[Congressional Record Volume 141, Number 63 (Wednesday, April 5, 1995)]
[Senate]
[Pages S5268-S5269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                         ADDITIONAL STATEMENTS

                                 ______


                         COST ESTIMATE--S. 523

 Mr. MURKOWSKI. Mr. President, at the time the Committee on Energy and 
Natural Resources filed its report on S. 523, legislation to 
amend the Colorado River Basin Salinity Control Act, the cost estimate 
from the Congressional Budget Office was not available. We have since 
received the estimate, and, for the information of the Senate, I ask 
that a copy of the cost estimate be printed in the Record. The estimate 
states that enactment would not affect direct spending or receipts and 
therefore pay-as-you-go procedures would not apply to the bill:

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                    Washington, DC, April 3, 1995.
     Hon. Frank H. Murkowski,
     Chairman, Committee on Energy and Natural Resources, U.S. 
         Senate, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for S. 523, a bill to 
     amend the Colorado River Basin Salinity Control Act to 
     authorize additional measures to carry out the control of 
     salinity upstream of Imperial Dam in a cost-effective manner.
       Enactment of S. 523 would not affect direct spending or 
     receipts. Therefore, pay-as-you-go procedures would not apply 
     to the bill.
       If you wish further details on this estimate, we will be 
     pleased to provide them.
           Sincerely,
                                                     James J. Blum
                                            (For June E. O'Neill).

       Congressional Budget Office--Cost Estimate, April 3, 1995

       1. Bill number: S. 523.
       2. Bill title: A bill to amend the Colorado River Basin 
     Salinity Control Act to authorize additional measures to 
     carry out the control of salinity upstream of Imperial Dam in 
     a cost-effective manner.
       3. Bill status: As ordered reported by the Senate Committee 
     on Energy and Natural Resources on on March 29, 1995.
       4. Bill purpose: S. 523 would authorize appropriations of 
     $75 million for the Bureau of Reclamation to develop a new 
     program to reduce salinity in the Colorado River basin from 
     saline springs, leaking wells, irrigation sources, industrial 
     sources, erosion of public and private land, or other 
     sources. The authorized funds also could be used to cover 
     costs associated with ongoing salinity control projects. The 
     federal government would be reimbursed over time for 30 
     percent of any appropriations provided for S. 523 through the 
     Upper Colorado River Basin Fund (UCRBF) and the Lower 
     Colorado River Basin Development Fund (LCRBDF), which collect 
     surcharge from power users through the Western Area Power 
     Administration.
       5. Estimated cost to the Federal Government: Based on 
     information from the Department of the Interior, CBO 
     estimates that the $75 million in appropriations authorized 
     by S. 523 would be used entirely for new salinity control 
     projects. We expect that funding for these new projects would 
     be required beginning in fiscal year 1996, and that outlays, 
     would reflect historical spending patterns for similar 
     construction projects. Estimated outlays for these projects 
     would total $52 million over the 1996-2000 period, as shown 
     in the following table. Because of the anticipated length of 
     the project, additional outlays would continue beyond fiscal 
     year 2000.

------------------------------------------------------------------------
                                        1996   1997   1998   1999   2000
------------------------------------------------------------------------
Authorization of appropriations......      6      8     10     15     15
Estimated outlays....................      5      8     10     14     15
------------------------------------------------------------------------

       The costs of this bill fall within budget function 300.
       The bill's reimbursement requirements would not affect 
     outlays over the 1996-2000 period. Fifteen percent of the 
     reimbursable portion of the appropriation would be paid from 
     collections to the UCRBF within 50 years after a project 
     becomes operational, 
     [[Page S5269]] and the remaining 85 percent of the 
     reimbursable costs would be paid from collections to the 
     LCRBDF as costs for construction are incurred. To cover the 
     reimbursable costs allocated to the UCRBF, CBO expects that 
     the federal government would increase its power surcharge 
     rate beginning in fiscal year 2002. We expect that no rate 
     change would be made to cover costs allocated to the LCRBDF 
     because this fund is currently running an annual surplus of 
     about $9 million.
       6. Comparison with spending under current law: None.
       7. Pay-as-you-go considerations: None.
       8. Estimated cost to State and local governments: None.
       9. Estimate comparison: None.
       10. Previous CBO estimate: None.
       11. Estimate prepared by: Ian McCormick and Susanne S. 
     Mehlman.
       12. Estimate approved by:

                                         Paul N. Van de Water,

                                                Assistant Director

                                      for Budget Analysis.
     

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