[Congressional Record Volume 142, Number 57 (Tuesday, April 30, 1996)]
[House]
[Pages H4135-H4137]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              AMENDING CENTRAL UTAH PROJECT COMPLETION ACT

  Mr. HANSEN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1823) to amend the Central Utah Project Completion Act to 
direct the Secretary of the Interior to allow for prepayment of 
repayment contracts between the United States and the Central Utah 
Water Conservancy District dated December 28, 1965, and November 26, 
1985, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 1823

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

     SECTION 1. PREPAYMENT OF CERTAIN REPAYMENT CONTRACTS BETWEEN 
                   THE UNITED STATES AND THE CENTRAL UTAH WATER 
                   CONSERVANCY DISTRICT.

       Section 210 of the Central Utah Project Completion Act (106 
     Stat. 4624) is amended by striking the second sentence and 
     inserting the following: ``The Secretary shall allow for 
     prepayment of the repayment contract between the United 
     States and the Central Utah Water Conservancy District dated 
     December 28, 1965, and supplemented on November 26, 1985, 
     providing for repayment of municipal and industrial water 
     delivery facilities for which repayment is provided pursuant 
     to such contract, under terms and conditions similar to those 
     contained in the supplemental contract that provided for the 
     prepayment of the Jordan Aqueduct dated October 28, 1993. The 
     prepayment may be provided

[[Page H4136]]

     in several installments to reflect substantial completion of 
     the delivery facilities being prepaid and may not be adjusted 
     on the basis of the type of prepayment financing utilized by 
     the District. The District shall exercise its right to 
     prepayment pursuant to this section by the end of fiscal year 
     2002. Nothing in this section authorizes or terminates the 
     authority to use tax exempt bond financing for this 
     prepayment.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Utah [Mr. Hansen] and the gentleman from New Mexico [Mr. Richardson] 
will each be recognized for 20 minutes.
  The Chair recognizes the gentleman from Utah [Mr. Hansen].
  Mr. HANSEN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. HANSEN asked and was given permission to revise and extend his 
remarks.)
  Mr. HANSEN. Mr. Speaker, I would like to thank Chairman Don Young and 
Congressman Doolittle for their assistance in moving this bill forward. 
Although it is non-controversial, it is of great importance to the 
State of Utah.
  H.R. 1823 extends the preexisting authority of the Secretary of the 
Interior to accept prepayment from the Central Utah Project for 
municipal and industrial repayment contracts. In 1992, Congress enacted 
the Reclamation Projects Authorization and Adjustment Act of 1992, 
which included the Central Utah Project Completion Act Section 210 of 
the Central Utah Project Completion Act authorized the Secretary to 
negotiate the prepayment of the Jordan Aqueduct component of the 
Central Utah Project.
  Negotiations between the Secretary of the Interior and the local 
waterusers concluded in a prepayment agreement dated October 28, 1993. 
Under the terms of the prepayment agreement, the future repayment debt 
to the Federal Government was paid back based on the 30 year U.S. 
Treasury borrowing rate.
  H.R. 1823 extends this authority to repayment contracts and entered 
into on December 28, 1965 and November 26, 1985. By allowing prepayment 
on the District's debt, it is expected that prepayment of the 
District's remaining debt could yield the Federal treasury between $145 
to $200 million. The receipt of these funds could be used to achieve 
current budget targets.
  The financial benefit to the water users is also significant. 
Prepayment will shorten the repayment term, thereby providing for 
financial flexibility for the District and local taxpayers.
  I commend all those involved in bringing this legislation before us 
today. In this time of budget austerity, I am very pleased to see the 
district work to come up with solutions that financially benefit the 
Federal Government as well as the taxpayers of Utah.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RICHARDSON. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. RICHARDSON asked and was given permission to revise and extend 
his remarks.)
  Mr. RICHARDSON. Mr. Speaker, I rise in support of H.R. 1823, a bill 
to amend the Central Utah Project Completion Act.
  This legislation will allow the Central Utah Water Conservancy 
District to prepay its obligations for municipal and industrial 
repayment contracts.
  This entity has repeatedly demonstrated its willingness and its 
ability to control the continued construction of the Central Utah 
Project, one of the largest Bureau of Reclamation projects. I believe 
that it is appropriate that the District be afforded an opportunity to 
prepay its contractual obligations under terms that are fair both to 
the District and to the United States.
  It is my understanding that the bill language in H.R. 1823 neither 
explicitly allows nor precludes the use of tax exempt bond financing 
for this prepayment.
  I further note that the terms of prepayment authorized by H.R. 1823 
are specific only to the Central Utah Project and to the Central Utah 
Water Conservancy District. Many other water districts have proposed 
prepayment plans or project transfer proposals, and each of those must 
be considered by the Secretary of the Interior and the Congress on a 
case-by-case basis.
  I believe this bill authored by the gentleman represents a fair deal 
for the taxpayers and for Utah water users, but it does not necessarily 
represent a policy standard or a precedent for other water agencies who 
may wish to proceed with an early ``buy out'' or transfer of their 
Bureau of Reclamation projects.
  Mr. Speaker, I urge my colleagues to support passage of H.R. 1823.
   Mr. Speaker, I want to commend the gentleman from Utah [Mr. Hansen], 
the gentleman from Alaska [Mr. Young], and the gentleman from Utah [Mr. 
Orton] for their outstanding leadership on this bill.

                              {time}  1445

  Mr. RICHARDSON. Mr. Speaker, I yield 4 minutes to the gentleman from 
Utah [Mr. Orton] who worked very much on this bill.
  (Mr. ORTON asked and was given permission to revise and extend his 
remarks.)
  Mr. ORTON. Mr. Speaker, I thank the gentleman for yielding time to 
me.
   Mr. Speaker, I rise today in strong support of H.R. 1823, the 
Central Utah Water Project Payments Act. I would also like to commend 
my colleague, and dean of our Utah House delegation who has shepherded 
this bill through his committee. This bill is a win-win for everyone 
involved. From the Federal Government to the Central Utah Water 
Conservancy District to the citizens of Utah and finally to the 
American people who will be insured of the most cost-effective project 
possible. I only wish we had more examples of this kind of cooperation 
between the Federal Government, the States, and localities. This bill 
will allow the Central Utah Water Conservancy District, the builder and 
operator of the Central Utah Project, to prepay some of its debts to 
the Federal Government. The President and the Office of Management and 
Budget strongly support this legislation since it will guarantee an 
additional infusion of almost $200 million to the Federal Government 
over the next 5 years.
  My colleagues may not be aware of the tremendous amount of time that 
it has taken the Central Utah Project to be built. We have now been in 
the process for over 40 years. Through years of hard work by my 
predecessors in the Utah delegation as well as the current delegation 
we have been able to accomplish the once unthinkable, the construction 
and now early repayment of the Central Utah Project. And this bill 
represents a hallmark moment in the history of this mammoth project--
maybe for the first time, we are accomplishing something ahead of 
schedule that will benefit everyone involved.
  While I had included this same legislation in the coalition's 7-year 
Common Sense Balanced Budget Act, it is obvious that this specific 
legislation is needed since Congress and the President have failed to 
agree on a 7-year balanced budget.
  The largest facility to be prepaid in this bill is the Jordanelle Dam 
which has already been completed. It is expected that the Jordanelle 
Reservoir, pursuant to an already agreed upon plan with the Bureau of 
Reclamation, will be filled with sufficient water to start repayment by 
the Central Utah Water Conservancy District. And once the district's 
repayment obligation is triggered, the district will exercise its 
option to prepay its repayment debt.
  Since most of the Central Utah Project is located in my district, let 
me assure my colleagues how important this legislation is to the people 
of Utah. Again, this is a great example of creative financing that will 
benefit everyone involved.
  I again commend my colleague, the chairman of the subcommittee, in 
his efforts in this bill. I urge adoption, and urge all of my 
colleagues to vote ``yes'' on H.R. 1823.
  Mr. RICHARDSON. Mr. Speaker, I yield myself such time as I may 
consume.
   Mr. Speaker, in conclusion, let me commend the gentleman from Utah 
[Mr. Hansen] for his authorship of this bill. It is a good bill.
   Mr. Speaker, I yield back the balance of my time.
  Mr. HANSEN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank my colleagues for their support of this bill. I 
also would like to mention the gentlewoman from Utah, Ms. Enid Greene, 
who worked diligently to help get this

[[Page H4137]]

bill through, which is a great benefit for the residents of the State 
of Utah.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Clinger). The question is on the motion 
offered by the gentleman from Utah [Mr. Hansen] that the House suspend 
the rules and pass the bill, H.R. 1823, as amended.
  The question was taken.
  Mr. HANSEN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5, rule I, and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________