House Report 105-785 - CONVEYANCE OF VARIOUS RECLAMATION PROJECTS AND FACILITIES

[House Report 105-785]
[From the U.S. Government Publishing Office]

105th Congress Report
HOUSE OF REPRESENTATIVES

2d Session 105-785
_______________________________________________________________________

CONVEYANCE OF VARIOUS RECLAMATION PROJECTS AND FACILITIES

_______

October 6, 1998.--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

together with

DISSENTING VIEWS

[To accompany H.R. 4389]

[Including cost estimate of the Congressional Budget Office]

The Committee on Resources, to whom was referred the bill
(H.R. 4389) to provide for the conveyance of various
reclamation project facilities to local water authorities, and
for other purposes, 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:

TITLE I--SLY PARK DAM AND RESERVOIR, CALIFORNIA

SEC. 101. SHORT TITLE.

This title may be cited as the ``Sly Park Unit Conveyance Act''.

SEC. 102. DEFINITIONS.

For purposes of this title:
(1) The term ``District'' means the El Dorado Irrigation
District, a political subdivision of the State of California
that has its principal place of business in the city of
Placerville, El Dorado County, California.
(2) The term ``Secretary'' means the Secretary of the
Interior.
(3) The term ``Project'' means all of the right, title, and
interest in and to the Sly Park Dam and Reservoir, Camp Creek
Diversion Dam and Tunnel, and conduits and canals held by the
United States pursuant to or related to the authorization in
the Act entitled ``An Act to authorize the American River Basin
Development, California, for irrigation and reclamation, and
for other purposes'', approved October 14, 1949 (63 Stat. 852
chapter 690);

SEC. 103. CONVEYANCE OF PROJECT.

(a) In General.--In consideration of the District accepting the
obligations of the Federal Government for the Project and subject to
the payment by the District of the net present value of the remaining
repayment obligation, as determined by Office of Management and Budget
Circular A-129 (in effect on the date of enactment of this Act) and the
completion of payments by the District required under subsection (b)(3)
of this section and section 106(b), the Secretary shall convey the
Project to the District.
(b) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance expeditiously, but not
later than 180 days after the date of the enactment of this
Act.
(2) Deadline if changes in operations intended.--If the
District intends to change Project operations as a result of
the conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 2
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the Secretary
fails to complete the conveyance under this title before the
applicable deadline under paragraph (1) or (2), the full cost
of administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before that deadline, \1/2\ of such
cost shall be paid by the District.

SEC. 104. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Project from its current use and operation.
(b) Future Alterations.--If the District alters the operations or
uses of the Project it shall comply with all applicable laws or
regulations governing such changes at that time (subject to section
105).

SEC. 105. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

(a) Payment Obligations Not Affected.--The conveyance of the Project
under this title does not affect the payment obligations of the
District under the contract between the District and the Secretary
numbered 14-06-200-7734, as amended by contracts numbered 14-06-200-
4282A and 14-06-200-8536A.
(b) Payment Obligations Extinguished.--Provision of consideration by
the District in accordance with section 103(b) shall extinguish all
payment obligations under contract numbered 14-06-200-949IR1 between
the District and the Secretary.

SEC. 106. RELATIONSHIP TO OTHER LAWS.

(a) Reclamation Laws.--Except as provided in subsection (b), upon
conveyance of the Project under this title, the Reclamation Act of 1902
(82 Stat. 388) and all Acts amendatory thereof or supplemental thereto
shall not apply to the Project.
(b) Payments Into the Central Valley Project Restoration Fund.--The
El Dorado Irrigation District shall continue to make payments into the
Central Valley Project Restoration Fund for 31 years after the date of
the enactment of this Act. The District's obligation shall be
calculated in the same manner as Central Valley Project water
contractors.

SEC. 107. LIABILITY.

Except as otherwise provided by law, effective on the date of
conveyance of the Project under this title, the United States shall not
be liable for damages of any kind arising out of any act, omission, or
occurrence based on its prior ownership or operation of the conveyed
property.

TITLE II--MINIDOKA PROJECT, IDAHO

SEC. 201. SHORT TITLE

This title may be cited as the ``Burley Irrigation District
Conveyance Act''.

SEC. 202. DEFINITIONS.

In this section:
(1) District.--The term ``District'' means the Burley
Irrigation District, an irrigation district organized under the
law of the State of Idaho.
(2) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(3) Project.--The term ``Project'' means all of the right,
title, and interest in and to the Southside Pumping Division of
the Minidoka Project, Idaho, including the water distribution
system below the headworks of the Minidoka Dam held in the name
of the United States for the benefit of, and for use on land
within, the District for which the allocable construction costs
have been fully repaid by the District.

SEC. 203. CONVEYANCE.

(a) In General.--In consideration of the District accepting the
obligations of the Federal Government for the Project, and subject to
the completion of payments by the District required under subsection
(c)(3), the Secretary shall convey the Project and the water rights
described in subsection (b) to the District.
(b) Water Rights.--(1) Subject to subparagraphs (B) and (C), the
Secretary shall transfer to the District, through an agreement among
the District, the Minidoka Irrigation District, and the Secretary, in
accordance with and subject to the law of the State of Idaho, all
natural flow, waste, seepage, return flow, and ground water rights held
in the name of the United States--
(A) for the benefit of the South Side Pumping Division
operated and maintained by the District;
(B) that are for use on lands within the District or that are
return flows for which the District may receive credit against
storage water used; and
(C) which include the rights set forth in contracts between
the United States and the District or in the Decree of June 20,
1913, of the District Court of the Fourth Judicial District of
the State of Idaho, in and for the County of Twin Falls, in the
case of Twin Falls Canal Company v. Charles N. Foster, et al.,
and commonly referred to as the ``Foster Decree''.
(2) The transfer of the property interest of the United States in
Project water rights directed to be conveyed by this title shall--
(A) neither enlarge nor diminish the respective rights of
either the Minidoka Irrigation District or the District in such
water rights, as described in contracts between the District,
Minidoka, and the United States;
(B) not be exercised as to impair the integrated operation of
the Minidoka Project by the Secretary pursuant to applicable
Federal law;
(C) not affect any other water rights; and
(D) not result in any adverse impact on any other project
water user.
(c) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance expeditiously, but not
later than 180 days after the date of the enactment of this
Act.
(2) Deadline if changes in operations intended.--If the
District intends to change Project operations as a result of
the conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 2
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the Secretary
fails to complete the conveyance under this title before the
applicable deadline under paragraph (1) or (2), the full cost
of administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before that deadline, \1/2\ of such
cost shall be borne by the District.

SEC. 204. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Project from its current use and operation.
(b) Future Alterations.--If the District alters the operations or
uses of the Project it shall comply with all applicable laws or
regulations governing such changes at that time (subject to section
205).

SEC. 205. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

(a) Savings.--Nothing in this title or any transfer pursuant thereto
shall affect the right of Minidoka Irrigation District to the joint use
of the gravity portion of the Southside Canal, subject to compliance by
the Minidoka Irrigation District with the terms and conditions of a
contract between the District and Minidoka Irrigation District, and any
amendments or changes made by agreement of the irrigation districts.
(b) Allocation of storage space.--The Secretary shall provide an
allocation to the District of storage space in Minidoka Reservoir,
American Falls Reservoir, and Palisades Reservoir, as described in
Burley Contract Nos. 14-06-100-2455 and 14-06-W-48, subject to the
obligation of Burley to continue to assume and satisfy its allocable
costs of operation and maintenance associated with the storage
facilities operated by the Bureau of Reclamation.
(c) Project Reserved Power.--The Secretary shall continue to provide
the District with project reserved power from the Minidoka Reclamation
Power Plant, Palisades Reclamation Power Plant, Black Canyon
Reclamation Power Plant, and Anderson Ranch Reclamation Power Plant in
accordance with the terms of the existing contracts, including any
renewals thereof as provided in such contracts.

SEC. 206. LIABILITY.

Except as otherwise provided by law, effective on the date of
conveyance of the Project under this title, the United States shall not
be held liable for damages of any kind arising out of any act,
omission, or occurrence based on its prior ownership or operation of
the conveyed property.

TITLE III--CARLSBAD IRRIGATION PROJECT, NEW MEXICO

SEC. 301. SHORT TITLE.

This title may be cited as the ``Carlsbad Irrigation Project Acquired
Land Conveyance Act''.

SEC. 302. DEFINITIONS.

For purposes of this title:
(1) The term ``District'' means the Carlsbad Irrigation
District, a quasimunicipal corporation formed under the laws of
the State of New Mexico that has its principal place of
business in the city of Carlsbad, Eddy County, New Mexico.
(2) The term ``Secretary'' means the Secretary of the
Interior.
(3) The term ``Project'' means all right, title, and interest
in and to the lands (including the subsurface and mineral
estate) in Eddy County, New Mexico, described as the acquired
lands in section (7) of the Status of Lands and Title Report:
Carlsbad Project as reported by the Bureau of Reclamation in
1978 and all interests the United States holds in the
irrigation and drainage system of the Carlsbad Project and all
related ditch rider houses, maintenance shop and buildings, and
Pecos River Flume.

SEC. 303. CONVEYANCE OF PROJECT.

(a) 2In General.--Except as provided in subsection (b), in
consideration of the District accepting the obligations of the Federal
Government for the Project, and subject to the completion of payments
by the District required under subsection (c)(3), the Secretary shall
convey the Project to the District.
(b) Retained Title.--The Secretary shall retain title to the surface
estate (but not the mineral estate) of such Project lands which are
located under the footprint of Brantley and Avalon dams or any other
Project dam or reservoir diversion structure. The Secretary shall
retain storage and flow easements for any tracts located under the
maximum spillway elevations of Avalon and Brantley Reservoirs.
(c) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance expeditiously, but not
later than 180 days after the date of the enactment of this
Act.
(2) Deadline if changes in operations intended.--If the
District intends to change Project operations as a result of
the conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 2
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the Secretary
fails to complete the conveyance under this title before the
applicable deadline under paragraph (1) or (2), the full cost
of administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before that deadline, \1/2\ of such
cost shall be paid by the District.

SEC. 304. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use and operation of
the Project from its current use. The Project shall continue to be
managed and used by the District for the purposes for which the Project
was authorized, based on historic operations, and consistent with the
management of other adjacent project lands.
(b) Future Alterations.--If the District alters the operations or
uses of the Project, it shall comply with all applicable laws or
regulations governing such changes at that time (subject to section
305).

SEC. 305. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

(a) In General.--Except as provided in subsection (b), upon
conveyance of the Project under this title the District shall assume
all rights and obligations of the United States under the agreement
dated July 28, 1994, between the United States and the Director, New
Mexico Department of Game and Fish (Document No. 2-LM-40-00640),
relating to management of certain lands near Brantley Reservoir for
fish and wildlife purposes and the agreement dated March 9, 1977,
between the United States and the New Mexico Department of Energy,
Minerals, and Natural Resources (Contract No. 7-07-57-X0888) for the
management and operation of Brantley Lake State Park.
(b) Limitation.--The District shall not be obligated for any
financial support agreed to by the Secretary, or the Secretary's
designee, in either agreement and the District shall not be entitled to
any receipts or revenues generated as a result of either agreement.

SEC. 306. LEASE MANAGEMENT AND PAST REVENUES COLLECTED FROM THE
ACQUIRED LANDS.

(a) Notification of Leaseholders.--Within 120 days after the date of
enactment of this Act, the Secretary shall provide to the District a
written identification of all mineral and grazing leases in effect on
Project lands on the date of enactment of this Act and notify all
leaseholders of the conveyance authorized by this title.
(b) Management of Leases, Licenses, and Permits.--The District shall
assume all rights and obligations of the United States for all mineral
and grazing leases, licenses, and permits existing on the Project lands
conveyed under section 303, and shall be entitled to any receipts from
such leases, licenses, and permits accruing after the date of
conveyance. All such receipts shall be used for purposes for which the
Project was authorized and for financing the portion of operations,
maintenance, and replacement at the Sumner Dam that, prior to
conveyance, was the responsibility of the Bureau of Reclamation, with
the exception of major maintenance programs in progress prior to
conveyance. The District shall continue to adhere to the current Bureau
of Reclamation mineral leasing stipulations for the Project.
(c) Availability of Amounts Paid Into the Reclamation Fund.--
(1) Amounts in fund on date of enactment.--Amounts in the
reclamation fund on the date of enactment of this Act which
exist as construction credits to the Carlsbad Project under the
terms of the Mineral Leasing Act for Acquired Lands (30 U.S.C.
351-359) shall be deposited into the general fund of the
Treasury and credited to deficit reduction or retirement of the
Federal debt.
(2) Receipts after date of enactment.--Of the receipts from
mineral and grazing leases, licenses, and permits on Project
lands to be conveyed under section 303 that are received by the
United States after the date of enactment of this Act and
before the date of conveyance, up to $200,000 shall be applied
to pay the cost referred to in section 303(c)(3) and the
remainder shall be deposited into the general fund of the
Treasury of the United States and credited to deficit reduction
or retirement of the Federal debt.

SEC. 307. WATER CONSERVATION PRACTICES.

Nothing in this title shall be construed to limit the ability of the
District to voluntarily implement water conservation practices.

SEC. 308. LIABILITY.

SEC. 309. FUTURE RECLAMATION BENEFITS.

After completion of the conveyance under this title, the District
shall not be eligible for any emergency loan from the Bureau of
Reclamation for maintenance or replacement of any facility conveyed
under this title.

TITLE IV--PALMETTO BEND PROJECT, TEXAS

SEC. 401. SHORT TITLE.

This title may be cited as the ``Palmetto Bend Conveyance Act''.

SEC. 402. DEFINITIONS.

In this title:
(1) State.--The term ``State'' means the Lavaca-Navidad River
Authority and the Texas Water Development Board, jointly.
(2) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(3) Project.--The term ``Project'' means all of the right,
title, and interest in and to the Palmetto Bend reclamation
project, Texas, authorized by Public Law 90-562 (82 Stat. 999).

SEC. 403. CONVEYANCE OF PROJECT.

(a) In General.--In consideration of the State accepting the
obligations of the Federal Government for the Project and subject to
the payment by the State of the net present value of the remaining
repayment obligation, as determined by Office of Management and Budget
Circular A-129 (in effect on the date of enactment of this Act) and the
completion of payments by the State required under subsection (b)(3),
the Secretary shall convey the Project to the State.
(b) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance expeditiously, but not
later than 180 days after the date of the enactment of this
Act.
(2) Deadline if changes in operations intended.--If the State
intends to change Project operations as a reult of the
conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 2
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the Secretary
fails to complete the conveyance under this title before the
applicable deadline under paragraph (1) or (2), the full cost
of administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before that deadline, \1/2\ of such
cost shall be paid by the State.

SEC. 404. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Project from its current use and operation.
(b) Future Alterations.--If the State alters the operations or uses
of the Project it shall comply with all applicable laws or regulations
governing such changes at that time.
(c) Condition.--Subject to the laws of the State of Texas, Lake
Texana shall not be used to wheel water originating from the Texas,
Colorado River.

SEC. 405. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

Existing obligations of the United States pertaining to the Project
shall continue in effect and be assumed by the State.

SEC. 406. RELATIONSHIP TO OTHER LAWS.

Upon conveyance of the Project under this title, the Reclamation Act
of 1902 (82 Stat. 388) and all Acts amendatory thereof or supplemental
thereto shall not apply to the Project.

SEC. 407. LIABILITY.

TITLE V--WELLTON-MOHAWK DIVISION, GILA PROJECT, ARIZONA

SEC. 501. SHORT TITLE.

This title may be cited as the ``Wellton-Mohawk Division Title
Transfer Act of 1998''.

SEC. 502. DEFINITIONS.

For purposes of this title:
(1) The term ``District'' means the Wellton-Mohawk Irrigation
and Drainage District, an irrigation and drainage district
created, organized, and existing under and by virtue of the
laws of the State of Arizona.
(2) The term ``Project'' means all of the right, title, and
interest in and to the Wellton-Mohawk Division, Gila Project,
Arizona, held by the United States pursuant to or related to
any authorization in the Act of July 30, 1947 (chapter 382; 61
Stat. 628).
(3) The term ``Secretary'' means the Secretary of the
Interior.
(4) The term ``withdrawn lands'' means those lands within and
adjacent to the District that have been withdrawn from public
use for reclamation purposes.

SEC. 503. CONVEYANCE OF PROJECT.

(a) In General.--In consideration of the District accepting the
obligations of the Federal Government for the Project, and subject to
the payment of fair market value by the District for the withdrawn
lands and the completion of payments by the District required under
subsection (b)(3), the Secretary shall convey the Project and the
withdrawn lands to the District in accordance with the Memorandum of
Agreement between the Secretary and the District numbered 8-AA-34-WAO14
and dated July 10, 1988.
(b) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance expeditiously, but not
later than 180 days after the date of the enactment of this
Act.
(2) Deadline if changes in operations intended.--If the
District intends to change Project operations as a result of
the conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 3
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the Secretary
fails to complete the conveyance under this title before the
applicable deadline under paragraph (1) or (2), the full cost
of administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before that deadline, \1/2\ of such
cost shall be paid by the District.

SEC. 504. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Project from its current use or operation.
(b) Future Alterations.--If the District alters the operations or
uses of the Project, it shall comply with all applicable laws and
regulations governing such changes at that time.

SEC. 505. LIABILITY.

Except as otherwise provided by law, effective on the date of
conveyance of the Project under this title, the United States shall not
be held liable under any law for damages of any kind arising out of any
act, omission, or occurrence based on its prior ownership or operation
of the conveyed property.

SEC. 506. LANDS TRANSFER.

Pursuant to the Memorandum of Agreement between the Secretary and the
District numbered 8-AA-34-WAO14 and dated July 10, 1988, the Secretary
may transfer to the District, by sale or exchange, at fair market
value, public lands located in or adjacent to the Project, and lands
held by the Federal Government on the date of the enactment of this Act
pursuant to Public Law 93-320 and Public Law 100-512 and located in or
adjacent to the District, other than lands in the Gila River channel.

SEC. 507. WATER AND POWER CONTRACTS.

Notwithstanding any conveyance or transfer under this title, the
Secretary and the Secretary of Energy shall provide for and deliver
Colorado River water and Parker-Davis Project Priority Use Power to the
District in accordance with the terms of existing contracts with the
District, including any amendments and supplements thereto or
extensions thereof and as provided under section 2 of the Memorandum of
Agreement between the Secretary and the District numbered 8-AA-34-WAO14
and dated July 10, 1988.

TITLE VI--CANADIAN RIVER PROJECT, TEXAS

SEC. 601. SHORT TITLE.

This title may be cited as the ``Canadian River Project Prepayment
Act''.

SEC. 602. DEFINITIONS.

For the purposes of this title:
(1) The term ``Authority'' means the Canadian River Municipal
Water Authority, a conservation and reclamation district of the
State of Texas.
(2) The term ``Canadian River Project Authorization Act''
means the Act entitled ``An Act to authorize the construction,
operation, and maintenance by the Secretary of the Interior of
the Canadian River reclamation project, Texas'', approved
December 29, 1950 (chapter 1183; 64 Stat. 1124).
(3) The term ``Project'' means all of the right, title, and
interest in and to all land and improvements comprising the
pipeline and related facilities of the Canadian River Project
authorized by the Canadian River Project Authorization Act.
(4) The term ``Secretary'' means the Secretary of the
Interior.

SEC. 603. PREPAYMENT AND CONVEYANCE OF PROJECT.

(a) In General.--(1) In consideration of the Authority accepting the
obligation of the Federal Government for the Project and subject to the
payment by the Authority of the applicable amount under paragraph (2)
within the 360-day period beginning on the date of the enactment of
this title, the Secretary shall convey the Project to the Authority, as
provided in section 2(c)(3) of the Canadian River Project Authorization
Act (64 Stat. 1124).
(2) For purposes of paragraph (1), the applicable amount shall be--
(A) $34,806,731, if payment is made by the Authority within
the 270-day period beginning on the date of enactment of this
title; or
(B) the amount specified in subparagraph (A) adjusted to
include interest on that amount since the date of the enactment
of this title at the appropriate Treasury bill rate for an
equivalent term, if payment is made by the Authority after the
period referred to in subparagraph (A).
(3) If payment under paragraph (1) is not made by the Authority
within the period specified in paragraph (1), this title shall have no
force or effect.
(b) Financing.--Nothing in this title shall be construed to affect
the right of the Authority to use a particular type of financing.

SEC. 604. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Project from its current use and operation.
(b) Future Alterations.--If the Authority alters the operations or
uses of the Project it shall comply with all applicable laws or
regulations governing such alteration at that time.
(c) Recreation.--The Secretary of the Interior, acting through the
National Park Service, shall continue to operate the Lake Meredith
National Recreation Area at Lake Meredith.
(d) Flood Control.--The Secretary of the Army, acting through the
Corps of Engineers, shall continue to prescribe regulations for the use
of storage allocated to flood control at Lake Meredith as prescribed in
the Letter of Understanding entered into between the Corps, the Bureau
of Reclamation, and the Authority in March and May 1980.
(e) Sanford Dam Property.--The Authority shall have the right to
occupy and use without payment of lease or rental charges or license or
use fees the property retained by the Bureau of Reclamation at Sanford
Dam and all buildings constructed by the United States thereon for use
as the Authority's headquarters and maintenance facility. Buildings
constructed by the Authority on such property, or past and future
additions to Government constructed buildings, shall be allowed to
remain on the property. The Authority shall operate and maintain such
property and facilities without cost to the United States.

SEC. 605. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

(a) Payment Obligations Extinguished.--Provision of consideration by
the Authority in accordance with section 603(a) shall extinguish all
payment obligations under contract numbered 14-06-500-485 between the
Authority and the Secretary.
(b) Operation and Maintenance Costs.--After completion of the
conveyance provided for in section 603, the Authority shall have full
responsibility for the cost of operation and maintenance of Sanford
Dam, and shall continue to have full responsibility for operation and
maintenance of the Project pipeline and related facilities.
(c) General.--Rights and obligations under the existing contract No.
14-06-500-485 between the Authority and the United States, other than
provisions regarding repayment of construction charge obligation by the
Authority and provisions relating to the Project aqueduct, shall remain
in full force and effect for the remaining term of the contract.

SEC. 606. RELATIONSHIP TO OTHER LAWS.

Upon conveyance of the Project under this title, the Reclamation Act
of 1902 (82 Stat. 388) and all Acts amendatory thereof or supplemental
thereto shall not apply to the Project.

SEC. 607. LIABILITY.

Except as otherwise provided by law, effective on the date of
conveyance of the Project under this title, the United States shall not
be liable under any law for damages of any kind arising out of any act,
omission, or occurrence relating to the conveyed property.

TITLE VII--CLEAR CREEK DISTRIBUTION SYSTEM, CALIFORNIA

SEC. 701. SHORT TITLE.

This title may be cited as the ``Clear Creek Distribution System
Conveyance Act''.

SEC. 702. DEFINITIONS.

For purposes of this title:
(1) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(2) District.--The term ``District'' means the Clear Creek
Community Services District, a California community services
district located in Shasta County, California.
(3) Distribution system.--The term ``Distribution System''
means all the right title and interest in and to the Clear
Creek distribution system as defined in the agreement entitled
``Agreement Between the United States and the Clear Creek
Community Services District to Transfer Title to the Clear
Creek Distribution System to the Clear Creek Community Services
District'' (Agreement No. 8-07-20-L6975).

SEC. 703. CONVEYANCE OF PROJECT.

(a) In General.--In consideration of the District accepting the
obligations of the Federal Government for the Distribution System and
subject to the completion of payments by the District required under
subsection (b)(3), the Secretary shall convey the Distribution System
to the District.
(b) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance expeditiously, but not
later than 180 days after the date of the enactment of this
Act.
(2) Deadline if changes in operations intended.--If the
District intends to change Project operations as a result of
the conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 2
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the Secretary
fails to complete the conveyance under this title before the
applicable deadline under paragraph (1) or (2), the full cost
of administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before that deadline, \1/2\ of such
cost shall be paid by the District.

SEC. 704. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Distribution System from its current use and operation.
(b) Future Alterations.--If the District alters the operations or
uses of the Distribution System it shall comply with all applicable
laws or regulations governing such changes at that time (subject to
section 705).

SEC. 705. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

(a) Native American Trust Responsibility.--The Secretary shall ensure
that any trust responsibilities to any Native American Tribes that may
be affected by the conveyance under this title are protected and
fulfilled.
(b) Contract Obligations.--Conveyance of the Distribution System
under this title--
(1) shall not affect any of the provisions of the District's
existing water service contract with the United States
(contract number 14-06-200-489-IR3), as it may be amended or
supplemented; and
(2) shall not deprive the District of any existing
contractual or statutory entitlement to subsequent interim
renewals of such contract or to renewal by entering into a
long-term water service contract.

SEC. 706. LIABILITY.

Effective on the date of conveyance of the Distribution System under
this title, the United States shall not be liable under any law for
damages of any kind arising out of any act, omission, or occurrence
based on its prior ownership or operation of the conveyed property.

TITLE VIII--PINE RIVER PROJECT, COLORADO

SEC. 801. SHORT TITLE.

This title may be cited as the ``Vallecito Dam and Reservoir
Conveyance Act''.

SEC. 802. DEFINITIONS.

For purposes of this title:
(1) The term ``District'' means the Pine River Irrigation
District, a political division of the State of Colorado duly
organized, existing, and acting pursuant to the laws thereof
with its principal place of business in the City of Bayfield,
La Plata County, Colorado.
(2) The term ``Secretary'' means the Secretary of the
Interior.
(3) The term the ``Project'' means Vallecito Dam and
Reservoir, and associated interests, owned by the United States
and authorized in 1937 under the provisions of the Department
of the Interior Appropriation Act of June 25, 1910 (36 Stat.
835).
(4) The term ``Repayment Contract'' means Repayment Contract
#I1r-1204, between Reclamation and the Pine River Irrigation
District, dated April 15, 1940, and amended November 30, 1953,
all amendments thereto, and changes pursuant to the Act of July
27, 1954 (68 Stat. 534).
(5) The term ``Tribe'' means the Southern Ute Indian Tribe, a
federally recognized Indian tribe located on the Southern Ute
Indian Reservation, La Plata County, Colorado.
(6) The term ``Jurisdictional Map'' means the map entitled
``Transfer of Jurisdiction--Vallecito Reservoir, United States
Department of Agriculture, Forest Service and United States
Department of the Interior, Bureau of Reclamation and the
Bureau of Indian Affairs'' dated March, 1998.

SEC. 803. CONVEYANCE OF PROJECT.

(a) Conveyance to District.--
(1) In general.--In consideration of the District accepting
the obligations of the Federal Government for the Project and
subject to the completion of payments by the District required
under subsection (b)(3) and occurrence of the events described
in paragraphs (2) and (3) of this subsection, the Secretary
shall convey an undivided \5/6\ interest in the Project to the
District.
(2) Submission of management plan.--Prior to any conveyance
under paragraph (1), the District shall submit to the Secretary
a plan to manage the Project in a manner substantially similar
to the manner in which it was managed prior to the transfer and
in accordance with applicable Federal and State laws, including
provisions--
(A) protecting the interests in the Project held by
the Bureau of Indian Affairs for the Tribe;
(B) preserving public access and recreational values
and preventing growth on certain lands to be conveyed
hereunder, as set forth in an Agreement dated March 20,
1998, between the District and residents of Vallecito
Reservoir; and
(C) ensuring that any future change in the use of the
water supplied by Vallecito Reservoir shall comply with
applicable law.
(3) Limitation.--No interest in the Project shall convey
under this subsection before the date on which the Secretary
receives a copy of a resolution adopted by the Tribe declaring
that the terms of the conveyance protects the Indian trust
assets of the Tribe.
(b) Deadline.--
(1) In general.--If no changes in Project operations are
expected following the conveyance under subsection (a), the
Secretary shall complete the conveyance under subsection (a)
expeditiously, but not later than 180 days after the date of
the enactment of this Act.
(2) Deadline if changes in operations intended.--If the
District intends to change Project operations as a result of
the conveyance under subsection (a), the Secretary--
(A) shall take into account those potential changes
for the purpose of completing any required
environmental evaluation associated with the
conveyance; and
(B) shall complete the conveyance by not later than 2
years after the date of the enactment of this Act.
(3) Administrative costs of conveyance.--If the District
submits a plan in accordance with subsection (a)(2) and the
Secretary receives a copy of a resolution described in
subsection (a)(3), and the Secretary fails to complete the
conveyance under subsection (a) before the applicable deadline
under paragraph (1) or (2), the full cost of administrative
action and environmental compliance for the conveyance shall be
borne by the Secretary. If the Secretary completes the
conveyance before that deadline, \1/2\ of such cost shall be
paid by the District.
(c) Tribal Interests.--At the option of the Tribe, the Secretary
shall convey to the Tribe an undivided \1/6\ interest in the Project,
all interests in lands over which the Bureau of Indian Affairs holds
administrative jurisdiction under section 804(e)(1)(A), and water
rights associated with those interests. No consideration or
compensation shall be required to be paid to the United States for such
conveyance.
(d) Restriction on Partition.--Any conveyance of interests in lands
under this title shall be subject to the prohibition that those
interests in those lands may not be partitioned. Any quit claim deed or
patent evidencing such a conveyance shall expressly prohibit
partitioning.

SEC. 804. RELATIONSHIP TO EXISTING OPERATIONS.

(a) In General.--Nothing in this title shall be construed as
significantly expanding or otherwise changing the use or operation of
the Project from its current use and operation.
(b) Description of Existing Condition.--The Secretary shall submit to
the District, the Bureau of Indian Affairs, and the State of Colorado a
description of the existing condition of Vallecito Dam based on Bureau
of Reclamation's current knowledge and understanding.
(c) Future Alterations.--If the District alters the operations or
uses of the Project it shall comply with all applicable laws or
regulations governing such changes at that time.
(d) Flood Control Plan.--The District shall work with Corps of
Engineers to develop a flood control plan for the operation of
Vallecito Dam for flood control purposes.
(e) Jurisdictional Transfer of Lands.--
(1) Inundated lands.--To provide for the consolidation of
lands associated with the Project to be retained by the Forest
Service and the consolidation of lands to be transferred to the
District, the administrative jurisdiction of lands inundated by
and along the shoreline of Vallecito Reservoir, as shown on the
Jurisdictional Map, shall be transferred, as set forth in this
subsection, concurrently with any conveyance under section 803.
Except as otherwise shown on the Jurisdictional Map--
(A) for withdrawn lands (approximately 260 acres)
lying below the 7,665-foot reservoir water surface
elevation level, the Forest Service shall transfer an
undivided \5/6\ interest to the Bureau of Reclamation
and an undivided \1/6\ interest to the Bureau of Indian
Affairs in trust for the Tribe; and
(B) for Project acquired lands (approximately 230
acres) above the 7,665-foot reservoir water surface
elevation level, the Bureau of Reclamation and the
Bureau of Indian Affairs shall transfer their interests
to the Forest Service.
(2) Map.--The Jurisdictional Map and legal descriptions of
the lands transferred pursuant to paragraph (1) shall be on
file and available for public inspection in the offices of the
Chief of the Forest Service, the Commissioner of Reclamation,
appropriate field offices of those agencies, and the Committee
on Resources of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate.
(3) Administration.--Following the transfer of administrative
jurisdiction under paragraph (1):
(A) All lands that, by reason of the transfer of
administrative jurisdiction under paragraph (1), become
National Forest System lands within the boundaries of
the San Juan National Forest, shall be administered in
accordance with the laws, rules, and regulations
applicable to the National Forest System.
(B) Bureau of Reclamation withdrawals of land from
the San Juan National Forest established by Secretarial
Orders on November 9, 1936, October 14, 1937, and June
20, 1945, together designated as Serial No. C-28259,
shall be revoked.
(C) The Forest Service shall issue perpetual
easements to the District and the Bureau of Indian
Affairs, at no cost to the District or the Bureau of
Indian Affairs, providing adequate access across all
lands subject to Forest Service jurisdiction to insure
the District and the Bureau of Indian Affairs the
ability to continue to operate and maintain the
Project.
(D) The undivided \5/6\ interest in National Forest
System lands that, by reason of the transfer of
administrative jurisdiction under paragraph (1) is to
be administered by Bureau of Reclamation, shall be
conveyed to the District pursuant to section 803.
(E) The District and the Bureau of Indian Affairs
shall issue perpetual easements to the Forest Service,
at no cost to the Forest Service, from National Forest
System lands to Vallecito Reservoir to assure continued
public access to Vallecito Reservoir when the Reservoir
level drops below the 7,665-foot water surface
elevation.
(F) The District and the Bureau of Indian Affairs
shall issue a perpetual easement to the Forest Service,
at no cost to the Forest Service, for the
reconstruction, maintenance, and operation of a road
from La Plata County Road No. 501 to National Forest
System lands east of the Reservoir.
(4) Valid existing rights.--Nothing in this subsection shall
affect any valid existing rights or interests in any existing
land use authorization, except that any such land use
authorization shall be administered by the agency having
jurisdiction over the land after the transfer of administrative
jurisdiction under paragraph (1) in accordance with paragraph
(3) and other applicable law. Renewal or reissuance of any such
authorization shall be in accordance with applicable law and
the regulations of the agency having jurisdiction, except that
the change of administrative jurisdiction shall not in itself
constitute a ground to deny the renewal or reissuance of any
such authorization.
(f) Federal Dam Charge.--Nothing in this title shall relieve the
holder of the Federal Energy Regulatory Commission license for
Vallecito Dam in effect on the date of the enactment of this Act from
the obligation to make payments under section 10(e)(2) of the Federal
Power Act during the term of the license.

SEC. 805. RELATIONSHIP TO OTHER LAWS.

Upon conveyance of the Project under this title, the Reclamation Act
of 1902 (82 Stat. 388) and all Acts amendatory thereof or supplemental
thereto shall not apply to the Project.

SEC. 806. LIABILITY.

Except as otherwise provided by law, effective on the date of
conveyance of the Project under this title, the liability of the United
States under any law for damages of any kind arising out of any act,
omission, or occurrence based on its prior ownership or operation of
property in which an interest is conveyed by the United States pursuant
to this title shall be limited to the portion of the total damages that
bears the same proportion to the total damages as the interest in the
property retained by the United States bears to the total interest in
the property.

PURPOSE OF THE BILL

The purpose of H.R. 4389 is to provide for the conveyance
of various reclamation project facilities to local water
authorities, and for other purposes.

BACKGROUND AND NEED FOR LEGISLATION

Federal facilities transfers have been of particular
interest to Congress and the Administration in recent years.
Facility transfers represent an effort to shrink the federal
government and shift the responsibilities for ownership into
the hands of those who can more efficiently operate and
maintain them. As a result of the National Performance Review
(Reinventing Government II), the Bureau of Reclamation, within
the Department of Interior, initiated a program to transfer
ownership of some of its facilities to non-federal entities.
Proposals to transfer title to selected Reclamation
facilities have been advanced in prior years. Some were
ultimately authorized by Congress.\1\ A transfer provision was
also included in the 1955 Distribution System Loans Act, as
amended. This provision differs from the Reclamation Act of
1902 in that it allows transfer of title to the lands and
facilities upon repayment of the loan. In addition to the
operations and management transfer authorization under the
Reclamation Act of 1902, several other title transfer
provisions are included in individual project acts. These
include section 7 of the 1928 Boulder Canyon Project Act (Act
of Dec. 21, 1928, 45 Stat. 1057, 43 U.S.C. 617 et seq.), which
authorizes the Secretary of the Interior to transfer title to
the All-American Canal and certain other related facilities
after repayment has been completed; provisions in the Act of
September 22, 1959 (Public Law 86-357, 73 Stat. 641), regarding
transfer of title for Lower Rio Grande project facilities; and
Public Law 83-752 (68 Stat. 1045), which directs the Secretary
to transfer title to the Palo Verde Irrigation District upon
repayment.
---------------------------------------------------------------------------
\1\ See most recently Public Law 102-575, transferring facilities
to the Elephant Butte Irrigation District, New Mexico (Title XXXIII),
and the Vermejo Project, New Mexico (Title XIV).
---------------------------------------------------------------------------
Reclamation holds title to more than 600 water projects
throughout the western United States. While the Bureau of
Reclamation has transferred operation and maintenance
responsibilities for about 400 projects, legislation is
required to transfer ownership. Under the provisions of Section
VI of the Reclamation Act of 1902, title to project facilities
remain with the United States unless otherwise provided by
Congress, even if project beneficiaries have completed their
repayment obligation. Section VI of the Reclamation Act of 1902
states:

The Secretary of the Interior is hereby authorized
and directed to use the reclamation fund for the
operation and maintenance of all reservoirs and
irrigation works constructed under the provisions of
this act: Provided, That when the payments required by
this act are made for the major portion of the lands
irrigated from the waters of any of the works herein
provided for, then the management and operation of such
irrigation works shall pass to the owners of the lands
irrigated thereby, to be maintained at their expense
under such form of organization and under such rules
and regulations as may be acceptable to the Secretary
of the Interior: Provided, That the title to and the
management and operation of the reservoirs and the
works necessary for their protection and operation
shall remain in the Government until otherwise provided
by Congress.

(32 Stat. 389; 43 U.S.C. Sec. Sec. 491, 498).
Many of these projects were constructed at a time when
there were no local communities and utilities. Furthermore,
many of the States in which the projects were built did not
have a sufficient tax base to fund them. However, as the West
became more populated, and with the urbanization of these
areas, the Bureau of Reclamation now owns and operates public
facilities that would be owned, operated and funded by private
corporations or local government agencies if they were in other
parts of the country.
The legislative history of the 1902 Reclamation Act also
bears out that Congress contemplated the transfer of title to
project works at a future time. As the Chairman of the
Committee on Irrigation of Arid Lands stated:

Inasmuch, however, as it is deemed wise, for the
present at least, that Congress shall have full control
over storage reservoirs and works for the impounding of
waters for the reason that works of this class affect a
large number of water users--and there is always a
possibility of the opportunity and advisability of
increasing the capacity of such works--it has been
provided that they shall remain for the present under
the management and control of Congress, though the
probability is that ultimately, when permanently
established, it will be deemed wise and advisable to
transfer them also to local control. [emphasis added]

In regard to recent developments, the Committee concurs
with a general statement issued by the Bureau of Reclamation on
August 7, 1995, regarding the framework for the transfer of
title of Bureau of Reclamation projects. The statement reads:

Reclamation is proceeding to develop a new
Categorical Exclusion (CE) for those title transfers
which would not significantly impact the environment
and thus could be categorically excluded from a
detailed NEPA review. Generally, Reclamation would
anticipate such a CE would apply on projects involving
transfer of title of Reclamation projects or
facilities, in whole or in part, to entities who would
operate and maintain the facilities or manage the lands
so that there would be no significant changes in
operation and maintenance or in land and water use in
the reasonably foreseeable future. [emphasis added]

However, to date, Reclamation has yet presented a
legislative proposal to transfer even one project under the
plan they developed to facilitate transfers, even though many
of the projects are operated and maintained by the same
partners that are seeking transfer. It is contemplated that the
transferred facilities would be maintained and managed so that
there would be ``no significant changes in operation and
maintenance or in land and water use in the reasonably
foreseeable future.'' However, once transfer takes place, the
management of the facility will be up to the discretion of the
new owners.
Congress expects that title transfer should occur in an
open and fair public process within the affected community.
Congress does not want to establish a one-size-fits-all
statutory procedure that would limit a State, or community from
developing a process to address issues surrounding each
individual project, and how it should be transferred.
Furthermore, it is not the intent of Congress to use the
National Environmental Policy Act as a means to stall or halt a
project from transferring to a local entity. If environmental
documentation is needed to facilitate a transfer, it is the
intent of Congress to have it done in a timely manner. For
example, each title within H.R. 4389 contains a provision that,
if no changes in project operations are expected following the
conveyance of title, then the Secretary shall complete the
conveyance expeditiously, but not later than 180 days after the
date of the enactment. If the water district receiving title
intends to change project operations as a result of conveyance
of the project the Secretary shall take that into consideration
and complete the conveyance within two years. If the Secretary
fails to meet the conveyance deadlines, the full costs of
administrative action and environmental compliance for the
conveyance shall be borne by the Secretary. If the Secretary
completes the conveyance before the deadlines, one half of the
cost will be paid by the District.
As introduced, H.R. 4389 contained the text of the
following bills: H.R. 4048 (Sly Park Dam and Reservoir,
California); H.R. 1282 (Minidoka Project, Idaho); H.R. 1943
(Carlsbad Irrigation Project, New Mexico); H.R. 2161 (Palmetto
Bend Project, Texas); H.R. 3677 (Gila Project, Arizona); H.R.
3687 (Canadian River Project, Texas); H.R. 3706 (Clear Creek
Distribution System, California); and H.R. 3715 (Pine River
Project, Colorado).

COMMITTEE ACTION

H.R. 4389 was introduced on August 4, 1998, by Congressman
John Doolittle (R-CA). The bill was referred to the Committee
on Resources. On August 5, 1998, the Full Resources Committee
met to consider H.R. 4389. Congressman Doolittle offered an
amendment en bloc which clarified the Sly Park Dam and
Reservoir transfer regarding payments by the El Dorado
Irrigation District to the Central Valley Restoration Fund and
substituted updated text for title VI of the bill dealing with
the Canadian River Project, Texas. The amendment was adopted by
voice vote. Congressman Solomon Ortiz (D-TX) offered an
amendment prohibiting the use of Lake Texana use to wheel water
from the Texas, Colorado River under title IV of the bill
dealing with the Palmetto Bend Project, Texas. The Ortiz
amendment was adopted by voice vote. The bill, as amended, was
then ordered favorably reported to the House of Representatives
by voice vote.
Prior to the introduction of H.R. 4389, the Subcommittee on
Water and Power held a hearing on Bureau of Reclamation project
transfers on April 30, 1998. During the hearing witnesses
discussed issues affecting the transfer of title to various
irrigation districts in the Western United States. Testimony
regarding the projects to be transferred was presented by Mr.
Eluid Martinez, Commissioner, Bureau of Reclamation, and Mr.
Ralph DeGennaro, Executive Director, Taxpayers for Common
Sense. Project specific remarks were heard from
CongressmanScott McInnis (R-CO) and Mr. Bruce Driver, Consultant,
regarding the Pine River Project, Colorado; Mr. Emmett Gloyna, General
Manager, Lavaca-Navidad River Authority regarding the Palmetto Bend
Project, Texas; Mr. John Williams, General Manager, Canadian River
Municipal Water Authority regarding the Canadian River Project, Texas;
Mr. Wade Noble, from the law firm of Choules, Shadle & Noble, and Mr.
William Snape, Legal Director, Defenders of Wildlife, regarding the
Wellton-Mohawk Division/Gila Project, Arizona; Mr. Larry Russell,
Chairman, Board of Directors, Clear Creek Community, regarding the
Clear Creek Project, California; Mr. Roger D. Ling, law firm of Ling,
Nielsen & Robinson, Rupert, regarding the Minidoka Project, Idaho; Mr.
Tom W. Davis, Manager, Carlsbad Irrigation District regarding the
Carlsbad Project, New Mexico.
On June 25, 1998, the Water and Power Subcommittee met to
consider four bills that became titles of H.R. 4389. These
bills included H.R. 3687, concerning the Canadian River
Project, Texas; H.R. 4048, concerning Sly Park Dam and
Reservoir, California; H.R. 1282, concerning the Minidoka
Project, Idaho; and H.R. 1943, concerning the Carlsbad Project,
New Mexico. All four bills were amended and reported favorably
from the Subcommittee to the Full Committee on Resources. On
July 16, 1998, the Water and Power Subcommittee met to consider
four additional bills which became titles of H.R. 4389. These
bills were: H.R. 2161, concerning the Palmetto Bend Project,
Texas; H.R. 3677, concerning the Gila Project, Arizona; H.R.
3706, concerning the Clear Creek Distribution System,
California; and H.R. 3715, concerning the Pine River Project,
Colorado. All four bills were amended and ordered favorably
reported by the Subcommittee to the Full Committee on
Resources.

TITLE-BY-TITLE ANALYSIS

Title I--Sly Park Dam and Reservoir, California

The Sly Park Unit was originally authorized under the
American River Act of October 14, 1949. The Unit includes Sly
Park Dam and Jenkinson Lake on Sly Park Creek, Camp Creek
Diversion Dam on Cam Creek, and Camino Conduit. Upon completion
in 1955, the operation of the facilities was transferred to the
El Dorado Irrigation District. The District is the major water
supplier in El Dorado County, providing service throughout a
200 square-mile area in the western part of the County. In
cooperation with the Bureau of Reclamation, the District
operates the Sly Park Recreation Area, which offers camping,
boating, swimming, picnicking and fishing.
This title directs the Secretary of the Interior to convey
the Sly Park Dam and Reservoir to the El Dorado Irrigation
District. The sale of the Sly Park Unit under the bill would
not affect the payment obligation of the District under an
additional contract it has with the Secretary of the Interior.
Payments under that contract will continue under the terms of
the contract.
Power customers of the Central Valley Project (CVP) had
raised concerns that since their contributions to the CVP
Restoration Fund are not capped, their contributions would be
increased to compensate for the fact that the El Dorado
Irrigation District would no longer be paying into the Fund.
The Committee has addressed this concern by requiring the El
Dorado Irrigation District to continue making payments into the
Fund until 2029 (the remaining period of their repayment
obligation), as required under Public Law 102-575.
Language similar to this title was approved by Congress as
part of the fiscal year 1996 Budget Reconciliation package
which was vetoed by President Clinton. In addition, language
providing for the sale of the Sly Park Unit, under different
conditions, was passed by the House in 1991 as a part of H.R.
429, the Reclamation Projects Authorization and Adjustment Act
of 1991. However, the sale was not included in the final public
law, Public Law 102-575. The conveyance was also passed in the
House as H.R. 3903 in the 104th Congress.

Title II--Minidoka Project, Idaho

The Minidoka Project was the first Reclamation project in
Idaho and was constructed under the authority of the 1902
Reclamation 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.
This title directs the Secretary of Interior to convey
certain facilities of the Minidoka Project, Idaho, to the
Burley Irrigation District, including water rights. Water
rights include the rights set forth in contracts between the
United States and the District or in the Decree of June 20,
1913, of the District Court of the Fourth Judicial District of
the State of Idaho, in and for the County of Twin Falls, in the
case of Twin Falls Canal Company v. Charles N. Foster, et al.,
and commonly referred to as the ``Foster Decree''.
It is recognized that the water rights are obtained from
the State of Idaho as required by the Reclamation Act of 1902.
Consequently, the water rights described in the bill together
with title to the distribution system shall be transferred. An
agreement on water rights must be reached involving the two
districts and the Secretary prior to transfer. In negotiating
the terms of the agreement, the parties should include language
addressing the issue of any future costs associated with any
future legal actions related to the transfer of the water
rights.

Title III--Carlsbad Irrigation Project, New Mexico

The Carlsbad Project is a paid-out, single purpose
irrigation project delivering stored water to approximately
25,000 acres of farm land in southeastern New Mexico. With the
District's repayment obligation completed, this title allows
the Secretary of Interior to transfer the acquired lands and
the drainage and distribution system from Reclamation to the
District.
Mineral leases for the acquired lands in the project were
issued under the Mineral Leasing Act for Acquired Lands, and
until the project indebtedness was repaid in 1991, were
credited toward indebtedness on the project. These receipts
continue to be paid into the Reclamation Fund and exist as
credits to the Carlsbad Project. The legislation stipulates
that amounts in the Reclamation Fund on the date of enactment
of H.R. 4389, which exist as construction credits to the
Carlsbad Project under the terms of the Mineral Leasing Act for
Acquired Lands (30 U.S.C. 351-359), shall be deposited into the
general fund of the Treasury and credited to deficit reduction
or retirement of the federal debt.
After the conveyance of the facilities and lands, the
Carlsbad Irrigation District will take over the financing for
the portion of operations, maintenance, and replacement at
Sumner Dam that, prior to conveyance, was the responsibility of
the Bureau of Reclamation. In assuming these responsibilities
the District shall be entitled to any receipts from all mineral
and grazing leases, licenses, and permits existing on the
Project lands after conveyance. Receipts from mineral and
grazing leases, licenses and permits on Project lands to be
conveyed, that are received by the United States after the date
of enactment of H.R. 4389 and before the date of conveyance
shall be deposited into the general fund of the Treasury of the
United States and credited to deficit reduction or retirement
of the federal debt. However, up to $200,000 of the receipts
received between the date of enactment and the date of
conveyance shall be used to offset the cost of implementing
this title.

Title IV--Palmetto Bend Project, Texas

The Palmetto Bend Project is located on the Gulf Coast in
Texas about midway between Houston and Corpus Christi. The
Project encompasses approximately 17,000 acres. The largest
component of the project is Lake Texana, which covers about
10,000 acres. The land, including the minerals, was purchased
and this project was completed in 1980 by the Bureau of
Reclamation under a repayment contract with the Lavaca-Navidad
River Authority (LNRA) and Texas Water Development Board. The
LNRA is a governmental entity created by the Texas legislature.
While LNRA is solely responsible for operating and maintaining
the Palmetto Bend Project, the Texas Water Development Board,
an agency of the State of Texas, is a co-sponsor of this
Project. The Project was turned over to the LNRA to operate and
maintain in 1985.
This title authorizes prepayment of the net present worth
of the remaining repayment obligation, and directs the
Secretary of the Interior to transfer title to Palmetto Bend
Project, Texas, to the ``State of Texas/Lavaca-Navidad River
Authority'' as defined.
The operating entity's official management plan includes
more fish, wildlife and recreation benefits than now provided
under Bureau of Reclamation control, such as a planned water
fowl sanctuary and much expanded recreation. This management
plan cannot be changed without public hearings and concurrence
of the State regulatory agency, the Texas Natural Resource
Conservation Commission. During negotiations with the Bureau of
Reclamation a question was raised about future private
shoreline development. No such development is contemplated at
this time in the management plan.
The Committee has opted to defer to the State regarding
water rights; it is not the intent of Congress to interfere
with rights and responsibilities of the State.

Title V--Wellton-Mohawk Division, Gila Project, Arizona

The Gila Project began in 1936, and the first water was
made available for irrigation from the Gila Gravity Main Canal
on November 4, 1943. Construction of the Wellton-Mohawk
Division features was started in August 1949. On May 1, 1952,
water from the Colorado River was turned onto the Wellton-
Mohawk fields for the first time. The Wellton-Mohawk Irrigation
and Drainage District operates the irrigation facilities in the
Wellton-Mohawk Division.
This title directs the Secretary of Interior to convey
certain facilities of the Gila Project, Arizona, to the
Wellton-Mohawk Irrigation and Drainage District within three
years after enactment pursuant to a Memorandum of Agreement
between the Bureau and the District that was signed on July 10,
1998. It also authorizes the Secretary to sell adjacent
withdrawn lands and related lands to the District based on a
fair market valuation. No change in project operation is
contemplated by the transfer and the District will continue to
limit irrigated acreage to 62,875 as provided in Public Law 93-
320. The transfer would include all facilities and works for
which full repayment has been made. On November 7, 1991, the
Bureau certified that full repayment had been made for all
water delivery and drainage works.

Title VI--Canadian River Project, Texas

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. 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 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.
Almost since the initiation of project deliveries in 1968,
the quality of the water has declined due to increased
salinity, caused by salt water aquifer in New Mexico that seeps
into the Canadian River. Transfer of the facilities will
facilitate coordinated management with the Canadian River
Conjunctive Use Groundwater Project. That project is designed
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.
This title authorizes prepayment of the outstanding debt of
the Canadian River Municipal Water Authority, and directs the
Secretary of Interior to convey the Canadian River Project
pipeline and related facilities to the Authority upon payment.
The Authority agrees to pay approximately $34.8 million within
9 months of enactment.

Title VII--Clear Creek Distribution System, California

The facilities to be transferred under this title are
located in the Central Valley Project's Clear Creek South Unit
which was authorized by the Act of August 12, 1955.
This title authorizes the Secretary of Interior to convey
title for the Clear Creek Distribution System to the Clear
Creek Community Services District. This legislation is
complementary to an existing agreement between the District and
Reclamation which represents a cooperative effort to identify
transfer conditions which are satisfactory to both parties. The
agreement stipulates the irrigation conveyance system, surface
drainage, related lands, a control tank and various other
equipment and properties will be transferred. The payments
received to date through the existing repayment contract
constitute the full payment for transfer of the Project, while
responsibilities for all duties and costs associated with the
operation, replacement, maintenance, enhancement, and
betterment of the distribution system shall be assumed by the
District.

Title VIII--Pine River Project, Colorado

The Pine River Project was originally authorized in 1937.
The only Project feature is the Vallecito Dam and Reservoir
with a capacity of 129,700 acre feet. The Project is paid out
and the water rights are held by the District rather than the
federal government under Reclamation law. The project is
authorized for irrigation and also provides flood control,
recreation, and fish and wildlife benefits. Nothing in this
title shall relieve the Federal Energy Regulatory Commission
(FERC) license holder at the dam from continuing to make
payments to FERC under the Federal Power Act for the term of
the existing license.
At one time in the negotiations concerning the transfer,
consideration was given to converting a portion of the
District's irrigation water supply to municipal and industrial
purposes. This led to suggestions that the District pay an
additional fee for potential lost revenue that would have
accrued to the federal government if the government retained
ownership. The Committee determined that such costs were
speculative and the District would not be responsible for such
costs. The District has indicated in writing that it would not
pursue such conversion in any case because alternate supplies
have been identified.
This title directs the Secretary of Interior to convey an
undivided 5/6 interest in the Pine River Project, held by the
Bureau of Reclamation, to the Pine River Irrigation District.
The remaining 1/6 continues to be held by the Bureau of Indian
Affairs in trust for the Southern Ute Indian Tribe until the
Tribe requests transfer.

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. 4389.

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. 4389. 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.
4389 does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures. The Congressional Budget Office
(CBO) estimates that enactment of this bill would reduce
federal discretionary spending by approximately $1 million. In
addition, CBO estimates that enacting H.R. 4389 would decrease
direct spending by approximately $69 million over the 1999-2003
time period, but that near-term savings would be offset from a
loss of receipts from repayment contracts, water sales and
leases over the next 40 years.
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. 4389.
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.
4389 from the Director of the Congressional Budget Office.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

U.S. Congress,
Congressional Budget Office,
Washington, DC, October 5, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed revised cost estimate for H.R. 4389, a
bill to provide for the conveyance of various reclamation
project facilities to local water authorities, and for other
purposes. This revised estimate supersedes the estimate that
CBO provided on September 15, 1998, and clarifies the long term
budgetary impacts of enacting the bill. The estimated budgetary
impact of H.R. 4389 over the 1999-2008 period is unchanged.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Gary Brown
(for federal costs), and Marjorie Miller (for the state and
local impact).
Sincerely,
June E. O'Neill, Director.
Enclosure.

H.R. 4389--A bill to provide for the conveyance of various reclamation
project facilities to local water authorities, and for other
purposes

Summary: H.R. 4389 would direct the Secretary of the
Interior, acting through the U.S. Bureau of Reclamation, to
convey facilities at the following reclamation projects to
local water authorities: Central Valley Project, California
(Sly Park Unit and the Clear Creek Distribution System);
Minidoka Project, Idaho; Carlsbad Irrigation Project, New
Mexico; Palmetto Bend Project, Texas; Gila Project, Arizona;
Canadian River Project, Texas; and the Pine River Project,
Colorado. The following conditions would apply:
The secretary would be directed to complete each
conveyance, including environmental review, within 180
days of enactment if project operations are not
expected to change following the conveyance and within
two years if they are;
The federal government and the locality would split
the cost of each conveyance if it occurs by the
appropriate deadline, and the federal government would
bear the full cost if it does not;
The local authority would operate and maintain each
facility after conveyance; and
Except for the Sly Park Unit and the Clear Creek
Distribution system, local entities would pay the
present value of their remaining repayment obligations
with the bureau.
CBO estimates that implementing H.R. 4389 would reduce
federal discretionary spending over the 1999-2003 period by
about $1 million, assuming net appropriations consistent with
the bill. Enacting the bill would affect direct spending;
therefore, pay-as-you-go procedures would apply. CBO estimates
that enacting H.R. 4389 would yield a net decrease in direct
spending of $69 million over the 1999-2003 period, but that
near-term cash savings would be approximately offset on a
present-value basis by the loss of receipts from
repaymentcontracts, water sales, and leases. The near-term savings
primarily would reflect estimated prepayments of about $91 million over
fiscal years 1999 and 2000. Forgone repayment receipts would average
about $5 million a year over the 37-year period from 1999 through 2035.
The legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA). Local governments might 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
budgetary impact of H.R. 4389 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
By fiscal years, in millions of dollars--
-----------------------------------------------
1998 1999 2000 2001 2002 2003
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
Estimated Authorization Level ^{a............................. (^{b) 2 1 (^{b) (^{b) (^{b)
Estimated Outlays........................................... (^{b) 1 1 1 (^{b) (^{b)
Proposed Changes:
Estimated Authorization Level............................... 0 (^{b) -1 (^{-b) (^{-b) (^{-b)
Estimated Outlays........................................... 0 (^{b) (^{b) -1 (^{-b) (^{-b)
Spending Under H.R. 4389:
Estimated Authorization Level ^{a............................. (^{b) 2 0 0 0 0
Estimated Outlays........................................... (^{b) 2 1 0 0 0
CHANGES IN DIRECT SPENDING
Estimated Budget Authority...................................... 0 -37 -53 7 7 7
Estimated Outlays............................................... 0 -37 -53 7 7 7
----------------------------------------------------------------------------------------------------------------
^{a In 1998, less than $500,000 was appropriated for operating and maintaining the projects that would be
conveyed. Continuation of these expenses, including anticipated studies and replacement of project works in
1999 and 2000, is authorized under current law. Enacting H.R. 4389 would eliminate the need for such
appropriations after 1999.
^{b Less than $500,000.

Basis of estimate: For the purpose of this estimate, CBO
assumes that H.R. 4389 will be enacted near the beginning of
fiscal year 1999 and that the estimated amounts necessary to
implement the bill will be appropriated in that year. In those
years that CBO estimates a reduction in the need for federal
obligations, CBO assumes that appropriations will be reduced
accordingly. Outlays are estimated based on historical rates of
spending for the authorized activities.

Spending subject to appropriation

CBO estimates that implementing H.R. 4389 would yield a net
decrease of about $1 million in spending subject to
appropriation over the 1999-2003 period. CBO estimates that
completing the conveyances specified in the bill would require
new spending subject to appropriation of about $3 million over
the 1999-2000 period. These amounts would be used for preparing
transfer documents, conducting environmental reviews, and
operating and maintaining the facilities before they are
transferred. CBO anticipates that most of the facilities would
be transferred in fiscal year 1999, that the remaining units
would be transferred by the end of fiscal year 2000, and that
the bureau would pay most of the costs of conveying these
facilities. The new spending of about $3 million would be
offset, however, by savings of a similar amount over the 1999-
2000 period because the conveyances would eliminate the need
for most of the currently authorized funding for these
projects. CBO estimates that, under current law, the bureau
will need about $2 million in 1999, $1 million in 2000, and
less than $500,000 each year thereafter for studies,
operations, maintenance, and replacement of these facilities.

Direct spending

Prepayments. H.R. 4389 would direct local authorities to
pay the present value of their outstanding obligations to the
United States for the facilities that are to be conveyed. CBO
anticipates that, if the bill is enacted, prepayments would be
made for eligible facilities at the Central Valley (Sly Park
Unit), Palmetto Bend, and Canadian River Projects. CBO
estimates that prepayments would total $37 million in 1999 and
$54 million in 2000. Those receipts would be offset by the loss
of currently scheduled annual repayments over the 37-year
period of 1999 through 2035. We estimate that forgone payments
would total less than $500,000 in 1999, $3 million in 2000, $7
million annually over the 2001-2022 period, and $4 million
annually over the 2023-2035 period. (Roughly $100,000 that is
due over the 2000-2004 period from the Clear Creek Community
Services District for the Clear Creek DistributionSystem of the
Central Valley Project would be forgiven rather than prepaid.) There
are no amounts due for the other facilities that would be transferred
under the bill.
H.R. 4389 would transfer title to the Sly Park Unit to the
El Dorado Irrigation District without extinguishing or
authorizing the prepayment of all of the district's outstanding
obligations to the United States for this set of facilities.
Transferring title would limit the United States' recourse in
the case that the district defaults on its outstanding debt.
Based on information provided by the bureau, CBO estimates that
approximately $16 million in debt would remain outstanding upon
title transfer. These outstanding obligations are associated
with the project's distribution system. All amounts are
scheduled to be repaid, mostly without interest, by 2019.
Because we cannot predict the likelihood of default or the
outcome of actions to seek recourse, CBO cannot estimate the
likelihood, timing, or amount of any potential loss that could
result from enacting this provision.
Asset Sales. H.R. 4389 would require the Wellton-Mohawk
Irrigation and Drainage District to pay the federal government
fair market value for certain lands at the Gila Project before
the secretary may convey them to the district. Based on
information provided by the bureau, CBO estimates that the
district would pay a minimum of about $2 million for the
specified lands and that the payment would be made in fiscal
year 2000. Under the Balanced Budget Act of 1997, proceeds from
nonroutine asset sales (sales that are not authorized under
current law) may be counted for pay-as-you-go purposes only if
the sale would entail no financial cost to the government.
Based on information provided by the bureau, CBO estimates that
the sale proceeds would exceed any net revenues currently
projected to accrue from these lands; therefore, selling these
assets would result in a net savings for pay-as-you-go
purposes.

Other Offsetting Receipts. Enacting the bill would result
in a loss of receipts from mineral and grazing leases at the
Carlsbad Irrigation Project. Amounts collected in 1999 could be
used to pay the cost of transferring the project to the
Carlsbad Irrigation District. Beginning in 2000, all such
collections would go to the district. Under current law, these
amounts are deposited in the Treasury. CBO estimates that
losses would total about $200,000 a year.

CBO estimates that enacting H.R. 4389 also could result in
a loss of water-use charges totaling less than $50,000
annually, beginning in 2005, at the Pine River Project. Based
on information provided by the bureau, CBO anticipates that,
beginning in 2005, the Pine River Irrigation District may start
redirecting water from irrigation to municipal and industrial
uses. Under current law, the district would pay a charge for
this action. This charge would not apply if the project is
transferred to the district under the terms of the bill.

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. Enacting the bill would not
affect governmental receipts. For the purpose of enforcing pay-
as-you-go procedures, only the effects in the current year, the
budget year, and the succeeding four years are counted.

--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal years, in millions of dollars--
--------------------------------------------------------------------------------------------------
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays................................... 0 -37 -53 7 7 7 7 7 7 7 7
Changes in receipts.................................. Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

Estimated impact on State, local, and tribal governments:
H.R. 4389 contains no intergovernmental mandates as defined in
UMRA. All the conveyances authorized by this bill would be
voluntary on the part of the affected local water authorities,
and any costs incurred by these authorities as a result of the
conveyances would be accepted by them on that basis.

The bill would require local authorities to pay half the
cost of the conveyances if the bureau is able to complete the
process within certain deadlines. CBO estimates, however, that
most of the conveyances would not be completed within the
deadlines, leaving the federal government to pay most of these
costs. The Pine River Irrigation District, however, would be
required to prepare and submit a plan for management of the
Vallecito Dam and Reservoir before that project could be
conveyed. In addition, some of the local authorities would be
required to pay the present value of their outstanding
obligations to the United States before the facilities could be
conveyed, and one would be required to pay fair market value
for certain project lands designated for transfer. CBO
estimates that these payments would total about $93 million.
Finally, local authorities would assume responsibility for
operating and maintaining the facilities once they are
conveyed.
At least two local authorities would receive monetary
benefits from enactment of this bill. The Carlsbad Irrigation
District would begin to receive all revenues from grazing
permits and oil and gas leases on transferred lands, which CBO
estimates would total about $200,000 per year. The Pine River
Irrigation District would be able to avoid paying certain water
use charges, which CBO estimates would total less than $50,000,
beginning in 2005.
Estimated impact on the private sector: The bill would
impose no new private-sector mandates as defined in UMRA.
Previous CBO estimates: CBO provided an estimate for this
bill on September 15, 1998. CBO's estimate of the budgetary
impact of enacting H.R. 4389 over the 1999-2008 period is
unchanged. This revised estimate clarifies that whether
conveying the Pine River Project would result in a loss of
offsetting receipts beginning in 2005 is uncertain and that the
potential loss would be less than $50,000 annually. The
original estimate stated that conveying the project would
result in a loss of receipts and indicated only that the annual
loss would be less than $500,000 per year. This revised
estimate also clarifies that H.R. 4389 would not result in a
loss of regularly scheduled repayments over the 2036-2038
period.
On August 13, 1998, CBO provided an estimate for S. 2087,
the Wellton-Mohawk Title Transfer Act of 1998, as ordered
reported by the Senate Committee on Energy and Natural
Resources on July 29, 1998. CBO estimated that enacting this
bill would result in additional spending of about $1 million
over the next two years, assuming appropriation of the
necessary amounts. CBO's estimate of the level of
appropriations required for transferring the Gila Project under
H.R. 4389 is the same. In contrast to S. 2087, however, H.R.
4389 also would require the district to pay fair market value
for certain lands prior to conveyance. CBO estimates that the
district will pay a minimum of about $2 million for these
lands.
On October 31, 1997, CBO provided an estimate for S. 538, a
bill to authorize the Secretary of the Interior to convey
certain facilities of the Minidoka project to the Burley
Irrigation District, and for other purposes, as ordered
reported by the Senate Committee on Energy and Natural
Resources on October 22, 1997. CBO estimated that implementing
the bill would require new spending subject to appropriation of
less than $100,000 over two years. The provisions of H.R. 4389
are similar and so are the estimates.
Estimate prepared by: Federal Costs: Gary Brown. Impact on
State, Local, and Tribal Governments: Marjorie Miller.
Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.

COMPLIANCE WITH PUBLIC LAW 104-4

H.R. 4389 contains no unfunded mandates.

CHANGES IN EXISTING LAW

If enacted, H.R. 4389 would make no changes in existing
law.

DISSENTING VIEWS

While the Committee has come a long way toward eliminating
the most egregious provisions of the Subcommittee's mark-up on
Bureau of Reclamation project transfers, there are several
remaining issues that lead me to dissent from reporting this
legislation.
First, by insisting that the project transfer bills be
grouped into a single bill and burdened with boilerplate
language for each transfer, the Committee has created new
issues where none existed before, and held some relatively non-
controversial transactions hostage to the more dubious
proposals. The elimination of National Environmental Policy Act
and Endangered Species Act ``sufficiency'' language has made
this boilerplate text more palatable, but the transfer
deadlines set in the bill still force widely varying
transactions that raise widely varying public issues into a
single narrow process.
In addition, there are significant substantive issues
remaining in several of the transfers. For the Pacific
Northwest, the transfer of water rights to the Burley
Irrigation District in Title II raises questions regarding the
Minidoka Project's future contribution to regional salmon
recovery efforts. While every interested party in the region is
being asked to make some sacrifice to redress past damage to
salmon stocks, the Burley Irrigation District will apparently
be reducing its obligation by eliminating the federal interest
in its water rights.
Furthermore, an outstanding issue that has not been
resolved despite repeated attempts at negotiation is whether
the Palmetto Bend Project might be used after transfer to wheel
water out of the Colorado River of Texas. The Subcommittee
added language to Title IV intended to deter such use of the
project, but that language would still allow the new project
owners to use the project to divert water from the Colorado,
with project water then substituted for the Colorado River
water in order to move the water further away from the river
basin. Such use of the project would not currently be allowable
without an amendment to the Warren Act, and Colorado River
basin interests have raised serious questions regarding whether
transferring title to the project will simply be used as a
mechanism to skirt the Warren Act restrictions.
Apart from these issues of project management, I still have
significant fiscal concerns regarding the approach to project
transfers taken in H.R. 4389. Two of the project transfers
contained in this bill raise specific financial questions:
(1) In Title III, the Carlsbad Irrigation District will be
receiving the right to future income from project lands,
including oil and gas royalties with a present value of nearly
$2 million. In exchange for this income, the Carlsbad District
will take on operation and maintenance obligations at Sumner
Dam--an obligation that currently costs about $28,000 per year.
This is not a good deal for the taxpayers. If the Carlsbad
District wishes to take over portions of the project, then
portions of the O&M obligation should go with that. The
windfall oil and gas royalties are simply a direct giveaway of
income owed to the Treasury.
(2) In Title VIII, the Pine River Irrigation District is
being given \5/6\ of the Vallecito Dam and Reservoir at no
cost, despite the Pine River District's agreement with the
Bureau of Reclamation to pay $193,000 toward the value of
converting project water to municipal supply. The Pine River
District reiterated that commitment in recent letters to the
Congress, yet the Committee has decided to eliminate the
payment from the bill.
In addition to these specific financial concerns, I am
troubled that the transfer proposals here do not provide any
further payment to the taxpayers based on their substantial
past investment in the projects. As with all Reclamation
projects, the project beneficiaries are making payments on
these projects at a highly subsidized rate. Even after the
``repayment period'' has ended, a substantial portion of the
project costs generally remain unpaid, and title to the
projects remains with the federal government. The approach
taken by the bill would simply give away the title to the
projects for free once that limited repayment is completed. As
stewards of the Federal Treasury, I question whether we should
be giving away these valuable assets for nothing. The Committee
has not adequately explored this issue of the proper value to
place on Federal property, and the bill should not be passed
without further examination of the question.
Peter DeFazio.}}}}}}}}}}}}}}}}}}}}}