[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2881 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2881

  To update an existing Bureau of Reclamation program by amending the 
  Small Reclamation Projects Act of 1956, to establish a partnership 
 program in the Bureau of Reclamation for small reclamation projects, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 17, 2000

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

_______________________________________________________________________

                                 A BILL


 
  To update an existing Bureau of Reclamation program by amending the 
  Small Reclamation Projects Act of 1956, to establish a partnership 
 program in the Bureau of Reclamation for small reclamation projects, 
                        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 Small Reclamation Water Resources 
Project Act of 2000''.

SEC. 2. AMENDMENTS TO THE 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. In 
providing assistance, the Secretary shall give priority to approved 
proposals which are related to presently authorized Reclamation 
projects that will benefit from the work carried out 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 (c) by striking ``a State'' and 
        inserting ``an Indian Tribe, a State''.
            (2) by amending subsection (d) to read as follows:
    ``(d) The term `project' means one of the following:
            ``(1) A multi-purpose water resource development carried 
        out by a non-Federal organization involving significant 
        conservation of water, energy and the environment.
            ``(2) The rehabilitation, betterment, or retrofit of any 
        existing Federal or non-Federal water infrastructure for 
        purposes of complying with law and regulations.
            ``(3) An activity described in paragraph (1) or (2) that is 
        carried out by a non-Federal organization under the Federal 
        reclamation laws in one or more of the 17 western reclamation 
        States, Hawaii, Alaska, the Commonwealth of Puerto Rico, Guam, 
        American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and the Trust Territory of the Pacific Islands. Where 
        such work is proposed for any existing Reclamation project, 
        such work shall be consistent with the authorized purpose as 
        determined by the Secretary.''.
            (3) By striking subsection (f) and inserting:
    ``(f) 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, or control, of brackish, toxic, or 
        hazardous waters for beneficial reuse or protection of other 
        related water, land, or environmental resources.''
    (c) Modification of Loan and Grant Programs.--Strike Sections 3 
through 8 of the Small Reclamation Projects Act of 1956 and insert:

    ``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, an agency of the Department of the 
Interior, pursuant to which the Secretary may make grants and loans to 
organizations to carry out projects as defined in section 2(d).

``SEC. 102. PROPOSAL CONTENTS AND REQUIREMENTS.

    ``(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 statement of financial capability and legal authority, 
and a resolution from the governing board of the organization showing 
that the organization seeking assistance--
            ``(1) 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) to complete the project;
            ``(2) holds or can acquire all rights, pursuant to 
        applicable State law, to the use of water necessary for the 
        successful construction, operation, and maintenance of the 
        project; and
            ``(3) is willing to finance, and capable of financing, 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 
        105(b)(2); and
            ``(4) has the legal authority and responsibility under 
        State law to carry out such work.

``SEC. 103. FEDERAL SHARE AND PROJECT SPONSOR SHARE OF COSTS.

    ``(a) In General.--The Secretary shall require each organization 
receiving assistance under this title to contribute toward the cost of 
the project (other than by loan or grant of Federal funds) not less 
than 25 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 for 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.
    ``(b) Prevention of Loss and Damage to Fish and Wildlife.--The 
costs of measures to prevent loss of, and damage to, existing fish and 
wildlife resources shall be considered project costs and allocated as 
may be appropriate among project functions.
    ``(c) Maximum Allowable Federal Share.--The maximum allowable 
Federal share per project shall be $30,000,000, as of January 2000. The 
Secretary shall adjust such amount each year using the Bureau of 
Reclamation's composite construction cost trends index.
    ``(d) Increase in Amount.--To compensate for increases in 
construction costs due to price escalation, subject to the limitations 
allowed by subsection (c), the Secretary may increase the amount of the 
requested loan or grant, or both, at any time prior to the completion 
of construction of the project, using the Bureau of Reclamation's 
composite construction cost trends index.

``SEC. 104. APPROVAL OR DISAPPROVAL OF PROJECTS.

    ``Not later than one year after the time an initial project 
proposal is submitted to the Secretary under this title, 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. The 
appropriate National Environmental Policy Act (NEPA) documentation for 
the project shall be completed prior to Secretarial transmittal of the 
proposal to Congress.

``SEC. 105. CONTRACT TERMS AND CONDITIONS.

    ``(a) Maximum Amounts and Availability.--Upon approval of any 
project proposal submitted under this title, the Secretary shall 
negotiate a contract setting out the maximum amount of any grant, which 
shall not exceed 50 percent of the maximum allowable Federal share per 
grant or loan to be made to the organization, and the time and method 
of making such grant or loan available to the organization.
    ``(b) 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 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 payment of interest and the repayment of the principal 
        of each loan. The Secretary shall fix the interest at a rate 
        determined as of the beginning of the fiscal year in which the 
        contract is executed. The rate shall be based on the average 
        market yield on outstanding marketable obligations of the 
        United States with periods of maturity comparable to the 
        applicable repayment period of the loan.

                    ``TITLE II--PARTNERSHIP PROGRAM

``SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.

    ``(a) Program.--There is hereby established within the Bureau of 
Reclamation, an agency of the Department of the Interior, a small grant 
and loan program to be known as the Small Reclamation Water Resources 
Management Partnership Program, to be carried out under this title. The 
purpose of this program shall be to implement projects that can be 
performed--
            ``(1) by the recipient organization's workforce or 
        contractors,
            ``(2) with streamlined documentation, and
            ``(3) in a period of 18 months or less.
    ``(b) Grants.--Grants under this title shall not exceed $2,500,000 
for any one project under such program, and shall be matched on a 50-
percent basis of total eligible cost by the organization.
    ``(c) Loans.--Loans under this title shall not exceed $2,500,000 
per project, and shall be subject to cost sharing in the same manner as 
provided in title I. The contract for each loan under this title shall 
require payment of interest and repayment of the principal. The 
Secretary shall fix the interest rate in the same manner as provided in 
section 105(c)(2) for loans under title I.
    ``(d) Limitation.--The Secretary is authorized to use up to 
$50,000,000 of the amount 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.

``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: water conservation; 
water quality improvement projects; water management for urban 
landscapes; drought assistance; fish and wildlife improvements; and 
public safety improvements.
    ``(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 therefore.

``SEC. 204. APPLICATION PROCESS.

    ``(a) Notice of Intent.--Each organization seeking a grant or loan 
under this title shall submit a Notice of Intent to the Secretary by 
April 1 of each year outlining the proposed project and the public 
benefits thereof. Within two months, the Secretary shall provide a 
written response to the applicant, either affirming or rejecting the 
Bureau of Reclamation's interest in participating in the project.
    ``(b) Notice of Federal Interest.--Upon notification of the Bureau 
of Reclamation's interest, the organization seeking assistance under 
this title shall have the option of proceeding with an appropriate loan 
or grant application giving details of the project and the anticipated 
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 project cost;
                    ``(B) the amount of the grant or loan requested;
                    ``(C) the amount of the non-Federal contribution 
                for the grant;
                    ``(D) the organization'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 environment.
            ``(4) Evidence that the organization seeking assistance 
        under this title has all lands and water rights needed for the 
        project, or can obtain them and has legal authority and 
        responsibility under state law to carry out such work in the 
        project plan.
            ``(5) A description of the project plan, including a 
        general map showing the location of proposed physical features, 
        conceptual engineering drawings of major and typical 
        structures, and general standards for design.
            ``(6) A construction schedule, with dates and schedule of 
        funding requirements under this title, in sufficient detail to 
        provide an analysis of the proposed construction program.
            ``(7) An identification of those portions of the project 
        costs which constitute the Federal grant or 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) Annual Listing.--The Secretary shall include in the annual 
budget justification for the Bureau of Reclamation, 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, and approve or disapprove such proposal by 
September 1 of each year. Once approved by the Secretary and subject to 
the availability of appropriations, funding shall be provided within 60 
days for the schedule of work within that fiscal year.

``SEC. 206. ELIGIBILITY.

    ``Such proposals shall only be made by organizations that have 
legal authority and responsibility for such work to be carried out on 
those projects under state law. Only one proposal per project area 
shall be allowed per every five year period.

                      ``TITLE III--LOAN GUARANTEES

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

    ``There is hereby established within 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 costs in detail 
comparable to those included in preauthorization reports required for a 
Federal reclamation project.
    ``(b) Funding Limit.--Up to 10 percent of the amounts authorized to 
be appropriated under this Act shall be set aside for purposes of 
funding the cost of loan guarantees under this title. The amounts 
allocated to each loan guarantee shall be the cost of such guarantee 
calculated in accordance with applicable provisions of Federal law.
    ``(c) Selection of Recipients.--The Secretary shall adopt and use 
competitive procedures in the selection of organizations to receive 
loan guarantees under this section. In selecting the organizations to 
receive a loan guarantee under this section, the Secretary shall 
consider, 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 repayment period of the guaranteed loan.
            ``(3) The extent to which the loan guarantee would provide 
        for a project of wide public purpose.
            ``(4) Whether the loan guarantee would help the 
        organization receiving the guarantee meet a Federal or State 
        environmental statute or mandate.
            ``(5) The ability of the loan guarantee to meet the needs 
        of other local water purveyors.
            ``(6) The extent to which the guaranteed loan would support 
        a program that would supplement, rather than duplicate, other 
        available water resource programs.
            ``(7) The fiscal impact of the loan guarantee program as a 
        whole on other reclamation programs.
    ``(d) Apportionment.--The total amount made available to the 
Secretary 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 be up to 75 percent of the 
total project cost. No loan guarantee under this title shall be used to 
cover the organization's local cost share for any project assisted 
under this Act.
    ``(f) Reporting.--Reporting and documentation 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, when any bonds are 
issued by an organization to help finance a project for which the 
organization is also receiving a loan guarantee under this section such 
bonds shall not be treated as affecting the tax-exempt status of such 
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 the 
Congress on the beneficial use and suggested improvements associated 
with the use of loan guarantees as a mechanism for project 
construction.

``SEC. 303. SUNSET.

    ``No loan guarantee may be issued under this title in any fiscal 
year after the expiration of 6 full fiscal years after initial funding 
of projects under `The Small Reclamation Water Resources Project Act of 
2000'.

                     ``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 minimum payment of $5,000 or one percent of 
the Federal share, whichever is greater, 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, Grants, and Loan Guarantees.--A project 
sponsor shall be eligible for a loan, grant, loan guarantee, or 
combination thereof for a project proposal under this Act. No 
organization shall be eligible for an additional loan, grant, loan 
guarantee, or any combination thereof for the same project that has 
previously received a loan, grant, or loan guarantee under this Act 
within the prior five fiscal years.
    ``(c) Planning, Construction, Operation, and Maintenance.--The 
United States shall not be required to provide planning, construction, 
operation, and maintenance of any project receiving a loan, grant or 
loan guarantee under this Act.
    ``(d) State Water Law.--Any project assisted under this Act shall 
be carried out in accordance with applicable State water law.''.
    (d) Conforming Amendments.--
            (1) Sections 9 through 13 of the Small Reclamation Projects 
        Act of 1956 are redesignated as sections 403 through 407 
        respectively.
            (2) Section 404 of such Act, as redesignated by paragraph 
        (1) of this subsection, is amended as follows:
                    (A) By striking ``section 3'' and inserting ``title 
                I''.
                    (B) By striking ``effective October 1, 1986.'' and 
                inserting ``for any fiscal year''.
                    (C) By striking ``for loans and grants pursuant to 
                this Act'' and inserting ``for loans and grants 
                pursuant to title I''.
                    (D) By striking ``five years after the date of 
                enactment of this Act'' and inserting ``five years 
                after the date of enactment of `The Small Reclamation 
                Water Resources Project Act of 2000'''.
                    (E) By striking ``section 4(c)'' and inserting 
                ``title I''.

SEC. 3. GUIDELINES.

    Within 180 days after enactment of this Act, the Secretary of the 
Interior shall complete and publish in the Federal Register such 
administrative guidelines as may be necessary to carry out the 
amendments made by this Act.

SEC. 4. PURPOSES.

    The purpose for fish, wildlife and environmental activities carried 
out under this Act are in the form of mitigation and avoidance of 
listed species and critical habitat as required by law and regulation 
as a direct result of construction, operation and maintenance 
activities for new or existing projects.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
enactment. 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 enactment of this Act.

SEC. 6. LIMITATION.

    Activities funded under this Act shall not be considered a 
supplemental or additional benefit under the Act of June 17, 1902 (82 
Stat. 388) and all Acts amendatory thereof or supplementary thereto.
                                 <all>