[Senate Report 108-296]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 615
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-296

======================================================================



 
                 RECLAMATION SAFETY OF DAMS ACT OF 1978

                                _______
                                

                  July 7, 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. 1727]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1727) to authorize additional 
appropriations for the Reclamation Safety of Dams Act of 1978, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. ADDITIONAL AUTHORIZATION OF APPROPRIATIONS FOR THE 
                    RECLAMATION SAFETY OF DAMS ACT OF 1978.

  (a) Reimbursement of Certain Modification Costs.--Section 4(c) of the 
Reclamation Safety of Dams Act of 1978 (43 U.S.C. 508(c)) is amended by 
striking ``(c) With respect to'' and all that follows through ``2001'' 
and inserting the following:
  ``(c) Reimbursement of Certain Modification Costs.--With respect to 
the additional amounts authorized to be appropriated by section 5''.
  (b) Authorization of Appropriations.--Section 5 of the Reclamation 
Safety of Dams Act of 1978 (43 U.S.C. 509) is amended in the first 
sentence--
          (1) by inserting ``and, effective October 1, 2003, not to 
        exceed an additional $540,000,000 (October 1, 2003, price 
        levels),'' after ``(October 1, 2001, price levels),''; and
          (2) by striking ``$750,000'' and inserting ``$1,250,000 
        (October 1, 2003, price levels), as adjusted to reflect any 
        ordinary fluctuations in construction costs indicated by 
        applicable engineering cost indexes,''.

SEC. 2. PARTICIPATION BY PROJECT BENEFICIARIES.

  (a) Cost Containment; Modification Status.--Section 4 of the 
Reclamation Safety of Dams Act of 1978 (43 U.S.C. 508) is amended by 
adding at the end the following:
  ``(e)(1) During the construction of the modification, the Secretary 
shall consider cost containment measures recommended by a project 
beneficiary that has elected to consult with the Bureau of Reclamation 
on a modification.
  ``(2) The Secretary shall provide to project beneficiaries on a 
periodic basis notice regarding the costs and status of the 
modification.''.
  (b) Project Beneficiaries.--The Reclamation Safety of Dams Act of 
1978 is amended by inserting after section 5 (43 U.S.C. 509) the 
following:
  ``Sec. 5A. (a) On identifying a Bureau of Reclamation facility for 
modification, the Secretary shall provide to the project beneficiaries 
written notice--
          ``(1) describing the need for the modification and the 
        process for identifying and implementing the modification; and
          ``(2) summarizing the administrative and legal requirements 
        relating to the modification.
  ``(b) The Secretary shall--
          ``(1) provide project beneficiaries an opportunity to consult 
        with the Bureau of Reclamation on the planning, design, and 
        construction of the proposed modification; and
          ``(2) in consultation with project beneficiaries, develop and 
        provide timeframes for the consultation described in paragraph 
        (1).
  ``(c)(1) Prior to submitting the reports required under section 5, 
the Secretary shall consider any alternative submitted in writing, in 
accordance with the timeframes established under subsection (b), by a 
project beneficiary that has elected to consult with the Bureau of 
Reclamation on a modification.
  ``(2) The Secretary shall provide to the project beneficiary a timely 
written response describing proposed actions, if any, to address the 
recommendation.
  ``(3) The response of the Secretary shall be included in the reports 
required by section 5.
  ``(d) The Secretary may waive 1 or more of the requirements of 
subsections (a), (b), and (c), if the Secretary determines that 
implementation of the requirement could have an adverse impact on dam 
safety or security.''.

                                Purpose

    The purpose of S. 1727, as ordered reported, is to 
authorize additional appropriations for the Reclamation Safety 
of Dams Act of 1978 and to provide for certain opportunities 
for participation by project beneficiaries.

                          Background and Need

    With the Teton Dam failure in 1976, the Bureau of 
Reclamation (``Bureau'' or ``Reclamation'') experienced the 
only dam failure in its 100 year history. Congress responded by 
enacting the Reclamation Safety of Dams Act of 1978. The goal 
of Reclamation's dam safety program is to ensure the safety and 
reliability of 369 high hazard dams and dikes located at 250 
water projects in Reclamation's inventory.
    At the Subcommittee hearing, the Administration testified 
that, as of September 30, 2003, the approximately $159 million 
remaining in budget authority for the dam safety program would 
likely be committed in fiscal years 2004 and 2005. The purpose 
of S. 1727 is to increase by $540 million (indexed for 
inflation) the authorized cost ceiling for the Reclamation 
Safety of Dams Act of 1978. The increased funding level 
provided by S. 1727 will provide Reclamation with the authority 
to carry out safety of dams activities through fiscal years 
2012-2014, based on current projected funding needs.
    The bill also increases from $750,000 to $1.25 million the 
contract cost threshold amount for the requirement that the 
Bureau send a safety of dams modification report to Congress 
for review. This provision makes an adjustment for inflation.
    Finally, the legislation, as amended, addresses the 
participation by project beneficiaries in Reclamation's dam 
safety process. The bill provides project beneficiaries with 
opportunities as set forth in the bill to consult with the 
Bureau on the planning, design and construction of the proposed 
modification.

                          Legislative History

    S. 1727 was introduced by Senator Domenici on October 14, 
2003, and referred to the Energy and Natural Resources 
Committee. A hearing before the Subcommittee on Water and Power 
was conducted on March 25, 2004. The Energy and Natural 
Resources Committee, on June 16, 2004, by a unanimous vote of a 
quorum present, favorably reported S. 1727, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in an 
open business session on June 16, 2004, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
1727, if amended as described herein.

                          Committee Amendment

    The amendment in the nature of a substitute makes the 
following changes to S. 1727 as introduced:
    1. Makes a technical correction by reinserting the word 
``and'' before ``effective October 1, 2001.''
    2. Amends section 4 of the Reclamation Safety of Dams Act 
to add a new subsection (e)(1) to address participation by 
project beneficiaries in the Bureau's Safety of Dams program. 
The new subsection directs the Secretary to consider cost 
containment measures submitted by project beneficiaries 
participating in the Bureau's consultation process 
(``participating project beneficiaries'') with respect to the 
proposed modification. The Secretary is further directed to 
provide project beneficiaries with periodic notice on costs and 
status of the modification.
    3. Amends the Reclamation Safety of Dams Act to add a new 
section 5A. The new section directs the Secretary to provide 
written notice to the project beneficiaries once a facility has 
been identified for modification. The notice is to include 
information on the identification and implementation process 
for modification, along with a summary of the administrative 
and legal requirements related to the modification. The 
Secretary must provide the opportunity for project 
beneficiaries to consult with the Bureau on the planning, 
design, and construction of the proposed modification, as well 
as on timeframes for such consultation. The new section 5A 
established by the Committee amendment directs the Secretary to 
consider a written proposal that has been timely submitted by a 
participating project beneficiary. The Secretary is directed to 
provide a written response to the project beneficiary on the 
submitted proposal, and such response shall be included in any 
Congressional report required by section 5 on the modification. 
Finally, the new section authorizes the Secretary to waive one 
or more of the requirements set forth by the new section for 
safety or security reasons.

                      Section-by-Section Analysis

    Section 1(a) eliminates a redundant listing of additional 
authorization levels for the Safety of Dams Program contained 
in section 4(c) of the Reclamation Safety of Dams Act of 1978, 
as amended. Section 1(a) inserts in that subsection a cross-
reference to section 5 of theReclamation Safety of Dams Act, 
which sets forth these additional authorization levels, as well as the 
increase of an additional $540,000,000 in authorization provided for by 
the bill. The change made by section 1(a) simplifies the statutory 
language and eliminates redundancy, and the other obligations imposed 
by section 4(c) with respect to the previous additional authorization 
levels remain unchanged. The obligations of section 4(c) also apply to 
the new additional authorization level of $540,000,000.
    Section 2(a) amends section 4 of the Reclamation Safety of 
Dams Act to add a new subsection (e)(1). This new subsection 
directs the Secretary to consider cost containment measures 
offered by participating project beneficiaries. The new 
subsection further directs the Secretary to provide project 
beneficiaries with notice on the costs and status of a project 
modification on a periodic basis.
    Subsection (b) amends the Reclamation Safety of Dams Act to 
add a new section 5A. The new section 5A(a) directs the 
Secretary, upon identifying a project for modification, to 
provide written notice to the project beneficiaries containing 
the following information: the need for the modification; the 
identification and implementation process for the modification; 
and a summary of the modification's legal and administrative 
requirements relating to the modification.
    The new section 5A(b) directs the Secretary to provide 
project beneficiaries with the opportunity to consult with the 
Bureau on the planning, design and construction of the proposed 
modification and to establish and provide timeframes for such 
consultation.
    The new section 5A(c) further directs the Secretary to 
consider any written alternative submitted in a timely fashion 
by a participating project beneficiary, prior to submitting a 
modification report to Congress if required by section 5 of the 
Act. The new section 5A(c) directs the Secretary to provide a 
timely written response to a participating project 
beneficiary's proposed alternative and to include such response 
in any required reports to Congress.
    The new section 5A(d) authorizes the Secretary to waive one 
or more of the requirements provided by section 5(A)(a), (b), 
or (c) if the Secretary determines that implementation of the 
requirement could have an adverse impact on dam safety or 
security.

                   Cost and Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 23, 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. 1727, a bill to 
authorize additional appropriations for the Reclamation Safety 
of Dams Act of 1978.
    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. 1727--A bill to authorize additional appropriations for the 
        Reclamation Safety of Dams Act of 1978

    Summary: S. 1727 would increase the ceiling on amounts 
authorized to be appropriated for the Reclamation Safety of 
Dams Act by $540 million (excluding adjustments for inflation). 
Assuming appropriation of the necessary amounts, CBO estimates 
that implementing the bill would cost $135 million over the 
2005-2009 period and an additional $465 million after 2009 
(including costs to cover anticipated inflation). Enacting S. 
1727 would not affect direct spending or revenues.
    In addition, the bill would increase the cost threshold 
from $750,000 to $1.25 million that causes the Bureau of 
Reclamation to prepare a safety of dams modification report for 
the Congress and would make other administrative changes to the 
program. Based on information from the bureau, CBO expects that 
these provisions would have no significant cost.
    S. 1727 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. Any costs incurred by state or local governments 
to match or reimburse the federal funds authorized by this 
legislation result from participating in a voluntary federal 
program.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1727 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--
                                                           -----------------------------------------------------
                                                              2004     2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Dam Safety Spending Under Current Law:
    Estimated Authorization Level \1\.....................       55       48       57        0        0        0
    Estimated Outlays.....................................       30       37       49       24       13        6
Proposed Changes:
    Estimated Authorization Level.........................        0        0        0       60       62       63
    Estimated Outlays.....................................        0        0        0       31       47       57
Dam Safety Spending Under S. 1727
    Estimated Authorization Level.........................       55       48       57       60       62       63
    Estimated Outlays.....................................       30       37       49       55       60       63
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 amount is an estimate of the amount appropriated for the bureau's Dam Safety Program. The 2005 and
  2006 levels are the agency's estimate of the use of the remaining authorization level for this program.

    Basis of estimate: This bill would increase the amounts 
authorized to be appropriated for the Reclamation Safety of 
Dams Act of 1978 by $540 million (excluding adjustments for 
inflation).
    Under current law, $105 million remains to be appropriated 
of the program authorization level. The current ceiling on 
amounts authorized to be appropriated for this program is about 
$1 billion, including adjustments for inflation. The Bureau of 
Reclamation estimates that its plan to upgrade dams will use 
this remaining authorization level by fiscal year 2006 to fund 
ongoing and future projects.
    For this estimate, CBO assumes that S. 1727 will be enacted 
near the end of 2004. Including adjustments for anticipated 
inflation, CBO estimates that the authorization ceiling for the 
program would increase by $600 million. CBO expects that the 
additional authorization level under the bill would be needed 
starting in fiscal year 2007 and would fund projects through 
2015. Based on information from the bureau, CBO estimates that 
implementing this bill would cost $135 million over the 2005-
2009 period and $465 million after that period (including costs 
to cover anticipated inflation).
    Intergovernmental and private-sector impact: S 1727 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Any costs incurred by state or local 
governments to match or reimburse the federal funds authorized 
by this legislation results from participating in a voluntary 
federal program.
    Estimate prepared by: Federal Costs: Julie Middleton; 
Impact on State, Local, and Tribal Governments: Majorie Miller; 
and Impact on the Private Sector: Crystal Taylor.
    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. 1727. The Act 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. 1727.

                        Executive Communications

    On June 16, 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 agency recommendations on S. 1727. These 
reports had not been received when this report was filed. The 
testimony provided by the Department of the Interior at the 
Subcommittee hearing on S. 1727 follows:

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

    Madam Chairman, I am John W. Keys III, Commissioner of the 
Bureau of Reclamation. Thank you for the opportunity to provide 
the Department's views on S. 1727, to increase the authorized 
cost ceiling for the Reclamation Safety of Dams Act 
administered by the Bureau of Reclamation's Dam Safety Program 
by $540 million, and adjust the reporting threshold for 
inflation. The Administration strongly supports this bill.
    Since the passage of the Reclamation Safety of Dams Act of 
1978, the Bureau of Reclamation has developed a model dam 
safety program to implement the Federal Guidelines for Dam 
Safety and to modify dams in accordance with the act. In 1996, 
an independent review team comprised of representatives from 
the Association of Dam Safety Officials was assembled to assess 
the Department of the Interior's Dam Safety Program. It was the 
first outside review of Reclamation's program in two decades. 
In 1997, the team released a comprehensive and independent 
report. The report found that the Bureau of Reclamation has 
``an effective Dam Safety Program'' overseen by ``highly 
competent'' staff using ``state-of-the-art technical standards 
and expertise.'' Reclamation's ability to respond to dam safety 
issues and to take preventative, corrective actions to reduce 
the public risks under the authority of the Reclamation Safety 
of Dams Act was a critical component of this favorable peer 
review. The team made a number of recommendations in 
Reclamation's program, and we have taken steps to implement 
them. Among them, we now have an officer who audits and 
oversees the dam safety program, but is independent of the dam 
safety program staff. Outside experts annually review 
Reclamation's dam safety activities to ensure that the program 
has adequate policies and procedures in place to address public 
safety issues.


                               background


    Public Law 95-578 and Public Law 98-404, along with Federal 
Guidelines for Dam Safety and the Department manual, guide 
Reclamation's dam safety efforts. In this regard, Reclamation's 
top priorities are to deliver water to and generate power for 
its customers without disruption, while protecting public 
safety.
    There are 369 high hazard dams and dikes located at 250 
water projects in Reclamation's inventory. The dam safety 
program helps to ensure the safety and reliability of these 
facilities. Approximately 50 percent of Reclamation's dams were 
built between 1900 and 1950 and approximately 90 percent of the 
dams were built before current state-of-the-art design and 
construction practices. Considering the age of Reclamation 
dams, the ongoing monitoring, facility reviews, analysis, 
investigations, and emergency management are critical 
components of the dam safety program. We are proud of our dam 
safety work but we also realize we cannot take safety for 
granted.
     In its 100 year history, Reclamation has only had one dam 
failure--Teton Dam--that resulted in loss of life and damage to 
property. Teton Dam toppled in 1976 during initial filling due 
to a design and construction deficiency.
    After Teton, Reclamation instituted a dam safety program. 
Congress enacted the Reclamation Safety of Dams Act in 1978 
(Public Law 95-578) to preserve the structural safety of 
Reclamation dams and facilities. In 1984, Congress adopted 
amendments (Public Law 98-404) instituting a 15 percent non-
Federal cost share requirement for modifications made as a 
result of new hydrologic or seismic information or changes in 
the state-of-the-art technology. Public Law 95-578 authorized 
$100 million and Public Law 98-404 increased the authorized 
cost ceiling an additional $650 million, indexed for inflation. 
The 1984 Amendments also directed Reclamation to submit to 
Congress, prior to taking corrective actions, a report on any 
modifications expected to exceed $750,000 in actual 
construction costs. In Fiscal Years 2001 and 2002, Congress 
adopted amendments to increase the authorized cost ceiling by 
$95 million (Public Law 106-377) and by $32 million (Public Law 
107-117) respectively.
    Recognizing the importance of our relationships with the 
end users of the water and power from Reclamation projects, we 
have adopted a policy and directives that formalize 
requirements for communicating the need for modifications in a 
timely fashion. The policy and directives also require the 
development of a plan in cooperation with our water and power 
contractors to assure continued communication and involvement 
during the development of alternatives, selection of a 
preferred alternative, and implementation of the actions 
required to reduce risk.
    As of September 30, 2003, approximately $159 million 
remained in budget authority for the dam safety program. 
Reclamation anticipates that entire remaining authorization 
ceiling will be committed in fiscal years 2004 and 2005 to fund 
new and ongoing projects.


                           effect of s. 1727


    S. 1727 would make two primary changes in the existing 
program.
    First, the bill would increase by $540 million (indexed for 
inflation) the authorized cost ceiling for the Reclamation 
Safety of Dams Act. Reclamation anticipates that this funding 
level will provide Reclamation with authority to carry out 
safety of dams activities through approximately Fiscal Years 
2012-2014, based on current projected funding needs for safety 
of dams modifications. If annual obligations are required at a 
faster rate to meet identified needs, the ceiling would be 
expended sooner.
    Second, the bill would increase from $750,000 to $1.25 
million the contract cost threshold amount for the Bureau of 
Reclamation to send a safety of dams modification report to 
Congress for review. This change would adjust the threshold for 
inflation since 1984, and thus allow Reclamation to 
independently initiate the modifications of the size and scope 
contemplated in the 1984 amendments.


                               conclusion


    Since 1978, when Congress first created the Safety of Dams 
program, we have carried out 64 risk reduction corrective 
actions and 4 more are currently underway. Reclamation has 
implemented these corrective actions to protect public safety 
at the lowest cost possible.
    S. 1727 would provide the additional budget authority for 
this effort to continue into the future. While the 
Administration supports the increase of appropriations ceiling, 
we will continue to evaluate this program for potential changes 
to improve planning and operations, better serve the taxpayer, 
and protect the safety of the people and businesses that rely 
on the soundness and integrity of Reclamation facilities.
    In conclusion, Madam Chairman, the Administration strongly 
support S. 1727, and I would be pleased to answer any questions 
you may have.

                        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 
S. 1727, 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):

                 RECLAMATION SAFETY OF DAMS ACT OF 1978


  Public Law 95-578, 92 Stat. 2471, as amended by Public Law 98-404, 
 Sec. 1(2), 98 Stat. 1481, 1482; Public Law 106-377, Sec. 1(a)(2), 114 
 Stat. 1441; and Public Law 107-117, div. B, chap. 5, Sec. 503(1), 115 
                               Stat. 2308


    AN ACT To authorize the Secretary of the Interior to construct, 
  restore, operate, and maintain new or modified features at existing 
Federal reclamation dams for safety of dams purposes

           *       *       *       *       *       *       *


    Sec. 4. (a) Costs heretofore or hereafter incurred in the 
modification of structure under this Act, the cause of which 
results from age and normal deterioration of the structure or 
from nonperformance of reasonable and normal maintenance of the 
structure by the operating entity shall be considered as 
projects costs and will be allocated to the purposes for which 
the structure was authorized initially to be constructed and 
will be reimbursable as provided by existing law.
    (b) With respect to the $100,000,000 authorized to be 
appropriated in the Reclamation Safety of Dams Act of 1978, 
costs heretofore or hereafter incurred in the modification of 
strictures under this Act, the cause of which results from new 
hydrologic or seismic data orchanges in state-of-the-art 
criteria deemed necessary for safety purposes shall be nonreimbursable 
and nonreturnable under the Federal Reclamation law.
    [(c) With respect to the additional $650,000,000 authorized 
to be appropriated in The Reclamation Safety of Dams Act 
Amendments of 1984, and the additional $95,000,000 further 
authorized to be appropriated by amendments to that Act in 
2000, and the additional $32,000,000 further authorized to be 
appropriated by amendments to the Act in 2001] (c) 
Reimbursement of Certain Modification Costs._With respect to 
the additional amounts authorized to be appropriated by section 
5, costs incurred in the modification of structures under this 
Act, the cause of which results from new hydrologic or seismic 
data or changes in state-of-the-art criteria deemed necessary 
for safety purposes, shall be reimbursed to the extent provided 
in this subsection.

           *       *       *       *       *       *       *

    (e)(1) During the construction of the modification, the 
Secretary shall consider cost containment measures recommended 
by a project beneficiary that has elected to consult with the 
Bureau of Reclamation on a modification.
    (2) The Secretary shall provide to project beneficiaries on 
a periodic basis notice regarding the costs and status of the 
modification.

           *       *       *       *       *       *       *

    Sec. 5. There are hereby authorized to be appropriated for 
fiscal year 1979 and ensuing fiscal years such sums as may be 
necessary and, effective October 1, 1983, not to exceed an 
additional $650,000,000 (October 1, 1983, price levels), and, 
effective October 1, 2000, not to exceed an additional 
$95,000,000 (October 1, 2000, price levels,) and, effective 
October 1, 2001, not to exceed an additional $32,000,000 
(October 1, 2001, price levels), and, effective October 1, 
2003, not to exceed an additional $540,000,000 (October 1, 
2003, price levels), plus or minus such amounts, if any, as may 
be justified by reason of ordinary fluctuations in construction 
costs as indicated by engineering cost indexes applicable to 
the types of construction involved herein, to carry out the 
provisions of this Act to remain available until expended if so 
provided by the appropriations Act: Provided, That no funds 
exceeding [$750,000] $1,250,000 (October 1, 2003, price 
levels), as adjusted to reflect any ordinary fluctuations in 
construction costs indicated by applicable engineering cost 
indexes, shall be obligated for carrying out actual 
construction to modify an existing dam under authority of this 
Act prior to 30 calendar days from the date that the Secretary 
has transmitted a report on such existing dam to the Congress. 
The report required to be submitted by this section will 
consist of a finding by the Secretary of the Interior to the 
effect that modifications are required to be made to insure the 
safety of an existing dam. Such finding shall be accompanied by 
a technical report containing information on the need for 
structural modification, the corrective action deemed to be 
required, alternative solutions to structural modification that 
were considered, the estimated cost of needed modifications, 
and environmental impacts if any resulting from the 
implementation of the recommended plan of modification.
    Sec. 5A. (a) On identifying a Bureau of Reclamation 
facility for modification, the Secretary shall provide to the 
project beneficiaries written notice--
          (1) describing the need for the modification and the 
        process for identifying and implementing the 
        modification; and
          (2) summarizing the administrative and legal 
        requirements relating to the modification.
    (b) The Secretary shall--
          (1) provide project beneficiaries an opportunity to 
        consult with the Bureau of Reclamation on the planning, 
        design, and construction of the proposed modification; 
        and
          (2) in consultation with project beneficiaries, 
        develop and provide timeframes for the consultation 
        described in paragraph (1).
    (c)(1) Prior to submitting the reports required under 
section 5, the Secretary shall consider any alternative 
submitted in writing, in accordance with the timeframes 
established under subsection (b), by a project beneficiary that 
has elected to consult with the Bureau of Reclamation on a 
modification.
    (2) The Secretary shall provide to the project beneficiary 
a timely written response describing proposed actions, if any, 
to address the recommendation.
    (3) The response of the Secretary shall be included in the 
reports required by section 5.
    (d) The Secretary may waive 1 or more of the requirements 
of subsections (a), (b), and (c), if the Secretary determines 
that implementation of the requirements could have an adverse 
impact on dam safety or security.

           *       *       *       *       *       *       *


                                  
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