[Senate Report 107-268]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 585
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-268
======================================================================
 
                 MNI WICONI RURAL WATER SUPPLY PROJECT

                                _______
                                

               September 11, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1999]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1999) to reauthorize the Mni Wiconi Rural 
Water Supply Project, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill, as amended, do pass.
    The amendment is as follows:
    On page 2, line 4, delete ``2007'' and insert ``2008''.

                         Purpose of the Measure

    The purpose of S. 1999 is to amend the Mni Wiconi Project 
Act of 1988, as amended, to reauthorize the Mni Wiconi Water 
Supply Project in South Dakota. The bill, as ordered reported 
increases the project ceiling by $58.8 million (1997 price 
levels) and extends the current sunset date for the 
authorization from 2003 to 2008.

                          Background and Need

    The Mni Wiconi Project Act of 1988 (Pub. L. No. 100-516) 
directed the Secretary of the Interior to construct the Mni 
Wiconi Rural Water Supply Project. The Project is to provide a 
municipal, rural, and industrial water supply to both Indian 
and non-Indian residents of South Dakota. As originally 
authorized, the Project included the Oglala Sioux Rural Water 
Supply System, the West River Rural Water System, and the 
Lyman-Jones Rural Water System. In 1994, the West River and the 
Lyman-Jones Systems were merged into one system, known as the 
West River/Lyman-Jones Rural Water System.
    The Mni Wiconi Act Amendments of 1994 (Pub. L. No. 103-434, 
Title 8) added the Rosebud Sioux and the Lower Brule Sioux 
Rural Water Systems, raised the authorized appropriation 
ceiling for the Project from $87.5 to $263.2 million, subject 
to cost indexing, and provided that the systems would generally 
be constructed in accordance with Project's Final Engineering 
Report, dated May 1993.
    The Mni Wiconi Project includes a water treatment plant, 
4,500 miles of pipeline, 60 booster pump stations, and 35 water 
storage reservoirs. The Project will serve an estimated 52,000 
people, including more than 40,000 people on the three Indian 
reservations. Project beneficiaries, especially those on the 
Indian reservations, have among the lowest income levels in the 
Nation.
    The Project was to be completed within 10 years. In 1994, 
the Mni Wiconi Project Act of 1988 was amended, and 
appropriations were authorized through 2003. However, annual 
appropriations have been insufficient to complete construction 
within this time frame. This legislation is needed to extend 
the authorization for appropriations to complete the Project. 
It also increases the authorized ceiling to cover expenses that 
were not identified until after the Final Engineering Report 
was released.

                          Legislative History

    S. 1999 was introduced by Senators Johnson and Daschle on 
March 7, 2002. The Subcommittee on Water and Power held a 
hearing on S. 1999 on June 6, 2002. At the business meeting on 
July 31, 2002, the Committee on Energy and Natural Resources 
ordered S. 1999, as amended, favorably reported.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on July 31, 2002, by a voice vote of a quorum 
present, recommends that the Senate pass S. 1999, if amended, 
as described herein.

                          Committee Amendments

    During the consideration of S. 1999, the Committee adopted 
an amendment that conforms the language of the bill to the 
current construction schedule for the Mni Wiconi Rural Water 
Supply Project by deleting ``2007'' and inserting ``2008''.

                      Section-by-Section Analysis

    Section 1 amends the legislation to index the current 
authorization at 1992 price levels and provide an additional 
$58.8 million based on 1997 price levels. The section also 
extends the authorization until 2008.

                     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, August 9, 2002.
Hon. Jeff Bingaman,
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. 1999, a bill to 
reauthorize the Mni Wiconi Rural Water Supply Project.
    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.

S. 1999--A bill to reauthorize the Mni Wiconi Rural Water Supply 
        Project

    Summary: S. 1999 would reauthorize the Mni Wiconi Rural 
Water Supply Project by increasing the amounts authorized to be 
appropriated for this project by $58.8 million (in 1997 dollar) 
and extending the completion date for the project from 2003 to 
2008.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing S. 1999 would cost about $55 
million over the 2003-2007 period. S. 1999 would not affect 
direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply. S. 1999 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 S. 1999 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--
                                                                    --------------------------------------------
                                                                       2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level......................................       13       14       14       14       14
Estimated Oulays...................................................        4        9       14       14       14
----------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that S. 
1999 will be enacted by the start of fiscal year 2003 and that 
the necessary funds will be appropriated for each year. CBO 
estimates that the bill would authorize the appropriation of 
about $69 million (including adjustments for anticipated 
inflation) to complete the construction of the Mni Wiconi Rural 
Water Supply Project in addition to the original authorization 
level of $263 million. Of this original authorization level, 
approximately $184 million has been spent on project 
construction costs.
    Based on information from the Bureau of Reclamation, we 
expect that construction of the rural water supply project 
would take five more years and that funds will be appropriated 
in roughly equal installments over that period to complete 
construction. CBO estimates that implementing S. 1999 would 
cost $55 million over the 2003-2007 period and an additional 
$14 million after that period.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 1999 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: On August 5, 2002, CBO prepared a 
cost estimate for H.R. 4638, a bill to reauthorize the Mni 
Wiconi Rural Water Supply Project, as ordered reported by the 
House Committee on Resources on June 26, 2002. The two bills 
are identical, as are our cost estimates.
    Estimate prepared by: Federal Costs: Julie Middleton; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; and Impact on the Private Sector: Cecil McPherson.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      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. 1999. 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. 1999.

                        Executive Communications

    The pertinent legislative report received by the Committee 
from the Department of the Interior setting forth Executive 
agency recommendation relating to S. 1999 are set forth below:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                    Washington, DC, August 8, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This letter responds to your request for 
the views of the Department of the Interior on S. 1999, 
concerning authorization of the Mni Wiconi Rural Water Supply 
Project. This confirms the testimony of Mark A. Limbaugh, 
Director, External & Intergovernmental Affairs, Bureau of 
Reclamation, before the Committee on June 6, 2002.
    The Mni Wiconi Rural Water Supply Project serves the Pine 
Ridge, Rosebud, and Lower Brule Indian Reservations and seven 
counties in southwestern South Dakota. S. 1999 would increase 
the authorization ceiling for the Project and extend by five 
(5) years the time period for which appropriations are 
authorized. Since the Project cannot be completed unless these 
changes are made, the Department supports enactment of S. 1999.
    The Mni Wiconi Rural Water Supply Project was authorized in 
1988 (P.L. 100-516) and included the Oglala Sioux Rural Water 
System, the Oglala Sioux Core System, the West River Rural 
Water System, and the Lyman-Jones Rural Water System. The Mni 
Wiconi Project was expanded in 1994 (P.L. 103-434, Title VIII) 
to include the Rosebud Sioux and Lower Brule Sioux Rural Water 
Systems.
    The authorizations intended construction to be completed 
within 10 years, and appropriations were authorized through 
2003. However, annual appropriations have been insufficient to 
complete construction on the Project within the time-frame 
originally planned in the Final Engineering Report.
    S. 1999 extends to the year 2008 the authorization for 
appropriations to complete the project. The bill also increases 
the authorized ceiling by $58.8 million to cover expenses that 
were not identified until after the sponsors (the Oglala, 
Rosebud and Lower Brule Sioux Tribes and West River/Lyman-Jones 
Rural Water Systems) released their Final Engineering Report, 
plus estimated administrative costs related to the extension 
from 2003 to 2008.
    The Administration is firmly committed to completing the 
Mni Wiconi Rural Water Supply Project. If S. 1999 is not 
enacted, the authority for appropriations will expire in 2003. 
Project construction would be shut down and the full benefits 
of the Project would not be realized. Only a portion of the 
Project population would be served water. If the expiration 
date is extended without a corresponding increase in the cost 
ceiling, the project would have to be redesigned to determine 
which features could be constructed within the available 
ceiling. This unfortunate prospect may be averted if S. 1999 is 
enacted, and we reiterate the Department's support for the 
bill.
    The Office of Management and Budget advises that there is 
no objection to the presentation of this report from the 
standpoint of the Administration's program.
            Sincerely,
                                          John W. Keys III,
                               Commissioner, Bureau of Reclamation.

                        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. 1999, as ordered 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).

                   THE MNI WICONI PROJECT ACT OF 1988


       (Pub. Law No. 100-516, as amended by Pub. Law No. 103-434)


 AN ACT To authorize construction of the Mni Wiconi Rural Water Supply 
Project, and for other purposes

           *       *       *       *       *       *       *


SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    (a) Planning, Design, and Construction.--There are 
authorized to be appropriated $263,241,000 (based on October 1, 
1992, price levels) and $58,800,000 (based on October 1, 1997, 
price levels) for the planning, design, and construction of the 
Oglala Sioux Rural Water Supply System, the Rosebud Sioux Rural 
Water Supply System, the Lower Brule Sioux Rural Water Supply 
System, the West River Rural Water Supply System, and the 
Lyman-Jones Rural Water Supply System described in section 3, 
3A, 3B, and 4. Such funds are authorized to be appropriated 
only through the end of the year [2003] 2008. The funds 
authorized to be appropriated by the first sentence of this 
section, less any amounts previously obligated for the Systems, 
may be increased or decreased by such amounts as may be 
justified by reason of ordinary fluctuations in development 
costs incurred after October 1, 1992 (with respect to the 
$263,241,000), and October 1, 1997 (with respect to the 
$58,800,000), as indicated by engineering costs indices 
applicable for the type of construction involved.

           *       *       *       *       *       *       *


                                
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