[Senate Report 106-96]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 178
106th Congress                                                   Report
                                 SENATE
 1st Session                                                     106-96

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



 
      DESCHUTES RESOURCES CONSERVANCY REAUTHORIZATION ACT OF 1999

                                _______
                                

                 June 24, 1999.--Ordered to be printed

                                _______


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1027]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1027) to reauthorize the participation of 
the Bureau of Reclamation in the Deschutes Resources 
Conservancy, and for other purposes, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                         Purpose of the Measure

    The purpose of S. 1027 is to authorize the Bureau of 
Reclamation to continue participation in the Deschutes 
Resources Conservancy from 2004 through 2006. It would also 
increase the appropriations ceiling from $1 million to $2 
million annually.

                          Background and Need

    The Deschutes Resources Conservancy was authorized in 1996 
as a five-year pilot project designed to achieve local 
consensus on projects to improve ecosystem health in the 
Deschutes River basin. The Deschutes drains Oregon's high 
desert along the eastern front of the Cascade Mountains and 
eventually flows into the Columbia River. The river is used for 
recreation and irrigation. The Deschutes basin also contains 
hundreds of thousands of acres of productive forest and 
rangelands, serves the treaty fishing and water rights of The 
Confederated Tribes of Warm Springs, and has Oregon's largest 
non-federal hydroelectric project.
    Projects funded through the Conservancy include: piping 
irrigation district delivery systems to prevent water loss; 
securing water rights for instream flows to restore flows to 
Squaw Creek; providing riparian fences to protect riverbanks; 
working with private timberland owners to restore riparian and 
wetlands areas; and seeking donated water rights to enhance 
instream flows in the Deschutes River basin.
    The existing authorization provides up to $1 million each 
year for projects. Funding is provided through the Bureau of 
Reclamation, the lead federal agency. S. 1027 would reauthorize 
the five-year pilot project from 2002 to 2006 and increase the 
authorization ceiling to $2 million annually.

                          Legislative History

    S. 1027 was introduced by Senators Smith and Wyden on May 
12, 1997. The Subcommittee on Water and Power held a hearing on 
S. 1027 on May 27, 1999. At the business meeting on June 16, 
1999, the Committee on Energy and Natural Resources ordered S. 
1027 favorably reported, without amendment.

           Committee Recommendations and Tabulation of Votes

    The Committee on Energy and Natural Resources, in open 
business session on June 16, 1999, by a unanimous vote of a 
quorum present, recommends that the Senate pass S. 1027 as 
described herein.

                           Summary of S. 1027

    S. 1027 authorizes $2,000,000 for each of fiscal years 2002 
through 2006 for the Deschutes Resources Conservancy.

                     Cost and Budget Considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 21, 1999.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy, and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1027, the Deschutes 
Resources Conservancy Reauthorization Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kim Cawley 
(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

S. 1027--Deschutes Resources Conservancy Reauthorization Act of 1999

    Summary: S. 1027 would authorize the appropriation of $10 
million over the 2002-2006 period for ecosystem restoration in 
the Deschutes River Basin. Assuming appropriation of the 
authorized amounts, CBO estimates that implementing S. 1027 
would result in additional discretionary spending of $5 million 
over the 2002-2004 period, with the remaining $5 million to be 
spent after 2004. The legislation would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply. S. 1027 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA). State and local governments would probably incur some 
costs to match the funds authorized by this bill, but these 
costs would be voluntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1027 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment). For the purposes of this 
estimate, CBO assumes that the amounts authorized in the bill 
will be appropriated for each year and that outlays will follow 
the historical spending pattern for similar activities.

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Authorization Level \1\.........................         1         1         1         0         0         0
    Estimated Outlays...............................       \2\         1         1       \2\       \2\         0
Proposed Changes:
    Authorization Level.............................         0         0         0         2         2         2
    Estimated Outlays...............................         0         0         0         1         2         2
Spending Under S. 1027:
    Authorization Level \1\.........................         1         1         1         2         2         2
    Estimated Outlays...............................       \2\         2         1         2         2         2
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.
\2\ Less than $500,000.

    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
S. 1027 contains no intergovernmental mandates as defined in 
UMRA. State and local governments would probably incur some 
costs to match the funds authorized by this bill, but these 
costs would be voluntary. Under current law, all federal 
expenditures for Deschutes Basin ecosystem restoration projects 
must be matched by an equal amount of nonfederal contributions, 
including in-kind contributions. This requirement would apply 
to the funds authorized by this bill.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Kim Cawley; impact on 
State, local, and tribal governments: Marjorie Miller.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.s

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1027. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1027, and ordered reported.

                        Executive Communications

    On June 18, 1999, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 1027. These 
reports had not been received at the time the report on S. 1027 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the 
Department of the Interior at the Subcommittee hearing follows:

  Statement of Patricia J. Beneke, Assistant Secretary for Water and 
                  Science, Department of the Interior

    My name is Patricia J. Beneke, I am Assistant Secretary for 
Water and Science within the U.S. Department of the Interior. 
The Bureau of Reclamation is one of the bureaus that I oversee. 
I am pleased to provide the Administration testimony on S. 
1027.
    S. 1027 reauthorizes the participation of the Bureau of 
Reclamation in the Deschutes Resources Conservancy and raises 
that ceiling to $2,000,000 for each fiscal year through 2006. 
The Department could support this legislation if amended to 
reduce the annual funding authorization to extend his pilot 
project.
    Mr. Chairman, in 1996, Congress adopted the Deschutes Basin 
Act of 1996 (P.L. 104-208, Division B) as a five year pilot 
project designed to achieve local consensus for on-the-ground 
projects to improve the ecosystem in the Deschutes River basin. 
Reclamation operates the Deschutes Project in this basin so it 
makes sense for it to be a partner in the Deschutes restoration 
activities. As a part of that bill, the Bureau of Reclamation 
was authorized to participate in the development, design and 
construction of ecosystem restoration projects in the Deschutes 
River Basin in Oregon. Because of the heavy and often 
conflicting demands on the water and the resources of the 
Deschutes River, a consortium of Deschutes basin business 
leaders, the Confederated Tribes of the Warm Springs, the 
Environmental Defense Fund, basin irrigation districts, local 
environmental groups and other private interests formed the 
Deschutes River Basin Working Group (now the Deschutes River 
Basin Conservancy) to undertake ecosystem restoration projects 
in this basin. Working under a consensus-based decision-making 
process, the Conservancy recommends projects that will yield 
both environmental and economic benefits in the basin. Under 
P.L. 104-208, Reclamation funds are used to cost-share for no 
more than 50 percent of the project costs. The remaining 
balance must come from local partners.
    While the Conservancy got a delayed start, there has been 
widespread praise for the consensus-based process and for the 
excellent work that has begun. It has brought diverse interests 
together, who were at odds in the past, to find locally driven 
solutions to difficult natural resource problems. Furthermore, 
the Conservancy has been able to leverage the limited Federal 
funds to initiate and complete a number of important on-the-
ground restoration projects including: lining and piping 
irrigation canals to reduce losses and conserve water, using 
market-based methods to secure water rights through purchase 
and donation for in-stream flows throughout the Deschutes 
Basin, and working with farmers, timberland owners, and 
ranchers to protect and restore riverbanks, wetlands, and 
riparian areas which serve as vital habitat for threatened and 
endangered fish and wildlife species. In many cases, local 
landowners, who were otherwise disinclined to work with the 
Federal agencies or local environmental groups, were 
enthusiastic about cooperating with the Conservancy because of 
the broad-base of local involvement and leadership of the 
group.
    Reclamation is proud of its role with the Conservancy. the 
Department believes that the most effective means to address 
water and natural resource issues is to develop solutions based 
on consensus with local landowners and citizens on a watershed 
basis. Furthermore, in the short time that the Conservancy has 
been in operation, they have leveraged a limited amount of 
Federal funds to accomplish a significant number of important 
projects which will benefit national objectives related to 
water quality and environment enhancement as well as protect 
and even stimulate the local economy.
    While we support reauthorization of this program, given the 
fiscal realities and our budgetary squeeze, we are concerned 
about the proposed increase in the authorization ceiling from 
$1 million to $2 million proposed in S. 1027. In 1997 and 1998, 
because of our budgetary situation and the fact that 
Reclamation was unable to program funds prior to the project 
being authorized, no funds were appropriated for Reclamation 
for this program. In 1999, we were appropriated $500,000 for 
this program, or half the authorized and requested level. For 
FY 2000, Reclamation was able to include $1 million for this 
program in our request. While we support the reauthorization of 
the Deschutes River Conservancy, and our participation in it, 
given our tight budgetary situation and projections for 
declining budgets in the future, an increase in the 
authorization ceiling from $1 million to $2 million is 
unrealistic. As such, we recommend that the ceiling be 
reauthorized at $1 million.
    Again, Mr. Chairman, the Department supports the 
reauthorization of this program to continue the excellent and 
cost-effective work that has begun. It will also enable the 
Conservancy to better meet the goals envisioned when the 
Congress passed the Deschutes Basin Act in 1996. We look 
forward to working with the Conservancy in the future.
    That concludes my testimony, I would be pleased to answer 
any questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1027, as ordered reported, are shown as follows 
(new matter is printed in italic, existing law in which no 
change is proposed is shown in roman):

                   Public Law 104-208, 104th Congress


 An Act making omnibus consolidated appropriations for the fiscal year 
           ending September 30, 1997, and for other purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

           *       *       *       *       *       *       *


                       TITLE III--DESCHUTES BASIN

SEC. 301: DESCHUTES BASIN ECOSYSTEM RESTORATION PROJECTS.

    (b) In General.--

           *       *       *       *       *       *       *

         (3) The Bureau of Reclamation shall pay from funds 
        authorized under subsection (h) of this title up to 50 
        percent of the cost of performing any project proposed 
        by the Working Group and approved by the Secretary, up 
        to a total amount of $1,000,000 during each of the 
        fiscal years 1997 through 2001, and up to a total 
        amount of $2,000,000 during each of fiscal years 2002 
        through 2006.

           *       *       *       *       *       *       *

    (h) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this title $1,000,000 for each 
of fiscal years 1997 through 2001, and $2,000,000 for each of 
fiscal years 2002 through 2006.

           *       *       *       *       *       *       *


                                  
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