[House Report 107-554]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-554

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



 
         AMENDMENTS TO THE CENTRAL UTAH PROJECT COMPLETION ACT

                                _______
                                

  July 8, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 4129]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 4129) to amend the Central Utah Project Completion Act to 
clarify the responsibilities of the Secretary of the Interior 
with respect to the Central Utah Project, to redirect 
unexpended budget authority for the Central Utah Project for 
wastewater treatment and reuse and other purposes, to provide 
for prepayment of repayment contracts for municipal and 
industrial water delivery facilities, and to eliminate a 
deadline for such prepayment, 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 all after the enacting clause and insert the 
following:

SECTION 1. AMENDMENTS TO THE CENTRAL UTAH PROJECT COMPLETION ACT.

  (a) Treatment of Investigation Costs.--Section 201(b) of the Central 
Utah Project Completion Act (106 Stat. 4607) is amended following 
paragraph (2) by inserting the following: ``All amounts previously 
expended in planning and developing the projects and features described 
in this subsection including amounts previously expended for 
investigation of power features in the Bonneville Unit shall be 
considered non-reimbursable and non-returnable.''.
  (b) Clarification of Secretarial Responsibilities.--Section 201(e) of 
the Central Utah Project Completion Act (106 Stat. 4608) is amended--
          (1) in the first sentence--
                  (A) by striking ``identified in this Act'' and 
                inserting ``identified in this title and the Act of 
                April 11, 1956 (chapter 203; 70 Stat. 110 et seq.), 
                popularly known as the Colorado River Storage Project 
                Act,''
                  (B) by inserting ``relating to the Bonneville Unit of 
                the Central Utah Project including oversight for all 
                phases of the Bonneville Unit, the administration of 
                all prior and future contracts, operation and 
                maintenance of previously constructed facilities'' 
                before ``and may not delegate'';
                  (C) by striking ``his responsibilities under this 
                Act'' and inserting ``such responsibilities'';
                  (D) by striking the period after ``Reclamation'' and 
                inserting: ``, except through the pilot management 
                program hereby authorized. The pilot management program 
                will exist for a period not to exceed 5 years and shall 
                provide a mechanism for the Secretary and the District 
                to create a mutually acceptable organization within the 
                Bureau of Reclamation to assist the Secretary in his 
                responsibilities for the long-term management of the 
                Bonneville Unit. Such pilot management program may be 
                extended indefinitely by mutual agreement between the 
                Secretary and the District.'';
          (2) in the second sentence--
                  (A) by inserting ``technical'' before ``services'';
                  (B) by inserting ``for engineering and construction 
                work'' before ``on any project features'';
          (3) by inserting at the end thereof the following new 
        sentence: ``These provisions shall not affect the 
        responsibilities of the Bureau of Reclamation and the Western 
        Area Power Administration regarding all matters relating to all 
        Colorado River Storage Project power functions, including all 
        matters affecting the use of power revenues, power rates and 
        ratemaking.''.
  (c) Municipal and Industrial Water.--Section 202(a)(1)(B) of the 
Central Utah Project Completion Act (106 Stat. 4608) is amended in the 
last sentence by inserting ``and municipal and industrial water'' after 
``basin''.
  (d) Use of Unexpended Budget Authority.--Section 202(c) of the 
Central Utah Project Completion Act (106 Stat. 4611) is amended--
          (1) in the first sentence--
                  (A) by striking ``in this title up to $60,000,000'' 
                and inserting ``for units of the Central Utah 
                Project''; and
                  (B) by inserting ``including use of reverse osmosis 
                membrane technologies, water recycling, and conjunctive 
                use, to stabilize high mountain lakes and appurtenant 
                facilities, to develop power,'' after ``conservation 
                measures,''; and
          (2) in the last sentence strike ``section 202(a)(1)'' and 
        insert ``sections 202(a)(1), 205(b), and Title VI''.
  (e) Prepayment of Repayment.--Section 210 of the Central Utah Project 
Completion Act (106 Stat. 4624) is amended--
          (1) in the second sentence--
                  (A) by inserting ``or any additional or supplemental 
                repayment contract'' after ``1985,''; and
                  (B) by inserting ``of the Central Utah Project'' 
                after ``water delivery facilities''; and
          (2) by striking ``The District shall exercise'' and all that 
        follows through the end of that sentence.

                          Purpose of the Bill

    The purpose of H.R. 4129 is to amend the Central Utah 
Project Completion Act to clarify the responsibilities of the 
Secretary of the Interior with respect to the Central Utah 
Project, to redirect unexpended budget authority for the 
Central Utah Project for wastewater treatment and reuse and 
other purposes, to provide for prepayment of repayment 
contracts for municipal and industrial water delivery 
facilities, and to eliminate a deadline for such prepayment.

                  Background and Need for Legislation

    The Central Utah Project (CUP) was authorized in 1956 as 
part of the Colorado River Storage Project Act. Construction 
began by the Bureau of Reclamation (Reclamation) in 1964 and 
continues presently. CUP develops Utah's share of Colorado 
river water for use in 10 counties in central Utah.
    In 1992 legislation known as the Central Utah Project 
Completion Act (CUPCA) was enacted. CUPCA reauthorized 
appropriations for CUP with over $900 million to complete the 
project over the next several decades. The 1992 legislation 
gave the planning and construction responsibilities for the 
project to the Central Utah Water Conservancy District rather 
than Reclamation. CUPCA also established a federal commission 
charged with the responsibility of providing environmental 
mitigation and enhancement for the project.
    This legislation amends section 201(e) of CUPCA to clarify 
that the Secretary of the Interior continues to retain full 
responsibility for CUP even after the construction phase is 
completed. The amended legislation allows for the construction 
of facilities for municipal and industrial water uses within 
the Bonneville Unit of CUP. The legislation also allows for the 
use of unexpended budget authority for reverse osmosis membrane 
technologies, water recycling and conjunctive use. The 
legislation also provides the opportunity to prepay additional 
repayment obligations, which will be associated with new 
municipal and industrial features being constructed. The 
legislation does not increase the total amount authorized to be 
expended to complete CUP.

                            Committee Action

    H.R. 4129 was introduced on April 10, 2002, by Congressman 
Chris Cannon (R-UT). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Water and Power. The Subcommittee held a hearing on the bill on 
April 24, 2002. On May 22, 2002, the Full Resources Committee 
met to consider the bill. The Subcommittee on Water and Power 
was discharged from further consideration of the bill by 
unanimous consent. Mr. Cannon offered an amendment to provide 
for the use of water for municipal and industrial use. The 
amendment was adopted by unanimous consent. No further 
amendments were offered and the bill as amended was ordered 
favorably reported to the House of Representatives by unanimous 
consent.

            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 of the Constitution of the United 
States grants 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 this bill would result in a loss of offsetting 
receipts (a credit against direct spending) beginning in 2005.
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives does not 
apply.
    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, July 1, 2002.
Hon. James V. Hansen,
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. 4129, a bill to 
amend the Central Utah Project Completion Act to clarify the 
responsibilities of the Secretary of the Interior with respect 
to the Central Utah Project, to redirect unexpended budget 
authority for the Central Utah Project for wastewater treatment 
and reuse and other purposes, to provide for prepayment of 
repayment contracts for municipal and industrial water delivery 
facilities, and to eliminate a deadline for such prepayment.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 4129--A bill to amend the Central Utah Project Completion Act to 
        clarify the responsibilities of the Secretary of the Interior 
        with respect to the Central Utah Project, to redirect 
        unexpended budget authority for the Central Utah Project for 
        wastewater treatment and reuse and other purposes, to provide 
        for prepayment of repayment contracts for municipal and 
        industrial water delivery facilities, and to eliminate a 
        deadline for such prepayment

    Summary: H.R. 4129 would make several amendments to the 
Central Utah Project Completion Act (CUPCA). These amendments 
include provisions that would make certain federal planning and 
development costs nonreimbursable and remove a deadline for the 
prepayment of water project construction costs under existing 
authority.
    Based on information from the Department of the Interior, 
CBO estimates that enacting this bill would result in a loss of 
offsetting receipts (a credit against direct spending) of 
nearly $1 million each year, totaling about $43 million over 
the 50-year period beginning in 2005. Enacting H.R. 4129 would 
affect direct spending; therefore, pay-as-you-go procedures 
would apply.
    H.R. 4129 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4129 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).


----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2002     2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                         CHANGES IN DIRECT SPENDING \1\

Estimated budget authority................................        0        0        0        1        1        1
Estimated outlays.........................................        0        0        0        1        1       1
----------------------------------------------------------------------------------------------------------------
\1\ The costs of enacting the bill would continue at about $1 million a year for 50 years.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
4129 will be enacted in fiscal year 2002. Two provisions of the 
bill could impact the federal budget. First, it would make 
certain federal planning and development costs for the Central 
Utah Project nonreimbursable. It also would remove the current 
2020 deadline for the project beneficiaries to prepay certain 
construction costs for a portion of the Central Utah Project 
that is not yet completed. The other provisions of H.R. 4129 
would have no significant impact on the federal budget.
    Based on information from the Department of the Interior, 
CBO estimates that about $26 million in previously expended 
investigative costs would become nonreimbursable by project 
beneficiaries under this bill. For this estimate, CBO assumes 
that the loss of these receipts would occur over a typical 50-
year repayment period starting in 2005. Including both 
principal and interest payments, CBO estimates that this 
provision would result in the loss of $43 million in receipts 
over that period.
    H.R. 4129 also would change the date that the federal 
government would receive the final payment for a water project 
contract under CUPCA. Under current law, the local water 
district is required to pay the final installment of the 
contract of about $270 million by the end of fiscal year 2002. 
The construction of the water project, however, is only two-
thirds complete. The Department of the Interior expects that 
the water project will be completed in 2005, assuming adequate 
funds are appropriated each year to complete construction. 
Because construction of the water project is not complete, the 
district cannot generate operating income to make the final 
payment. CBO does not expect the final project payment will be 
made in 2002 under current law. Extending the deadline would 
not cause the payment to occur later because that payment is 
contingent upon completion of the project (which, in turn, 
depends on the availability of appropriated funds).
    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 through 2006 are 
counted.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, in millions of dollars--
                                                                 ---------------------------------------------------------------------------------------
                                                                   2002    2003    2004    2005    2006    2007    2008    2009    2010    2011    2012
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays..............................................       0       0       0       1       1       1       1       1       1       1       1
Changes in receipts.............................................                                      Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 4129 
contains no intergovernmental or private-sector mandates as 
defined in the UMRA and would impose no costs on state, local, 
or tribal governments.
    Estimate prepared by: Federal costs: Julie Middleton; 
impact on state, local, and tribal governments: Majorie Miller; 
impact on the private sector: Cecil McPherson.
    Estimate approved by: Peter H. Fontaine, 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 any State, local or 
tribal laws.

         Changes in Existing Law Made by the Bill, as Reported

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

                 CENTRAL UTAH PROJECT COMPLETION ACT

           *       *       *       *       *       *       *



SEC. 201. AUTHORIZATION OF ADDITIONAL AMOUNTS FOR THE COLORADO RIVER 
                    STORAGE PROJECT.

  (a)  * * *
  (b) Utah Reclamation Projects and Features Not To Be 
Funded.--Notwithstanding the Act of April 11, 1956 (70 Stat. 
110; 43 U.S.C. 105), the Act of August 10, 1972 (86 Stat. 525; 
43 U.S.C. 620k note), the Act of October 19, 1980 (94 Stat. 
2239; 43 U.S.C. 620), and the Act of October 31, 1988 (102 
Stat. 2826), funds may not be made available, obligated, or 
expended for the following Utah reclamation projects and 
features:
          (1)  * * *
          (2) Water development projects and features:
                  (A)  * * *

           *       *       *       *       *       *       *

Counties in which the projects and features described in this 
subsection were proposed to be located may participate in the 
local development projects provided for in section 206. All 
amounts previously expended in planning and developing the 
projects and features described in this subsection including 
amounts previously expended for investigation of power features 
in the Bonneville Unit shall be considered non-reimbursable and 
non-returnable.

           *       *       *       *       *       *       *

  (e) Secretarial Responsibility.--The Secretary is responsible 
for carrying out the responsibilities as specifically 
[identified in this Act] identified in this title and the Act 
of April 11, 1956 (chapter 203; 70 Stat. 110 et seq.), 
popularly known as the Colorado River Storage Project Act, 
relating to the Bonneville Unit of the Central Utah Project 
including oversight for all phases of the Bonneville Unit, the 
administration of all prior and future contracts, operation and 
maintenance of previously constructed facilities and may not 
delegate [his responsibilities under this Act] such 
responsibilities to the Bureau of Reclamation[.], except 
through the pilot management program hereby authorized. The 
pilot management program will exist for a period not to exceed 
5 years and shall provide a mechanism for the Secretary and the 
District to create a mutually acceptable organization within 
the Bureau of Reclamation to assist the Secretary in his 
responsibilities for the long-term management of the Bonneville 
Unit. Such pilot management program may be extended 
indefinitely by mutual agreement between the Secretary and the 
District. The District at its sole option may use the technical 
services of the Bureau of Reclamation for engineering and 
construction work on any project features. These provisions 
shall not affect the responsibilities of the Bureau of 
Reclamation and the Western Area Power Administration regarding 
all matters relating to all Colorado River Storage Project 
power functions, including all matters affecting the use of 
power revenues, power rates and ratemaking.

SEC. 202. BONNEVILLE UNIT WATER DEVELOPMENT.

  (a) Of the amounts authorized to be appropriated in section 
201, the following amounts shall be available only for the 
following features of the Bonneville Unit of the Central Utah 
Project:
          (1) Irrigation and drainage system.--(A)  * * *
          (B) The authorization to construct the features 
        provided for in subparagraph (A) shall expire if no 
        federally appropriated funds to construct such features 
        have been obligated or expended by the District in 
        accordance with this Act, unless the Secretary 
        determines the District has complied with sections 202, 
        204, and 205, within five years from the date of its 
        enactment, or such longer time as necessitated for--
                  (i)  * * *

           *       *       *       *       *       *       *

Provided, however, That in the event that construction is not 
initiated on the features provided for in subparagraph (A), 
$125,000,000 shall remain authorized pursuant to the provisions 
of this Act applicable to subparagraph (A) for the construction 
of alternate features to deliver irrigation water to lands in 
the Utah Lake drainage basin and municipal and industrial 
water, exclusive of the features identified in section 201(b).

           *       *       *       *       *       *       *

  (c) The Secretary is authorized to utilize any unexpended 
budget authority provided [in this title up to $60,000,000] for 
units of the Central Utah Project and such funds as may be 
provided by the Commission for fish and wildlife purposes, to 
provide 65 percent Federal share pursuant to section 204, to 
acquire water and water rights for project purposes including 
instream flows, to complete project facilities authorized in 
this title and title III, to implement water conservation 
measures, including use of reverse osmosis membrane 
technologies, water recycling, and conjunctive use, to 
stabilize high mountain lakes and appurtenant facilities, to 
develop power, and for the engineering, design, and 
construction of Hatchtown Dam in Garfield County and associated 
facilities to deliver supplemental project water from Hatchtown 
Dam. The District shall establish a viable minimum conservation 
pool in Hatchtown dam and shall ensure maintenance of viable 
instream flows in the Sevier River between Hatchtown dam and 
the Piute dam with the concurrence of the Commission and in 
consultation with the Division of Wildlife Resources of the 
State of Utah. The District shall comply with the provisions of 
[section 202(a)(1)] sections 202(a)(1), 205(b), and Title VI 
with respect to the features to be provided for in this 
subsection.

           *       *       *       *       *       *       *


SEC. 210. JORDAN AQUEDUCT PREPAYMENT.

  Under such terms as the Secretary may prescribe, and within 
one year of the date of enactment of this Act, the Secretary 
shall allow for the prepayment, or shall otherwise dispose of, 
repayment contracts entered into among the United States, the 
District, the Metropolitan Water District of Salt Lake City, 
and the Salt Lake County Water Conservancy District, dated May 
16, 1986, providing for repayment of the Jordan Aqueduct 
System. The Secretary shall allow for prepayment of the 
repayment contract between the United States and the Central 
Utah Water Conservancy District dated December 28, 1965, and 
supplemented on November 26, 1985, or any additional or 
supplemental repayment contract providing for repayment of 
municipal and industrial water delivery facilities of the 
Central Utah Project for which repayment is provided pursuant 
to such contract, under terms and conditions similar to those 
contained in the supplemental contract that provided for the 
prepayment of the Jordan Aqueduct dated October 28, 1993. The 
prepayment may be provided in several installments to reflect 
substantial completion of the delivery facilities being prepaid 
and may not be adjusted on the basis of the type of prepayment 
financing utilized by the District. [The District shall 
exercise its right to prepayment pursuant to this section by 
the end of fiscal year 2002. Nothing in this section authorizes 
or terminates the authority to use tax exempt bond financing 
for this prepayment.]

           *       *       *       *       *       *       *


                                  
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