[Congressional Record Volume 145, Number 124 (Wednesday, September 22, 1999)]
[Senate]
[Pages S11256-S11258]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERREY (for himself and Mr. Hagel):
  S. 1612. A bill to direct the Secretary of the Interior to convey 
certain irrigation project property to certain irrigation and 
reclamation districts in the State of Nebraska; to the Committee on 
Commerce, Science, and Transportation.


   the missouri river basin, middle loup division project facilities 
                             conveyance act

  Mr. KERREY. Mr. President, today I am joined by Senator Hagel in 
introducing the Missouri River Basin, Middle Loup Division Project 
Facilities Conveyance Act.
  The bill provides for the transfer of title of irrigation project 
facilities and lands from the Bureau of Reclamation, U.S. Department of 
Interior to the Middle Loup Division irrigation districts in central 
Nebraska. These districts have operated the facilities there for over 
35 years.
  The project facilities are part of the Missouri River Basin Project, 
and provide water from the Middle Loup River to over 64,000 acres of 
irrigable land, as well as providing recreating and fish and wildlife 
benefits. Principal features of the projects include the Sherman Dam 
and Reservoir, the Arcadia Diversion Dam, the Milburn Diversion Dam, 
irrigation canals and laterals, drains and pumping plants.
  Crops grown on these irrigated lands primarily include alfalfa, small 
grains, sugar beets, and corn to provide feed for a thriving livestock-
feeding economy in my state of Nebraska, which includes beef cattle, 
hogs, and poultry.
  In 1995, the Vice President indicated that the Bureau of Reclamation 
of the U.S. Department of Interior should transfer titles to allow 
local ownership of irrigation projects such as this. The Bureau has 
indicated to me that this project is a top candidate for title transfer 
to be achieved. This transfer also has the support of Nebraska's Game 
and Parks Commission as well as the Middle Loup Public Power and 
Irrigation District. When this legislation passes, Nebraska will become 
the first state where title transfer efforts have been successful.
  Two trust funds are to be created: one by the Districts and one by 
Nebraska Game and Parks Commission. Those two trusts will be equally 
funded from the proceeds of the transfer. Details of those two trusts 
are as follows:
  First, a ``Nebraska-Middle Loup River Community Environmental Trust'' 
will be created by the Districts and will be funded with the proceeds 
of the transfer from the power producers share of the total payments. 
That fund will be administered and used by the Districts for 
environmental and conservation enhancements, to protect lands and 
facilities in the area of the River Basin in which the project 
facilities exist, and $500,000 of the funds will be used expressly for 
drainage work required in the Middle Loup River valley near Loup City. 
The funds cannot be used for routine operation and maintenance of the 
project facilities.
  And second, a ``Nebraska-Middle Loup River Game and Parks Trust'' 
will be created by Nebraska Game and Parks Commission and will be 
funded by the proceeds of the transfer from the District's share of the 
total payments. That fund will be administered and used by the Game and 
Parks Commission to improve and enhance fisheries and recreation 
opportunities and to expand knowledge of water and land resources for 
enhancing project operations and improving the service of project 
purposes. Like the other trust, funds cannot be used for routine 
operations and maintenance of project facilities.
  The irrigation projects and facilities were constructed between 1955 
and 1966

[[Page S11257]]

under authorities of the Flood Control Act of 1944, and are currently 
operated and maintained under contracts between the Bureau and the 
irrigation districts and power producers. The transfer will provide for 
total repayment of all outstanding obligations on behalf of the 
irrigation districts and power producers, while retaining all current 
uses and purposes for the projects.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1612

       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 ``Missouri River Basin, Middle 
     Loup Division Facilities Conveyance Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Commissioner.--The term ``Commissioner'' means the 
     Commissioner of Reclamation.
       (2) District.--The term ``District'' means--
       (A) the Farwell Irrigation District, a political 
     subdivision of the State of Nebraska;
       (B) the Sargent Irrigation District, a political 
     subdivision of the State of Nebraska; and
       (C) the Loup Basin Reclamation District, a political 
     subdivision of the State of Nebraska.
       (3) District trust.--The term ``District Trust'' means the 
     Nebraska-Middle Loup River Community Environmental Trust 
     established under section 5(a)(2)(B)(v).
       (4) Game and parks commission trust.--The term ``Game and 
     Parks Commission Trust'' means the Nebraska-Middle Loup River 
     Game and Parks Commission Trust established under section 
     5(a)(2)(B)(vi).
       (5) Project.--The term ``Project'' means Sherman Reservoir, 
     Milburn Diversion Dam, Arcadia Diversion Dam, related canals 
     and other related lands, water rights, acquired land, 
     distribution and diversion facilities, contracts, personal 
     property, and other associated interests owned by the United 
     States and authorized under the Act of June 17, 1902 (32 
     Stat. 388, chapter 1093), the Act of December 22, 1944 
     (commonly known as the ``Flood Control Act of 1944'') (58 
     Stat. 887, chapter 665), and the Act of August 3, 1956 (70 
     Stat. 975, chapter 917).
       (6) Repayment and water service contracts.--The term 
     ``Repayment and Water Service Contracts'' means all repayment 
     and water service contracts between the Commissioner and the 
     District relating to the Project.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Trust.--The term ``Trust'' means--
       (A) the District Trust; and
       (B) the Game and Parks Commission Trust.

     SEC. 3. CONVEYANCE OF THE PROJECT.

       (a) Conveyance.--
       (1) In general.--The Secretary shall convey to the 
     Districts, by quitclaim deed, assignment, or patent, the 
     interest of the United States in the Project, in 
     consideration of payment to the Secretary--
       (A) by the Districts, of an amount not to exceed 
     $3,000,000, determined in accordance with the Bureau of 
     Reclamation document entitled ``Framework for Title 
     Transfer'' and the memorandum of agreement between the 
     Commissioner and the Districts under section 5; and
       (B) by the Western Area Power Administration, of 
     $2,000,000.
       (2) Timing.--The conveyance under paragraph (1) shall be 
     made concurrently with the making of the payment under 
     paragraph (1)(A), but the payment under paragraph (1)(B) 
     shall be made from capacity and energy charges at Pick-Sloan 
     Missouri Basin Program firm power rates received in fiscal 
     year 1999 or any subsequent fiscal year in which the amount 
     of power sale revenue received exceeds the amount of interest 
     and operation and maintenance obligations of the Western Area 
     Power Administration by at least $2,000,000, to the extent of 
     the excess.
       (3) Satisfaction of obligations against the project.--The 
     payment under paragraph (1)(A) shall constitute full and 
     complete satisfaction of all obligations against the Project, 
     the Districts, and the Western Area Power Administration 
     existing before the date of the conveyance or thereafter 
     relating to the Project, including--
       (A) future obligations for additional drainage under 
     section 5(a)(2)(iv);
       (B) obligations under any contracts entered into between 
     the United States, the Districts, and the Western Area Power 
     Administration or its predecessors; and
       (C) any obligation that may have been required by the Act 
     of December 22, 1944 (58 Stat. 887, chapter 665) or other 
     related Federal law.
       (4) Satisfaction of obligations for irrigation benefits.--
     The conveyance of the Project and the payment of the 
     consideration under paragraph (1) shall constitute full 
     satisfaction of any and all obligations of the Districts or 
     of the Pick-Sloan Missouri Basin Program firm power users or 
     the Western Area Power Administration for irrigation benefits 
     of the Project or for any other benefits conveyed to the 
     Districts.
       (b) Contaminated Property.--
       (1) Remedial action.--The Secretary shall convey the 
     Project without regard to whether all necessary remedial 
     action required under section 120(h)(3) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9620(h)(3)) on any part of the Project has 
     been completed.
       (2) Continuing obligation to complete remedial action.--
     Notwithstanding any law to the contrary, the United States 
     shall remain during and subsequent to the conveyance 
     obligated, at the expense of the United States, to complete 
     any required remedial action.
       (c) Extinguishment of Obligations Between the Commissioner 
     and the Districts.--Effective on the date of the conveyance, 
     all obligations between the Commissioner and the Districts 
     relating to the Project and the Repayment and Water Service 
     Contracts are extinguished.
       (d) Payment of NEPA Study Costs.--The Commissioner and the 
     Districts shall each pay 50 percent of the costs associated 
     with compliance with the National Environmental Policy Act 
     (42 U.S.C. 4321 et seq.).
       (e) Crediting of certain items toward payment under 
     subsection (a)(1)(A).--There shall be credited toward the 
     payment under subsection (a)(1)(A)--
       (1) the amount of any payment made by the Districts before 
     the date of the conveyance for compliance with the National 
     Environmental Policy Act (42 U.S.C. 4321 et seq.) in excess 
     of 50 percent of the cost of compliance;
       (2) the amount of any payments made by the Districts under 
     contracts with the Commissioner between January 1, 1999, and 
     the date of the conveyance;
       (3) the present value of future operation and maintenance 
     costs required for historic preservation on Project land at 
     Sherman Reservoir; and
       (4) any other amount specified in the memorandum of 
     agreement between the Commissioner and the Districts under 
     section 5.
       (f) Additional Drainage.--
       (1) In general.--Of the $2,000,000 paid by the Western Area 
     Power Administration under subsection (a), $500,000--
       (A) shall be deposited in the fund referred to in section 
     5(a)(3); and
       (B) shall be available for additional drainage projects.
       (2) Nonreimbursability.--The amount deposited under 
     paragraph (1) shall be nonreimbursable and nonreturnable.
       (3) Authorization of appropriations.--There is authorized 
     to be appropriated not more than $500,000 for the additional 
     drainage projects.

     SEC. 4. LIABILITY.

       Effective on the date of conveyance of the Project, the 
     United States shall not be liable for claims, costs, damages, 
     or judgments of any kind arising out of any act, omission, or 
     occurrence related to the Project except for such claims, 
     costs, or damages arising from acts of negligence committed 
     by the United States or by employees, agents, or contractors 
     of the United States before the date of conveyance for which 
     the United States is liable under chapter 171 of title 28, 
     United States Code (commonly known as the ``Federal Tort 
     Claims Act'').

     SEC. 5. COMPLETION OF CONVEYANCE.

       (a) In General.--The Secretary shall not make the 
     conveyance under section 3 until the following events have 
     been completed:
       (1) Compliance with the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.).
       (2) Execution of--
       (A) memoranda of agreement between the Commissioner and the 
     Districts describing the purchase price and other terms and 
     conditions of the conveyance consistent with this Act; and
       (B) an agreement by the Districts to manage the Project in 
     a manner substantially similar to the manner in which the 
     Project was managed before the conveyance and in accordance 
     with applicable Federal and State laws, including--
       (i) preserving on a permanent basis the right of the State 
     of Nebraska Games and Parks Commission to develop, provide, 
     and protect the public interest in Project fish, wildlife, 
     and recreation facilities related to the Projects;
       (ii) providing for protection of cultural resources at the 
     Project after the conveyance consistent with applicable law 
     that authorizes the Districts or others with responsibility 
     to protect significant historic features in situ or 
     otherwise;
       (iii) providing that the Districts shall annually make 
     payments to local governments in the amounts in which the 
     Commissioner made payment to the local governments under 
     chapter 69 of title 31, United states Code (commonly known as 
     ``payments in lieu of taxes'') for fiscal year 1999;
       (iv) providing for--

       (I) a plan for additional drainage work in the Middle Loup 
     Valley as specified in the memoranda of agreement under 
     paragraph (1); and
       (II) the funding of the additional drainage work;

       (v) providing for the establishment by the Districts of an 
     organization to be known as the ``Nebraska-Middle Loup River 
     Community Environmental Trust'' and to be organized under 
     State law to preserve, protect, enhance, and manage the 
     Project by--

[[Page S11258]]

       (I) stabilizing surface and ground water supplies;
       (II) conserving water and land resources;
       (III) carrying out essential drainage projects using funds 
     deposited under section 3(f); and
       (IV) expanding knowledge of water and land resources for 
     enhancing Project operations and improving the service of 
     Project purposes; and

       (vi) providing for the establishment by the Nebraska Game 
     and Parks Commission of an organization to be known as the 
     ``Nebraska-Middle Loup River Game and Parks Trust'' and to be 
     organized under State law to--

       (I) improve and enhance fisheries and recreational 
     opportunities; and
       (II) expand knowledge of water and land resources for 
     enhancing Project operations and improving the service of 
     Project purposes.

       (3) Deposits in the district trust.--On receipt of the 
     payments under section 3(a)(1), the Secretary shall deposit 
     in the District trust--
       (A) $2,000,000 of the amount received under section 
     3(a)(1); and
       (B) the entire amount received under section 3(a)(2).
       (4) No tax; no effect on rates.--No payment under this 
     Act--
       (A) shall be subject to Federal or State income tax; or
       (B) shall affect Pick-Sloan Missouri Basin Program firm 
     power rates in any way.
       (5) Use of funds.--
       (A) Funds deposited under section 3(f).--The Trusts shall 
     by their charters prohibit the use of any funds deposited 
     under section 3(f) for routine operation and maintenance work 
     by the Districts, the Game and Parks Commission, or any of 
     the participating agencies of the Trusts.
       (B) Other funds.--Funds received by a Trust from a District 
     or any other source may be used for any purpose.
       (6) Assistance for drainage work.--The Game and Parks 
     Commission Trust shall provide for direct priority assistance 
     to the Districts for drainage work in the Middle Loup River 
     Valley under conditions requiring greater trust fund 
     investments than are available from the Trust.
       (b) Report.--If the conveyance under section 3 is not 
     substantially completed on or before December 31, 2000, the 
     Secretary and the Districts shall promptly submit to the 
     Committee on Resources of the House of Representatives and 
     the Committee on Energy and Natural Resources of the Senate a 
     report on the status of the conveyance describing the matters 
     remaining to be resolved before completion of the conveyance 
     and stating the anticipated date for the completion of the 
     conveyance.
       (c) Future Benefits.--
       (1) In general.--Effective on the date of the conveyance 
     under section 3, the Districts shall not be entitled to 
     receive any further benefits under reclamation law not 
     otherwise available attributable to its status as a 
     reclamation project under the Act of June 17, 1902 (32 Stat. 
     388, chapter 1093), and Acts supplemental to and amendatory 
     of that Act (43 U.S.C. 371 et seq.).
       (2) No flood control component.--After the date of the 
     conveyance under subsection 3, the Project shall no longer 
     have a flood control component.
                                 ______