[House Report 108-719]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-719
======================================================================
 
                    PROVO RIVER PROJECT TRANSFER ACT

                                _______
                                

October 4, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 3391]

  The Committee on Resources, to whom was referred the bill 
(H.R. 3391) to authorize the Secretary of the Interior to 
convey certain lands and facilities of the Provo River Project, 
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 ``Provo River Project Transfer Act''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Agreement.--The term ``Agreement'' means the contract 
        numbered 04-WC-40-8950 and entitled ``Agreement Among the 
        United States, the Provo River Water Users Association, and the 
        Metropolitan Water District of Salt Lake & Sandy to Transfer 
        Title to Certain Lands and Facilities of the Provo River 
        Project''.
          (2) Association.--The term ``Association'' means the Provo 
        River Water Users Association, a nonprofit corporation 
        organized under the laws of the State.
          (3) District.--The term ``District'' means the Metropolitan 
        Water District of Salt Lake & Sandy, a political subdivision of 
        the State.
          (4) Pleasant grove property.--
                  (A) In general.--The term ``Pleasant Grove Property'' 
                means the 3.79-acre parcel of land acquired by the 
                United States for the Provo River Project, Deer Creek 
                Division, located at approximately 285 West 1100 North, 
                Pleasant Grove, Utah, as in existence on the date of 
                enactment of this Act.
                  (B) Inclusions.--The term ``Pleasant Grove Property'' 
                includes the office building and shop complex 
                constructed by the Association on the parcel of land 
                described in subparagraph (A).
          (5) Provo reservoir canal.--The term ``Provo Reservoir 
        Canal'' means the canal, and any associated land, rights-of-
        way, and facilities acquired, constructed, or improved by the 
        United States as part of the Provo River Project, Deer Creek 
        Division, extending from, and including, the Murdock Diversion 
        Dam at the mouth of Provo Canyon, Utah, to and including the 
        Provo Reservoir Canal Siphon and Penstock, as in existence on 
        the date of enactment of this Act.
          (6) Salt lake aqueduct.--The term ``Salt Lake Aqueduct'' 
        means the aqueduct and associated land, rights-of-way, and 
        facilities acquired, constructed or improved by the United 
        States as part of the Provo River Project, Aqueduct Division, 
        extending from, and including, the Salt Lake Aqueduct Intake at 
        the base of Deer Creek Dam to and including the Terminal 
        Reservoirs located at 3300 South St. and Interstate Route 215 
        in Salt Lake City, Utah, as in existence on the date of 
        enactment of this Act.
          (7) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (8) State.--The term ``State'' means the State of Utah.

SEC. 3. CONVEYANCE OF LAND AND FACILITIES.

  (a) Conveyances to Association.--
          (1) Provo reservoir canal.--
                  (A) In general.--In accordance with the terms and 
                conditions of the Agreement and subject to subparagraph 
                (B), the Secretary shall convey to the Association, all 
                right, title, and interest of the United States in and 
                to the Provo Reservoir Canal.
                  (B) Condition.--The conveyance under subparagraph (A) 
                shall not be completed until the Secretary accepts 
                future arrangements entered into by the Association, 
                the District, the Central Utah Water Conservancy 
                District, and the Jordan Valley Water Conservancy 
                District providing for the operation, ownership, 
                financing, and improvement of the Provo Reservoir 
                Canal.
          (2) Pleasant grove property.--In accordance with the terms 
        and conditions of the Agreement, the Secretary shall convey to 
        the Association, all right, title, and interest of the United 
        States in and to the Pleasant Grove Property.
  (b) Conveyance to District.--
          (1) In general.--In accordance with the terms and conditions 
        of the Agreement, the Secretary shall convey to the District, 
        all right, title, and interest of the United States in and to 
        Salt Lake Aqueduct.
          (2) Easements.--
                  (A) In general.--As part of the conveyance under 
                paragraph (1), the Secretary shall grant to the 
                District permanent easements to--
                          (i) the National Forest System land on which 
                        the Salt Lake Aqueduct is located; and
                          (ii) land of the Aqueduct Division of the 
                        Provo River Project that intersects the parcel 
                        of non-Federal land authorized to be conveyed 
                        to the United States under section 104(a) of 
                        Public Law 107-329 (116 Stat. 2816).
                  (B) Purpose.--The easements conveyed under 
                subparagraph (A) shall be for the use, operation, 
                maintenance, repair, improvement, or replacement of the 
                Salt Lake Aqueduct by the District.
                  (C) Limitation.--The United States shall not carry 
                out any activity on the land subject to the easements 
                conveyed under subparagraph (A) that would materially 
                interfere with the use, operation, maintenance, repair, 
                improvement, or replacement of the Salt Lake Aqueduct 
                by the District.
                  (D) Boundaries.--The boundaries of the easements 
                conveyed under subparagraph (A) shall be determined by 
                the Secretary, in consultation with the District.
                  (E) Revocation of withdrawals.--On conveyance of the 
                easement to the land described in subparagraph (A)(i), 
                the Secretary, subject to the easement and any terms 
                and conditions of the Agreement, shall revoke any 
                public land orders withdrawing National Forest System 
                land for the Aqueduct Division of the Provo River 
                Project.
                  (F) Transfer of administrative jurisdiction.--
                          (i) In general.--On conveyance of the 
                        easement to the land described in subparagraph 
                        (A)(ii), the Secretary, subject to the 
                        easement, shall transfer to the Secretary of 
                        Agriculture administrative jurisdiction over 
                        the land.
                          (ii) Administrative site.--The land 
                        transferred under clause (i) shall be 
                        administered by the Secretary of Agriculture as 
                        an administrative site.
                  (G) Administration.--The easements conveyed under 
                subparagraph (A) shall be administered by the Secretary 
                of Agriculture in accordance with section 501(b)(3) of 
                the Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1761(b)(3)).
  (c) Consideration.--
          (1) Association.--
                  (A) In general.--In exchange for the conveyance under 
                subsection (a)(1), the Association shall pay the 
                Secretary an amount that is equal to the sum of--
                          (i) the net present value of any remaining 
                        debt obligation of the United States with 
                        respect to the Provo Reservoir Canal; and
                          (ii) the net present value of any revenues 
                        from the Provo Reservoir Canal that, based on 
                        past history--
                                  (I) would be available to the United 
                                States but for the conveyance of the 
                                Provo Reservoir Canal under subsection 
                                (a)(1); and
                                  (II) would be deposited in the 
                                reclamation fund established under the 
                                first section of the Act of June 17, 
                                1902 (43 U.S.C. 391), and credited 
                                under the terms of Reclamation Manual/
                                Directives and Standards PEC 03-01.
                  (B) Deduction.--In determining the net present values 
                under clauses (i) and (ii) of subparagraph (A), the 
                Association may deduct from the net present value such 
                sums as are required for the reimbursement described in 
                the Agreement.
          (2) District.--
                  (A) In general.--In exchange for the conveyance under 
                subsection (b)(1), the District shall pay the Secretary 
                an amount that is equal to the sum of--
                          (i) the net present value of any remaining 
                        debt obligation of the United States with 
                        respect to the Salt Lake Aqueduct; and
                          (ii) the net present value of any revenues 
                        from the Salt Lake Aqueduct that, based on past 
                        history--
                                  (I) would have been available to the 
                                United States but for the conveyance of 
                                the Salt Lake Aqueduct under subsection 
                                (b)(1); and
                                  (II) would be deposited in the 
                                reclamation fund established under the 
                                first section of the Act of June 17, 
                                1902 (43 U.S.C. 391), and credited 
                                under the terms of Reclamation Manual/
                                Directives and Standards PEC 03-01.
                  (B) Deduction.--In determining the net present values 
                under clauses (i) and (ii) of subparagraph (A), the 
                District may deduct from the net present value such 
                sums as are required for the reimbursement described in 
                the Agreement.
  (d) Payment of Costs.--In addition to amounts paid to the Secretary 
under subsection (c), the Association and the District shall, in 
accordance with the Agreement, pay the Secretary--
          (1) any necessary and reasonable administrative and real 
        estate transfer costs incurred by the Secretary in carrying out 
        the conveyance; and
          (2) \1/2\ of any necessary and reasonable costs associated 
        with complying with--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                  (C)(i) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.); and
                  (ii) any other Federal cultural resource laws.
  (e) Compliance With Environmental Laws.--
          (1) In general.--Before conveying land and facilities under 
        subsections (a) and (b), the Secretary shall comply with all 
        applicable requirements under--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                  (C) any other law applicable to the land and 
                facilities.
          (2) Effect.--Nothing in this Act modifies or alters any 
        obligations under--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.); or
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.).

SEC. 4. EXISTING CONTRACTS.

  (a) Deer Creek Division Construction Contract.--Notwithstanding the 
conveyances under subsections (a) and (b)(1) of section 3, any portion 
of the Deer Creek Division, Provo River Project, Utah, that is not 
conveyed under that section shall continue to be operated and 
maintained by the Association, in accordance with the contract numbered 
I1r-874, dated June 27, 1936, and entitled the ``Contract Between the 
United States and Provo River Water Users Association Providing for the 
Construction of the Deer Creek Division of the Provo River Project, 
Utah''.
  (b) Provo River Project and Jordan Aqueduct System Contracts.--Any 
written contract of the United States in existence on the date of 
enactment of this Act relating to the operation and maintenance of any 
division or facility of the Provo River Project or the Jordan Aqueduct 
System is confirmed and declared to be a valid contract of the United 
States that is enforceable in accordance with the express terms of the 
contract.
  (c) Use of Central Utah Project Water.--
          (1) In general.--Subject to paragraph (2), any entity with 
        contractual Provo Reservoir Canal or Salt Lake Aqueduct 
        capacity rights in existence on the date of enactment of this 
        Act may, in addition to the uses described in the existing 
        contracts, use the capacity rights, without additional charge 
        or further approval from the Secretary, to transport Central 
        Utah Project water on behalf of the entity or others.
          (2) Limitations.--An entity shall not use the capacity rights 
        to transport Central Utah Project water under paragraph (1) 
        unless--
                  (A) the use is expressly authorized by the entity 
                responsible for operation and maintenance of the 
                Central Utah Project water facility; and
                  (B) carrying Central Utah Project water through Provo 
                River Project facilities would not--
                          (i) materially impair the ability of the 
                        Central Utah Water Conservancy District or the 
                        Secretary to meet existing express 
                        environmental commitments for the Bonneville 
                        Unit; or
                          (ii) require the release of additional 
                        Central Utah Project water to meet those 
                        environmental commitments.
  (d) Authorized Modifications.--The Agreement may provide for--
          (1) the modification of the 1936 Repayment Contract for the 
        Deer Creek Division of the Provo River Project to reflect the 
        partial prepayment, the adjustment of the annual repayment 
        amount, and the transfer of the Provo Reservoir Canal and the 
        Pleasant Grove Property; and
          (2) the modification or termination of the 1938 Repayment 
        Contract for the Aqueduct Division of the Provo River Project 
        to reflect the complete payout and transfer of all facilities 
        of the Aqueduct Divsion.
  (e) Effect of Act.--Nothing in this Act impairs any contract 
(including subscription contracts) in effect on the date of enactment 
of this Act that allows for or creates a right to convey water through 
the Provo Reservoir Canal.

SEC. 5. EFFECT OF CONVEYANCE.

  On conveyance of any land or facility under subsection (a) or (b)(1) 
of section 3--
          (1) the land and facilities shall no longer be part of a 
        Federal reclamation project;
          (2) the Association and the District shall not be entitled to 
        receive any future reclamation benefits with respect to the 
        land and facilities, except for benefits that would be 
        available to other nonreclamation facilities; and
          (3) the United States shall not be liable for damages arising 
        out of any act, omission, or occurrence relating to the land 
        and facilities, but shall continue to be liable for damages 
        caused by acts of negligence committed by the United States or 
        by any employee or agent of the United States before the date 
        of conveyance, consistent with chapter 171 of title 28, United 
        States Code.

SEC. 6. REPORT.

  If a conveyance required under subsection (a) or (b)(1) of section 3 
is not completed by the date that is 18 months after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
that--
          (1) describes the status of the conveyance;
          (2) describes any obstacles to completing the conveyance; and
          (3) specifies an anticipated date for completion of the 
        conveyance.

                          PURPOSE OF THE BILL

    The purpose of H.R. 3391 is to authorize the Secretary of 
the Interior to convey certain lands and facilities of the 
Provo River Project.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Bureau of Reclamation holds the title of the Provo 
River Project. The Project provides approximately 100,000 acre-
feet of supplemental irrigation and domestic water each year to 
water districts, cities, irrigation interests, private 
companies, and individuals in Wasatch, Summit, Utah, and Salt 
Lake Counties in Utah. Key features of the Project include Deer 
Creek Dam and Reservoir, the Salt Lake Aqueduct and Terminal 
Reservoir, the Murdock Diversion Dam, the Provo Reservoir 
Canal, and several transbasin diversion and conveyance 
facilities. As many as one million people receive some portion 
of their water supply from the Project.
    The bill transfers two water conveyance facilities and a 
3.79 acre property to the local water users. The Provo 
Reservoir Canal is currently operated by the Provo River water 
users Association under a contract with the Bureau. The 
Pleasant Grove property, consisting of 3.79 acres of land in 
north Pleasant Grove, Utah, is currently used by the Provo 
River Water Users Association for its maintenance shop and 
yard, vehicle storage, and office buildings. The Salt Lake 
Aqueduct is currently operated by the Metropolitan Water 
District of Salt Lake and Sandy under a contract with the 
Bureau. The Provo River Water users Association and the 
Metropolitan Water District of Salt Lake and Sandy are seeking 
title transfer of these facilities and property primarily to 
obtain low-interest, tax-exempt financing to improve their 
facilities and to address human safety concerns. A cost-sharing 
agreement between the Bureau and these agencies has been 
finalized for completing the necessary environmental compliance 
work as required for a title transfer.

                            COMMITTEE ACTION

    H.R. 3391 was introduced by Congressman Chris Cannon (R-UT) 
on October 29, 2003. The bill was referred to the Committee on 
Resources and within the Committee to the Subcommittee on Water 
and Power. On October 30, 2003, the Subcommittee held a hearing 
on the bill. On July 8, 2004, the Subcommittee met to consider 
the bill. Subcommittee Chairman Ken Calvert (R-CA) offered an 
amendment in the nature of a substitute. The amendment was 
adopted by unanimous consent and the bill as amended was 
forwarded to the Full Resources Committee by unanimous consent. 
On September 22, 2004, the Resources Committee met to consider 
the bill. Congressman Ken Calvert offered an amendment in the 
nature of a substitute which safeguarded the environment, 
allowed Central Utah Project water to flow through the 
appropriate facilities, confirmed existing federal contracts, 
and made a number of technical changes to improve the 
underlying bill. It was adopted by unanimous consent. The bill, 
as amended, was then 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. The Committee concludes 
that enacting this bill would result in short-term revenue to 
the United States from the consideration paid for the Provo 
River Project facilities. However, the United States will 
forego future payments from the Project beneficiaries. In 
addition, all administrative expenses associated with the 
Project transfer will be paid by the Association and the 
District, saving the Bureau of Reclamation these costs.
    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. As noted above, the United States will receive 
revenues from the Association and the District for the 
conveyance.
    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 requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office.

                    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.

                                  
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