[Congressional Record Volume 153, Number 60 (Monday, April 16, 2007)]
[Senate]
[Pages S4490-S4491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
  S. 1112. A bill to allow for the renegotiation of the payment 
schedule of contracts between the Secretary of the Interior and the 
Redwood Valley County Water District, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce the Redwood

[[Page S4491]]

Valley County Water District Loan Renegotiation Act of 2007. I am 
pleased that Senator Boxer is a cosponsor of this bill.
  This bill seeks to remove roadblocks to the implementation of 1988 
legislation that requires the Secretary of the Interior to renegotiate 
debts owed by the Redwood Valley County Water District to the United 
States. Enactment of this bill is necessary so that Redwood Valley can 
obtain a reliable water supply.
  In 1983, the Redwood Valley County Water District completed a project 
which supplied water to a rural agricultural community near Ukiah, CA. 
Two Bureau of Reclamation loans totaling $7.3 million contributed to 
the financing of this project.
  Unfortunately, the District was unable to repay these loans. This 
occurred for several reasons: The projected water use in the original 
feasibility study, developed by the District and reviewed by the 
Bureau, was seriously flawed; the District's ability to raise necessary 
revenues was compromised by a judicially imposed moratorium on new 
hook-ups; and concerns for endangered species reduced the District's 
potential water supply allotment by 33 percent.
  As a result, in 1988 Congress passed Section 15 of Public Law 100-516 
which indefinitely suspended the District's obligations to repay these 
Bureau loans and ordered the Secretary of Interior to renegotiate the 
loans. This loan renegotiation has yet to take place and now the 
District finds that its water supply is highly uncertain.
  In 2000 in a report on Redwood Valley, the Bureau of Reclamation 
recognized these changed conditions, and concluded that the District 
needs a reliable water supply before it can solve its current financial 
dilemma.
  The District recently identified two potential new projects, either 
of which could prove a reliable water source. No government funds will 
be sought for these projects. The District intends to rely on private 
financing, a strategy that the Bureau of Reclamation is encouraging. 
However, before the District can secure private financing for new 
projects, it must renegotiate the existing loans to provide for their 
repayment subsequent to the repayment of the new loans.
  The existing loans are an impediment to the District's attempts to 
upgrade elements of its existing plant. As an example, the District 
unsuccessfully sought private financing to build a 100 kW solar panel 
project. This project would have enabled the District to cut its energy 
costs and to qualify for energy rebates.
  Significantly, this legislation requires the District to repay to the 
United States the currently suspended loans once the District's new 
loans have been paid.
  The only difference between this bill and S. 3189, which I introduced 
last year, is to clarify that no renegotiations are required to trigger 
the District's obligations to repay the loans and the Secretary of 
Interior ``shall reschedule the payments due'' once the District has 
satisfied its additional financial obligations.
  The proposed water projects will enable the District to generate 
adequate revenues to allow the District to repay both its new private 
loans and its original loans from the United States. By providing a 
workable and reasonable solution to a longstanding problem, this 
legislation creates a win-win solution for taxpayers of the United 
States and the rate payers of the Redwood Valley County Water District.
  I urge my colleagues to support this bill and ask unanimous consent 
that the text of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1112

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

     SECTION 1. RENEGOTIATION OF PAYMENT SCHEDULE.

       Section 15 of Public Law 100-516 (102 Stat. 2573) is 
     amended as follows:
       (1) By amending paragraph (2) of subsection (a) to read as 
     follows:
       ``(2) If, as of January 1, 2006, the Secretary of the 
     Interior and the Redwood Valley County Water District have 
     not renegotiated the schedule of payment, the District may 
     enter into such additional non-Federal obligations as are 
     necessary to finance procurement of dedicated water rights 
     and improvements necessary to store and convey those rights 
     to provide for the District's water needs. The Secretary 
     shall reschedule the payments due under loans numbered 14-06-
     200-8423A and 14-06-200-8423A Amendatory and said payments 
     shall commence when such additional obligations have been 
     financially satisfied by the District. The date of the 
     initial payment owed by the District to the United States 
     shall be regarded as the start of the District's repayment 
     period and the time upon which any interest shall first be 
     computed and assessed under section 5 of the Small 
     Reclamation Projects Act of 1956 (43 U.S.C. 422a et seq.).''.
       (2) By striking subsection (c).
                                 ______