[House Report 110-813]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-813

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



 
                JACKSON GULCH REHABILITATION ACT OF 2008

                                _______
                                

 July 31, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3437]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 3437) to authorize the Secretary of the Interior to 
carry out the Jackson Gulch rehabilitation project in the State 
of Colorado, 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 ``Jackson Gulch Rehabilitation Act of 
2008''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Assessment.--The term ``assessment'' means the 
        engineering document that is--
                  (A) entitled ``Jackson Gulch Inlet Canal Project, 
                Jackson Gulch Outlet Canal Project, Jackson Gulch 
                Operations Facilities Project: Condition Assessment and 
                Recommendations for Rehabilitation'';
                  (B) dated February 2004; and
                  (C) on file with the Bureau of Reclamation.
          (2) District.--The term ``District'' means the Mancos Water 
        Conservancy District established under the Water Conservancy 
        Act (Colo. Rev. Stat. 37-45-101 et seq.).
          (3) Project.--The term ``Project'' means the Jackson Gulch 
        rehabilitation project, a program for the rehabilitation of the 
        Jackson Gulch Canal system and other infrastructure in the 
        State, as described in the assessment.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior, acting through the Commissioner of Reclamation.
          (5) State.--The term ``State'' means the State of Colorado.

SEC. 3. AUTHORIZATION OF JACKSON GULCH REHABILITATION PROJECT.

  (a) In General.--Subject to the reimbursement requirement described 
in subsection (c), the Secretary shall pay the Federal share of the 
total cost of carrying out the Project.
  (b) Use of Existing Information.--In preparing any studies relating 
to the Project, the Secretary shall, to the maximum extent practicable, 
use existing studies, including engineering and resource information 
provided by, or at the direction of--
          (1) Federal, State, or local agencies; and
          (2) the District.
  (c) Reimbursement Requirement.--
          (1) Amount.--The Secretary shall recover from the District as 
        reimbursable expenses the lesser of--
                  (A) the amount equal to 35 percent of the cost of the 
                Project; or
                  (B) $2,900,000.
          (2) Manner.--The Secretary shall recover reimbursable 
        expenses under paragraph (1)--
                  (A) in a manner agreed to by the Secretary and the 
                District;
                  (B) over a period of 15 years; and
                  (C) with no interest.
          (3) Credit.--In determining the exact amount of reimburseable 
        expenses to be recovered from the District, the Secretary shall 
        credit the District for any amounts it paid before the date of 
        the enactment of this Act for engineering work and improvements 
        directly associated with the Project.
  (d) Prohibition on Operation and Maintenance Costs.--The District 
shall be responsible for the operation and maintenance of any facility 
constructed or rehabilitated under this Act.
  (e) Liability.--The United States shall not be liable for damages of 
any kind arising out of any act, omission, or occurrence relating to a 
facility rehabilitated or constructed under this Act.
  (f) Effect.--An activity provided Federal funding under this Act 
shall not be considered a supplemental or additional benefit under--
          (1) the reclamation laws; or
          (2) the Act of August 11, 1939 (16 U.S.C. 590y et seq.).
  (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to pay the Federal share of the total 
cost of carrying out the Project $8,250,000.

                          PURPOSE OF THE BILL

    The purpose of H.R. 3437 is to authorize the Secretary of 
the Interior to carry out the Jackson Gulch rehabilitation 
project in the State of Colorado.

                  BACKGROUND AND NEED FOR LEGISLATION

    Completed in 1950, the Mancos Project canal delivers water 
from Jackson Gulch Dam to residents, farms, and businesses in 
Montezuma County, Colorado. The Mancos Project and the Jackson 
Gulch Dam provide supplemental agricultural water for about 
8,650 irrigated acres and a domestic water supply for Mesa 
Verde National Park. The Mancos Project also delivers water to 
the more than 500 members of the Mancos Rural Water Company, as 
well as the town of Mancos. The project can additionally 
furnish a supplemental water supply to 13,746 acres of 
irrigated land. After almost 60 years, however, the project has 
outlived its expected life and is in need of rehabilitation.
    Catastrophic failure of the project could result in a 
shutting off of water to Mesa Verde National Park. The town of 
Mancos would suffer a severe municipal water shortage, and 
there would be some loss of crop production. The Mancos Water 
Conservancy District has obtained a loan from the Colorado 
Water Conservation Board, which, combined with a recent levy 
increase, will supply the state and local share of the project 
rehabilitation costs.
    Initially, the Mancos Water Conservancy District paid the 
Bureau of Reclamation (BOR) in advance for Operation and 
Maintenance (O&M) for project facilities. In 1963, BOR 
transferred O&M responsibilities to the District, but title to 
project facilities remains with the United States. The Project 
facilities have been inspected annually by BOR. Major 
rehabilitation is needed on the inlet and outlet canals and 
associated structures. In 2000, BOR recommended major 
rehabilitation be completed within the next five years. The 
District has now completed a study and plan that define the 
magnitude of rehabilitation needed on Project facilities.

                            COMMITTEE ACTION

    H.R. 3437 was introduced on August 3, 2007 by Rep. John 
Salazar (D-CO). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power. On October 24, 2007, the Subcommittee held 
a hearing on the bill.
    The Subcommittee met to mark up the bill on July 15, 2008. 
Chairwoman Grace Napolitano (D-CA) offered an amendment in the 
nature of a substitute to increase the authorization for the 
total cost of the rehabilitation project to $8.25 million, and 
to require the Mancos Water Conservancy District to reimburse 
the federal government over the next 15 years either $2.9 
million or 35 percent of this cost, whichever is lower. The 
bill, as amended, was adopted by unanimous consent and 
forwarded to the Full Committee. On July 16, 2008, the Full 
Natural Resources Committee met to consider the bill. H.R. 
2535, as amended, was favorably reported to the House of 
Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 provides that this Act may be cited as the 
``Jackson Gulch Rehabilitation Act of 2008.''

Section 2. Definitions

    Section 2 provides definitions for terms used in the 
legislation.

Section 3. Authorization of Jackson Gulch Rehabilitation Project

    Subsection 3(a) provides that, subject to the reimbursement 
requirements laid out in the bill, the Secretary of the 
Interior will pay the federal share of the cost of the Project.
    Subsection 3(b) states that, in preparing studies for the 
Project, the Secretary of the Interior will use existing 
studies, engineering, and resource information provided by 
federal, state, or local agencies and the Mancos Water 
Conservancy District.
    Subsection 3(c) sets the terms of reimbursement. The Mancos 
Water Conservancy District must reimburse the government for 
the lesser of 35 percent of the Project cost or $2,900,000 over 
a period of 15 years with no interest. This subsection also 
contains a provision that allows the District to receive a 
credit for amounts paid for engineering work and improvements 
associated with the Project prior to bill enactment.
    Subsection 3(d) states that all operation and maintenance 
costs of the Project's construction and rehabilitation under 
this Act are the responsibility of the Mancos Water Conservancy 
District.
    Subsection 3(e) limits the liability of the United States 
for damages relating to facility rehabilitation or construction 
under this Act.
    Subsection 3(f) states that activities under this Act are 
not to be considered a supplemental or additional benefit under 
reclamation laws or the Act of August 11, 1939.
    Subsection 3(g) authorizes the Secretary of the Interior to 
spend $8,250,000 on the rehabilitation of the Project.

            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 Natural 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. However, clause 3(d)(3)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    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 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to authorize the Secretary of the 
Interior to carry out the Jackson Gulch rehabilitation project 
in the State of Colorado.
    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 received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 3437--Jackson Gulch Rehabilitation Act of 2008

    Summary: H.R. 3437 would authorize the Secretary of the 
Interior to provide funds for the rehabilitation of the Jackson 
Gulch Canal system in the state of Colorado. Based on 
information from the Bureau of Reclamation and assuming 
appropriation of the necessary funds, CBO estimates that 
implementing H.R. 3437 would cost around $8 million over the 
2009-2013 period.
    H.R. 3437 would require the Mancos Water Conservancy 
District to reimburse the federal government for 35 percent of 
the project cost, less any funds that the district has 
contributed to the project under current law. Based on 
information from the agency, CBO expects that the district 
would reimburse the government approximately $2.5 million over 
the 15-year period following completion of the project. Those 
funds would be classified as offsetting receipts. If funds were 
appropriated for the project, the government would collect this 
amount after the project is complete.
    H.R. 3437 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 H.R. 3437 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--
                                                            ----------------------------------------------------
                                                              2009    2010    2011    2012    2013    2009-2013
----------------------------------------------------------------------------------------------------------------
                                   CHANGE IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level..............................       2       2       2       2       0            8
Estimated Outlays..........................................       1       2       2       2       1            8
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate CBO assumes that H.R. 
3437 will be enacted near the beginning of fiscal year 2009 and 
that the necessary amounts will be appropriated for each fiscal 
year.
    H.R. 3437 would authorize the Secretary of the Interior to 
provide funds for rehabilitating the Jackson Gulch Canal system 
in the state of Colorado. Federal funding for the project could 
only be used for designing and implementing the project; no 
federal funds could be used for operation and maintenance of 
the project. Based on information from the Bureau of 
Reclamation and assuming appropriation of the necessary funds, 
CBO estimates that implementing H.R. 3437 would cost around $8 
million over the 2009-2013 period.
    The legislation would require the Mancos Water Conservancy 
District--the local water district that oversees the Jackson 
Gulch Canal system--to reimburse the federal government for 35 
percent of the project cost, less any funds that the district 
has contributed to the project under current law. If 
appropriations are provided for the project, the government 
would later collect a total of $2.5 million in the years 
following completion (after 2013).
    Intergovernmental and private-sector impact: H.R. 3437 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Enactment of this bill would benefit the 
Mancos Water Conservancy District. Any costs to the district 
would be incurred voluntarily.
    Estimate prepared by: Federal Costs: Tyler Kruzich; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 3437 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                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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