[House Report 105-279]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-279
_______________________________________________________________________


 
   USE OF DISTRIBUTION SYSTEM OF CANADIAN RIVER RECLAMATION PROJECT, 
                  TEXAS, TO TRANSPORT NONPROJECT WATER
                                _______
                                

 September 29, 1997.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2007]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 2007) to amend the Act that authorized the Canadian River 
reclamation project, Texas, to direct the Secretary of the 
Interior to allow use of the project distribution system to 
transport water from sources other than the project, having 
considered the same, report favorably thereon with an amendment 
and recommend 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. USE OF DISTRIBUTION SYSTEM OF CANADIAN RIVER RECLAMATION 
                    PROJECT, TEXAS, TO TRANSPORT NONPROJECT WATER.

    The Act of December 29, 1950 (chapter 1183; 43 U.S.C. 600b, 600c), 
authorizing construction, operation, and maintenance of the Canadian 
River reclamation project, Texas, is amended by adding at the end the 
following new section:
    ``Sec. 4. (a) The Secretary of the Interior shall allow use of the 
project distribution system (including all pipelines, aqueducts, 
pumping plants, and related facilities) for transport of water from the 
Canadian River Conjunctive Use Groundwater Project to municipalities 
that are receiving water from the project. Such use shall be subject 
only to such environmental review as is required under the Memorandum 
of Understanding, No. 97-AG-60-09340, between the Bureau of Reclamation 
and the Canadian River Municipal Water Authority, and a review and 
approval of the engineering design of the interconnection facilities to 
assure the continued integrity of the project. Such environmental 
review shall be completed within 90 days after the date of enactment of 
this section.
    ``(b) The Canadian River Municipal Water Authority shall bear the 
responsibility for all costs of construction, operation, and 
maintenance of the Canadian River Conjunctive Groundwater Project, and 
for costs incurred by the Secretary in conducting the environmental 
review of the project. The Secretary shall not assess any additional 
charges in connection with the Canadian River Conjunctive Use 
Groundwater Project.''.

                          Purpose of the Bill

    The purpose of H.R. 2007 is to amend the Act that 
authorized the Canadian River reclamation project, Texas, to 
direct the Secretary of the Interior to allow use of the 
project distribution system to transport water from sources 
other than the project.

                  Background and Need for Legislation

Background on the Canadian River Project

    The Texas Legislature created the Canadian River Municipal 
Water Authority and authorized it to contract with the Federal 
Government under the Federal reclamation laws. The Canadian 
River Project was authorized by the Congress in 1950, subject 
to Congressional approval of the interstate compact between the 
States of New Mexico, Texas and Oklahoma agreed upon by the 
Canadian River Compact Commission. Congress consented to the 
interstate compact in 1952. Construction of the Canadian River 
Project began in 1962 with Sanford Dam, which created Lake 
Meredith. Water deliveries were initiated in 1968 and the 
operation and maintenance responsibilities were transferred to 
the Authority. The Bureau of Reclamation retained the title and 
ownership of the project, although some of the pipelines used 
solely for conveyance of water to the municipalities will 
transfer to the Authority after pay-out of reimbursable costs. 
To date, the Authority has made 28 payments on the reimbursable 
obligation, totaling over $81 million.
    The project works provide for storage and delivery of water 
supplies to supplement the municipal and industrial needs of 11 
cities in the High Plains area of Texas, including Lubbock and 
Amarillo. In addition, several industries located near the 
project facilities are provided with water through contractual 
agreements with the Authority. Flood control benefits are also 
included in the project and no major floods have occurred below 
Sanford Dam since construction was completed and storage of 
water began. Recreation areas around Lake Meredith are 
administered by the National Park Service.

Water Quality and Supply Concerns

    Almost since the initiation of project deliveries in 1968, 
the quality of the water has declined due to increased 
salinity, due to a salt water aquifer in New Mexico that seeps 
into the Canadian River. The water has periodically failed to 
meet certain drinking water standards set by both the Federal 
and State Governments. Studies funded by the Authority have 
determined that the available water supply has been less than 
projected.

Proposed Conjunctive Use Groundwater Project

    The Authority has a proposal to construct the Canadian 
River Conjunctive Use Groundwater Project to supplement the 
present reservoir water supply with better quality groundwater. 
The proposed groundwater project will not require Federal 
funding. It would be interconnected with the existing Canadian 
River Project facilities where the groundwater would be mixed 
with project water and distributed through existing project 
facilities.
    A Memorandum of Understanding (MOU) for satisfaction of 
National Environmental Policy Act (NEPA) and for the 
engineering review has been signed by the Authority and by the 
Bureau of Reclamation's Area Manager. Under the MOU, the Bureau 
will fulfill all administrative approval and compliance 
responsibilities associated with a Federal action. The 
Authority will provide informational support and other work 
identified as necessary for the preparation of the NEPA 
compliance document and may contract out portions of the 
compliance activities, under the approval and direction of the 
Bureau.
    In approving this legislation, it is the Committee's 
understanding that the Canadian River Municipal Water Authority 
will bear the responsibility for all costs of construction, 
operation, and maintenance of the Canadian River Conjunctive 
Use Groundwater Project and for costs incurred by the Secretary 
in conducting the environmental review of the project. It is 
the Committee's further understanding that the Authority will 
retain title to the project features of the Groundwater 
Project.
    The Groundwater Project will be owned and operated solely 
by the Authority and is subject to the applicable laws of the 
State of Texas. The Authority has already obtained the 
necessary state permits for the well field. Therefore, the 
Committee anticipates that the Secretary of the Interior will 
concentrate his engineering and environmental reviews on the 
interconnection of the facilities to ensure the continued 
integrity of the Federal project, rather than issues clearly 
more within the responsibility of the State of Texas.

                            Committee Action

    H.R. 2007 was introduced on June 20, 1997, by Congressman 
William ``Mac'' Thornberry (R-TX). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On July 29, 1997, the 
Subcommittee held a hearing on H.R. 2007, where the 
Administration opposed the legislation. On July 29, 1997, the 
Subcommittee met to mark up H.R. 2007. Mr. Thornberry offered 
an amendment in the nature of a substitute that specified there 
will be no additional operations and maintenance charges to the 
Canadian River Municipal Water Authority. The amendment also 
made the use of the facilities subject to relevant 
environmental review, to be completed within 90 days after 
enactment of the Act, pursuant to a Memorandum of Understanding 
between the Bureau of Reclamation and the Canadian River 
Municipal Water Authority. The amendment in the nature of a 
substitute was adopted by voice vote. The bill was then ordered 
favorably reported to the Full Committee by voice vote. On 
September 17, 1997, the full Resources Committee met to 
consider H.R. 2007. An amendment to the bill was offered by Mr. 
Thornberry which clarified that the Canadian River Municipal 
Water Authority shall bear the responsibility for all costs of 
construction, operation, and maintenance of the Groundwater 
Project, and for the costs incurred by the Secretary of the 
Interior in conducting the environmental review of the Project. 
It further stipulates that the Secretary shall not assess any 
additional charges in connection with the Groundwater Project. 
The amendment was adopted by voice vote. The bill as amended 
was then ordered favorably reported to the House of 
Representatives by voice vote.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 2007.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2007. However, clause 7(d) of that Rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2007 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2007.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2007 from the Director of the Congressional Budget Office.

               Congressional Budget Office Cost Estimate

                                      U.S. Congress
                               Congressional Budget Office,
                                Washington, DC, September 26, 1997.
Hon. Don Young,
Chairman, Committee on Resources, House of Representatives, Washington, 
        DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2007, a bill to 
amend the act that authorized the Canadian River reclamation 
project, Texas, to direct the Secretary of the Interior to 
allow use of the project distribution system to transport water 
from sources other than the project.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Gary Brown.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 2007--A bill to amend the act that authorized the Canadian River 
        reclamation project, Texas, to direct the Secretary of the 
        Interior to allow use of the project distribution system to 
        transport water from sources other than the project

    Summary: H.R. 2007 would direct the Secretary of the 
Interior to allow use of the water distribution system of the 
Canadian River Project, a federal reclamation project, for 
transporting water from the Canadian River Conjunctive Use 
Groundwater Project (non-project water), a nonfederal water 
project currently in the design phase, to municipalities that 
are receiving water from the Canadian River Project (project 
water). The two supplies of water would be blended to reduce 
salinity in the existing supply and meet projected increases in 
water demand. Use of the Canadian River Project for 
transporting non-project water would be subject to a review of 
its environmental impact and a review and approval of the 
engineering design of the interconnection facilities.
    CBO estimates that enacting H.R. 2007 would have no impact 
on the federal budget. The legislation would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply. The legislation does not contain any 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 (UMRA).
    Estimated cost to the Federal Government: Enacting H.R. 
2007 would not impose any costs on the Bureau of Reclamation, 
the agency within the Department of the Interior that is 
responsible for managing the Canadian River Project. Based on 
information provided by the bureau, CBO believes that use of 
the Canadian River Project for transporting non-project water 
could occur under current law.
    The Bureau of Reclamation and the Canadian River Municipal 
Water Authority (the entity that operates and maintains the 
Canadian River Project) have developed a Memorandum of 
Understanding allowing the proposed use of the Canadian River 
Project after the bureau reviews all plans and regulatory 
permits, verifies easements, confirms that the plan complies 
with the National Environmental Policy Act (NEPA), and executes 
supplemental contract with the water authority. Any expenses 
that the bureau incurs--which would be less than $100,000--are 
to be paid in advance by the water authority.
    Under H.R. 2007, the bureau would complete the engineering 
and environmental reviews proposed in the Memorandum of 
Understanding and these costs would still be paid by the water 
authority. The environmental review would have to be completed 
within 90 days.
    The Canadian River Water Authority, which has operated the 
project since 1968, would pay all incremental costs of 
operating the project, both under current law and under H.R. 
2007. Similarly, all costs of constructing the project that 
will deliver the new supply of water, the Canadian River 
Conjunctive Use Groundwater Project, will be paid by nonfederal 
sponsors.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2007 
contains no intergovernmental mandates as defined in the UMRA 
and would impose no costs on state, local, or tribal 
governments. Any costs incurred by the water authority as a 
result of the bill's enactment would be undertaken voluntarily.
    Estimate prepared by: Gary Brown.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance with Public Law 104-4

    H.R. 2007 contains no unfunded mandates.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (new matter is printed 
in italic and existing law in which no change is proposed is 
shown in roman):

                        ACT OF DECEMBER 29, 1950

AN ACT To authorize the construction, operation, and maintenance by the 
 Secretary of the Interior of the Canadian River reclamation project, 
                                 Texas.

          * * * * * * *
  Sec. 4. (a) The Secretary of the Interior shall allow use of 
the project distribution system (including all pipelines, 
aqueducts, pumping plants, and related facilities) for 
transport of water from the Canadian River Conjunctive Use 
Groundwater Project to municipalities that are receiving water 
from the project. Such use shall be subject only to such 
environmental review as is required under the Memorandum of 
Understanding, No. 97-AG-60-09340, between the Bureau of 
Reclamation and the Canadian River Municipal Water Authority, 
and a review and approval of the engineering design of the 
interconnection facilities to assure the continued integrity of 
the project. Such environmental review shall be completed 
within 90 days after the date of enactment of this section.
  (b) The Canadian River Municipal Water Authority shall bear 
the responsibility for all costs of construction, operation, 
and maintenance of the Canadian River Conjunctive Groundwater 
Project, and for costs incurred by the Secretary in conducting 
the environmental review of the project. The Secretary shall 
not assess any additional charges in connection with the 
Canadian River Conjunctive Use Groundwater Project.

                                
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