[Senate Report 109-248]
[From the U.S. Government Publishing Office]
Calendar No. 410
109th Congress Report
SENATE
2d Session 109-248
======================================================================
NORTHERN COLORADO WATER CONSERVANCY DISTRICT CONVEYANCE ACT
_______
April 20, 2006.--Ordered to be printed
Filed, under authority of the order of the Senate of April 7, 2006
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 3443]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 3443) to direct the Secretary of the
Interior to convey certain water distribution facilities to the
Northern Colorado Water Conservancy District, having considered
the same, reports favorably thereon without amendment and
recommends that the Act do pass.
PURPOSE OF THE MEASURE
The purpose of H.R. 3443 is to direct the Secretary of the
Interior to transfer the title of specific water distribution
facilities of the Colorado-Big Thompson Project in northeastern
Colorado to the Northern Colorado Water Conservancy District.
BACKGROUND AND NEED
The Northern Colorado Water Conservancy District
(hereinafter ``District'') seeks the transfer of title of the
following three single-purpose Colorado-Big Thompson Project
(hereinafter ``C-BT'') water conveyance facilities: the St.
Vrain Supply Canal, the Boulder Creek Supply Canal, and the
South Platte Supply Canal. The C-BT is a multi-purpose project
built by Reclamation between 1938 and 1957. The C-BT's primary
purpose is to provide supplemental water supply for the
beneficial use of the District's customers, with hydropower
generation as a secondary purpose.
In 2000, Congress transferred title to four single-purpose
water conveyance facilities associated with the C-BT from the
United States to the District (P.L. 106-376). In that instance,
a Memorandum of Agreement (hereinafter ``MOA'') with
Reclamation was completed subsequent to passage of that law and
the property was transferred. Enactment of H.R. 3443 would
complete the transfer of title of all single-purpose water
conveyance facilities within the C-BT to the District. In July
2005, the District requested that Reclamation enter into a
Memorandum of Understanding (hereinafter ``MOU'') for purposes
of the transfer proposed by H.R. 3443. Pursuant to that
request, Reclamation and the District have reached agreement on
the title transfer MOU.
The District has operated and maintained these distribution
facilities since 1957 and has completed its repayment of the
capital costs for the C-BT. According to the bill's proponents,
the transfer will allow the District to cost-effectively manage
the facilities and reduce paperwork.
LEGISLATIVE HISTORY
H.R. 3443 was introduced on July 26, 2005, by
Representative Musgrave for herself and Representative Mark
Udall and referred to the House Resources Committee. The
Subcommittee on Water and Power held a hearing on H.R. 3443 on
September 27, 2005. The House Resources Committee, by unanimous
consent, ordered H.R. 3443 favorably reported on October 19,
2005. Under suspension of the rules, H.R. 3443 passed the House
of Representatives on December 13, 2005. A similar measure, S.
1498 was introduced by Senator Allard on July 26, 2005 for
himself and Senator Salazar and referred to the Energy and
Natural Resources Committee. The Subcommittee on Water and
Power held a hearing on S. 1498 on October 6, 2005. S. Hrg.
109-273. The Senate Committee on Energy and Natural Resources
ordered H.R. 3443 favorably reported on March 15, 2006.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in an
open business meeting on March 15, 2006 by unanimous voice vote
of a quorum present, recommends that the Senate pass H.R. 3443.
SECTION-BY-SECTION ANALYSIS
Section 1 defines the terms used in the Act.
Section 2 subsection (a) directs the Secretary to convey to
the District all right, title and interest in the St. Vrain
Supply Canal; the Boulder Creek Supply Canal that extends from
the St. Vrain River to Boulder Creek, including that portion
that extends from the St. Vrain River to Boulder Reservoir; and
the South Platte Supply Canal. This section directs that the
title transfer take place while ensuring that the Secretary
evaluate the impacts of the change of ownership of the
transferred water distribution facilities, if any, develop
environmental compliance documents, and proceed in compliance
with all applicable laws. Any action required as a result of
the Secretary's action shall be carried out by the Federal
government or the Northern Colorado Water Conservancy District
pursuant to MOU No. 06AG602103 entered into on December 16,
2005.
Subsection (b) provides that the District has completed its
capital cost obligation associated with the C-BT; that the
District shall not be required to provide any additional
consideration for the conveyance made under subsection (a); and
that the Western Area Power Administration shall continue to
include the unpaid portion of the transferred facilities in its
annual power repayment studies for the Loveland Area Projects
until such facilities are repaid, consistent with applicable
laws and policies.
Subsection (c) provides that, except as provided in the
Act, nothing affects the obligations and rights of the District
under the contract between the District and the United States
providing for the construction of the C-BT.
Section 3 provides that, following the conveyance made
under subsection (a), the United States shall not be liable for
damages associated with the transferred facilities.
Section 4 recognizes the unique status of the New
Consolidated Lower Boulder Reservoir and Ditch Co., and the New
Coal Ridge Ditch Company, and ensures that any action
undertaken by the Secretary in accordance with this Act will
not affect the rights and interests of those companies or
ability to use the transferred water distribution facilities.
This section does not affect the activities to be carried out
pursuant to MOU No. 06AG602103.
Section 5 provides that, if the conveyance has not occurred
one year after the date of enactment of this Act, the Secretary
shall submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Resources of the House of
Representatives a report detailing why the facilities have not
been transferred and the schedule for completing the transfer.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
H.R. 3443--An act to direct the Secretary of the Interior to convey
certain water distribution facilities to the Northern Colorado
Water Conservancy District
H.R. 3443 would direct the Secretary of the Interior to
convey certain water distribution facilities that are a part of
the Colorado-Big Thompson Project to the Northern Colorado
Water Conservancy District. Based on information from the
Bureau of Reclamation, CBO estimates that enacting H.R. 3443
would have no significant effect on the federal budget.
The Northern Colorado Water Conservancy District has
fulfilled all repayment obligations associated with the
project. Under current law, the district pays all operations
and maintenance costs for the project. In addition, H.R. 3443
would have no effect on the Western Area Power Administration's
(WAPA's) repayment obligation for the Colorado-Big Thompson
Project. Under current law, WAPA will repay $72 million in
construction costs for the project by 2051.
H.R. 3443 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.
Accepting the land conveyance authorized in this act would be
voluntary on the part of the Northern Colorado Water
Conservancy District. Any costs they might incur to comply with
the conditions of conveyance would be incurred voluntarily.
The CBO staff contact for this estimate is Julie Middleton.
The 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 H.R. 3443. 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 H.R. 3443.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Bureau of Reclamation at the
Subcommittee hearing on S. 1498, the Senate counterpart to H.R.
3443, in the 109th Congress follows:
Statement of William E. Rinne, Deputy Commissioner of the Bureau of
Reclamation, Department of the Interior
Good morning, I am William E. Rinne, Deputy Commissioner of
the Bureau of Reclamation. I am pleased to appear before this
Subcommittee to provide Reclamation's views on S. 1498,
legislation to transfer title to certain water distribution
facilities of the Colorado-Big Thompson Project (C-BT) located
in Colorado, to the Northern Colorado Water Conservancy
District. Mr. Chairman, we are working diligently with the
District to accomplish this title transfer because we are
convinced it has the potential to provide operations
efficiencies and other benefits. However, we are concerned that
the legislation may be premature because we have not yet worked
out the details of the title transfer with the District.
To date, our most successful transfers have relied on a
simple plan--identify issues and obstacles at the local level
and address them prior to the introduction of legislation
authorizing the title transfer. Toward this end, Reclamation
has a clear and collaborative process for title transfers. Not
only has the preferred approach helped entities identify and
address concerns of other interested parties early on in the
process, but it has also enabled Reclamation and the districts
to accurately predict and assign costs, and resolve other
issues during the more flexible period preceding legislation.
This process has been quite successful and we strongly
encourage the District to continue to work through it with us
before legislation advances.
The transfer contemplated by S. 1498 has only just begun.
On January 24 of this year, Reclamation wrote to the District,
acknowledging its interest in title transfer and urging it to
follow the title transfer process described above. On July 26,
2005, H.R. 3443 was introduced in the House. On September 7,
2005, the District wrote Reclamation requesting that an MOU be
entered into by October 7, 2005. We have begun working with the
District on that MOU, and if no unexpected issues arise, we
anticipate executing the MOU by October 7. Subsequent to the
completion of that MOU, Reclamation and the District need to
thoroughly discuss the remaining issues associated with the
transfer of these facilities.
Mr. Chairman, we look forward to working with you and the
District to complete this title transfer in the most efficient
and cost-effective manner possible.
That concludes my statement. I would be pleased to answer
any questions.
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 Act, H.R. 3443, as
ordered reported.