[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[Senate]
[Pages 30573-30574]
[From the U.S. Government Publishing Office, www.gpo.gov]



                   CONGRESSIONAL BUDGET OFFICE REPORT

  Mr. MURKOWSKI. Madam President, at the time Senate Report No. 623 was 
filed, 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.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                Washington, DC, November 10, 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. 623, the Dakota 
     Water Resources Act of 1999.
       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), and Marjorie Miller (for the 
     impact on state, local, and tribal governments).
           Sincerely,
                                                Barry B. Anderson,
                                   (For Dan L. Crippen, Director).
       Enclosure.


               congressional budget office cost estimate

     S. 623--Dakota Water Resources Act of 1999


                                summary

       CVO estimates the implementing S. 623 would cost $131 
     million over the 2000-2004 period, assuming appropriation of 
     the necessary amounts. Starting in fiscal year 2002, S. 623 
     would affect direct spending; therefore, pay-as-you-go 
     procedures would apply. CBO estimates, however, that changes 
     in direct spending would not become significant until 2007. 
     S. 623 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA). The state of North Dakota and local governments in 
     that state would probably incur some costs as a result of the 
     bill's enactment, but these costs would be voluntary.
       S. 623 would amend the existing authority for construction 
     of the Garrison Diversion Unit (GDU) of the Pick-Sloan 
     Missouri Basin Program, administered by the Bureau of 
     Reclamation (the Bureau). S. 623 would authorize the 
     appropriation of about $688 million (in 1999 dollars) for the 
     Bureau to complete the GDU. Adjusting for anticipated cost 
     growth, CBO estimates that implementing this legislation 
     would require the appropriation of $793 million over the 
     2000-2017 period. Most of the outlays from such funding would 
     occur after 2004. We estimate that enacting the bill would 
     reduce offsetting receipts (a credit against direct spending) 
     by less than $200,000 a year between 2002 and 2006, but would 
     result in increased offsetting receipts of about $7 million a 
     year starting in 2007.


                estimated cost to the federal government

       The estimated budgetary impact on S. 623 over the next five 
     years 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 SPENDING SUBJECT TO APPROPRIATION \1\
Estimated Authorization Level...       0      24      33      47      31
Estimated Outlays...............       0      16      27      41      47
------------------------------------------------------------------------
\1\ Most of the costs of implementing S. 623 would occur after 2004. In
  addition, to the bill's discretionary costs, it would increase direct
  spending by less than $200,000 a year over the 2000-2004 period. (That
  estimated annual effect would continue through 2006, but S. 623 would
  reduce direct spending by about $7 million a year after 2006).

       Assuming appropriation of the necessary funds, CBO 
     estimates that implementing S. 623 would cost $131 million 
     over the 2000-2004 period, $450 million over the 2000-2009 
     period, and $793 million over the 2000-2018 period. 
     Initially, the bill would have no significant impact on 
     direct spending, but after 2006, S. 623 would increase 
     offsetting receipts by about $7 million a year.


                           basis of estimate

       Estimates of funds needed to meet design and construction 
     schedules were provided by the Bureau. CBO adjusted those 
     estimates to reflect anticipated cost growth during the 
     construction period, as authorized by the bill. For purposes 
     of this estimate, CBO assumes that S. 623 will be enacted 
     during fiscal year 2000 and that the authorized amounts will 
     be appropriated. Estimates of outlays are based on historical 
     spending patterns for similar projects.


                   spending subject to appropriation

       Red River Valley Water Supply Project.--S. 623 would 
     authorize the appropriation of $200 million (in 1999 dollars) 
     for the Bureau to construct facilities to meet the water 
     quality and quantity needs of the Red River Valley. Based on 
     information from the Bureau, CBO expects that construction 
     would begin during fiscal year 2004 and would be 
     substantially completed in 2007. Assuming appropriation of 
     the necessary amounts, CBO estimates that design and initial 
     construction would about $75 million over the 2000-2004 
     period.
       Municipal, Rural, and Industrial Water Systems.--The bill 
     also would authorize the appropriation of $200 million (in 
     1999 dollars) for the Bureau to make grants to North Dakota 
     to construct municipal, rural, and industrial water systems. 
     The bill would authorize the appropriation of an additional 
     $200 million (in 1999 dollars) for the Bureau to construct, 
     operate, and maintain, on a nonreimbursable basis, municipal, 
     rural, and industrial water systems on certain Indian 
     reservations. CBO estimates that implementing both of these 
     provisions would cost about $45 million between 2000 and 
     2004.
       Operation and Maintenance.--During construction of the Red 
     River Valley Water Supply Project, operation and maintenance 
     costs of the GDU would be covered by using funds appropriated 
     for construction. Once the facility is completed in 2007, S. 
     623 would authorize the appropriation of amounts necessary 
     for the Bureau to operate and maintain a certain portion of 
     the facility. Based on information from the Bureau, CBO 
     expects the facility to be put into use in 2007. At that 
     time, we estimate that an additional appropriation of about 
     $3 million would be required each year for operation and 
     maintenance.
       S. 623 also would authorize the appropriation of additional 
     amounts necessary for the operation and maintenance of 
     wildlife mitigation and enhancement facilities, including 
     wildlife refuges. Based on information from the Bureau, CBO 
     estimates this work would cost about $1 million annually 
     starting in 2001.

[[Page 30574]]

       Natural Resources Trust.--S. 623 would authorize the 
     appropriation of $25 million for the Secretary of the 
     Interior to make annual contributions to the Natural 
     Resources Trust, a nonfederal corporation (currently known as 
     the Wetlands Trust). The amount to be contributed in any 
     fiscal year would equal 5 percent of the amount appropriated 
     in that year for the Red River Valley Water Supply Project 
     and for non-Indian municipal, rural, and industrial water 
     supply systems. CBO estimates this provision would cost $6 
     million between 2000 and 2004.
       Recreational Projects.--The bill would authorize the 
     appropriation of $6.5 million for the Bureau to construct, 
     operate, and maintain new recreational facilities, provided 
     that the Secretary of the Interior has entered into 
     agreements with nonfederal entities to provide half of the 
     cost of operating and maintaining any such facilities. CBO 
     estimates that implementing this provision would cost about 
     $1 million between 2000 and 2004.
       Oakes Test Area Title Transfer.--S. 623 would authorize the 
     Secretary to convey the Oakes Test Area, an experimental 
     irrigation facility in North Dakota, to the local irrigators. 
     The Bureau currently spends less than $200,000 annually to 
     operate and maintain the facility. These amounts are subject 
     to appropriation and are reimbursed by users of the facility. 
     Reimbursements are deposited in the Treasury as offsetting 
     receipts and are unavailable for spending without 
     appropriation action. Based on information from the Bureau. 
     CBO expects that the title transfer would occur during fiscal 
     year 2002. Starting in that year, this provision would yield 
     annual discretionary savings of less than $200,000.


                            direct spending

       Offsetting Receipts from Repayment Contracts.--Under 
     current law, the GDU water supply features are not expected 
     to be put into service, and thus will not generate offsetting 
     receipts from repayment contracts. According to the Bureau, 
     under S. 623 the unit would be placed into service during 
     2007 and the agency would start to collect repayments from 
     project beneficiaries in that year. Repayments would be 
     deposited in the Treasury as offsetting receipts and would be 
     unavailable for spending without appropriation. CBO estimates 
     that these receipts would total about $7 million a year 
     starting in 2007.
       Oakes Test Area Title Transfer.--CBO estimates that under 
     the bill, the Secretary would transfer ownership of the Oakes 
     Test Area to local users in 2002. This transfer would reduce 
     offsetting receipts that are collected from irrigators under 
     current law to reimburse the Bureau for operating costs. 
     Thus, CBO estimates that this provision would reduce 
     offsetting receipts by less than $200,000 a year starting in 
     2002.
       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.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By Fiscal Year, in Millions of Dollars
                                                               -----------------------------------------------------------------------------------------
                                                                  2000     2001     2002     2003     2004     2005     2006     2007     2008     2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays............................................       0        0        0        0        0        0        0       -7       -7       -7
Changes in receipts...........................................                                        Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

       Estimated impact on state, local, and tribal governments: 
     S. 623 contains no intergovernmental mandates as defined in 
     UMRA. Under current law, and under the amendments made by 
     this bill, the state of North Dakota and local governments in 
     that state would provide some of the funds necessary to 
     construct and to operate and maintain the authorized 
     facilities. All such spending would be a condition of federal 
     assistance and would be voluntary.
       Estimated impact on the private sector: This bill would 
     impose no new private-sector mandates as defined in UMRA.
       Estimate prepared by: Federal Costs: Megan Carroll; Impact 
     on State, Local, and Tribal Governments: Marjorie Miller.
       Estimate approved by: Peter H. Fontaine, Deputy Assistant 
     Director for Budget Analysis.

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