[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1612 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1612

 To direct the Secretary of the Interior to convey certain irrigation 
project property to certain irrigation and reclamation districts in the 
                           State of Nebraska.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 1999

 Mr. Kerrey (for himself and Mr. Hagel) 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 certain irrigation 
project property to certain irrigation and reclamation districts in the 
                           State of Nebraska.

    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 ``Missouri River Basin, Middle Loup 
Division Facilities Conveyance Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Reclamation.
            (2) District.--The term ``District'' means--
                    (A) the Farwell Irrigation District, a political 
                subdivision of the State of Nebraska;
                    (B) the Sargent Irrigation District, a political 
                subdivision of the State of Nebraska; and
                    (C) the Loup Basin Reclamation District, a 
                political subdivision of the State of Nebraska.
            (3) District trust.--The term ``District Trust'' means the 
        Nebraska-Middle Loup River Community Environmental Trust 
        established under section 5(a)(2)(B)(v).
            (4) Game and parks commission trust.--The term ``Game and 
        Parks Commission Trust'' means the Nebraska-Middle Loup River 
        Game and Parks Commission Trust established under section 
        5(a)(2)(B)(vi).
            (5) Project.--The term ``Project'' means Sherman Reservoir, 
        Milburn Diversion Dam, Arcadia Diversion Dam, related canals 
        and other related lands, water rights, acquired land, 
        distribution and diversion facilities, contracts, personal 
        property, and other associated interests owned by the United 
        States and authorized under the Act of June 17, 1902 (32 Stat. 
        388, chapter 1093), the Act of December 22, 1944 (commonly 
        known as the ``Flood Control Act of 1944'') (58 Stat. 887, 
        chapter 665), and the Act of August 3, 1956 (70 Stat. 975, 
        chapter 917).
            (6) Repayment and water service contracts.--The term 
        ``Repayment and Water Service Contracts'' means all repayment 
        and water service contracts between the Commissioner and the 
        District relating to the Project.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Trust.--The term ``Trust'' means--
                    (A) the District Trust; and
                    (B) the Game and Parks Commission Trust.

SEC. 3. CONVEYANCE OF THE PROJECT.

    (a) Conveyance.--
            (1) In general.--The Secretary shall convey to the 
        Districts, by quitclaim deed, assignment, or patent, the 
        interest of the United States in the Project, in consideration 
        of payment to the Secretary--
                    (A) by the Districts, of an amount not to exceed 
                $3,000,000, determined in accordance with the Bureau of 
                Reclamation document entitled ``Framework for Title 
                Transfer'' and the memorandum of agreement between the 
                Commissioner and the Districts under section 5; and
                    (B) by the Western Area Power Administration, of 
                $2,000,000.
            (2) Timing.--The conveyance under paragraph (1) shall be 
        made concurrently with the making of the payment under 
        paragraph (1)(A), but the payment under paragraph (1)(B) shall 
        be made from capacity and energy charges at Pick-Sloan Missouri 
        Basin Program firm power rates received in fiscal year 1999 or 
        any subsequent fiscal year in which the amount of power sale 
        revenue received exceeds the amount of interest and operation 
        and maintenance obligations of the Western Area Power 
        Administration by at least $2,000,000, to the extent of the 
        excess.
            (3) Satisfaction of obligations against the project.--The 
        payment under paragraph (1)(A) shall constitute full and 
        complete satisfaction of all obligations against the Project, 
        the Districts, and the Western Area Power Administration 
        existing before the date of the conveyance or thereafter 
        relating to the Project, including--
                    (A) future obligations for additional drainage 
                under section 5(a)(2)(iv);
                    (B) obligations under any contracts entered into 
                between the United States, the Districts, and the 
                Western Area Power Administration or its predecessors; 
                and
                    (C) any obligation that may have been required by 
                the Act of December 22, 1944 (58 Stat. 887, chapter 
                665) or other related Federal law.
            (4) Satisfaction of obligations for irrigation benefits.--
        The conveyance of the Project and the payment of the 
        consideration under paragraph (1) shall constitute full 
        satisfaction of any and all obligations of the Districts or of 
        the Pick-Sloan Missouri Basin Program firm power users or the 
        Western Area Power Administration for irrigation benefits of 
        the Project or for any other benefits conveyed to the 
        Districts.
    (b) Contaminated Property.--
            (1) Remedial action.--The Secretary shall convey the 
        Project without regard to whether all necessary remedial action 
        required under section 120(h)(3) of the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9620(h)(3)) on any part of the Project has been 
        completed.
            (2) Continuing obligation to complete remedial action.--
        Notwithstanding any law to the contrary, the United States 
        shall remain during and subsequent to the conveyance obligated, 
        at the expense of the United States, to complete any required 
        remedial action.
    (c) Extinguishment of Obligations Between the Commissioner and the 
Districts.--Effective on the date of the conveyance, all obligations 
between the Commissioner and the Districts relating to the Project and 
the Repayment and Water Service Contracts are extinguished.
    (d) Payment of NEPA Study Costs.--The Commissioner and the 
Districts shall each pay 50 percent of the costs associated with 
compliance with the National Environmental Policy Act (42 U.S.C. 4321 
et seq.).
    (e) Crediting of Certain Items Toward Payment Under Subsection 
(a)(1)(A).--There shall be credited toward the payment under subsection 
(a)(1)(A)--
            (1) the amount of any payment made by the Districts before 
        the date of the conveyance for compliance with the National 
        Environmental Policy Act (42 U.S.C. 4321 et seq.) in excess of 
        50 percent of the cost of compliance;
            (2) the amount of any payments made by the Districts under 
        contracts with the Commissioner between January 1, 1999, and 
        the date of the conveyance;
            (3) the present value of future operation and maintenance 
        costs required for historic preservation on Project land at 
        Sherman Reservoir; and
            (4) any other amount specified in the memorandum of 
        agreement between the Commissioner and the Districts under 
        section 5.
    (f) Additional Drainage.--
            (1) In general.--Of the $2,000,000 paid by the Western Area 
        Power Administration under subsection (a), $500,000--
                    (A) shall be deposited in the fund referred to in 
                section 5(a)(3); and
                    (B) shall be available for additional drainage 
                projects.
            (2) Nonreimbursability.--The amount deposited under 
        paragraph (1) shall be nonreimbursable and nonreturnable.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated not more than $500,000 for the additional 
        drainage projects.

SEC. 4. LIABILITY.

    Effective on the date of conveyance of the Project, the United 
States shall not be liable for claims, costs, damages, or judgments of 
any kind arising out of any act, omission, or occurrence related to the 
Project except for such claims, costs, or damages arising from acts of 
negligence committed by the United States or by employees, agents, or 
contractors of the United States before the date of conveyance for 
which the United States is liable under chapter 171 of title 28, United 
States Code (commonly known as the ``Federal Tort Claims Act'').

SEC. 5. COMPLETION OF CONVEYANCE.

    (a) In General.--The Secretary shall not make the conveyance under 
section 3 until the following events have been completed:
            (1) Compliance with the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).
            (2) Execution of--
                    (A) memoranda of agreement between the Commissioner 
                and the Districts describing the purchase price and 
                other terms and conditions of the conveyance consistent 
                with this Act; and
                    (B) an agreement by the Districts to manage the 
                Project in a manner substantially similar to the manner 
                in which the Project was managed before the conveyance 
                and in accordance with applicable Federal and State 
                laws, including--
                            (i) preserving on a permanent basis the 
                        right of the State of Nebraska Games and Parks 
                        Commission to develop, provide, and protect the 
                        public interest in Project fish, wildlife, and 
                        recreation facilities related to the Projects;
                            (ii) providing for protection of cultural 
                        resources at the Project after the conveyance 
                        consistent with applicable law that authorizes 
                        the Districts or others with responsibility to 
                        protect significant historic features in situ 
                        or otherwise;
                            (iii) providing that the Districts shall 
                        annually make payments to local governments in 
                        the amounts in which the Commissioner made 
                        payment to the local governments under chapter 
                        69 of title 31, United states Code (commonly 
                        known as ``payments in lieu of taxes'') for 
                        fiscal year 1999;
                            (iv) providing for--
                                    (I) a plan for additional drainage 
                                work in the Middle Loup Valley 
as specified in the memoranda of agreement under paragraph (1); and
                                    (II) the funding of the additional 
                                drainage work;
                            (v) providing for the establishment by the 
                        Districts of an organization to be known as the 
                        ``Nebraska-Middle Loup River Community 
                        Environmental Trust'' and to be organized under 
                        State law to preserve, protect, enhance, and 
                        manage the Project by--
                                    (I) stabilizing surface and ground 
                                water supplies;
                                    (II) conserving water and land 
                                resources;
                                    (III) carrying out essential 
                                drainage projects using funds deposited 
                                under section 3(f); and
                                    (IV) expanding knowledge of water 
                                and land resources for enhancing 
                                Project operations and improving the 
                                service of Project purposes; and
                            (vi) providing for the establishment by the 
                        Nebraska Game and Parks Commission of an 
                        organization to be known as the ``Nebraska-
                        Middle Loup River Game and Parks Trust'' and to 
                        be organized under State law to--
                                    (I) improve and enhance fisheries 
                                and recreational opportunities; and
                                    (II) expand knowledge of water and 
                                land resources for enhancing Project 
                                operations and improving the service of 
                                Project purposes.
            (3) Deposits in the district trust.--On receipt of the 
        payments under section 3(a)(1), the Secretary shall deposit in 
        the District trust--
                    (A) $2,000,000 of the amount received under section 
                3(a)(1); and
                    (B) the entire amount received under section 
                3(a)(2).
            (4) No tax; no effect on rates.--No payment under this 
        Act--
                    (A) shall be subject to Federal or State income 
                tax; or
                    (B) shall affect Pick-Sloan Missouri Basin Program 
                firm power rates in any way.
            (5) Use of funds.--
                    (A) Funds deposited under section 3(f).--The Trusts 
                shall by their charters prohibit the use of any funds 
                deposited under section 3(f) for routine operation and 
                maintenance work by the Districts, the Game and Parks 
                Commission, or any of the participating agencies of the 
                Trusts.
                    (B) Other funds.--Funds received by a Trust from a 
                District or any other source may be used for any 
                purpose.
            (6) Assistance for drainage work.--The Game and Parks 
        Commission Trust shall provide for direct priority assistance 
        to the Districts for drainage work in the Middle Loup River 
        Valley under conditions requiring greater trust fund 
        investments than are available from the Trust.
    (b) Report.--If the conveyance under section 3 is not substantially 
completed on or before December 31, 2000, the Secretary and the 
Districts shall promptly submit to the Committee on Resources of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on the status of the conveyance 
describing the matters remaining to be resolved before completion of 
the conveyance and stating the anticipated date for the completion of 
the conveyance.
    (c) Future Benefits.--
            (1) In general.--Effective on the date of the conveyance 
        under section 3, the Districts shall not be entitled to receive 
        any further benefits under reclamation law not otherwise 
        available attributable to its status as a reclamation project 
        under the Act of June 17, 1902 (32 Stat. 388, chapter 1093), 
        and Acts supplemental to and amendatory of that Act (43 U.S.C. 
        371 et seq.).
            (2) No flood control component.--After the date of the 
        conveyance under subsection 3, the Project shall no longer have 
        a flood control component.
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