[Congressional Record (Bound Edition), Volume 145 (1999), Part 19]
[Senate]
[Pages 26771-26772]
[From the U.S. Government Publishing Office, www.gpo.gov]



                      CBO COST ESTIMATE FOR S. 986

  Mr. MURKOWSKI. Mr. President, at the time Senate Report No. 106-173 
was filed to accompany S. 986 the Congressional Budget Office report 
was not available. I ask unanimous consent that the report which is now 
available be printed in the Congressional Record for the information of 
the Senate.
  There being no objection, the report was ordered to be printed in the 
Record, as follows:

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                 Washington, DC, October 18, 1999.
     Hon. Frank H. Murkowski,
     Chairman, Committee on Energy and Natural Resources, U.S. 
         Senate, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for S. 986, the Griffith 
     Project Prepayment and Conveyance Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contacts are Megan 
     Carroll (for federal costs), who can be reached at 226-2860, 
     and Marjorie Miller (for the state and local impact), who can 
     be reached at 225-3220.
           Sincerely,
                                                 Barry B. Anderson
                                   (For Dan L. Crippen, Director).
       Enclosure.

      CONGRESSIONAL BUDGET OFFICE COST ESTIMATE, OCTOBER 18, 1999

         S. 986: Griffith Project Prepayment and Conveyance Act

(As reported by the Senate Committee on Energy and Natural Resources on 
                            October 6, 1999)


                                summary

       S. 986 would direct the Secretary of the Interior, acting 
     through the Bureau of Reclamation (Bureau) to convey the 
     Robert B. Griffith Water Project (Griffith Project) to the 
     Southern Nevada Water Authority (SNWA). The transfer would 
     occur after the SNWA pays about $121 million to the Bureau to 
     meet its outstanding obligations under an existing repayment 
     contract with the federal government. A substantial portion 
     of the Griffith Project is located on federal land 
     administered by the National Park Service (NPS) and the 
     Bureau of Land Management. Under S. 986, the SNWA would 
     retain rights-of-way across this federal land at no cost.
       CBO estimates that enacting S. 986 would yield a net 
     increase in asset sale receipts of $112 million in 2000, but 
     that this near-term cash savings would be offset on a present 
     value basis by the loss of other offsetting receipts over the 
     2001-2033 period. Because the bill would affect direct 
     spending, pay-as-you-go procedures would apply. CBO also 
     estimates that implementing S. 986 could cost up to $50,000 a 
     year in appropriated funds over the 2001-2004 period. S. 986 
     contains no intergovernmental or private-sector mandates as 
     defined in the Unfunded Mandates Reform Act (UMRA). The 
     project conveyance, and any costs associated with it, would 
     be voluntary on the part of the SNWA. The bill would impose 
     no costs on any other state, local, or tribal governments.


                estimated cost to the federal government

       The estimated budgetary impact of S. 986 is shown in the 
     following table. The costs of this legislation fall within 
     budget function 300 (natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                        By fiscal year, in millions of dollars
                                                                    --------------------------------------------
                                                                       2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                         CHANGES IN DIRECT SPENDING \1\
 
Estimated Budget Authority.........................................     -112        9        9        9        9
Estimated Outlays..................................................     -112        9        9        9        9
----------------------------------------------------------------------------------------------------------------
\1\ S. 986 also would authorize additional spending, subject to appropriation, of up to $50,000 a year over the
  2001-2004 period.

                           basis of estimate

       For this estimate, we assume that S. 986 will be enacted 
     early in fiscal year 2000. Based on information from the SNWA 
     and the Bureau, CBO expects that the authority will make the 
     prepayment during fiscal year 2000, and that the formal 
     project conveyance will be completed during fiscal year 2001.
       Direct Spending. S. 986 would direct the Secretary of the 
     Interior to sell the Griffith Project to the SNWA, in 
     exchange for a one-time payment of about $121 million. The 
     sales price would be adjusted to reflect any additional 
     payments made by SNWA before the project transfer is 
     completed. CBO expects the prepayment to occur during fiscal 
     year 2000 and estimates that those receipts would be offset 
     by the loss of currently scheduled repayments of about $9 
     million a year between 2000 and 2022 and $6 million a year 
     between 2023 and 2033.
       Spending Subject to Appropriation. Presently, the SNWA 
     bears the full cost of operating and maintaining the Griffith 
     Project. In addition, pursuant to an agreement with the 
     Bureau, the SNWA will absorb all administrative costs 
     associated with the conveyance. Thus, implementing this 
     provision would not affect discretionary spending. The NPS 
     currently collects about $50,000 a year from the SNWA to 
     offset the costs of administering and monitoring rights-of-
     way within the Lake Mead National Recreation Area. Under S. 
     986, the SNWA would maintain rights-of-way across these 
     federal lands at no cost after the conveyance is completed. 
     CBO estimates that implementing this provision would require 
     a net increase in amounts appropriated to the NPS of about 
     $50,000 annually to continue administrative activities 
     related to monitoring these rights-of-way.


                      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. For the purposes of enforcing pay-as-you-go 
     procedures, only the effects in the budget year and the 
     succeeding four years are counted.

[[Page 26772]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, in millions of dollars
                                                               -----------------------------------------------------------------------------------------
                                                                  2000     2001     2002     2003     2004     2005     2006     2007     2008     2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays............................................     -112        9        9        9        9        9        9        9        9        9
Changes in receipts...........................................                                   Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

       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 purposes only if the sale 
     would entail no financial cost to the government. Based on 
     information provided by the bureau, CBO estimates that the 
     sale of the Griffith Project as specified in S. 986 would 
     result in a net savings to the government, and therefore, the 
     proceeds would count for pay-as-you-go purposes.


        estimated impact on state, local, and tribal governments

       S. 986 contains no intergovernmental mandates as defined in 
     UMRA. In order to receive title to the Griffith project, the 
     bill would require the SNWA to assume all costs associated 
     with the project and to prepay their outstanding liability to 
     the federal government. The conveyance would be voluntary on 
     the part of the authority, however, and these costs would be 
     accepted by it on that basis. Further, the authority is 
     already responsible for all costs of operating and 
     maintaining the facility. The bill would impose no costs on 
     any other state, local, or tribal governments.


                 estimated impact on the private-sector

       This bill contains no new private-sector mandates as 
     defined in UMRA.
       Estimated prepared by: Federal Costs: Megan Carroll (226-
     2860). Impact on State, Local, and Tribal Governments: 
     Marjorie Miller (225-3220).
       Estimate approved by: Peter H. Fontaine, Deputy Assistant 
     Director for Budget Analysis.

                          ____________________