[Senate Report 108-267]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 522
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-267
======================================================================


 
              ARCH HURLEY CONSERVANCY DISTRICT, NEW MEXICO

                                _______
                                

                  May 20, 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. 1071]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1071) to authorize the Secretary of the 
Interior, through the Bureau of Reclamation, to conduct a 
feasibility study on a water conservation project within the 
Arch Hurley Conservancy District in the State of New Mexico, 
and for other purposes, 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 3, line 5, strike ``$500,000'' and insert 
``$2,500,000''.

                         PURPOSE OF THE MEASURE

    S. 1071 would direct the Secretary of the Interior to 
conduct a feasibility study on a water conservation project 
within the Arch Hurley Conservancy District in the State of New 
Mexico.

                          BACKGROUND AND NEED

    The legislation authorizes the Secretary of the Interior to 
conduct a feasibility study on a water conservation project 
within the Arch Hurley Conservancy District in eastern New 
Mexico, near Tucumcari, New Mexico. The Conservancy District 
receives its water supply from Conchas Lake on the Canadian 
River and delivers it through an unlined canal to irrigate 
approximately 41,400 acres of farmland in the area. The 
district has suggested the possibility of lining the canal to 
eliminate a large amount of seepage which could make available 
a portion of the saved water to address water supply needs in 
the Pecos River basin. The non-conveyed water would be 
available to shore up the District's supply in times of 
drought.

                          LEGISLATIVE HISTORY

    S. 1071 was introduced by Senator Bingaman on May 15, 2003 
and was referred to the Committee on Energy and Natural 
Resources. The Subcommittee on Water and Power held a hearing 
on S. 1071 on October 15, 2003. S. Hrg. 108-271. The Committee 
on Energy and Natural Resources ordered S. 1071, as amended, 
favorably reported on April 28, 2004.

                        COMMITTEE RECOMMENDATION

    The Committee on Energy and Natural Resources, in open 
business session on April 28, 2002, by a unanimous voice vote 
of a quorum present, recommends that the Senate pass S. 1071, 
as amended as described herein.

                          COMMITTEE AMENDMENTS

    During the consideration of S. 1071, the Committee adopted 
an amendment to increase the authorization amount from $500,000 
to $2,500,000.

                      SECTION-BY-SECTION ANALYSIS

    Section 1, subsection (a) authorizes the Secretary of the 
Interior, through the Bureau of Reclamation, and in 
consultation and cooperation with the Arch Hurley Conservancy 
District and the State Engineer in New Mexico, to conduct a 
feasibility study regarding implementation of a water 
conservation project that will minimize water losses from the 
irrigation conveyance works of the District.
    Subsection (b) requires the Secretary, upon completion of 
the feasibility study, to transmit a report of the results to 
the Congress. The subsection also requires the Secretary to 
utilize relevant reports and other information supplied by the 
District or the State Engineer.
    Section 2, subsection (a) authorizes $2,500,000 to carry 
out the Act.
    Subsection (b) provides that the Federal share of the costs 
shall not exceed 50 percent of the total unless the Secretary 
waives or limits the non-Federal share upon a demonstration 
that the District is unable to contribute the required share. 
The subsection also authorizes the Secretary to accept in-kind 
services from the District as part of the non-federal cost 
share contribution.

                   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, May 3, 2004.
Hon. Pete V. Domenici,
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. 1071, a bill to 
authorize the Secretary of the Interior, through the Bureau of 
Reclamation, to conduct a feasibility study on a water 
conservation project within the Arch Hurley Conservancy 
District in the state of New Mexico, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                         Elizabeth Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

S. 1071--A bill to authorize the Secretary of the Interior, through the 
        Bureau of Reclamation, to conduct a feasibility study on a 
        water conservation project within the Arch Hurley Conservancy 
        District in the state of New Mexico, and for other purposes

    Summary: S. 1071 would authorize the Secretary of the 
Interior through the Bureau of Reclamation to conduct a study 
to determine the feasibility of implementing a water 
conservation project in the Arch Hurley Conservancy District in 
New Mexico. The bill would authorize the appropriation of $2.5 
million to conduct this study.
    Assuming appropriation of the authorized amount, CBO 
estimates that implementing S. 1071 would cost $2.5 million 
over the 2005-2009 period. Enacting the bill would not affect 
direct spending or revenues. S. 1071 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. 1071 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment). For this estimate, CBO 
assumes that S. 1071 will be enacted before the end of fiscal 
year 2004 and that the authorized amount will be appropriated 
in fiscal year 2005. Outlay estimates are based on historical 
spending patterns of similar projects.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization level................................................        3        0        0        0        0
Estimated outlays..................................................        2        1        0        0        0
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 1071 
contains no intergovernmental or private-sector mandates as 
defined in 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: Marjorie 
Miller. Impact on the Private Sector: Paige Piper/Bach.
    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. 1071. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant 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. 1071.

                        EXECUTIVE COMMUNICATIONS

    On March 5, 2004, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth executive views on S. 1071. These reports had not been 
received at the time the report on S. 1071 was filed. When the 
reports become available, the Chairman will request that they 
be printed in the Congressional Record for the advice of the 
Senate. The testimony provided by the Department of the 
Interior at the Subcommittee hearing follows:

Statement of John W. Keys III, Commissioner Bureau of Reclamation, U.S. 
                       Department of the Interior

    Madam Chairman, my name is John Keys III and I am the 
Commissioner of the Bureau of Reclamation (Reclamation). I am 
pleased to be here today to present the views of the Department 
of the Interior (Department) regarding S. 1071, which would 
authorize a feasibility study on water conservation within the 
Arch Hurley Conservancy District (District). The feasibility 
study will also identify options for using saved water and cost 
sharing options, including debt relief for the District. We 
could support S. 1071 with modifications to Section 2(a), 
authorization of appropriations.
    The District is currently suffering from a severe drought. 
In 2002, the District members received 3 inches of water per 
acre, only 17% of their maximum allotment. The water was 
delivered in a period of six-weeks. In 2003, no water was 
delivered to any of the District members. The District has a 
history of low water supply and has experienced trouble meeting 
repayment obligations. Deferrals of the annual repayment were 
made in 1975, 1976, 2002, and 2003.
    The low water supply has had significant impacts on the 
irrigation system. Primarily, maintenance has been deferred and 
portions of the system are in disrepair. If the feasibility 
study identifies debt relief as a benefit for the District, the 
funds once used for debt payments will be available for 
maintenance of the irrigation system. Furthermore, the 
feasibility study will consider making some of the saved water 
available to the District, resulting in an increased water 
supply.
    We believe that a feasibility study is appropriate to 
consider whether conveying saved water to the Pecos River is 
practicable. Conveying the water to the Pecos River has many 
benefits. Like many other western rivers, the Pecos River is 
over allocated, contains a threatened species, and is in danger 
of violating the interstate compact. This year the state of New 
Mexico delivery shortfall to Texas may reach 6,000 acre-feet. 
Under no circumstances is the state of New Mexico allowed to 
provide less than required by the compact. Additionally, the 
Pecos River has target flows to prevent jeopardy of the 
threatened Pecos Bluntnose Shiner. Conserved water from the 
District will provide flexibility when meeting the identified 
target flows. Importation of the saved water into the Pecos 
River Basin will reduce impacts from the Endangered Species Act 
to Pecos Valley farmers.
    With respect to S. 1071, the Department is primarily 
concerned with the amount of $500,000 authorized in Section 
2(a) to complete the study. Our total cost estimate for the 
feasibility study is $2,500,000. Reclamation recommends up to 
$2,500,000 be authorized.
    Madam Chairman that concludes my remarks and I would be 
happy to respond to any questions the Committee may have.

                        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. 1071, as 
ordered reported.

                                  
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