 
                the time of the conveyance the facilities are in the 
                same condition as, or better condition than, the 
                condition of the facilities on the date of enactment of 
                this Act.
            (2) Easements on national forest system lands.--
                    (A) In general.--On or before the date that is 1 
                year after the date of enactment of this Act, the 
                Secretary of Agriculture shall grant, subject only to 
                the requirements of this section--
                            (i) a nonexclusive easement on and across 
                        National Forest System land to the Districts 
                        for ingress and egress on access routes in 
                        existence on the date of enactment of this Act 
                        to each component of the project and storage 
                        reservoir on the Grand Mesa in existence on the 
                        date of enactment of this Act that is operated 
                        as part of the project;
                            (ii) a nonexclusive easement on National 
                        Forest System land for the operation, use, 
                        maintenance, repair, and replacement (but not 
                        enlargement) of the storage reservoirs on the 
                        Grand Mesa in existence on the date of 
                        enactment of this Act to the owners and 
                        operators of the reservoirs that are operated 
                        as a part of the project; and
                            (iii) a nonexclusive easement to the 
                        Districts for the operation, use, maintenance, 
                        repair, and replacement (but not enlargement) 
                        of the components of project facilities that 
                        are located on National Forest System land, 
                        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 the easements.
                    (B) Exercise of easement.--The easement under 
                subparagraph (A)(ii) may be exercised if the land use 
                authorizations for the storage reservoirs described in 
                subparagraph (A)(ii) are restricted, terminated, 
relinquished, or abandoned, and the easement shall not be subject to 
conditions or requirements that interfere with or limit the use of the 
reservoirs for water supply or power purposes.
            (3) Easements to districts for southside canal.--On or 
        before the date that is 1 year after the date of enactment of 
        this Act, the Secretary shall grant to the Districts, subject 
        only to the requirements of this section--
                    (A) a nonexclusive easement on and across land 
                administered by agencies within the Department of the 
                Interior for ingress and egress on access routes to and 
                along the Southside Canal in existence on the date of 
                enactment of this Act; and
                    (B) 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 for nonroutine, nonemergency activities 
                that occur on the easements.
    (b) Reservation.--
            (1) In general.--The conveyance of easements under 
        subsection (a) 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 that 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.
            (2) Recreational activities.--The United States may allow 
        for continued public use and enjoyment of such portions of the 
        project for recreational activities and other public uses as 
        are conducted as of the date of enactment of this Act.
    (c) 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 subsection (f) 
have been fulfilled by the United States, at which time all right, 
title, and interest in the Vega Recreation Facilities shall be conveyed 
by the Secretary to the State of Colorado, Division of Parks and 
Outdoor Recreation.
    (d) Payment.--
            (1) In general.--At the time of the conveyance under 
        subsection (a)(1), 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--
                    (A) $12,300,000 shall be deposited in the general 
                fund of the Treasury of the United States; and
                    (B) $600,000 shall be deposited in a special 
                account in the Treasury of the United States and shall 
                be available to the United States Fish and Wildlife 
                Service, Region 6, without further Act of 
                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 as may 
                be selected with the concurrence of the Governor of the 
                State of Colorado.
            (2) Source of funds.--Funds for the payment to the extent 
        of the amount specified in paragraph (1) 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.
    (e) Operation of Project.--
            (1) In general.--
                    (A) Declaration.--The project was authorized and 
                constructed under the Act of July 3, 1952 (66 Stat. 
                325, chapter 565) for the purpose of placing water to 
                beneficial use for authorized purposes within the State 
                of Colorado.
                    (B) Operation.--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 purpose for 
                which the project was authorized.
                    (C) Changes in operation.--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.
            (2) Requirements.--During the 40-year period described in 
        paragraph (1)(B)--
                    (A) 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
                    (B) subject to section 4, all electric power 
                generated by operation of the project shall be made 
                available to and be marketed by the Western Area Power 
                Administration.
    (f) 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 to the 
agreements according to the terms of the agreements.

SEC. 4. OPERATION OF THE POWER COMPONENT.

    (a) 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).
    (b) Power Marketing.--
            (1) 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 section 3(a).
            (2) After termination of existing marketing arrangement.--
                    (A) In general.--
                            (i) First offer.--After the conveyance 
                        under section 3(a), 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 paragraph as ``Western''), 
                        which, in consultation with its affected 
                        preference customers, shall have the first 
                        right to purchase such power at the rates 
                        established under subparagraph (B).
                            (ii) Second offer.--If Western declines to 
                        purchase the power after consultation with its 
                        affected preference customers, the power shall 
                        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 paragraph as the ``SLCAIP 
                        preference customers'').
                            (iii) Other offers.--After offers have been 
                        made under clauses (i) and (ii), power may be 
                        sold to any other party, but no such sale may 
                        occur at a rate less than a rate established 
                        under subparagraph (B) unless the power is 
                        offered at the lesser rate first to Western and 
                        second to the SLCAIP preference customers.
                    (B) Rate.--The rate for power initially offered to 
                Western and the SLCAIP preference customers under this 
                paragraph shall not exceed that required to produce 
                revenues sufficient to provide for--
                            (i) annual debt service or recoupment of 
                        the cost of capital for the amount specified in 
                        section 3(d)(1)(A) 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.
                    (C) Determination of costs and rate.--Costs and a 
                rate under subparagraph (B) shall be determined in a 
                manner that is consistent with the principles followed, 
                as of the date of enactment of this Act, by the 
                Secretary and by Western in its annual power and 
                repayment study.

SEC. 5. LICENSE.

    (a) In General.--Before conveyance of the project to the Districts, 
the Federal Energy Regulatory Commission shall issue to the Districts a 
license or licenses as appropriate under part I of the Federal Power 
Act (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.
    (b) Terms of License.--
            (1) In general.--The license under subsection (a)--
                    (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 subject to the condition 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 to part I of the Federal Power 
                Act (16 U.S.C. 791 et seq.) except as stated in 
                paragraph (2).
            (2) Laws not applicable.--
                    (A) Federal power act.--
                            (i) In general.--The license under 
                        subsection (a) shall not be subject to the 
                        following provisions of the Federal Power Act: 
                        the 4 provisos of section 4(e) (16 U.S.C. 
                        797(e)); section 6 (16 U.S.C. 799) to the 
                        extent that the section requires acceptance by 
                        a licensee of terms and conditions of the Act 
                        that this subsection waives; subsection (e) 
                        (insofar as the subsection concerns annual 
                        charges for the use and occupancy of Federal 
                        lands and facilities), (f), or (j) of section 
                        10 (16 U.S.C. 803); section 18 (16 U.S.C. 811); 
                        section 19 (16 U.S.C. 812); section 20 (16 
                        U.S.C. 813); or section 22 (16 U.S.C. 815).
                            (ii) Not a government dam.--Notwithstanding 
                        that any dam under the license under subsection 
                        (a) may have been constructed by the United 
                        States for Government purposes, the dam shall 
                        not be considered to be a Government dam, as 
                        that term is defined in section 3 of the 
                        Federal Power Act (16 U.S.C. 796).
                            (iii) Standard form license conditions.--
                        The license under subsection (a) shall not be 
                        subject to the standard ``L-Form'' license 
                        conditions published at 54 FPC 1792-1928 
                        (1975).
                    (B) Other laws.--The license under subsection (a) 
                shall not be subject to--
                            (i) the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1701 et seq.);
                            (ii) section 2402 of the Energy Policy Act 
                        of 1992 (16 U.S.C. 797c);
                            (iii) the National Environmental Policy Act 
                        of 1969 (42 U.S.C. 4321 et seq.);
                            (iv) the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.);
                            (v) the Wild and Scenic Rivers Act (16 
                        U.S.C. 1271 et seq.);
                            (vi) the Federal Water Pollution Control 
                        Act (commonly known as the ``Clean Water Act'') 
                        (33 U.S.C. 1251 et seq.);
                            (vii) the National Historic Preservation 
                        Act (16 U.S.C. 470 et seq.);
                            (viii) the Coastal Zone Management Act of 
                        1972 (16 U.S.C. 1451 et seq.);
                            (ix) the Fish and Wildlife Coordination Act 
                        (16 U.S.C. 661 et seq.); or
                            (x) any other Act otherwise applicable to 
                        the licensing of the project.
            (3) Laws enacted after issuance of license.--The operation 
        of the project shall be subject to all applicable State and 
        Federal laws enacted after the date of issuance of the license 
        under subsection (a).
    (c) Licensing Standards.--The license under subsection (a) is 
deemed to meet all licensing standards of the Federal Power Act (16 
U.S.C. 791 et seq.).
    (d) Power Site Reservation.--Any power site reservation established 
under section 24 of the Federal Power Act (16 U.S.C. 818) or any other 
law that exists on any land, whether federally or privately owned, that 
is included within the boundaries of the project shall be vacated by 
operation of law on issuance of the license for the project.
    (e) Expiration of License.--All requirements of part I of the 
Federal Power Act (16 U.S.C. 791 et seq.) and of any other Act 
applicable to the licensing of a hydroelectric project shall apply to 
the project on expiration of the license issued under this section.

SEC. 6. 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.

SEC. 7. LIABILITY OF THE DISTRICTS.

    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 
section 3(a), including damage to any Federal land or facility that 
results from the failure of a project facility.

SEC. 8. EFFECT ON STATE LAW.

    Nothing in this Act impairs the effectiveness of any State or local 
law (including a regulation) relating to land use.

SEC. 9. TREATMENT OF SALES FOR PURPOSES OF CERTAIN LAWS.

    The sales of assets under this subchapter shall not be considered 
to be a disposal of Federal surplus property under--
            (1) section 203 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 484); or
            (2) section 13 of the Surplus Property Act of 1944 (50 
        U.S.C. App. 1622).
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