[Congressional Record Volume 157, Number 160 (Monday, October 24, 2011)]
[House]
[Pages H6995-H6996]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ALLOWING PREPAYMENT OF FEDERAL CONTRACTS WITH THE UINTAH WATER
CONSERVANCY DISTRICT.
Mr. YOUNG of Alaska. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 818) to direct the Secretary of the Interior to
allow for prepayment of repayment contracts between the United States
and the Uintah Water Conservancy District.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 818
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 UINTAH WATER
CONSERVANCY DISTRICT.
The Secretary of the Interior shall allow for prepayment of
the repayment contract no. 6-05-01-00143 between the United
States and the Uintah Water Conservancy District dated June
3, 1976, and supplemented and amended on November 1, 1985,
and on December 30, 1992, 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 used in implementing section
210 of the Central Utah Project Completion Act (Public Law
102-575), as amended. The prepayment--
(1) shall result in the United States recovering the net
present value of all repayment streams that would have been
payable to the United States if this Act was not in effect;
(2) may be provided in several installments to reflect
substantial completion of the delivery facilities being
prepaid, and any increase in the repayment obligation
resulting from delivery of water in addition to the water
being delivered under this contract as of the date of
enactment of this Act;
(3) shall be adjusted to conform to a final cost allocation
including costs incurred by the Bureau of Reclamation, but
unallocated as of the date of the enactment of this Act that
are allocable to the water delivered under this contract;
(4) may not be adjusted on the basis of the type of
prepayment financing used by the District; and
(5) shall be made such that total repayment is made not
later than September 30, 2022.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Alaska (Mr. Young) and the gentlewoman from California (Mrs.
Napolitano) each will control 20 minutes.
The Chair recognizes the gentleman from Alaska.
General Leave
Mr. YOUNG of Alaska. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Alaska?
There was no objection.
Mr. YOUNG of Alaska. Mr. Speaker, I yield myself such time as I may
consume.
H.R. 818 would allow a local water district in Utah to prepay its
loan obligations to the Federal Government. Prepayment can benefit
local water utilities because it relieves them of interest costs and
some regulatory burdens.
{time} 1640
This concept is similar to giving a family an option to prepay its
mortgage and to save compounded interest cost. It's also in the best
interest of the American taxpayer since it will facilitate the revenues
to the U.S. Treasury.
I urge adoption of this measure, and I reserve the balance of my
time.
Mrs. NAPOLITANO. I yield myself such time as I may consume.
(Mrs. NAPOLITANO asked and was given permission to revise and extend
her remarks.)
[[Page H6996]]
Mrs. NAPOLITANO. Mr. Speaker, H.R. 818, sponsored by our friend and
colleague Congressman Matheson, would allow the Uintah Water
Conservancy District of Uintah County, Utah, to prepay--that means to
pay ahead of time for anybody who really understands the prepay--the
debt owed to the Federal Government for the construction of the Jensen
Unit.
At a time when our country is watching our dollars and cents, H.R.
818 is legislation that does make very credible sense. The water
district would have the option to pay its loan early--what a novel
concept--and translate the interest savings into lower rates for its
customers--again, quite an interesting concept. The Federal Government,
in turn, would benefit from the accelerated repayment of the debt to
the Treasury and be able to use that for debt reduction or whatever
else is needed.
I do commend Congressman Matheson of Utah for his efforts in moving
this legislation. Identical legislation passed the House unanimously in
the 111th Congress, so I ask my colleagues to support this bill.
With that, I yield such time as he may consume to the gentleman from
Utah (Mr. Matheson).
Mr. MATHESON. I rise in support of H.R. 818, which would direct the
Secretary of the Interior to allow for the prepayment of repayment
contracts between the United States and the Uintah Water Conservancy
District.
I would very much like to thank Chairmen Hastings and McClintock and
Ranking Members Markey and Napolitano for their support in moving this
bill through the Natural Resources Committee.
This is a commonsense bill that encourages and promotes fiscal
responsibility at all levels of government. Allowing the Uintah Water
Conservancy District to pay its debt obligations back early and in a
timely manner is what we like to call a ``win-win'' in that it's
finally beneficial to the local government and Federal Government
alike.
It provides local government the ability to responsibly self-govern,
giving it the flexibility to pay its loan off early and save hundreds
of thousands of dollars in future interest payments. This savings will
result in lower costs to the water users, which is very important as we
continue to grow out of the current economic recession and look for
additional ways to support much needed economic development in rural
communities. Likewise, allowing for prepayment results in a significant
payment to the Federal Treasury.
As Congress continues to look for ways to trim the Federal budget and
encourage best practices and good government policies, allowing for
prepayment is a good model to follow. In addition, I believe this
legislation provides a good opportunity to help rural communities
prioritize and implement best practices to utilize scarce resources in
an effort to meet rural water demands in a cost-effective and fiscally
responsible manner.
I would also like to point out that there is precedence for allowing
the prepayment of repayment contracts. H.R. 818 is similar to
legislation used by the Central Utah Water Conservancy District, which
allowed for the prepayment of the repayment contracts for the
Bonneville Unit. This effort saved hundreds of thousands in taxpayer
dollars and allowed for project managers to consider time and cost
savings through a balanced approach to managing an important resource
in my State.
H.R. 818 is the same bill that passed the House unanimously in the
111th Congress. It has also in this Congress been reintroduced in the
Senate by my counterparts in the Utah delegation, Senators Hatch and
Lee. I urge my colleagues to join me in passing this bill once again.
Mrs. NAPOLITANO. As I have no further requests for time, I would urge
my colleagues to vote for this very important piece of legislation.
I yield back the balance of my time.
Mr. YOUNG of Alaska. Mr. Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Alaska (Mr. Young) that the House suspend the rules and
pass the bill, H.R. 818.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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