[Congressional Record Volume 143, Number 59 (Thursday, May 8, 1997)]
[Senate]
[Pages S4238-S4240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 725. A bill to direct the Secretary of the Interior to convey the 
Collbran Reclamation Project to the Ute Water Conservancy District and 
the Collbran Conservancy District; to the Committee on Energy and 
Natural Resources.


                the collbran project unit conveyance act

 Mr. CAMPBELL. Mr. President, today I reintroduce legislation 
to transfer the Collbran project from the Federal Government back to 
the people it serves. The bill is designed with only one goal in mind, 
to guarantee the growing population in the Grand Valley of Colorado a 
supply of water that they have relied on for the last 30 years.
  At the same time, this legislation will be a model for transitioning 
the Federal Government out of the daily operations of facilities where 
its useful participation has ceased. This transfer will also be an 
important and symbolic step in downsizing the Federal Government, 
returning power to the States and localities, while contributing to our 
continuing efforts to balance the Federal budget.
  The Western slope of Colorado, like the rest of the Colorado Plateau, 
has a unique blend of rich natural resources and beautiful scenery. 
This fortunate combination attracts and sustains a strong economy of 
both industry and tourism. Much of this booming economic development 
and recreational opportunities would not exist if not for the water and 
electricity provided by the various Federal reclamation projects in the 
West. These projects were authorized in the Federal Reclamation Act in 
1902 by a visionary Congress which saw the need and importance of water 
projects to the development of the West. Without such projects, there 
would be virtually no farming, mining, or ranching and little tourism.
  It is appropriate for the Federal Government to shed the Collbran 
project at this time because the goals of the project have been met. 
The project, completed in 1964, provides a reliable supply of 
irrigation water to the users on the arid west slope of Colorado. This 
project is the main water supplier for a growing population in the 
Grand Valley, currently serving over 55,000 people. It also provides 
electric power to the grid that serves several Western States.
  It is also time now to transfer the Collbran project because, as the 
Bureau of Reclamation has acknowledged, due to unanticipated 
circumstances this project has been a net-cash drain on the Treasury. 
The Ute Water Conservancy District, the public entity that will 
purchase the project, will pay the remaining debt on the project, 
reimbursing the Government completely, returning over $12 million to 
the Federal Treasury. It is time for the Government to stand aside.
  Let me stress that this transfer will not in any way jeopardize any 
of the recreation opportunities available in Vega Reservoir and related 
Collbran project reservoirs. In fact, this legislation will transfer 
the Vega Reservoir from the Federal Government to the State of 
Colorado, ensuring continued recreation opportunities there. This bill 
also preserves all water and power operations of the existing Collbran 
project.
  I also want to emphasize that we have striven to accommodate 
environmental groups' concerns. Although there is no reason to think 
that a mere transfer of ownership, without affecting the operations, 
should require the water district to perform an environmental impact 
statement under the National Environmental Policy Act, I have 
accommodated the environmental community's requests and eliminated any 
reference to NEPA. In this way, I have ensured that the transfer will 
fully comply with all environmental laws.
  Finally, as a symbol of the Ute Water Conservancy's good faith, this 
bill explicitly requires that the conservancy district contributes 
$600,000 to the Colorado River Endangered Fish Recovery Program and 
that the project itself will remain subject to future ESA-related 
obligations that could be imposed on similar projects.
  Again, the object of this legislation is merely to ensure a reliable 
supply of quality water for the residents of the Grand Valley who have 
depended upon this supply for the last 30 years. This bill proposes a 
fiscally and environmentally sound and sensible transfer of an existing 
Federal project to the people it serves.
  I look forward to working with all interested parties as this bill 
proceeds. I urge my colleagues to join me and support this bill.
  Thank you, Mr. President. I ask unanimous consent that the bill be 
printed in the Record.

[[Page S4239]]

  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 725

       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 ``Collbran Project Unit 
     Conveyance Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) District.--The term ``District'' means the Ute Water 
     Conservancy District and the Collbran Conservancy District 
     (including their successors and assigns), which are political 
     subdivisions of the State of Colorado.
       (2) Federal reclamation laws.--The term ``Federal 
     reclamation laws'' means the Act of June 17, 1902, and Acts 
     amendatory thereof or supplementary thereto (32 Stat. 388, 
     chapter 1093; 43 U.S.C. 371 et seq.) (including regulations 
     adopted under those Acts).
       (3) Project.--The term ``project'' means the Collbran 
     Reclamation project, as constructed and operated under the 
     Act of July 3, 1952 (66 Stat. 325, chapter 565), including 
     all property, equipment, and assets of or relating to the 
     project that are owned by the United States, including--
       (A) Vega Dam and Reservoir (but not including the Vega 
     Recreation Facilities);
       (B) Leon-Park dams and feeder canal;
       (C) Southside Canal;
       (D) East Fork diversion dam and feeder canal;
       (E) Bonham-Cottonwood pipeline;
       (F) Snowcat shed and diesel storage;
       (G) Upper Molina penstock and power plant;
       (H) Lower Molina penstock and power plant;
       (I) the diversion structure in the tailrace of the Lower 
     Molina power plant;
       (J) all substations and switchyards;
       (K) a nonexclusive easement for the use of existing 
     easements or rights-of-way owned by the United States on or 
     across non-Federal land that are necessary for access to 
     project facilities;
       (L) title to land reasonably necessary for all project 
     facilities (except land described in subparagraph (K) or 
     paragraph (1) or (2) of section 3(a));
       (M) all permits and contract rights held by the Bureau of 
     Reclamation, including contract or other rights relating to 
     the operation, use, maintenance, repair, or replacement of 
     the water storage reservoirs located on the Grand Mesa that 
     are operated as part of the project;
       (N) all equipment, parts inventories, and tools;
       (O) all additions, replacements, betterments, and 
     appurtenances to any of the land, interests in land, or 
     facilities described in subparagraphs (A) through (N); and
       (P) a copy of all data, plans, designs, reports, records, 
     or other materials, whether in writing or in any form of 
     electronic storage, relating specifically to the project.
       (4) Vega recreation facilities.--The term ``Vega Recreation 
     Facilities'' includes--
       (A) buildings, campgrounds, picnic areas, parking lots, 
     fences, boat docks and ramps, electrical lines, water and 
     sewer systems, trash and toilet facilities, roads and trails, 
     and other structures and equipment used for State park 
     purposes (such as recreation, maintenance, and daily and 
     overnight visitor use), at and near Vega Reservoir;
       (B) lands above the high water level of Vega Reservoir 
     within the area previously defined by the Secretary as the 
     ``Reservoir Area Boundary'' that have not historically been 
     utilized for Collbran project water storage and delivery 
     facilities, together with an easement for public access for 
     recreational purposes to Vega Reservoir and the water surface 
     of Vega Reservoir and for construction, operation, 
     maintenance, and replacement of facilities for recreational 
     purposes below the high water line; and
       (C) improvements constructed or added under the agreements 
     referred to in section 3(f).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 3. CONVEYANCE.

       (a) In General.--
       (1) Conveyance to districts.--
       (A) In general.--On or before the date that is 1 year after 
     the date of enactment of this Act, the Secretary shall convey 
     to the Districts all right, title, and interest of the United 
     States in and to the project by quitclaim deed and bill of 
     sale, without warranties, subject only to the requirements of 
     this Act.
       (B) Action pending conveyance.--Until the conveyance under 
     subparagraph (A) occurs, the Director of the Bureau of 
     Reclamation shall continue to exercise the responsibility to 
     provide for the operation, maintenance, repair, and 
     replacement of project facilities and the storage reservoirs 
     on the Grand Mesa to the extent that the responsibility is 
     the responsibility of the Bureau of Reclamation and has not 
     been delegated to the Districts before the date of enactment 
     of this Act or is delegated or transferred to the Districts 
     by agreement after that date, so that at the time of the 
     conveyance the facilities are in the same condition as, or 
     better condition than, the condition of the facilities on the 
     date of enactment of this Act.
       (2) Easements on national forest system lands.--
       (A) In general.--On or before the date that is 1 year after 
     the date of enactment of this Act, the Secretary of 
     Agriculture shall grant, subject only to the requirements of 
     this section--
       (i) a nonexclusive easement on and across National Forest 
     System land to the Districts for ingress and egress on access 
     routes in existence on the date of enactment of this Act to 
     each component of the project and storage reservoir on the 
     Grand Mesa in existence on the date of enactment of this Act 
     that is operated as part of the project;
       (ii) a nonexclusive easement on National Forest System land 
     for the operation, use, maintenance, repair, and replacement 
     (but not enlargement) of the storage reservoirs on the Grand 
     Mesa in existence on the date of enactment of this Act to the 
     owners and operators of the reservoirs that are operated as a 
     part of the project; and
       (iii) a nonexclusive easement to the Districts for the 
     operation, use, maintenance, repair, and replacement (but not 
     enlargement) of the components of project facilities that are 
     located on National Forest System land, subject to the 
     requirement that the Districts shall provide reasonable 
     notice to and the opportunity for consultation with the 
     designated representative of the Secretary of Agriculture for 
     nonroutine, nonemergency activities that occur on the 
     easements.
       (B) Exercise of easement.--The easement under subparagraph 
     (A)(ii) may be exercised if the land use authorizations for 
     the storage reservoirs described in subparagraph (A)(ii) are 
     restricted, terminated, relinquished, or abandoned, and the 
     easement shall not be subject to conditions or requirements 
     that interfere with or limit the use of the reservoirs for 
     water supply or power purposes.
       (3) Easements to districts for southside canal.--On or 
     before the date that is 1 year after the date of enactment of 
     this Act, the Secretary shall grant to the Districts, subject 
     only to the requirements of this section--
       (A) a nonexclusive easement on and across land administered 
     by agencies within the Department of the Interior for ingress 
     and egress on access routes to and along the Southside Canal 
     in existence on the date of enactment of this Act; and
       (B) a nonexclusive easement for the operation, use, 
     maintenance, repair, and replacement of the Southside Canal, 
     subject to the requirement that the Districts shall provide 
     reasonable notice to and the opportunity for consultation 
     with the designated representative of the Secretary for 
     nonroutine, nonemergency activities that occur on the 
     easements.
       (b) Reservation.--
       (1) In general.--The conveyance of easements under 
     subsection (a) shall reserve to the United States all 
     minerals (including hydrocarbons) and a perpetual right of 
     public access over, across, under, and to the portions of the 
     project that on the date of enactment of this Act were open 
     to public use for fishing, boating, hunting, and other 
     outdoor recreation purposes and other public uses such as 
     grazing, mineral development, and logging.
       (2) Recreational activities.--The United States may allow 
     for continued public use and enjoyment of such portions of 
     the project for recreational activities and other public uses 
     as are conducted as of the date of enactment of this Act.
       (c) Conveyance to State of Colorado.--All right, title, and 
     interest in the Vega Recreation Facilities shall remain in 
     the United States until the terms of the agreements referred 
     to in subsection (f) have been fulfilled by the United 
     States, at which time all right, title, and interest in the 
     Vega Recreation Facilities shall be conveyed by the Secretary 
     to the State of Colorado, Division of Parks and Outdoor 
     Recreation.
       (d) Payment.--
       (1) In general.--At the time of the conveyance under 
     subsection (a)(1), the Districts shall pay to the United 
     States $12,900,000 ($12,300,000 of which represents the net 
     present value of the outstanding repayment obligations for 
     the project), of which--
       (A) $12,300,000 shall be deposited in the general fund of 
     the Treasury of the United States; and
       (B) $600,000 shall be deposited in a special account in the 
     Treasury of the United States and shall be available to the 
     United States Fish and Wildlife Service, Region 6, without 
     further Act of appropriation, for use in funding Colorado 
     operations and capital expenditures associated with the Grand 
     Valley Water Management Project for the purpose of recovering 
     endangered fish in the Upper Colorado River Basin, as 
     identified in the Recovery Implementation Program for 
     Endangered Fish Species in the Upper Colorado River Basin, or 
     such other component of the Recovery Implementation Program 
     within Colorado as may be selected with the concurrence of 
     the Governor of the State of Colorado.
       (2) Source of funds.--Funds for the payment to the extent 
     of the amount specified in paragraph (1) shall not be derived 
     from the issuance or sale, prior to the conveyance, of State 
     or local bonds the interest on which is exempt from taxation 
     under section 103 of the Internal Revenue Code of 1986.
       (e) Operation of Project.--
       (1) In general.--
       (A) Declaration.--The project was authorized and 
     constructed under the Act of July 3, 1952 (66 Stat. 325, 
     chapter 565) for the purpose of placing water to beneficial 
     use for authorized purposes within the State of Colorado.

[[Page S4240]]

       (B) Operation.--The project shall be operated and used by 
     the Districts for a period of 40 years after the date of 
     enactment of this Act for the purpose for which the project 
     was authorized.
       (C) Changes in operation.--The Districts shall attempt, to 
     the extent practicable, taking into consideration historic 
     project operations, to notify the State of Colorado of 
     changes in historic project operations which may adversely 
     affect State park operations.
       (2) Requirements.--During the 40-year period described in 
     paragraph (1)(B)--
       (A) the Districts shall annually submit to the Secretary of 
     Agriculture and the Colorado Department of Natural Resources 
     a plan for operation of the project, which plan shall--
       (i) report on project operations for the previous year;
       (ii) provide a description of the manner of project 
     operations anticipated for the forthcoming year, which shall 
     be prepared after consultation with the designated 
     representatives of the Secretary of Agriculture, the Board of 
     County Commissioners of Mesa County, Colorado, and the 
     Colorado Department of Natural Resources; and
       (iii) certify that the Districts have operated and will 
     operate and maintain the project facilities in accordance 
     with sound engineering practices; and
       (B) subject to section 4, all electric power generated by 
     operation of the project shall be made available to and be 
     marketed by the Western Area Power Administration.
       (f) Agreements.--Conveyance of the project shall be subject 
     to the agreements between the United States and the State of 
     Colorado dated August 22, 1994, and September 23, 1994, 
     relating to the construction and operation of recreational 
     facilities at Vega Reservoir, which agreements shall continue 
     to be performed by the parties to the agreements according to 
     the terms of the agreements.

     SEC. 4. OPERATION OF THE POWER COMPONENT.

       (a) Conformity to Historic Operations.--The power component 
     and facilities of the project shall be operated in 
     substantial conformity with the historic operations of the 
     power component and facilities (including recent operations 
     in a peaking mode).
       (b) Power Marketing.--
       (1) Existing marketing arrangement.--The post-1989 
     marketing criteria, which provide for the marketing of power 
     generated by the power component of the project as part of 
     the output of the Salt Lake City area integrated projects, 
     shall no longer be binding on the project upon conveyance of 
     the project under section 3(a).
       (2) After termination of existing marketing arrangement.--
       (A) In general.--
       (i) First offer.--After the conveyance under section 3(a), 
     the Districts shall offer all power produced by the power 
     component of the project to the Western Area Power 
     Administration or its successors or assigns (referred to in 
     this paragraph as ``Western''), which, in consultation with 
     its affected preference customers, shall have the first right 
     to purchase such power at the rates established under 
     subparagraph (B).
       (ii) Second offer.--If Western declines to purchase the 
     power after consultation with its affected preference 
     customers, the power shall be offered at the same rates first 
     to Western's preference customers located in the Salt Lake 
     City area integrated projects marketing area (referred to in 
     this paragraph as the ``SLCAIP preference customers'').
       (iii) Other offers.--After offers have been made under 
     clauses (i) and (ii), power may be sold to any other party, 
     but no such sale may occur at a rate less than a rate 
     established under subparagraph (B) unless the power is 
     offered at the lesser rate first to Western and second to the 
     SLCAIP preference customers.
       (B) Rate.--The rate for power initially offered to Western 
     and the SLCAIP preference customers under this paragraph 
     shall not exceed that required to produce revenues sufficient 
     to provide for--
       (i) annual debt service or recoupment of the cost of 
     capital for the amount specified in section 3(d)(1)(A) less 
     the sum of $310,000 (which is the net present value of the 
     outstanding repayment obligation of the Collbran Conservancy 
     District); and
       (ii) the cost of operation, maintenance, and replacement of 
     the power component of the project.
       (C) Determination of costs and rate.--Costs and a rate 
     under subparagraph (B) shall be determined in a manner that 
     is consistent with the principles followed, as of the date of 
     enactment of this Act, by the Secretary and by Western in its 
     annual power and repayment study.

     SEC. 5. LICENSE.

       (a) In General.--Before conveyance of the project to the 
     Districts, the Federal Energy Regulatory Commission shall 
     issue to the Districts a license or licenses as appropriate 
     under part I of the Federal Power Act (16 U.S.C. 791 et seq.) 
     authorizing for a term of 40 years the continued operation 
     and maintenance of the power component of the project.
       (b) Terms of License.--
       (1) In general.--The license under subsection (a)--
       (A) shall be for the purpose of operating, using, 
     maintaining, repairing, and replacing the power component of 
     the project as authorized by the Act of July 3, 1952 (66 
     Stat. 325, chapter 565);
       (B) shall be subject to the condition that the power 
     component of the project continue to be operated and 
     maintained in accordance with the authorized purposes of the 
     project; and
       (C) shall be subject to part I of the Federal Power Act (16 
     U.S.C. 791 et seq.) except as stated in paragraph (2).
       (2) Laws not applicable.--
       (A) Federal power act.--
       (i) In general.--The license under subsection (a) shall not 
     be subject to the following provisions of the Federal Power 
     Act: the 4 provisos of section 4(e) (16 U.S.C. 797(e)); 
     section 6 (16 U.S.C. 799) to the extent that the section 
     requires acceptance by a licensee of terms and conditions of 
     the Act that this subsection waives; subsection (e) (insofar 
     as the subsection concerns annual charges for the use and 
     occupancy of Federal lands and facilities), (f), or (j) of 
     section 10 (16 U.S.C. 803); section 18 (16 U.S.C. 811); 
     section 19 (16 U.S.C. 812); section 20 (16 U.S.C. 813); or 
     section 22 (16 U.S.C. 815).
       (ii) Not a government dam.--Notwithstanding that any dam 
     under the license under subsection (a) may have been 
     constructed by the United States for Government purposes, the 
     dam shall not be considered to be a Government dam, as that 
     term is defined in section 3 of the Federal Power Act (16 
     U.S.C. 796).
       (iii) Standard form license conditions.--The license under 
     subsection (a) shall not be subject to the standard ``L-
     Form'' license conditions published at 54 FPC 1792-1928 
     (1975).
       (B) Other laws.--The license under subsection (a) shall not 
     be subject to--
       (i) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.);
       (ii) section 2402 of the Energy Policy Act of 1992 (16 
     U.S.C. 797c);
       (iii) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (iv) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (v) the Wild and Scenic Rivers Act (16 U.S.C. 1271 et 
     seq.);
       (vi) the Federal Water Pollution Control Act (commonly 
     known as the ``Clean Water Act'') (33 U.S.C. 1251 et seq.);
       (vii) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       (viii) the Coastal Zone Management Act of 1972 (16 U.S.C. 
     1451 et seq.);
       (ix) the Fish and Wildlife Coordination Act (16 U.S.C. 661 
     et seq.); or
       (x) any other Act otherwise applicable to the licensing of 
     the project.
       (3) Laws enacted after issuance of license.--The operation 
     of the project shall be subject to all applicable State and 
     Federal laws enacted after the date of issuance of the 
     license under subsection (a).
       (c) Licensing Standards.--The license under subsection (a) 
     is deemed to meet all licensing standards of the Federal 
     Power Act (16 U.S.C. 791 et seq.).
       (d) Power Site Reservation.--Any power site reservation 
     established under section 24 of the Federal Power Act (16 
     U.S.C. 818) or any other law that exists on any land, whether 
     federally or privately owned, that is included within the 
     boundaries of the project shall be vacated by operation of 
     law on issuance of the license for the project.
       (e) Expiration of License.--All requirements of part I of 
     the Federal Power Act (16 U.S.C. 791 et seq.) and of any 
     other Act applicable to the licensing of a hydroelectric 
     project shall apply to the project on expiration of the 
     license issued under this section.

     SEC. 6. INAPPLICABILITY OF PRIOR AGREEMENTS AND OF FEDERAL 
                   RECLAMATION LAWS.

       On conveyance of the project to the Districts--
       (1) the repayment contract dated May 27, 1957, as amended 
     April 12, 1962, between the Collbran Conservancy District and 
     the United States, and the contract for use of project 
     facilities for diversion of water dated January 11, 1962, as 
     amended November 10, 1977, between the Ute Water Conservancy 
     District and the United States, shall be terminated and of no 
     further force or effect; and
       (2) the project shall no longer be subject to or governed 
     by the Federal reclamation laws.

     SEC. 7. LIABILITY OF THE DISTRICTS.

       The Districts shall be liable, to the extent allowed under 
     State law, for all acts or omissions relating to the 
     operation and use of the project by the Districts that occur 
     subsequent to the conveyance under section 3(a), including 
     damage to any Federal land or facility that results from the 
     failure of a project facility.

     SEC. 8. EFFECT ON STATE LAW.

       Nothing in this Act impairs the effectiveness of any State 
     or local law (including a regulation) relating to land use.

     SEC. 9. TREATMENT OF SALES FOR PURPOSES OF CERTAIN LAWS.

       The sales of assets under this subchapter shall not be 
     considered to be a disposal of Federal surplus property 
     under--
       (1) section 203 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 484); or
       (2) section 13 of the Surplus Property Act of 1944 (50 
     U.S.C. App. 1622).
                                 ______