[House Report 106-257]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    106-257

======================================================================



 
                      WELLTON-MOHAWK TRANSFER ACT

                                _______
                                

 July 26, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


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

                              R E P O R T

                        [To accompany H.R. 841]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 841) to authorize the Secretary of the Interior to convey 
certain works, facilities, and titles of the Gila Project, and 
designated lands within or adjacent to the Gila Project, to the 
Wellton-Mohawk Irrigation and Drainage District, 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:

SECTION 1. SHORT TITLE.

  This Act may be referred to as the ``Wellton-Mohawk Transfer Act''.

SEC. 2. TRANSFER.

  The Secretary of the Interior (``Secretary'') is directed to carry 
out the terms of the Memorandum of Agreement No. 8-AA-34-WAO14 
(``Agreement'') dated July 10, 1998, between the Secretary and the 
Wellton-Mohawk Irrigation and Drainage District (``District'') 
providing for the transfer of works, facilities, and lands to the 
District, including conveyance of Acquired Lands, Public Lands, and 
Withdrawn Lands, as defined in the Agreement.

SEC. 3. WATER AND POWER CONTRACTS.

  Notwithstanding the transfer, 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 
or supplements thereto or extensions thereof and as provided under 
section 2 of the Agreement.

SEC. 4. SAVINGS.

  Nothing in this Act shall affect any obligations under the Colorado 
River Basin Salinity Control Act (Public Law 93-320; 43 U.S.C. 1571 et 
seq.).

SEC. 5. REPORT.

  If transfer of works, facilities, and lands pursuant to the Agreement 
has not occurred by July 1, 2000, the Secretary shall report on the 
status of the transfer as provided in section 5 of the Agreement.

SEC. 6. AUTHORIZATION.

  There are authorized to be appropriated such sums as may be necessary 
to carry out the provisions of this Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 841 is to authorize the Secretary of 
the Interior to convey certain works, facilities, and titles of 
the Gila Project, and designated lands within or adjacent to 
the Gila Project, to the Wellton-Mohawk Irrigation and Drainage 
District, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    Bureau of Reclamation (BOR) facility transfers has been of 
particular interest to Congress, local irrigation districts, 
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), 
BOR, which is part of the Department of the Interior, initiated 
a program in 1995 to transfer ownership of some of its 
facilities to non-federal entities. However, to date, the 
Administration has not presented a legislative proposal for 
project transfers. During the 105th Congress, two legislatively 
initiated BOR transfers bills were signed into law that 
directed the Secretary of the Interior to convey all right, 
title, and interest of the United States in and to specified 
project facilities.
    Much of the momentum for these transfers comes from local 
irrigation districts that are seeking title to these projects. 
The federal government holds title to more than 600 BOR water 
projects throughout the West. A growing number of these 
projects are now paid out and operated and maintained by local 
irrigation districts. The districts seek to have the facilities 
transferred to them since many of the districts now have the 
expertise needed to manage the systems and can do so more 
efficiently then the federal government. BOR has already 
transferred operation and maintenance responsibilities for 
about 400 of the projects to local irrigation districts. 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 in remote locations 
and at a time when there were no local communities and 
utilities near the BOR project. 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 BOR now owns and 
operates public facilities that would be owned, operated, and 
funded by private corporations or local government agencies if 
they were constructed today.
    Legislative initiatives to transfer the title of BOR 
facilities have been in play for many years. Two bills enacted 
during the 105th Congress and signed into law directed the 
Secretary of Interior to convey all right, title, and interest 
of the United States in and to selected project features to the 
Burley Irrigation District and the Canadian River Project. See 
Public Law 105-351 and Public Law 105-316. In addition, Title 
XIV of Public Law 102-575 directed the Secretary to transfer 
the Rio Grande Project in New Mexico to the local irrigation 
district, once the local irrigation district consented to amend 
a contract.

Background of the Gila Project

    The Gila Project in western Arizona was originally 
authorized for construction under a finding of feasibility 
approved by the President on June 21, 1937, pursuant to section 
4 of the Act of June 25, 1910 (36 Stat. 836), and subsection B 
of section 4 of the Act of December 5, 1924 (43 Stat. 701). It 
was reauthorized and reduced in area to 115,000 acres by the 
Act of July 30, 1947 (61 Stat. 628). Further reduction in 
irrigable acreage of the Wellton-Mohawk Division was authorized 
by the Colorado River Basin Salinity Control Act of June 24, 
1974 (88 Stat. 266). Project construction was begun in 1936, 
and the first water was 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 project was 
essentially complete by June 30, 1957. The Wellton-Mohawk 
Irrigation and Drainage District operates the irrigation 
facilities in the Wellton-Mohawk Division.
    Wellton-Mohawk has fully repaid its project costs and was 
provided a certificate of discharge on November 27, 1991. On 
July 10, 1998, the District and BOR signed a Memorandum of 
Agreement that covers the details of the transfer of title. It 
includes transfer of lands between the federal government and 
the District, including the acquisition of additional lands for 
exchange. All transfers will be at fair market value. 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.

                            COMMITTEE ACTION

    H.R. 841 was introduced on February 24, 1999, by 
Congressman Ed Pastor (D-AZ). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On March 11, 1999, the 
Subcommittee met to mark up the bill. Congressman John 
Doolittle offered an amendment to the bill that would direct 
the Secretary of Interior, rather than authorize, to transfer 
the project works. The amendment was adopted by voice vote. The 
bill was then ordered favorably reported to the Full Committee 
by voice vote. On March 17, 1999, the Full Resources Committee 
met to consider the bill. No amendments were offered and the 
bill was then ordered favorably reported to the House of 
Representatives by voice vote.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    The short title of the bill is the Wellton-Mohawk Transfer 
Act.

Section 2. Transfer

    The section directs the Secretary of Interior to convey 
certain facilities of the Gila Project, Arizona, to the 
Wellton-Mohawk Irrigation and Drainage District pursuant to a 
Memorandum of Agreement (MOA) between the Bureau and the 
District that was signed on July 10, 1998. The MOA states:

          The goal of Reclamation and the District is that 
        within one hundred eighty days of the execution of the 
        Title Transfer Contract, the Secretary shall convey to 
        the District all right, title and interest of the 
        United States to the facilities, works and lands to be 
        conveyed and transferred to the District; provided, 
        that such transfer is not otherwise directed by 
        Congress.

    Furthermore, pursuant to the MOA, the bill 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.
    Additionally, the Committee expects that title transfer 
should occur in an open and fair public process within the 
affected community. The Committee 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 the Committee 
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 the Committee to have it done in 
a timely manner.

Section 3. Water and power contracts

    This section requires the Secretary of the Interior and the 
Secretary of Energy to continue to provide water and power as 
provided under existing contracts and as provided under the 
MOA.

Section 4. Savings

    This Section clarifies the application of the Colorado 
River Basin Salinity Control Act (43 U.S.C. 1571 et seq.).

Section 5. Report

    This Section requires the Secretary to issue a report if 
the transfer has not occurred by July 1, 2000.

Section 6. Authorization

    This Section authorizes an appropriation of such sums as 
may be necessary.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII 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 and Article IV, Section 3 of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B) 
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 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
Section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office, 
enactment of the bill would increase offsetting receipts by 
approximately $2 million from the sale of federal land.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII 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 on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII 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 this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 18, 1999.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 841, the Wellton-
Mohawk Transfer Act.
    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,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               congressional budget office cost estimate

H.R. 841--Wellton-Mohawk Transfer Act

    Summary: H.R. 841 would authorize the appropriation of such 
sums as are necessary to implement a memorandum of agreement 
between the Bureau of Reclamation (the bureau) and the Wellton-
Mohawk Irrigation and Drainage District (the district) 
regarding transfer of the federally owned Gila Irrigation 
Project to the district. The bill would give each party the 
discretion to exchange with each other, or purchase at fair 
market value, lands relating to the project.
    CBO estimates that implementing this bill would result in 
additional spending of about $500,000 by the bureau over the 
2000-2001 period, assuming appropriation of the necessary 
amounts. In addition, CBO estimates that the district would pay 
a minimum of about $2 million in 2002 for certain federally 
owned lands. Because the bill would affect direct spending by 
increasing offsetting receipts from the sale of federal land, 
pay-as-you-go procedures would apply.
    H.R. 841 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. 841 is shown in the following table. 
The cost of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
Changes in direct spending:\1\
    Estimated budget authority............................        0        0        0       -2        0        0
    Estimated outlays.....................................        0        0        0       -2        0        0
----------------------------------------------------------------------------------------------------------------
\1\ Implementing the bill would also affect spending subject to appropriation, but in amounts less than $500,000
  a year (for 2000 and 2001).

    Basis of estimate: For the purpose of this estimate, CBO 
assumes that H.R. 841 will be enacted by the end of fiscal year 
1999 and that the estimated amounts necessary to implement the 
bill will be appropriated for fiscal year 2000. Based on 
information from the bureau, CBO estimates that the federal 
share of costs for implementing the transfer of the federally 
owned irrigation project would be about $500,000, spread over 
fiscal years 2000 and 2001. These funds would pay for necessary 
environmental studies and legal transactions. The estimate of 
outlays is based on historical rates of spending for these 
activities.
    H.R. 841 would give the district and the bureau the 
discretion to exchange, or purchase at fair market value, lands 
relating to the project. Based on information provided by the 
bureau, CBO estimates that the district would pay a minimum of 
about $2 million in 2002 for certain lands. That payment would 
be recorded as offsetting receipts (a credit against direct 
spending). Based on information provided by the bureau, CBO 
estimates that the government would not forgo any income by 
completing these transactions. In addition, we estimate that 
completing the land transfers would have no significant impact 
on spending subject to appropriation.
    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. For the purposes 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 year, in millions of dollars--
                                                                 ---------------------------------------------------------------------------------------
                                                                   1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Changes in outlays..........................................       0       0       0      -2       0       0       0       0       0       0       0
    Changes in receipts.........................................                                      Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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.
    Estimated impact on state, local and tribal governments: 
H.R. 841 contains no intergovernmental mandates as defined in 
UMRA. The district has agreed to pay a share of the costs to 
implement this transfer as part of its memorandum of agreement 
with the bureau. These costs, which CBO estimates would equal 
about $1 million, were voluntarily accepted by the district as 
part of that agreement. The decision to purchase land from the 
federal government also would be voluntary on the part of the 
district.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimate: On March 11, 1999, CBO prepared an 
estimate for S. 356, the Wellton-Mohawk Transfer Act, as 
ordered reported by the Senate Committee on Energy and Natural 
Resources on March 4, 1999. The two bills are similar and the 
estimates are the same.
    Estimate prepared by: Federal costs: Gary Brown. Impact on 
State, local, and tribal governments: Marjorie Miller.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    compliance with public law 104-4

    This bill contains no unfunded mandates.

                preemption of state, local or tribal law

    This bill is not intended to preempt State, local or tribal 
law.

                        changes in existing law

    If enacted, this bill would make no changes in existing 
law.

                                  
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