[Congressional Record Volume 145, Number 51 (Wednesday, April 14, 1999)]
[Senate]
[Pages S3692-S3693]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                WATER RESOURCES DEVELOPMENT ACT OF 1999

  Mr. CHAFEE. Mr. President, on March 23, 1999, the Committee on 
Environment and Public Works filed S. 507, the Water Resources 
Development Act of 1999, accompanied by Senate Report 106-34. At that 
time, the analysis prepared by the Congressional Budget Office was not 
available, and therefore was not printed with the report. The analysis 
subsequently has been received by the committee and I now ask unanimous 
consent, pursuant to section 403 of the Congressional Budget and 
Impoundment Act, it be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, April 14, 1999.
     Hon. John H. Chafee,
     Chairman, Committee on Environment and Public Works, U.S. 
         Senate, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for S. 507, the Water 
     Resources Development Act of 1999.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contacts are Victoria 
     Heid Hall (for the effects on outer continental shelf 
     receipts) and Gary Brown (for all other federal costs), both 
     of whom can be reached at 226-2860, and Marjorie Miller (for 
     the state and local impact), who can be reached at 225-3220.
           Sincerely,
                                                   Dan L. Crippen,
                                                         Director.
       Enclosure.


               congressional budget office cost estimate

     S. 507--Water Resources Development Act of 1999
       Summary: S. 507 would authorize the appropriation of about 
     $2.3 billion (in 1999 dollars) over the 2000-2009 period for 
     the Secretary of Army, acting through the Army Corps of 
     Engineers, to conduct studies and undertake specified 
     projects and programs for flood control, port development, 
     inland navigation, storm damage reduction, and environmental 
     restoration. Adjusting for anticipated inflation, CBO 
     estimates that implementing the bill would require 
     appropriations of $2.5 billion over that period. The bill 
     also would authorize:
       Prepayment or waiver of amounts owed to the federal 
     government;
       Spending a portion of the fees collected at Corps 
     recreation sites;
       Free use of sand, gravel, and shell resources from the 
     outer continental shelf (OCS) at eligible projects by state 
     and local governments; and
       Sale of specified federal lands in Washington and Oklahoma.
       CBO estimates that implementing S. 507 would result in 
     additional outlays of about $1.9 billion over the 2000-2004 
     period, assuming the appropriation of the necessary amounts. 
     The remaining amounts authorized by the bill would be spent 
     after 2004. Enacting the bill would affect direct spending; 
     therefore, pay-as-you-go procedures would apply. CBO 
     estimates that enacting S. 507 would reduce direct spending 
     by $18 million in 2000 and would result in a net increase in 
     direct spending of $6 million over the 2000-2004 period.
       S. 507 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA). State and local governments would likely incur some 
     costs as a result of the bill's enactment, but these costs 
     would be voluntary.
       Estimated cost to the Federal Government: The estimated 
     budgetary impact of S. 507 is shown in the following table. 
     For constructing, operating, and maintaining projects that 
     are already authorized, CBO estimates that the Corps will 
     need about $4 billion annually over the 2000-2004 period 
     (roughly the level appropriated in 1999). The table shows the 
     estimates of additional spending necessary to implement the 
     bill. The costs of this legislation fall primarily within 
     budget function 300 (natural resources and environment).

------------------------------------------------------------------------
                                        By fiscal years, in millions of
                                                   dollars--
                                     -----------------------------------
                                       2000    2001   2002   2003   2004
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level.......     478    558    485    321    185
Estimated Outlays...................     239    446    510    414    278
 
                       CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority..........     -18      6      6      6      6
Estimated Outlays...................     -18      6      6      6      6
------------------------------------------------------------------------

       Basis of estimate: For the purpose of this estimate, CBO 
     assumes that S. 507 will be enacted by the end of fiscal year 
     1999 and that all amounts estimated to be authorized by the 
     bill will be appropriated for each fiscal year.

[[Page S3693]]

     Spending subject to appropriation
       Estimates of annual budget authority needed to meet design 
     and construction schedules were provided by the Corps. CBO 
     adjusted the estimates to reflect the impact of anticipated 
     inflation during the time between authorization and 
     appropriation. Estimated outlays are based on historical 
     spending rates for activities of the Corps.
     Direct spending
       Prepayments and Waivers of Payments. S. 507 would authorize 
     the state of Oklahoma to pay the present value of its 
     outstanding obligation to the United States for water supply. 
     CBO estimates that, if the bill is enacted, a prepayment of 
     about $20 million would be made in 2000 and that payments 
     forgone would be about $2 million a year over the 2000-2033 
     period. The bill would authorize the Corps to waive payments 
     from the Waurika Project Master Conservancy District and the 
     cities of Chesapeake, Virginia, and Moorefield, West 
     Virginia, for other projects. CBO estimates that under 
     current law, payments from these entities would total less 
     than $500,000 annually over the 2000-2031 period.
       Spending of Recreation Fees. S. 507 would authorize the 
     Corps to retain and spend each year any recreation fees in 
     excess of $34 million. At present, all recreation fees are 
     deposited as offsetting receipts in the Treasury and are 
     unavailable for spending unless appropriated. By allowing the 
     Corps to spend receipts in excess of $34 million, this 
     provision creates the possibility of new direct spending. 
     CBO's baseline projection of receipts is $36 million a year. 
     Allowing for the possibilities that receipts could be either 
     more or less than that projected level, we estimated that the 
     expected value of additional spending from enacting this 
     provision is about $3 million a year.
       Using Outer Continental Shelf Sand and Gravel. S. 507 would 
     amend the Outer Continental Shelf Lands Act to allow 
     nonfederal entities to use--without charge--sand, gravel, and 
     shell resources from the outer continental shelf for shore 
     restoration and protection programs and certain other 
     construction projects if such projects are subject to an 
     agreement with the Corps. Under current law, the Department 
     of the Interior (DOI) cannot charge other federal agencies 
     for the use of these OCS resources. Section 211 would extend 
     free use of the resources to nonfederal interests, including 
     state and local governments, for the type of projects 
     specified in the bill. Based on information from DOI, CBO 
     estimates that exempting these projects from fees for OCS 
     sand, gravel, and shell resources would result in forgone 
     receipts of about $1 million each year. Proceeds from the 
     sale of this material are recorded as offsetting receipts to 
     the Treasury; thus a loss of these receipts would increase 
     direct spending.
       Sales of Land. S. 507 would direct the Corps to sell at 
     fair market value land that was acquired for the Candy Lake 
     Project in Osage County, Oklahoma. The land was acquired in 
     the mid 1970s at a total cost of about $2 million. Accounting 
     for inflation, CBO estimates the current value of the land at 
     about $4 million. CBO anticipates that the lands could be 
     sold in fiscal year 2000. Annual lease payments and other 
     revenues accruing to the federal government from these lands 
     are not significant.
       CBO anticipates that sale proceeds would be counted for 
     pay-as-you-go purposes. Under the Balanced Budget Act, 
     proceeds from nonroutine asset sales (sales that are not 
     authorized under current law) may be counted for pay-as-you-
     go scorekeeping only if the sale would entail no financial 
     cost to the government.
       S. 507 also would direct the Corps to transfer lands 
     located in Clarkston, Washington, to the Port of Clarkston. 
     The Port would not be required to pay for the lands as long 
     as they are used for recreation purposes. The fair market 
     value of the lands are estimated at slightly less than $2 
     million. Based on information provided by the Corps, CBO 
     anticipates that the lands would continue to be used for 
     recreation purposes after conveyance and that no 
     consideration would be required. The Port currently leases 
     the lands from the United States without cost.
       Pay-as-you-go considerations: The Balanced Budget and 
     Emergency Deficit Control Act sets up pay-as-you-go 
     procedures for legislation affecting direct spending or 
     receipts. The net changes in outlays that are subject to pay-
     as-you-go procedures are shown in the following table. (The 
     bill would not affect governmental receipts.) For the 
     purposes of enforcing pay-as-you-go procedures, only the 
     effects in the current year, the budget year, and the 
     succeeding four years are counted.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal years, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                              1999      2000      2001      2002      2003      2004      2005      2006      2007      2008      2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays........................         0       -18         6         6         6         6         6         6         6         6         6
Changes in receipts.......................                                                  Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Estimated impact act on State, local, and tribal 
     governments: S. 507 contains no intergovernmental mandates as 
     defined in UMRA. State and local governments that choose to 
     participate in water resources development projects and 
     programs carried out by the Corps would incur costs as 
     described below. In addition, some state and local 
     governments would benefit from provisions in this bill that 
     would alter their obligations to make payments to the federal 
     government and order transfers of land.
     Authorizations of new projects
       CBO estimates that nonfederal entities (primarily state and 
     local governments) that choose to participate in the projects 
     authorized by this bill would spend about $1.3 billion during 
     fiscal years 2000 through 2011 to help construct these 
     projects. These estimates are based on information provided 
     by the Corps. I addition to these costs, nonfederal entities 
     would pay for the operation and maintenance of many of the 
     projects after they are constructed.
     Changes in cost-sharing policies
       S. 507 would make a number of changes to federal laws that 
     specify the share of water resources project costs borne by 
     state and local governments. Section 202 would increase the 
     nonfederal share or recurring costs associated with new 
     coastal shore protection projects from 35 percent to 50 
     percent. This change would not affect the construction of 
     these projects. Some state and local governments would find 
     it easier to satisfy matching requirements for specific 
     projects as a result of provisions in S. 507 that would allow 
     additional in-kind contributions or expand the range of 
     expenditures counted towards the required match. Other 
     provisions in the bill would expand the opportunities for 
     state and local governments to participate in water resources 
     projects.
       S. 507 includes several provisions that would alter the 
     repayment obligations of specific state and local 
     governments, either by allowing the prepayment of amounts 
     owed or by waiving amounts owed under current law.
     New programs
       S. 507 would authorize several new programs that would 
     assist state and local governments. Specifically, the bill 
     would authorize total appropriations of $75 million for 
     fiscal years 2000 and 2001 for a program to reduce flood 
     hazards and $30 million for the same period for activities to 
     protect and enhance fish and wildlife habitat of the Missouri 
     River and the middle Mississippi River. State and local 
     governments choosing to participate in these programs would 
     have to provide 35 percent of the initial cost of any funded 
     project and all the subsequent operation and maintenance 
     costs. The bill also would authorize a program of technical 
     assistance for the purpose of developing and evaluating 
     measures to keep fish from entering irrigation systems. State 
     and local participants in this program would be required to 
     contribute 50 percent of the cost of such assistance.
       State and local governments would benefit from a provision 
     in S. 507 that would allow them to negotiate agreements with 
     DOI to use sand, gravel, and shell resources from the outer 
     continental shelf for eligible projects at no charge.
     Conveyances
       S. 507 would allow the state of Oklahoma and the Port of 
     Clarkston, Washington, to take title to land and facilities 
     now owned by the federal government. Both could be required 
     to pay the costs necessary to complete these conveyances, 
     should they choose to take the property. The conveyances 
     would be voluntary on the part of these governments.
       Estimated impact on the private sector: This bill contains 
     no new private-sector mandates as defined in UMRA.
       Estimate prepared by: Federal Costs: OCS receipts--Victoria 
     Heid Hall. All other costs--Gary Brown. Impact on State, 
     Local, and Tribal Governments: Majorie Miller.
       Estimate approved by: Paul N. Van de Water, Assistant 
     Director for Budget Analysis.

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