[Senate Report 104-242]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 348
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-242
_______________________________________________________________________


 
         FORT PECK RURAL COUNTY WATER SUPPLY SYSTEM ACT OF 1995

                                _______


                 March 15, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1467]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1467) to authorize the construction of 
the Fort Peck Rural County Water Supply System, to authorize 
assistance to the Fort Peck Rural County Water District, Inc., 
a nonprofit corporation, for the planning, design, and 
construction of the water supply system, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                Purpose

    S. 1154 would authorize $5.8 million for the federal 
portion of a rural water supply system within the service area 
of the Fort Peck Rural County Water District.

                          Background and Need

    In September 1994, the Bureau of Reclamation and HKM 
Associates completed a final engineering report and alternative 
evaluation for the Fort Peck Rural County Water District. The 
Bureau participated pursuant to its general authority under the 
1902 Act. The report concluded that the 562 residents of the 
District have an urgent need for a reliable water supply system 
since no public water serves the District and groundwater 
sources are not potable.
    The 24,160 acre water district is located in southern 
Valley County, Montana near the town of Fort Peck. The southern 
portion of the district is bordered by the Fort Peck Reservoir, 
constructed as part of the Pick-Sloan Missouri Basin Program. 
Approximately 95 percent of the residents haul all or part of 
their water from Fort Peck Lake or Fort Peck to meet domestic 
needs. The process of hauling water is very expensive and 
difficult, particularly during bitterly cold winter months. The 
lake impoundment is seen as the best water source for a 
municipal water system since the water is considered to be of 
good quality, requiring only conventional treatment.
    The report examined 15 alternatives and selected one that 
would construct a new intake in the reservoir and water 
treatment facility near Duck Creek. The estimated cost for the 
system would be $5,708,000. If the system were expanded to 
include fire protection, there would be an additional 15 
percent cost. The report concluded that substantial capital 
funding assistance would be required at a minimum of 75 
percent. The legislation contemplates 80 percent federal 
assistance.

                          Legislative History

    S. 1467 was introduced by Senator Burns for himself and 
Senator Baucus on December 11, 1995. A hearing was held before 
the Subcommittee on Forests and Public Land Management on 
December 13, 1995 on S. 1467 and an earlier version, S. 1154.
    A companion measure, H.R. 2819, was introduced by 
Congressman Williams on December 20, 1995.
    The Committee considered S. 1467 in an open business 
meeting on March 13, 1996 and ordered the measure reported 
favorably to the Senate.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on March 13, 1996, by a unanimous vote of 
a quorum present recommends that the Senate pass S. 1467 
without amendment.

                      section-by-section analysis

    Section 1. This section states the short title.
    Section 2. This section provides a series of definitions 
that are self-explanatory.
    Section 3. This section provides the authority for the 
Secretary of the Interior to enter into a cooperative agreement 
for the planning, design and construction of the rural water 
system. The federal share of the costs are limited to 80%. The 
provisions are self-explanatory.
    Section 4. This section limits the authorization for 
appropriations to $5.8 million subject to adjustment for 
fluctuations indicated by engineering cost indices.

                   cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure and compliance with the requirements of the 
Unfunded Mandates Reform Act has been requested but was not 
received at the time the report was filed. When the report is 
available, the Chairman will request that it be printed in the 
Congressional Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory effect which would be incurred in 
carrying out S. 1467.
    The legislation is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in implementing 
the legislation. Therefore there would be no effect on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1467.

                        Executive Communications

    On December 4, 1995, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth executive views on S. 1154, similar legislation that had 
been introduced on August 10, 1995. S. 1467 was introduced on 
December 11, 1995, two days prior to the Subcommittee hearing. 
While formal legislative reports were not received, the 
Department of the Interior did present testimony at the hearing 
on the substance of the legislation and a copy of the prepared 
testimony of the Department witness follows:

  Statement of the Regional Director, Great Plains Region, Bureau of 
                Reclamation, Department of the Interior

    Thank you for the opportunity to present the Department's 
views on S. 1154, the Fort Peck Rural County Water Supply 
System Act of 1995, and S. 1013, a bill to amend the Act of 
August 5, 1965 in connection with the Garrison Diversion Unit 
Project, and for other purposes. I appreciate the 
Subcommittee's as well as Senators Conrad Burns' and Senator 
Kent Conrad's interest in these bills.
    S. 1154 would direct the Secretary of the Interior to enter 
into a cooperative agreement with the Fort Peck Rural County 
Water District, Inc. Under terms of the agreement, the District 
would be responsible for the planning, design and construction 
of a water supply system built and operated in substantial 
compliance with the Final Engineering Report and Alternative 
Evaluation for the Fort Peck Rural County Water District, dated 
September 1994. Taxpayers would provide 80 percent of the costs 
of the project. S. 1154 would authorize an appropriation of 
$5.8 million for the water supply system.
    S. 1013 would authorize the Secretary to acquire private 
lands and interests in lands from willing sellers. The purpose 
of this new authority would be to enable the Secretary to 
exchange the lands and interests in lands, as well as other 
Federally owned lands and interests in lands for non-Federal 
parcels in the Kraft and Pickell Slough and Lonetree areas in 
North Dakota. The lands and interests in lands to be exchanged 
are to be generally equal in value.
    The Department opposes S. 1154 and supports S. 1013. The 
following provides greater detail on the Department's position 
on both measures.


          s. 1154, fort peck rural county water supply system


    The area served by the Fort Peck Rural County Water 
District, located in rural northeast Montana, does not 
currently have a safe, reliable and adequate water supply. 
Although the Fort Peck Rural County Water District is located 
near a large lake used primarily for recreational purposes, 
many homes in the area do not have their own water supply. 
Approximately 95 percent of the residents haul all or part of 
their water from Fort Peck Lake or the town of Fort Peck to 
meet domestic needs. The groundwater in most of the area is 
often poor quality or in limited supply.
    Despite the need for a water supply system, the economics 
of the Fort Peck Rural County Water Supply System are not easy 
to justify. According to the Final Engineering Report and 
Alternative Evaluation for the Fort Peck Rural County Water 
District, the project will benefit 562 people living in 225 
homes. The report estimates the project development costs would 
be $25,000 per household. We understand that some of these 
homes are located on property owned by the Army Corps of 
Engineers. The homeowners pay $160-$170 per year to lease the 
land for their cabins.
    S. 1154 would mandate that the Federal government supply 80 
percent of the project's construction costs. Given the 
competing demands for Reclamation's resources as well as the 
Federal deficit, the Administration is opposed to S. 1154.
    In the past, the Administration has supported rural water 
supply systems such as the Mni Wiconi project in South Dakota 
where the needs of the Indian communities justify Federal 
involvement. We believe the Bureau should be involved where 
Federal funding is needed to encourage innovation or otherwise 
serve a basic national purpose.
    In summary, the Department opposes S. 1154.


                                s. 1013


    The Garrison Diversion Unit Reformulation Act of 1986 
(Public Law 99-294) directed the Secretary of the Interior to 
acquire up to 5,000 acres of land in the Kraft and Pickell 
Sloughs areas of North Dakota. The acquisitions were to be 
managed as a component of the National Wildlife Refuge System 
in recognition of the unique wildlife values of the area. 
Additionally, the Secretary was directed to complete 
acquisition in the Lonetree Area.
    Working with the U.S. Fish and Wildlife Service, the Bureau 
of Reclamation finalized an Acquisition and Development Plan 
for Kraft Slough in 1991. The Plan identified lands considered 
necessary to meet the directives in Public Law 99-294. Under an 
acquisition program based on acquiring lands only from willing 
sellers, Reclamation has obtained approximately 1,215 acres at 
Kraft Slough, and a 480 acre parcel has been withdrawn from the 
Bureau of Land Management. In total, 1,695 acres have been 
acquired, an amount far short of the 5,000 acre directive in 
Public Law 99-294. Reclamation has also invested substantial 
resources in the acquisition and development of the Lonetree 
Area but several small inholdings remain. If these inholdings 
were acquired from willing sellers, the Department could better 
manage this increasingly popular recreation area.
    The Garrison Diversion Unit Federal Advisory Council, 
created in Public Law 99-294 to provide continuing oversight 
and coordination of wildlife programs associated with the 
reformulated Garrison project, recommended at their April 1995 
meeting that the Secretary be granted the land exchange 
authority in S. 1013. Comprised of Federal, State and 
conservation members in the Kraft and Pickell Sloughs and 
Lonetree Areas, the Council supported the land exchange 
authority concept as a means of encouraging additional willing 
seller transactions.
    Based on the Council's recommendations, Reclamation 
contacted landowners within the immediate vicinity of Kraft and 
Pickell Slough to identify potential landowners willing to 
consider the acquisition or exchange of their lands. Five 
landowners agreed to an appraisal under the option of 
exchanging lands. Their land ownerships total approximately 960 
acres, all within a five mile radius of Kraft Slough.
    Reclamation believes enactment of S. 1013 will promote 
additional willing seller transactions, and the authority to 
negotiate for land exchanges will improve the Secretary's 
ability to establish a manageable unit at Kraft and Pickell 
Sloughs and complete development of the Lonetree Area.
    The Department has no objection to an amendment which would 
stipulate that all lands acquired under S. 1013 must be located 
in the state of North Dakota.
    In summary, the Department strongly supports S. 1013.
    Thank you again for the opportunity to testify. I am 
pleased to answer any questions you may have.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 1467 as 
reported.