[Congressional Record Volume 142, Number 14 (Thursday, February 1, 1996)]
[Extensions of Remarks]
[Pages E127-E128]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     BILL TO AUTHORIZE THE ARMY CORPS OF ENGINEERS TO MAKE CAPITAL 
                  IMPROVEMENTS TO WASHINGTON AQUEDUCT

                                 ______


                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                      Wednesday, January 31, 1996

  Ms. NORTON. Mr. Speaker, since 1859, the Washington Aqueduct has 
provided Washington, DC, and the metropolitan region with safe drinking 
water. Each and every day, 24 hours each day, the Aqueduct collects, 
treats, and transports water to the District, Arlington County, Falls 
Church, the Pentagon, National Airport, and Arlington Cemetery. The 
Army Corps of Engineers owns and operates the Aqueduct on behalf of the 
Department of the Army and in fiscal year 1994 alone, delivered 67 
billion gallons of water to Aqueduct customers--60 percent of that 
amount to the District of Columbia.
  In his February 1, 1996 report, The Washington Aqueduct: Financing 
and Ownership Study, Secretary of the Army Togo West reports that 
throughout its history, the Aqueduct has been continually upgraded and 
improved to meet changing regulations and new technology. The 
Secretary, however, admits that Aqueduct facilities currently are ``in 
need of modernization to meet future drinking water and water 
quality.'' Evolving Safe Water Drinking Act standards in fact require 
upgrading Aqueduct facilities.
  Last November, Virginia Senator John Warner, chair of the Senate 
Subcommittee on Transportation and Infrastructure, included a provision 
in both the Water Resources Development Act (S. 640) and the Safe 
Drinking Water Act (S. 1316) which authorizes the Army Corps of 
Engineers to borrow the funds from the Treasury necessary for improving 
the 

[[Page E128]]
Washington Aqueduct. This loan would have to be repaid by the 
Aqueduct's customers and, as such, the Congressional Budget Office 
scores it as no cost to the Federal government. The measure I introduce 
today is identical to Senator Warner's legislation.
  This bill will provide a financial mechanism for the repairs so that 
the hundreds of millions of dollars for the work do not result in 
exorbitant hikes in water rates. Under current rules, any needed 
capital improvements at the Aqueduct must be paid for in advance by 
District consumers and consumers in Arlington County and the city of 
Falls Church.
  In response to more stringent water quality requirements being 
implemented nationally by the EPA, substantial costly improvements of 
$200-$500 million will be necessary at the Aqueduct over the next 10-15 
years. Affordable water rates can be maintained only if payments are 
spread out over an extended period of time. This bill will ensure the 
long term future of the Aqueduct at reasonable consumer rates.
  I urge my colleagues to support this important measure granting the 
Corps of Engineers the authority to provide vital improvements to the 
Aqueduct and ensuring safe drinking water for all of those served by 
this facility.

                               H.R. ----

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CAPITAL IMPROVEMENTS FOR THE WASHINGTON AQUEDUCT.

       (a) Authorizations.--
       (1) Authorization of modernization.--Subject to approval 
     in, and in such amounts as may be provided in appropriations 
     Acts, the Chief of Engineers of the Army Corps of Engineers 
     is authorized to modernize the Washington Aqueduct.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to the Army Corps of Engineers borrowing 
     authority in amounts sufficient to cover the full costs of 
     modernizing the Washington Aqueduct. The borrowing authority 
     shall be provided by the Secretary of the Treasury, under 
     such terms and conditions as are established by the Secretary 
     of the Treasury, after a series of contracts with each public 
     water supply customer has been entered into under subsection 
     (b).
       (b) Contracts With Public Water Supply Customers.--
       (1) Contracts to repay corps debt.--To the extent provided 
     in appropriations Acts, and in accordance with paragraphs (2) 
     and (3), the Chief of Engineers of the Army Corps of 
     Engineers is authorized to enter into a series of contracts 
     with each public water supply customer under which the 
     customer commits to repay a pro-rata share of the principal 
     and interest owed by the Army Corps of Engineers to the 
     Secretary of the Treasury under subsection (a). Under each of 
     the contracts, the customer that enters into the contract 
     shall commit to pay any additional amount necessary to fully 
     offset the risk of default on the contract.
       (2) Offsetting of risk of default.--Each contract under 
     paragraph (1) shall include such additional terms and 
     conditions as the Secretary of the Treasury may require so 
     that the value to the Government of the contracts is 
     estimated to be equal to the obligational authority used by 
     the Army Corps of Engineers for modernizing the Washington 
     Aqueduct at the time that each series of contracts is entered 
     into.
       (3) Other conditions.--Each contract entered into under 
     paragraph (1) shall--
       (A) provide that the public water supply customer pledges 
     future income from fees assessed to operate and maintain the 
     Washington Aqueduct;
       (B) provide the United States priority over all other 
     creditors; and
       (C) include other conditions that the Secretary of the 
     Treasury determines to be appropriate.
       (c) Borrowing Authority.--Subject to an appropriation under 
     subsection (a)(2) and after entering into a series of 
     contracts under subsection (b), the Secretary, acting through 
     the Chief of Engineers of the Army Corps of Engineers, shall 
     seek borrowing authority from the Secretary of the Treasury 
     under subsection (a)(2).
       (d) Definitions.--In this section:
       (1) Public water supply customer.--The term ``public water 
     supply customer'' means the District of Columbia, the county 
     of Arlington, Virginia, and the city of Falls Church, 
     Virginia.
       (2) Value to the government.--The term ``value to the 
     Government'' means the net present value of a contract under 
     subsection (b) calculated under the rules set forth in 
     subparagraphs (A) and (B) of section 502(5) of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a(5)), 
     excluding section 502(5)(B)(i) of the Act, as though the 
     contracts provided for the repayment of direct loans to the 
     public water supply customers.
       (3) Washington aqueduct.--The term ``Washington Aqueduct'' 
     means the water supply system of treatment plans, raw water 
     intakes, conduits, reservoirs, transmission mains, and 
     pumping stations owned by the Federal Government located in 
     the metropolitan Washington, District of Columbia, area.

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