[Senate Report 108-231]
[From the U.S. Government Publishing Office]
Calendar No. 441
108th Congress Report
SENATE
2d Session 108-231
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WATER STORAGE IN THE KENDRICK PROJECT, WYOMING
_______
March 9, 2004.--Ordered to be printed
_______
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 943]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 943) to authorize the Secretary of the
Interior to enter into 1 or more contracts with the city of
Cheyenne, Wyoming, for the storage of water in the Kendrick
Project, Wyoming, having considered the same, reports favorably
thereon with an amendment and an amendment to the title and
recommends that the bill, as amended, do pass.
The amendments are as follows:
1. Strike out all after the enacting clause and insert in
lieu thereof the following:
SECTION 1. WATER STORAGE CONTRACTS.
(a) Definitions.--In this Act:
(1) City.--The term ``city'' means--
(A) the city of Cheyenne, Wyoming;
(B) the Board of Public Utilities of the city; and
(C) any agency, public utility, or enterprise of the
city.
(2) Kendrick project.--The term ``Kendrick Project'' means
the Bureau of Reclamation project on the North Platte River
that was authorized by a finding of feasibility approved by the
President on August 30, 1935, and constructed for irrigation
and electric power generation, the major features of which
include--
(A) Seminoe Dam, Reservoir, and Powerplant; and
(B) Alcova Dam and Powerplant.
(3) Secretary.--The term ``Secretary'' means the Secretary of
the Interior, acting through the Commissioner of Reclamation.
(4) State.--The term ``State'' means the State of Wyoming.
(b) Contracts.--
(1) In general.--The Secretary may enter into 1 or more
contracts with the city for annual storage of the city's water
for municipal and industrial use in Seminoe Dam and Reservoir
of the Kendrick Project.
(2) Conditions.--
(A) Term; renewal.--A contract under paragraph (1)
shall--
(i) have a term of not more than 40 years;
and
(ii) may be renewed on terms agreeable to the
Secretary and the city, for successive terms of
not more than 40 years per term.
(B) Revenues.--Notwithstanding the Act of May 9, 1938
(52 Stat. 322, chapter 187; 43 U.S.C. 392a)--
(i) any operation and maintenance charges
received under a contract executed under
paragraph (1) shall be credited against
applicable operation and maintenance costs of
the Kendrick Project; and
(ii) any other revenues received under a
contract executed under paragraph (1) shall be
credited to the Reclamation Fund as a credit to
the construction costs of the Kendrick Project.
(C) Effect on existing contractors.--A contract under
paragraph (1) shall not adversely affect the Kendrick
Project, any existing Kendrick Project contractor, or
any existing Reclamation contractor on the North Platte
River System.
2. Amend the title so as to read: ``A bill to authorize the
Secretary of the Interior to contract with the city of
Cheyenne, Wyoming, for the storage of the city's water in the
Kendrick Project, Wyoming.''.
PURPOSE OF THE MEASURE
The purpose of S. 943 is to authorize the Secretary of the
Interior to enter into one or more contracts with the city of
Cheyenne, Wyoming, for the storage of the city's water in the
Kendrick Project, Wyoming.
BACKGROUND AND NEED
The Kendrick Project (formerly Casper-Alcova), located in
Carbon and Natrona Counties in Central Wyoming, provides water
from the North Platte River for irrigation and electrical power
generation. Major features of the project include: Seminoe Dam,
Reservoir, and Powerplant; and Alcova Dam, Reservoir, and
Powerplant. The city of Cheyenne, Wyoming, through its Board of
Public Utilities, has developed a water supply system, a
component of which involves storage at Seminoe Reservoir.
In 1983, the Bureau of Reclamation and the city of Cheyenne
entered into an Interim Water Storage Contract which provided
the city with 10,000 acre feet of storage space at Seminoe
Reservoir. This agreement allowed the city to store water for
use in the spring and summer months to compensate for water
that the city released during winter months to fulfill minimum
flow requirements for fish habitat. The original agreement was
for a term of fifteen years, with the option for a five-year
renewal. The agreement also provided that the city, like other
Kendrick Project users, would pay a reasonable sum for storage
rights. The original agreement and the five-year extension have
now expired. Since the original agreement, the Bureau has only
given the city one-year storage contracts. This legislation
clarifies the authority of the Bureau of Reclamation to enter
into long-term contracts with the city of Cheyenne for the
storage of the city's water for municipal and industrial use in
Seminoe Reservoir.
LEGISLATIVE HISTORY
S. 943 was introduced by Senator Enzi on April 29, 2003.
The Water and Power Subcommittee held a hearing on S. 943 on
October 15, 2003. S. Hrg. 108-271. At the business meeting on
February 11, 2004, the Committee on Energy and Natural
Resources ordered S. 943, favorably reported with an amendment
in the nature of a substitute.
COMMITTEE RECOMMENDATIONS AND TABULATIONS OF VOTES
The Committee on Energy and Natural Resources, in open
business session on February 11, 2004, by a unanimous vote of a
quorum present, recommends that the Senate pass S. 943, if
amended as described herein.
The rollcall vote on reporting the measure was 23 yeas, 0
nays, as follows:
YEAS NAYS
Mr. Domenici
Mr. Nickles
Mr. Craig
Mr. Campbell *
Mr. Thomas
Mr. Alexander
Ms. Murkowski
Mr. Talent
Mr. Burns
Mr. Smith *
Mr. Bunning
Mr. Kyl *
Mr. Bingaman
Mr. Akaka
Mr. Dorgan *
Mr. Graham *
Mr. Wyden *
Mr. Johnson *
Ms. Landrieu *
Mr. Bayh *
Mrs. Feinstein *
Mr. Schumer *
Ms. Cantwell
* Indicates voted by proxy.
COMMITTEE AMENDMENTS
During the consideration of S. 943, the Committee adopted
an amendment in the nature of a substitute to address the
concerns raised by the administration during the October 15,
2003 Water and Power Subcommittee hearing. The amendment
clarifies that it is the city of Cheyenne's water that will be
stored under the contract, addresses the disposition of
revenues received, and makes other technical changes. The
amendment is further described in the section-by-section.
SECTION-BY-SECTION ANALYSIS
Section 1(a) defines key terms used in the Act.
Subsection (b)(1) allows the Secretary to enter into
contracts with the city of Cheyenne, Wyoming for annual storage
of the city's water for municipal and industrial use in Seminoe
Dam and Reservoir.
Subsection (b)(2) limits the contract term to no more than
40 years and sets parameters for contract renewal.
Subsection (b)(2)(B) provides for the disposition of
revenues received under the contract. Specifically, operation
and maintenance charges received under a contract executed
under paragraph (1) are to be credited against applicable
operation and maintenance costs of the Kendrick Project. Any
other revenues received under such a contract shall be credited
to the Reclamation Fund as a credit to the construction costs
of the Kendrick Project.
Subsection (b)(2)(C) of the bill states that the contract
shall not adversely affect the Kendrick Project, any existing
contractor, or any existing Reclamation contractor on the North
Platt River System.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 8, 2004.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources, United States
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 943, a bill to
authorize the Secretary of the Interior to contract with the
city of Cheyenne, Wyoming, for the storage of the city's water
in the Kendrick Project, Wyoming.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
S. 943--A bill to authorize the Secretary of the Interior to contract
with the city of Cheyenne, Wyoming, for the storage of the
city's water in the Kendrick Project, Wyoming
S. 943 would authorize the Secretary of the Interior,
through the Bureau of Reclamation, to renew a water storage
contract with the city of Cheyenne, Wyoming, for the storage of
the city's municipal and industrial water. The term of this and
subsequent contracts would be limited to 40 years.
CBO estimates that implementing S. 943 would have no
significant impact on the federal budget. Currently, the bureau
provides water storage services under a temporary one-year
water storage contract to the city of Cheyenne through the
Kendrick Project on the North Platte River. The temporary
contract has the same terms as the expired contract. Under the
temporary contract, the city makes an annual payment of $70,000
to the federal government. Under S. 943, the city would
negotiate a contract with the federal government for water
storage services. Under that contract, the bureau expects that
the city would make an annual payment of about $53,000 to the
federal government. CBO estimates that enacting S. 943 would
decrease offsetting receipts (a form of direct spending), but
the loss of receipts would be less than $500,000 over the 2005-
2014 period.
S. 943 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.
The CBO staff contact for this estimate is Julie Middleton.
This estimate was 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. 943.
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. 943, as ordered reported.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of the Interior at
the Subcommittee hearing follows:
Statement of John W. Keys III, Commissioner, Bureau of Reclamation,
Department of the Interior
My name is John Keys and I am the Commissioner of the
Bureau of Reclamation. I appreciate the opportunity to provide
the Administration's views on S. 943, legislation to authorize
the Secretary of the Interior to enter into one or more
contracts with the City of Cheyenne, Wyoming, for the storage
of water in the Kendrick Project in the State of Wyoming.
Madam Chairman, the Department could support S. 943 subject
to modifications recommended in this statement.
The Bureau of Reclamation has several dams and reservoirs
located on the North Platte River in Wyoming. The North Platte
River System is operated to optimize irrigation and power
benefits. To accomplish these activities, vacant space becomes
available in Seminoe Reservoir as water is released to other
downstream Reclamation reservoirs.
By enacting S. 943, the Secretary of the Interior would be
authorized to enter into long-term contracts with the City of
Cheyenne to store water in Seminoe Reservoir for municipal and
industrial use.
The Department does not support S. 943 as drafted because
it is vague regarding whose water is to be stored in Seminoe
Reservoir and the disposition of revenues received. To provide
clarity, the Department recommends the amendment attached to my
statement be adopted by the Committee.
Thank you for the opportunity to appear before you today.
To assist the Subcommittee in understanding the modifications
offered here today, I am including a copy of the entire bill
with the additions and deletions. Again, Madam Chairman, with
the above modifications, the Department could support this
legislation.
ATTACHMENT: PROPOSED REVISIONS
1. Modify the Introduction to read: ``To authorize the
Secretary of the Interior to contract with the city of
Cheyenne, Wyoming, for the storage of the City's water in the
Kendrick Project, Wyoming.''
2. Modify Section 1(a)(2) to read:
``(2) Kendrick project.--The term `Kendrick Project'
shall mean the Bureau of Reclamation project on the
North Platte River, authorized by a finding of
feasibility approved by the President on August 30,
1935, constructed for irrigation and electric power
generation whose major features include Seminoe Dam,
Reservoir, and Powerplant; and Alcova Dam, and
Powerplant.''
3. Modify Section 1(b) and (c) to read:
``(b) Contracts.--The Secretary is authorized to enter into
one or more contracts with the City for annual storage of the
City's water for municipal and industrial use in Seminoe Dam
and Reservoir of the Kendrick Project.
``(c) Conditions.--
``(1) Term; renewal.--Any contract under subsection
(b) shall--
``(A) have a term of not to exceed 40 years;
and
``(B) may be renewed upon terms mutually
agreeable to the Secretary and the City, for
successive periods not to exceed 40 years each.
``(2) Revenues.--Without regard to the Act of May 9,
1938, (52 Stat. 322; U.S.C. Sec. 393a), the revenues
received under any contract executed pursuant to this
section shall be credited as follows: All operation and
maintenance charges shall be credited against
applicable operation and maintenance costs of the
Kendrick Project; all remaining revenues shall be
credited to the Reclamation Fund as a credit to the
construction costs of the Kendrick Project.
``(3) Impacts to existing contractors.--Contracts
under subsection (c) shall not negatively impact the
Kendrick Project, any existing Kendrick Project
contractor, or any existing Reclamation contractor on
the North Platte River System.''
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill S. 943, as ordered
reported.