[Senate Report 104-386]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 609
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-386
_______________________________________________________________________


 
                  BURLEY IRRIGATION DISTRICT TRANSFER

                                _______
                                

               September 30, 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. 1921]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1921) to authoritze the Secretary of the 
Interior to transfer certain facilities at the Minidoka project 
to the Burley Irrigation District, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

    Section 1. (a) The Secretary of the Interior (hereinafter referred 
to as the ``Secretary'') shall, subject to paragraph (d), convey by 
quitclaim deed or patent all right, title and interest of the United 
States in and to the withdrawn and acquired lands and rights-of-way of 
the Southside Pumping Division (Division) of the Minidoka Project, 
Idaho, together with the canals, drains, laterals, roads, pumps, 
checks, headgates, transformers, substations, buildings, transmission 
lines and other improvements or appurtenances located thereon and used 
for the delivery of water from Lake Walcott reservoir to the lands 
within Burley Irrigation District, including all facilities used in 
conjunction therewith including the electric transmission lines used 
for the operation of the pumping facilities of the project for which 
the allocable construction costs have been fully repaid, to Burley 
Irrigation District (District). The cost of transfer of title and 
related activities shall be shared equally between the United States 
and the District up to a total cost of Eighty Thousand Dollars 
($80,000) at which time the United States shall pay all remaining costs 
incurred.
    (b) The Secretary shall also transfer to the District, in 
accordance with and subject to state law, all natural flow and ground 
water rights held by the Secretary for the benefit of and for the use 
on the land within the District; and the allocation of storage space in 
Minidoka, American Falls and Palisades reservoirs to the District in 
accordance with the terms of contracts Nos. 14-06-100-2455 and 14-06-W-
48 of the District is hereby affirmed, subject to the requirement that 
the District continue to assume its allocable costs of operation and 
maintenance associated with such storage facilities.
    (c) The Secretary shall also provide the District with a permanent 
right to project reserve power from the Minidoka, Palisades Black 
Canyon, and Anderson Ranch reclamation power plants at the cost of 
production in accordance with understandings and commitments made by 
the Secretary in acquiring such plants, the Reclamation Act and the 
existing contracts for such electrical power. Upon the decision of the 
Federal Government to transfer operation and maintenance or title of 
the Minidoka Power Plant, the Secretary shall grant to those entities 
entitled to storage water in Lake Walcott under spaceholder contracts 
with the United States a right of first refusal to acquire the power 
plant and related facilities at such reasonable cost and subject to 
such terms and conditions as may be mutually agreed between 
spaceholders and the Secretary.
    (d) The District shall continue to recognize the right of Minidoka 
Irrigation District to the joint use of the gravity portion of the 
Southside canal being transferred to the District, subject to its 
compliance with those terms and conditions of that certain contract 
between the District and Minidoka Irrigation District, and any 
amendments or changes hereafter made by agreement of said irrigation 
districts.
    (e) Effective on the date of conveyance of the title of the 
distribution and related works of the Division, the United States shall 
not be held liable by any court for damages of any kind arising out of 
any act, omission, or occurrence relating to the transferred works, 
except for damages caused by acts of negligence committed by the United 
States or by its employees, agents, or contractors prior to the date of 
conveyance. Nothing in this section shall be deemed to increase the 
liability of the United States beyond that currently provided in the 
Federal Tort Claims Act, 28 U.S.C. 2671 et seq.
    (f) The United States shall complete the transfer, including such 
action as may be required under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) within 24 months of the passage of 
this Act.
    (g) If the transfer is not completed by January 1, 1999, the title 
and interest of the United States cited in this section are conveyed to 
the District on that date by operation of law. Upon the request of the 
District the Secretary shall provide evidence of the transfer.

                         purpose of the measure

    S. 1921, as ordered reported, would direct the transfer of 
facilities of the Minidoka project in Idaho located within the 
service area of the Burley Irrigation District to the District 
together with associated water rights and an allocation of 
project power and storage space.

                          background and need

    On May 23, 1995, the Subcommittee conducted a hearing on S. 
620, legislation to provide general authority to the Bureau for 
transfer of title to projects which had been fully repaid. It 
became obvious at the hearing that general authority would be 
difficult to draft given the differences between projects and 
because individual transfer should proceed independently. The 
Burley situation is one of the easiest to address. The Minidoka 
project was the first Reclamation project in Idaho and was 
constructed under the authority of the 1902 Act. All 
construction contracts and costs for the canal system, pumping 
plants, power house, transmission lines, and other elements 
have been fully repaid as well as all contracts for storage and 
maintenance. Since 1926, the District has been responsible for 
all operations and maintenance of the system. The legislation 
does not transfer title to the dam or major works, only to the 
distribution system managed by the District. Discussions have 
continued with the Region since the introduction of the 
legislation and it is likely that some modifications will be 
recommended to the legislation.

                      summary of major provisions

    As ordered reported, S. 1921 will allow for the transfer of 
the existing facilities currently used by the Burley Irrigation 
District within the Minidoka Project, Idaho, from the Bureau of 
Reclamation to the Burley Irrigation District.
    The facilities have either been paid for by the District or 
were constructed by the District. The transfer falls within the 
Bureau's guidelines for the transfer of paid out projects.
    Any costs of the transfer will be equally shared by the 
District and the United States up to a maximum of $80,000. 
Discussions with the Bureau indicate this limit should more 
than meet any anticipated cost of the transfer.
    The substitute states that natural flows of water and 
groundwater currently held by the Secretary for the District 
and storage rights that are now under contract will be 
transferred to the District. The District will continue to pay 
operation and maintenance costs for the storage facilities.
    Power shall continue to be made available at the cost of 
production (the current situation) and if the United States 
were to sell the power producing facility, the District would 
be offered the first right of refusal.
    The substitute clarifies that this legislation in no way 
will interfere with the facilities currently shared with the 
Minidoka District.
    Finally, the substitute directs a NEPA analysis to be 
completed within two years of enactment. If the transfer is not 
completed by January 1, 1999, it will occur by operation of 
law.

                          Legislative History

    On May 23, 1995, the Subcommittee conducted a hearing on S. 
620, legislation to provide general authority to the Bureau for 
transfer of title to projects which had been fully repaid. It 
became obvious at the hearing that general authority would be 
difficult to draft given the differences between projects and 
because individual transfers should proceed independently. 
Consequently, Senator Craig introduced S. 1921 on June 27, 
1996. A hearing was held by the Subcommittee on Forests and 
Public Land Management on September 5, 1996.

            Committee Recommendations and Tabulation of Vote

    The Senate Committee on Energy and Natural Resources, in 
open business session on Thursday, September 12, 1996, by a 
unanimous voice vote of a quorum present, recommended that the 
Senate pass S. 1921 as described herein.

                      Section-by-Section Analysis

    Subsection 1(a) requires the Secretary of the Interior to 
convey all right, title and interest of the United States in 
and to the withdrawn and acquired lands and rights-of-way of 
the Southside Pumping Division of the Minidoka Project in 
Idaho, along with the canals, drains, laterals, roads, pumps, 
checks, headgates, transformers, substations, buildings, 
transmission lines and other improvements, to Burley Irrigation 
District (``District''). The cost of the transfer of title and 
related activities is to be equally shared by the United States 
and the District up to a total cost of $80,000, at which point 
the United States is to pay all remaining costs.
    Subsection 1(b) requires the Secretary to transfer to the 
District all natural flow and ground water rights held by the 
Secretary for the benefit of the District and the allocation of 
storage space in Minidoka, American Falls and Palisades 
reservoirs to the District, subject to the District continuing 
to assume its operation and maintenance costs.
    Subsection 1(c) requires the Secretary to provide the 
District with a permanent right to project power from the 
Minidoka, Palisades Black Canyon, and Anderson Ranch power 
production plants at the cost of production. The Secretary is 
required to give those entities entitled to storage water in 
Lake Walcott under spaceholder contracted with the United 
States the right of first refusal, if the Government transfers 
operation and maintenance or title to the Minidoka Power Plant, 
to acquire the power plant and related facilities at such 
reasonable cost and subject to such terms and conditions as may 
be mutually agreed upon among the spaceholders and the 
Secretary.
    Subsection (d) requires the Secretary to continue to 
recognize the right of Minidoka Irrigation District to the 
joint use of the gravity portion of the Southside canal being 
transferred to the District, subject to compliance with the 
terms and conditions of the contract between the District and 
the Minidoka Irrigation District.
    Subsection (e) provides that, effective on the date of the 
conveyance of title, the United States shall not be held liable 
by any court for any damages of any kind arising out of any 
act, omission, or occurrence relating to the transferred works, 
except for damages caused by acts of negligence committed by 
the United States, its employees or agents, or contractors 
prior to conveyance. Nothing in the Act shall be deemed to 
increase the liability of the United States pursuant to the 
Federal Tort Claims Act.
    Subsection (f) requires the United States, i.e., Secretary, 
to complete the transfer, including compliance with the 
National Environmental Policy Act, within 24 months of passage 
of the Act.
    Subsection (g) declares that, if the transfer is not 
completed by January 1, 1999, the transfer of title shall occur 
by operation of law on that date, and that the Secretary shall 
provide evidence (e.g., title) of such transfer if requested by 
the District.

                   Cost and Regulatory Considerations

    The Congressional Budget Office estimate of the costs of 
this measure follows:
                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 27, 1996.
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. 1921, a bill to 
authorize the Secretary of the Interior to transfer certain 
facilities of the Minidoka Project to the Burley Irrigation 
District, and for other purposes.
    Enacting S. 1921 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you will further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

    1. Bill number: S. 1921.
    2. Bill title: To authorize the Secretary of the Interior 
to transfer certain facilities of the Minidoka Project to the 
Burley Irrigation District, and for other purposes.
    3. Bill status: As reported by the Senate Committee on 
Energy and Natural Resources on September 16, 1996.
    4. Bill purpose: S. 1921 would direct the Secretary of the 
Interior to:
          Transfer land and facilities used by the Burley 
        Irrigation District within the Minidoka Project in 
        Idaho from the Bureau of Reclamation to the district. 
        The cost of the transfer would be shared equally 
        between the bureau and the district up to a total cost 
        of $80,000. Remaining costs would be paid by the 
        bureau;
          Transfer all natural flow and ground water rights to 
        the district and provide the district with permanent 
        storage rights in the Minidoka Project reservoirs on 
        the condition that the district continue to pay all 
        allocable costs of operating and maintaining the 
        storage facilities; and
          Provide the district with a permanent right to 
        purchase reserve power from the project at the cost of 
        production, the same rate as under current law. The 
        district would be granted a right of first refusal 
        should the Secretary decide to transfer power 
        generating facilities in the future.
    The bill would require the Secretary to complete the 
transfer, including actions required under the National 
Environmental Policy Act, within 24 months of enactment or the 
transfer will become effective automatically as of January 1, 
1999.
    5. Estimated cost to the Federal Government: CBO estimates 
that enacting the bill would result in new spending subject to 
appropriation of about $40,000 over 1997-1998 period. Enacting 
the bill would not affect direct spending.
    6. Basis of estimate: Based on information provided by the 
Bureau of Reclamation, CBO expects that the work required to 
transfer the facilities, including actions required under the 
National Environmental Policy Act, would cost about $80,000. 
The federal government's share would be half this amount.
    CBO estimates that completing the transfer of land and 
facilities would not result in any loss of future receipts 
because the district already has paid the federal government 
for the facilities that would be transferred. In addition, 
under current law the bureau provides this water at no cost to 
the district and is expected to continue this policy in the 
future. Finally, the district would continue to pay all 
allocable costs for operating and maintaining storage 
facilities and would continue to pay the rate for power that is 
required under current law.
    7. Pay-as-you-go considerations: None.
    8. Estimated impact on State, local, and tribal 
governments: The bill contains no intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act of 1995 (Public Law 
104-4). The bill would require the Burley Irrigation District 
to pay up to $40,000 for its share of the cost of the transfer, 
but the district would incur this cost voluntarily.
    9. Estimate impact on the private sector: The bill would 
impose no new private-sector mandates as defined in Public Law 
104-4.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal cost estimate--Gary 
Brown; impact on State, local, and tribal governments--Pepper 
Santalucia; impact on the private sector--Patrice Gordon.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                       federal mandate evaluation

    The Congressional Budget Office has determined that S. 1921 
contains no intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act of 1995 (Public Law 104-4). The 
bill would require the Burley Irrigation District to pay up to 
$40,000 for its share of the cost of the transfer, but the 
district would incur this cost voluntarily.

                      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 impact which would be incurred in 
implementing S. 1921. The bill 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 administering 
the program. Therefore, there would be no impact on personal 
privacy.
    There are likely to be paperwork requirements for the 
Department of the Interior.

                        executive communications

    A Statement of Administration Position has not been 
submitted as of the date this report was filed. When the SAP is 
available, the Chairman will request that it be printed in the 
Congressional Record for the advice of the Senate.

                        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. 1921, as 
ordered reported.