[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.

  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.

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.

  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 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.