[House Report 107-641]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-641
======================================================================
 
                     FREMONT-MADISON CONVEYANCE ACT

                                _______
                                

 September 5, 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. 4708]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 4708) to authorize the Secretary of the Interior to 
convey certain facilities to the Fremont-Madison Irrigation 
District, 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. SHORT TITLE.

  This Act may be cited as the ``Fremont-Madison Conveyance Act.''

SEC. 2. CONVEYANCE OF FACILITIES.

  (a) Conveyance Requirement.--The Secretary of the Interior shall 
convey to the Fremont-Madison Irrigation District, Idaho, as soon as 
practicable after the date of enactment of this Act and in accordance 
with all applicable law and pursuant to the terms of the memorandum of 
agreement between the District and the Secretary (Contract No. 1425-01-
MA-10-3310). The Secretary shall include in the facilities conveyed 
under this section all right, title, and interest of the United States 
in and to the canals, laterals, drains, and other components of the 
water distribution and drainage system that is operated or maintained 
by the District for delivery of water to and drainage of water from 
lands within the boundaries of the District as they exist upon the date 
of enactment of this Act, consistent with section 7.
  (b) Report.--If the Secretary has not completed any conveyance 
required under this Act by September 13, 2003, the Secretary shall, by 
no later than that date, submit a report to the Congress explaining the 
reasons that conveyance has not been completed and stating the date by 
which the conveyance will be completed.

SEC. 3. COSTS.

  (a) In General.--The Secretary shall require, as a condition of the 
conveyance under section 2, that the District pay the administrative 
costs of the conveyance and related activities, including the costs of 
any review required under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) as described in Contract No. 1425-01-MA-10-
3310.
  (b) Value of Facilities To Be Transferred.--In addition to subsection 
(a) the Secretary shall also require, as condition of the conveyance 
under section 2, that the District pay to the United States the lesser 
of the net present value of the remaining obligations owed by the 
District to the United States with respect to the facilities conveyed, 
or $280,000. Amounts received by the United States under this 
subsection shall be deposited into the reclamation fund.

SEC. 4. TETON EXCHANGE WELLS.

  (a) Contracts and Permit.--In conveying the Teton Exchange Wells 
under section 2, the Secretary shall also convey to the District--
          (1) Idaho Department of Water Resources permit number 22-
        7022, including drilled wells under the permit, as described in 
        Contract No. 1425-01-MA-10-3310; and
          (2) all equipment appurtenant to such wells.
  (b) Extension of Water Service Contract.--The water service contract 
between the Secretary and the District (Contract No. 7-07-10-W0179, 
dated September 16, 1977) is hereby extended and shall continue in full 
force and effect until all conditions described in this Act are 
fulfilled.

SEC. 5. NATIONAL ENVIRONMENTAL POLICY ACT OF 1969.

  Prior to conveyance the Secretary shall complete all actions as may 
be required under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.).

SEC. 6. LIABILITY.

  Effective on the date of the conveyance of the facilities described 
in section 2, the United States shall not be held liable by any court 
for damages of any kind arising out of any act, omission, or occurrence 
relating to the conveyed facilities, except for damages caused by acts 
of negligence committed by the United States or by its employees, 
agents, or contractors prior to the date of conveyance. Nothing in this 
section may be deemed to increase the liability of the United States 
beyond that currently provided in chapter 171 of title 28, United 
States Code, popularly known as the Federal Tort Claims Act.

SEC. 7. WATER SUPPLY TO DISTRICT LANDS.

  The Secretary shall increase the number of acres within the District 
that are eligible to receive water from the Minidoka Project and the 
Teton Basin Projects to reflect the number of acres within the District 
as of the date of enactment of this Act, which includes lands annexed 
into the District prior to enactment of this Act as intended by the 
Teton Basin Project. This section does not in any way authorize the use 
of any additional Federal Reclamation project water beyond that which 
is currently authorized under their existing water storage contracts 
and as allowed by State water law.

SEC. 8. EXISTING RIGHTS NOT AFFECTED.

  Nothing in this Act affects the rights of any person except as 
provided in this Act. Any conveyance under this Act shall not affect or 
abrogate any provision of any contract executed by the United States or 
State law regarding any irrigation district's right to use water 
developed in the facilities conveyed.

SEC. 9. DEFINITIONS.

  In this Act:
          (1) District.--The term ``District'' means the Fremont-
        Madison 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.

                          PURPOSE OF THE BILL

    The purpose of H.R. 4708, is to authorize the Secretary of 
the Interior to convey certain facilities to the Fremont-
Madison Irrigation District.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Fremont-Madison Irrigation District was created under 
the laws of the State of Idaho in 1935 to enter into a 
repayment contract with the Bureau of Reclamation for 
facilities constructed. The repayment contract was paid out in 
1979; and now the district provides supplemental water to 
approximately 150,000 acres.
    The Cross Cut Diversion Dam, completed in 1938, is a 17 ft. 
high concrete gravity weir that diverts Snake River water into 
the Last Chance and Cross Cut canals. The Cross Cut Canal 
conveys water to users on the Teton River, and also conveys 
natural flow water to some of the lands within the Fall River 
Irrigation Company system.
    Five Teton Exchange Wells were constructed by the Bureau of 
Reclamation in the early 1970s as part of the Teton Reservoir 
system. After the Teton Dam failure, Fremont-Madison Irrigation 
District requested use of the wells as a backup water supply in 
drought years. The resulting contract allowed use of the wells, 
pumps, motors, and appurtenant facilities for 25 years. Water 
from the five wells is now pumped into the Henry's Fork river 
system to augment natural flows downstream in exchange for use 
of water higher in the system during dry years.
    H.R. 4708 will transfer all right, title, and interest of 
the United States in and to the canals, laterals, drains, and 
other components of the water distribution and drainage system 
that are operated and maintained by the District.
    The Committee expects the Bureau of Reclamation to work 
with FMID in developing a budget for the NEPA and 
administrative costs to include as part of the Memorandum of 
Agreement. The Committee anticipates that the projected budget 
for such costs should not exceed $200,000.

                            COMMITTEE ACTION

    H.R. 4708 was introduced on May 9, 2002 by Congressman 
Michael K. Simpson (R-ID). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On July 9, 2002, the 
Subcommittee held a hearing on the bill. On July 24, 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. Congressman 
Calvert offered an amendment in the Nature of a Substitute to 
address the time frame for the transfer, administrative costs, 
and NEPA costs. It was agreed to by unanimous consent. The 
bill, as amended, was then ordered favorably reported to the 
House of Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    This Act may be cited as the ``Fremont-Madison Conveyance 
Act''.

Section 2. Conveyance of facilities

    This Section specifies that the Secretary of the Interior 
shall convey to the Fremont-Madison Irrigation District, Idaho 
by not later than the termination date (September 13, 2003) of 
the Memorandum of Agreement (Contract No. 1425-01-MA-10-3310) 
all right, title, and interest of the United States in and to 
the Cross Cut Diversion Dam, the Cross Cut Canal and the Teton 
Exchange Wells. All applicable laws and terms of the MOA are to 
be adhered to. All right, title, and interest of the United 
States in and to the canals, laterals, drains, and other 
components of the water distribution system and drainage system 
that is operated or maintained by the District for delivery of 
water to and drainage of water from lands within the boundaries 
of the District as they exist upon the date of enactment shall 
be transferred. If the Secretary has not completed the 
conveyance by the end of 1-year from date of enactment of this 
Act, the Secretary shall submit a report on the Congress 
explaining the reasons the conveyance has not been completed 
and stating the date by which the conveyance shall be 
completed.

Section 3. Costs

    The District shall participate in paying for the 
administrative costs of the conveyance and related activities, 
including the costs of any review under the National 
Environmental Policy Act. The Committee anticipates that the 
costs for these activities will not exceed $200,000. The 
District will be responsible for one-half of the final amount.
    In addition to the costs described above, the Secretary 
shall also require as condition of the conveyance, that the 
District pay to the United States the lesser of the net present 
value of the remaining obligations owed by the District to the 
United States with respect to the facilities conveyed, or 
$280,000. Amounts received by the United States shall be 
deposited in the reclamation fund.

Section 4. Teton Exchange Wells

    In conveying the Teton Exchange Wells, the Secretary shall 
also convey to the District the Idaho Department of Water 
Resources permit number 22-7022, including drilled wells under 
the permit, as described in Contract No. 1425-01-MA-10-3310 and 
all equipment appurtenant to such wells.

Section 5. National Environmental Policy Act of 1969

    Prior to conveyance the Secretary shall complete all 
actions as may be required under the Act.

Section 6. Liability

    Effective on the date of conveyance, the United States 
shall not be held liable for damages of any kind arising out of 
any act, omission, or occurrence relating to the conveyed 
facilities,except for damages caused by acts of negligence 
committed by the United States or by its employees, agents, or 
contractors prior to the date of conveyance.

Section 7. Water supply to District lands

    This Section Authorizes the Secretary to increase the 
number of acres within the District that are eligible to 
receive water from the Minidoka Project and Teton Basin 
Projects to reflect the number of acres within the District as 
of the date of enactment of this Act, which includes lands 
annexed into the District prior to enactment of this Act as 
intended by the Teton Basin Project.

Section 8. Existing rights not affected

    Nothing in this Act affects the rights of any person except 
as provided in the Act.

Section 9. Definitions

    This section defines several terms used in the legislation.

            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, 
enacting H.R. 4708 would result in an insignificant increase in 
offsetting receipts to the government and offset by the loss of 
future offsetting receipts of about $10,000 a year over the 
2003-2030 period.
    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, August 12, 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. 4708, the Fremont-
Madison Conveyance Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                         Robert A. Sunshine
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 4708--Fremont-Madison Conveyance Act

    H.R. 4708 would direct the Secretary of the Interior 
through the Bureau of Reclamation to convey certain components 
of a water distribution and drainage system to the Fremont-
Madison Irrigation District in Idaho by September 2003. These 
components include a dam, a canal, and several wells, which are 
currently operated and maintained by the district and used for 
irrigation. The transfer would occur after the district meets 
its outstanding obligations under an existing repayment 
contract with the federal government. In addition, H.R. 4708 
would require the federal government to pay half of the costs 
associated with the conveyance, including a review under the 
National Environmental Policy Act.
    CBO estimates that enacting H.R. 4708 would result in an 
insignificant increase in offsetting receipts to the 
government. Since 1977, the district has repaid $225,000 of the 
cost of constructing several water wells. As a condition of 
conveyance, CBO estimates that the federal government would 
receive about $135,000 from the district in 2003 as the final 
payment under the existing repayment contract for those wells. 
This amount represents the net present value of the remaining 
obligations owed by the district. This near-term cash savings 
would be offset by the loss of future offsetting receipts of 
about $10,000 a year over the 2003-2030 period. Because 
enacting H.R. 4708 would affect offsetting receipts (a form of 
direct spending), pay-as-you-go procedures would apply. CBO 
also estimates that the Bureau of Reclamation would spend about 
$80,000 for its share of the administrative costs associated 
with this conveyance, assuming the availability of appropriated 
funds.
    H.R. 4708 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments. 
This conveyance would be voluntary on the part of the district 
as would any costs it would incur to comply with the conditions 
set by the bill.
    The CBO staff contact for this estimate is Julie Middleton. 
This estimate was 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 law.

                        CHANGES IN EXISTING LAW

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

                                
