[Congressional Record (Bound Edition), Volume 146 (2000), Part 12]
[Senate]
[Pages 17000-17001]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 17000]]

       COST OF REPORTED BILLS BY THE CONGRESSIONAL BUDGET OFFICE

  Mr. SMITH of New Hampshire. Mr. President, Section 403 of the 
Congressional Budget and Impoundment Control Act requires that a 
statement of the cost of reported bills, prepared by the Congressional 
Budget Office, be included in Senate reports. On July 27, 2000, the 
Committee on Environment and Public Works filed Senate Report 106-362, 
accompanying S. 2796, the Water Resource Development Act of 2000, and 
Senate Report 106-363, accompanying S. 2979, Restoring the Everglades, 
An American Legacy Act. The cost estimates were not available at the 
time of filing. The information subsequently was received by the 
committee and I ask unanimous consent to print it 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, August 18, 2000.
     Hon. Robert C. Smith,
     Chairman, Committee on Environment and Public Works, U.S. 
         Senate, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for S. 2796, the Water 
     Resources Development Act of 2000.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Rachel 
     Applebaum, who can be reached at 226-2860.
           Sincerely,
     Dan L. Crippen.
                                  ____


               Congressional Budget Office Cost Estimate

     S. 2796, Water Resources Development Act of 2000, as ordered 
         reported by the Senate Committee on Environment and 
         Public Works on June 28, 2000
     Summary
       S. 2796 would authorize the Secretary of the Army, acting 
     through the Army Corps of Engineers (Corps), to undertake 
     projects specified in title I of the bill for inland 
     navigation, flood control and damage reduction, environmental 
     restoration, and shore protection. CBO estimates that the 
     bill would authorize about $2 billion (in 2000 dollars) for 
     these projects.
       Other provisions of the bill would authorize the Secretary 
     to conduct studies on water resources needs and feasibility 
     studies for specified projects; authorize the Secretary to 
     convey or exchange certain properties; renew, end, or modify 
     previous authorizations for certain projects; and authorize 
     new programs or pilot projects to develop water resources and 
     protect the natural environmental, including a program to 
     restore the natural environment of the south Florida 
     ecosystem. For these activities, CBO estimates that S. 2796 
     would authorize the appropriation of about $1.7 billion.
       Assuming the appropriation of the necessary amounts, 
     including adjustments for increases in anticipated inflation, 
     CBO estimates that implementing S. 2796 would cost about $1.6 
     billion over the 2001-2005 period, and another $2.5 billion 
     over the following 10 years for the projects that would be 
     authorized by the bill. (Some construction costs and 
     operations and maintenance would occur after this period.) 
     CBO estimates that enacting S. 2796 would increase certain 
     offsetting receipts to the Federal Government by about $3 
     million over the 2001-2003 period. Because enacting the bill 
     would affect direct spending, pay-as-you-go procedures would 
     apply.
       S. 2796 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA). State and local governments would incur some costs as 
     a result of the bill's enactment, but these costs would be 
     voluntary.
     Estimated Cost to the Federal Government
       The estimated budget impact of S. 2796 is shown in the 
     following table. The costs of this legislation fall within 
     budget function 300 (natural resources and the environment).

                [By fiscal year, in millions of dollars]
------------------------------------------------------------------------
                                 2000   2001   2002   2003   2004   2005
------------------------------------------------------------------------
Changes in Spending Subject to
         Appropriation
 
Estimated Authorization Level.    315    373    357    317    367  .....
Estimated Outlays.............    223    340    350    341    372  .....
 
  Changes in Direct Spending
 
Estimated Budget Authority....     -1      a     -2    (1)    (1)  .....
Estimated Outlays.............     -1      a     -2    (1)    (1)  .....
------------------------------------------------------------------------
1 Less than $500,000.

     Basis of Estimate
       For this estimate, CBO assumes that S. 2796 will be enacted 
     by the beginning of fiscal year 2001 and that all amounts 
     authorized by the bill will be appropriated for each fiscal 
     year.
     Spending Subject to Appropriation
       For projects specified in the bill the Corps provided 
     estimates of annual budget authority needed to meet design 
     and construction schedules. CBO adjusted those estimates to 
     reflect the impact of anticipated inflation during the time 
     between authorization and appropriation. Estimated outlays 
     are based on historical spending rates for activities of the 
     Corps.
     Direct Spending (including Offsetting Receipts)
       Land Exchange in Pike County, Missouri. S. 2796 would 
     authorize the Secretary to receive about 9 acres of land from 
     S.S.S. Lumber, Inc. and convey another 9 acres to the 
     company. If the land the government receives is less valuable 
     than the land the company receives, then the bill would 
     require the company to pay the difference. The bill also 
     requires the company to pay the administrative costs of the 
     exchange. After the exchange is completed, the Federal 
     Government would forgo a small amount of offsetting receipts 
     that are currently collected for the use of this land.
       Joe Pool Lake, Trinity River Basin, Texas. S. 2796 would 
     authorize the Secretary to enter into an agreement with the 
     city of Grand Prairie, Texas, to transfer maintenance of Joe 
     Pool Lake from the Trinity River Authority to the city. The 
     bill would relieve the Trinity River Authority of its 
     remaining obligation to repay the Federal Government for 
     construction of the lake, and it would require the city to 
     pay the Federal Government about $2 million in both 2001 and 
     2003 as a condition of the agreement. Based on information 
     from the Corps, CBO expects the Trinity River Authority will 
     pay its current obligation of about $1 million for 2001, but 
     will default on its subsequent obligations to the government, 
     which total about $14 million over the next 39 years. Because 
     the government would receive more money under S. 2796 than 
     under current law, the agreement with the city would increase 
     offsetting receipts by $1 million in 2001 and $2 million in 
     2003.
     Pay-As-You-Go Considerations
       The Balanced Budget and Emergency Deficit Control Act sets 
     up pay-as-you-go procedures for legislation affecting 
     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 current year, the budget 
     year, and the succeeding 4 years are counted.

                                                                            [By fiscal year, in millions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 2000        2001        2002        2003        2004        2005        2006        2007        2008        2009        2010
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays..........................................           0          -1           0          -2           0           0           0           0           0           0           0
Changes in receipts.........................................         N/A         N/A         N/A         N/A         N/A         N/A         N/A         N/A         N/A         N/A         N/A
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

     Estimated Impact on State, Local, and Tribal Governments
       S. 2796 contains no intergovernmental mandates as defined 
     in UMRA. State and local governments probably would incur 
     some costs to meet the matching requirements for water 
     resources development projects and other programs authorized 
     by this bill, but these costs would be voluntary. Some State 
     and local governments would benefit from provisions in the 
     bill that would alter cost-sharing obligations.
       CBO estimates that non-Federal entities (primarily State 
     and local governments) that choose to participate in the 
     projects and programs authorized by S. 2796 would spend about 
     $2.5 billion (in 2000 dollars) to match the authorized 
     Federal funds. These estimates are based on information 
     provided by the Corps. In addition to these costs, non-
     Federal entities would pay for the operation and maintenance 
     of many of the projects after they are constructed.
       S. 2796 would authorize new environmental restoration 
     programs in several areas of the country. Under these 
     programs, the Secretary of the Army would select projects and 
     enter into agreements with local interests to carry them out 
     and share in the costs. Generally, the non-Federal share of 
     these costs would be 35 percent. The bill also would direct 
     the Corps to carry out a number of projects in support of a 
     plan to restore the Florida Everglades. Non-Federal 
     participants in these projects would pay 50 percent of the 
     project costs.
       One section of this bill would benefit non-Federal 
     participants in Corps projects by broadening an existing 
     provision, which requires the Corps to consider the ability 
     of non-Federal participants to pay their share of project 
     costs. Under current law, cost-sharing agreements for flood 
     control projects and agricultural water supply projects are 
     subject to this ``ability to pay'' provision. S. 2796 would 
     add other types of projects, including feasibility studies 
     and projects for environmental protection and restoration, 
     navigation, storm damage protection, shoreline erosion, and 
     hurricane protection.

[[Page 17001]]

       Estimated Impact on the Private Sector: The bill contains 
     no new private-sector mandates as defined in UMRA.
       Estimate Prepared by: Federal Costs: Rachel Applebaum (226-
     2860); Impact on State, Local, and Tribal Governments: 
     Marjorie Miller (225-3220); Impact on the Private Sector: 
     Sarah Sitarek (226-2940).
       Estimate Approved by: Peter H. Fontaine Deputy Assistant 
     Director for Budget Analysis.
                                  ____

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                  Washington, DC, August 11, 2000.
     Hon. Robert C. Smith,
     Chairman, Committee on Environment and Public Works, U.S. 
         Senate, Washington, DC
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for S. 2797, the 
     Restoring the Everglades, an American Legacy Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Rachel 
     Applebaum, who can be reached at 226-2860.
       Sincerely,
     Dan L. Crippen.
                                  ____


               Congressional Budget Office Cost Estimate

     S. 2797, Restoring the Everglades, an American Legacy Act, as 
         reported by the Senate Committee on Environment and 
         Public Works on July 27, 2000
     Summary
       S. 2797 would authorize the Secretary of the Army, acting 
     through the Army Corps of Engineers (Corps), to establish a 
     program for protecting the natural environment, providing 
     flood control, and increasing the water supply for the south 
     Florida ecosystem. The bill would authorize appropriations 
     for projects estimated to cost $791 million (at 2000 prices). 
     S. 2797 would require the Secretary to fund 50 percent of the 
     operations and maintenance costs for the specified projects, 
     and to provide administrative support for this effort.
       Assuming appropriations for the authorized projects and 
     adjusting their estimated costs for anticipated inflation. 
     CBO estimates that implementing S. 2797 would cost $254 
     million over the 2001-2005 period, and $665 million over the 
     succeeding 5 years. After 2010, program administration, 
     operations, and maintenance for the specified projects would 
     cost about $12 million annually, S. 2797 would not affect 
     direct spending or receipts; therefore, pay-as-you-go 
     procedures would not apply.
       S. 2797 contains no intergovernmental mandates as defined 
     in the Unfunded Mandates Reform Act (UMRA). State and local 
     governments might incur some costs to match the Federal funds 
     authorized by this bill, but those costs would be voluntary.
     Estimated cost to the Federal Government
       The estimated budgetary impact of S. 2797 is shown in the 
     following table. The costs of this legislation fall within 
     budget function 300 (natural resources and the environment).

                [By fiscal year, in millions of dollars]
------------------------------------------------------------------------
                                        2001   2002   2003   2004   2005
------------------------------------------------------------------------
    Changes in Spending Subject to
            Appropriation
 
Estimated Authorization Level........     20     38     49     61    154
Estimated Outlays....................     15     29     44     57    109
------------------------------------------------------------------------

     Basis of Estimate
       The Corps provided estimates of annual budget authority 
     needed to meet design and construction schedules for projects 
     that would be authorized by the bill. CBO adjusted the 
     estimated project costs to reflect the impact of anticipated 
     inflation during the time between authorization and 
     appropriation. That adjustment brings projected funding for 
     project design and construction to about $900 million.
       Estimated outlays are based on historical spending rates 
     for construction projects of the Corps. Outlays are projected 
     to increase significantly after 2004 as design and 
     preliminary work would be completed and major construction 
     work would begin. CBO also estimated the Corps' 
     administrative expenses under the bill (about $3 million a 
     year), as well as operations and maintenance costs ($11 
     million from 2007 to 2010), and the cost to the Department of 
     the Interior to purchase certain land specified in the bill 
     ($2 million).
       Pay-As-You-Go Considerations: None.
     Intergovernmental and Private-Sector Impact
       S. 2797 contains no intergovernmental or private-sector 
     mandates as defined in UMRA. The bill would require matching 
     funds from the State of Florida equal to half the cost of the 
     authorized projects, including costs to operate and maintain 
     those projects. Any such expenditures by the State would be 
     voluntary.
       Estimate Prepared by: Federal Costs: Rachel Applebaum (226-
     3220); Impact on the Private Sector: Sarah Sitarek (226-
     2940).
       Estimate Approved by: Robert A. Sunshine, Assistant 
     Director for Budget Analysis.

                          ____________________