[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1882 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1882

  To amend the Small Reclamation Projects Act of 1956, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            December 20 (legislative day, December 18), 2001

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 amend the Small Reclamation Projects Act of 1956, 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; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Small Reclamation 
Water Resources Act of 2001''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Small Reclamation Projects Act of 1956 (43422 et seq.).

SEC. 2. AMENDMENTS TO THE SMALL RECLAMATION PROJECTS ACT OF 1956.

    (a) Purpose.--The first section (43 U.S.C. 422a) is amended--
            (1) by striking ``under the'' and inserting ``under this 
        Act and other''; and
            (2) by adding the following at the end: ``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 recommended proposals that 
        are related to a project that is otherwise authorized under the 
        Federal reclamation laws and that will benefit from assistance 
        under this Act.''.
    (b) Definitions.--Section 2 (43 U.S.C. 442b) is amended--
            (1) in paragraph (c), by striking ``a State'' and inserting 
        ``an Indian Tribe, a State'';
            (2) by striking paragraph (d) and inserting the following:
    ``(d) The term `project' means any of the following:
            ``(1) A multipurpose 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--
                    ``(A) 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, the 
                Virgin Islands, and the Trust Territory of the Pacific 
                Islands; and
                    ``(B) in the case of an activity proposed for any 
                project that is authorized under the reclamation laws 
                immediately before the enactment of the Small 
                Reclamation Water Resources Project Act of 2001, is 
                determined by the Secretary to be consistent with the 
                purposes of that project before that date of 
                enactment.''; and
            (3) by striking paragraph (f) and inserting the following:
    ``(f) The term `water qualify improvements' means operational 
measures and physical features associated with--
            ``(1) the reclamation and reuse of irrigation drainage or 
        municipal and industrial return flows, including wastewater 
        flows; or
            ``(2) the reclamation, or control, of brackish, toxic, or 
        impaired waters for beneficial reuse or protection of other 
        related water, land, or environmental resources.
    ``(g) The term `economically disadvantaged community' means the 
service area of a public district that meets affordability criteria 
[established under section 2041].''.
    (c) Modification of Loan and Grant Programs.--The Small Reclamation 
Projects Act of 1956 is amended--
            (1) by striking sections 3 through 8 (43 U.S.C. 422c-422h); 
        and
            (2) by inserting after section 2 (43 U.S.C. 422b) the 
        following:

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

``SEC. 101. LOAN, GRANT, AND LOAN GUARANTEE PROGRAM.

    ``There is hereby established a program within the Bureau of 
Reclamation, under which the Secretary may make loans, grants, and loan 
guarantees to any organization to carry out a project.

``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 
project under the Federal reclamation laws.
    ``(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 that 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;
            ``(3) is willing to finance, and capable of financing, the 
        non-Federal portion of the costs of the project, including 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 the project.

``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 costs of the project. The Secretary shall credit 
toward the non-Federal cost share that amount--
            ``(1) the costs paid by the organization for 
        investigations, surveys, engineering, administration, and other 
        services necessary for the preparation of proposals and plans 
        for the proposed project that are required by the Secretary:
            ``(2) the value of lands, rights-of-way, and water rights 
        acquisition required for the proposed project that are provided 
        by the organization;
            ``(3) amounts spent by the organization for construction or 
        acquisition of facilities for the proposed project prior to 
        project approval; and
            ``(4) the fee required by section 403.
    ``(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 as the result of a project for which assistance is 
provided under this title shall be considered project costs and, for 
purposes of reimbursement, shall be allocated as may be appropriate 
among project functions.
    ``(c) Maximum Allowable Federal Share.--The maximum allowable 
Federal share per project shall be $50,000,000 (January 2001 dollars).
    ``(d) Increase in Amount.--To compensate for increase in 
construction costs due to price escalation, and subject to subsection 
(c), the Secretary may increase the amount of a loan or grant, or both, 
under this title for a project 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.

    ``(a) In General.--The Secretary shall determine whether a proposal 
under this title is financially feasible and constitutes a reasonable 
risk, and either approve or disapprove the proposal, by not later than 
the later of--
            ``(1) one year after the date the proposal is submitted to 
        the Secretary; or
            ``(2) the date of the completion of the appropriate 
        documentation under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321).
    ``(b) Transmittal to Congress.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall promptly transmit any approved proposals to the Congress 
        with a brief statement of the project purposes and funding 
        requirements.
            ``(2) Completion of documentation.--The documentation 
        required under the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.) for a proposed project must be 
        completed before the Secretary transmits the proposal to the 
        Congress.

``SEC. 105. CONTRACT TERMS AND CONDITIONS.

    ``(a) In General.--Upon approval of any project proposal submitted 
under this title by an organization, the Secretary shall negotiate with 
the organization a contract establishing the terms under which 
assistance shall be provided under this title.
    ``(b) Contract Terms.--The contract shall include the following:
            ``(1) The maximum amount of any grant, which shall not 
        exceed 50 percent of the maximum allowable Federal share of the 
        costs of the project under section 103.
            ``(2) The time and method of making any grant or loan 
        available to the organization.
            ``(3) Such terms and conditions as the Secretary considers 
        necessary or proper to provide assurance of, and security for, 
        prompt repayment of any loan and to ensure achievement of the 
        purposes for which the loan was made.
            ``(4) A plan for repayment by the organization of any loan 
        within 25 years, except that the organization shall have the 
        right to prepay the loan or any component thereof without 
        penalty.
            ``(5) For any loan, payment of interest at a rate 
        established by the Secretary of the Treasury at the beginning 
        of the fiscal year in which the contract is executed, that 
        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.
    ``(c) Loan Projects by Indian Tribes.--
            ``(1) In general.--For any project undertaken by an Indian 
        tribe with assistance under this title, the Secretary shall--
                    ``(A) determine, based on the findings in the 
                proposal under section 102, the reimbursable and 
                nonreimbursable costs for the project constructed under 
                this Act;
                    ``(B) apportion those costs in accordance with the 
                benefits received; and
                    ``(C) allocate the reimbursable costs to the 
                project beneficiaries.
            ``(2) Leavitt act.--The Act of July 1, 1932 (chapter 369; 
        25 U.S.C. 386a), popularly known as the `Leavitt Act', shall 
        not apply to loans made under this Act.

                    ``TITLE II--PARTNERSHIP PROGRAM

``SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.

    ``(a) Program.--There is hereby established within the Bureau of 
Reclamation 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 $5,000,000 
for any one project under such program. The Secretary shall require the 
recipient organization to provide matching funds in an amount equal to 
50 percent of the amount of the grant.
    ``(c) Loans.--Loans under this title shall not exceed $5,000,000 
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 at a rate established by the Secretary of 
the Treasury in the same manner as provided in section 105(b)(5) for 
loans under title II.

``SEC. 202. REPAYMENT OF LOANS.

    ``Each loan made under this title shall be repaid within the 5-year 
period beginning on the date the Secretary certifies that work to be 
carried out with the loan is completed.

``SEC. 203. ELIGIBLE ACTIVITIES.

    ``(a) In General.--The following types of activities shall be 
eligible for grants or loans under this title:
            ``(1) Water conservation.
            ``(2) Water quality improvement projects.
            ``(3) Water management for urban landscapes.
            ``(4) Drought assistance.
            ``(5) Fish and wildlife improvements.
            ``(6) Public safety improvements.
            ``(7) Water supply, including water production, conveyance, 
        conservation, and management.
    ``(b) Additional Activities.--The Secretary may add to the list of 
eligible activities under subsection (a) as the Secretary considers 
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 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 organization, expressing either the Bureau of 
Reclamation's interest or disinterest in participating in the project.
    ``(b) Application.--Within 30 days after receipt of a response 
under subsection (a) expressing the Bureau of Reclamation's interest in 
participating in a project, the organization may submit to the 
Secretary an appropriate loan or grant application, giving details of 
the project and the anticipated public benefits.
    ``(c) Contents.--The application for any project proposal under 
this title shall include each of the following:
            ``(1) A resolution by the board of directors of the 
        organization stating--
                    ``(A) the total estimated project cost;
                    ``(B) the amount of the grant or loan requested;
                    ``(C) the amount of non-Federal contribution for 
                any 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 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 
        the proposed project.
            ``(5) A 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 a schedule of 
        funding requirements under this title, in sufficient detail to 
        provide an analysis of the proposed construction program.
            ``(7) A description of the proposed Federal funding for the 
        project and of the non-Federal funding for the project.
    ``(d) Costs.--The cost of any investigations and preparation of any 
environmental documentation for a project carried out with assistance 
under this title shall be borne by the project applicant, and shall be 
credited against the non-Federal cost share.
    ``(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 to under this 
title.

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

    ``The Secretary shall examine each project 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 the year in which the application for assistance under 
this title is submitted. If the Secretary approves the proposal, and 
subject to the availability of appropriations, the Secretary shall 
provide funding within 60 days after such approval for work scheduled 
for the next fiscal year.

``SEC. 206. LIMITATION ON PROJECT PROPOSALS.

    ``Only one proposal may be submitted under this title by an 
applicant in any 5-year period.

                      ``TITLE III--LOAN GUARANTEES

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

    ``There is hereby established within the Bureau of Reclamation a 
demonstration program 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 for the purposes for which assistance is authorized under 
titles I and II, under such terms and conditions as are specified in 
this section. Any proposal for a project submitted under this title 
shall set forth a plan and estimated costs, in detail, comparable to 
those required to be included in preauthorization reports required for 
a project under the Federal reclamation laws.
    ``(b) 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 any organization to 
receive a loan guarantee under this section, the Secretary shall 
consider, at a minimum, the following:
            ``(1) The extent to which the loan guarantee 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 comply with a Federal or State environmental 
        statute or regulation.
            ``(5) The extent to which the loan guarantee would enable 
        the organization 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.
    ``(c) 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.
    ``(d) Maximum.--The maximum amount of a loan guaranteed under this 
section may not exceed 75 percent of the total cost of the project 
carried out with the loan.
    ``(e) Limitation on Use of Loan.--No loan guaranteed 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 requirement under 
titles I and II shall similarly apply to loan guarantees under this 
title.
    ``(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 subsection, the Secretary shall submit a report to 
the Congress on the beneficial use and suggested improvements for use 
of loan guarantees under this title 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 10 full fiscal years after initial funding 
of projects under the amendments made by the Small Reclamation Water 
Resources Project Act of 2001.

                     ``TITLE IV--GENERAL PROVISIONS

``SEC. 401. PROPOSAL FEE.

    ``The Secretary shall assess and collect a fee to defray the cost 
of examining each proposal for a loan, grant, or loan guarantee under 
this Act. The amount of the fee shall be equal to $5,000 or 1/10 of 1 
percent of the Federal share of the costs of the proposed project, 
whichever is greater. The Secretary shall require that 50 percent of 
the fee shall accompany the application and the remainder shall be due 
only upon approval of the project by the Secretary.

``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. An applicant 
may submit one proposal to be carried out with assistance under more 
than one title 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 approval for 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 (43 U.S.C. 422i--422k-1) 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 ``ten years after 
                the date of enactment of the Small Reclamation Water 
                Resources Project Act of 2001''.
                    (E) By striking ``section 4(c)'' and inserting 
                ``title I''.

SEC. 3. ADDITIONAL APPROPRIATIONS.

    Section 404 of the Small Reclamation Projects Act of 1956 (43 
U.S.C. 422j), as redesignated by section 2(d)(1) of this Act, is 
further amended--
            (1) by striking ``such sums'' and all that follows through 
        ``That the Secretary'' and inserting ``to carry out this Act 
        $1,300,000,000 for fiscal years after fiscal year 2001, of 
        which $900,000,000 may be appropriated to carry out title I and 
        to complete ongoing projects under Public Law 84-984, 
        $300,000,000 may be appropriated to carry out title II, and 
        $100,000,000 may be appropriated to carry out title III. Of 
        funds authorized under this Act, not more than 20 percent shall 
        be used for projects to be carried out by Indian tribes or in 
        economically disadvantaged communities. The Secretary''; and
            (2) by striking ``any single State'' and all that follows 
        through ``the Secretary is authorized to waive'' and inserting 
        ``in any single State. Funds obligated or expended for projects 
        by Indian tribes shall not be considered for purposes of the 
        preceding sentence. The Secretary may waive''.

SEC. 4. GUIDELINES.

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

SEC. 5. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act. Nothing in this title or in any amendment made 
by this title 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 title 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.
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