[Senate Report 113-226]
[From the U.S. Government Publishing Office]
Calendar No. 513
113th Congress } { Report
SENATE
2d Session } { 113-226
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BUREAU OF RECLAMATION TRANSPARENCY ACT
_______
July 31, 2014.--Ordered to be printed
_______
Ms. Landrieu, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1800]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1800) to require the Secretary of the
Interior to submit to Congress a report on the efforts of the
Bureau of Reclamation to manage its infrastructure assets,
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 all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bureau of Reclamation Transparency
Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the water resources infrastructure of the Bureau of
Reclamation provides important benefits related to irrigated
agriculture, municipal and industrial water, hydropower, flood
control, fish and wildlife, and recreation in the 17
Reclamation States;
(2) as of 2013, the combined replacement value of the
infrastructure assets of the Bureau of Reclamation was
$94,500,000,000;
(3) the majority of the water resources infrastructure
facilities of the Bureau of Reclamation are at least 60 years
old;
(4) the Bureau of Reclamation has previously undertaken
efforts to better manage the assets of the Bureau of
Reclamation, including an annual review of asset maintenance
activities of the Bureau of Reclamation known as the ``Asset
Management Plan''; and
(5) actionable information on infrastructure conditions at
the asset level, including information on maintenance needs at
individual assets due to aging infrastructure, is needed for
Congress to conduct oversight of Reclamation facilities and
meet the needs of the public.
SEC. 3. DEFINITIONS.
In this Act:
Asset.--
(A) In general--The term ``asset'' means any of the
following assets that are used to achieve the mission
of the Bureau of Reclamation to manage, develop, and
protect water and related resources in an
environmentally and economically sound manner in the
interest of the people of the United States:
(i) Capitalized facilities, buildings,
structures, project features, power production
equipment, recreation facilities, or quarters.
(ii) Capitalized and noncapitalized heavy
equipment and other installed equipment.
(B) Inclusions.--The term ``asset'' includes assets
described in subparagraph (A) that are considered to be
mission critical.
(2) Asset management report.--The term ``Asset Management
Report'' means--
(A) the annual plan prepared by the Bureau of
Reclamation known as the ``Asset Management Plan''; and
(B) any publicly available information relating to
the plan described in subparagraph (A) that summarizes
the efforts of the Bureau of Reclamation to evaluate
and manage infrastructure assets of the Bureau of
Reclamation.
(3) Major repair and rehabilitation need.--The term ``major
repair and rehabilitation need'' means major nonrecurring
maintenance at a Reclamation facility, including maintenance
related to the safety of dams, extraordinary maintenance of
dams, deferred major maintenance activities, and all 7 other
significant repairs and extraordinary maintenance.
(4) Reclamation facility.--The term ``Reclamation facility''
means each of the infrastructure assets that are owned by the
Bureau of Reclamation at a Reclamation project.
(5) Reclamation project.--The term ``Reclamation project''
means a project that is owned by the Bureau of Reclamation,
including all reserved works and transferred works owned by the
Bureau of Reclamation.
(6) Reserved works.--The term ``reserved works'' means
buildings, structures, facilities, or equipment that are owned
by the Bureau of Reclamation for which operations and
maintenance are performed by employees of the Bureau of
Reclamation or through a contract entered into by the Bureau of
Reclamation, regardless of the source of funding for the
operations and maintenance.
(7) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(8) Transferred works.--The term ``transferred works'' means
a Reclamation facility at which operations and maintenance of
the facility is carried out by a non-Federal entity under the
provisions of a formal operations and maintenance transfer
contract or other legal agreement with the Bureau of
Reclamation.
SEC. 4. ASSET MANAGEMENT REPORT ENHANCEMENTS FOR RESERVED WORKS.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Secretary shall submit to Congress an Asset Management
Report that--
(1) describes the efforts of the Bureau of Reclamation--
(A) to maintain in a reliable manner all reserved
works at Reclamation facilities; and
(B) to standardize and streamline data reporting and
processes across regions and areas for the purpose of
maintaining reserved works at Reclamation facilities;
and
(2) expands on the information otherwise provided in an Asset
Management Report, in accordance with subsection (b).
(b) Infrastructure Maintenance Needs Assessment.--
(1) In general.--The Asset Management Report submitted under
subsection (a) shall include--
(A) a detailed assessment of major repair and
rehabilitation needs for all reserved works at all
Reclamation projects; and
(B) to the extent practicable, an itemized list of
major repair and rehabilitation needs of individual
Reclamation facilities at each Reclamation project.
(2) Inclusions.--To the extent practicable, the itemized list
of major repair and rehabilitation needs under paragraph (1)(B)
shall include--
(A) a budget level cost estimate of the
appropriations needed to complete each item; and
(B) an assignment of a categorical rating for each
item, consistent with paragraph (3).
(3) Rating requirements.--
(A) In general.--The system for assigning ratings
under paragraph (2)(B) shall be--
(i) consistent with existing uniform
categorization systems to inform the annual
budget process and agency requirements; and
(ii) subject to the guidance and instructions
issued under subparagraph (B).
(B) Guidance.--As soon as practicable after the date
of enactment of this Act, the Secretary shall issue
guidance that describes the applicability of the rating
system applicable under paragraph (2)(B) to Reclamation
facilities.
(4) Public availability.--Except as provided in paragraph
(5), the Secretary shall make publically available, including
on the Internet, the Asset Management Report required under
subsection (a).
(5) Confidentiality.--Subject to the discretion of the
Secretary, the Secretary may exclude from the public version of
the Asset Management Report made available under paragraph (4)
any information that the Secretary identifies as sensitive or
classified, but shall make available to the Committee on Energy
and Natural Resources of the Senate and the Committee on
Natural Resources of the House of Representatives a version of
the report containing the sensitive or classified information.
(c) Updates.--Not later than 2 years after the date on which the
Asset Management Report is submitted under subsection (a) and
biennially thereafter, the Secretary shall update the Asset Management
Report, subject to the requirements of section 5(b)(2).
(d) Consultation.--The Secretary shall consult with the Secretary
of the Army (acting through the Chief of Engineers) to the extent that
the consultation would assist the Secretary in preparing the Asset
Management Report under subsection (a) and updates to the Asset
Management Report under subsection (c).
SEC. 5. ASSET MANAGEMENT REPORT ENHANCEMENTS FOR TRANSFERRED WORKS.
(a) In General.--The Secretary shall coordinate with the non-
Federal entities responsible for the operation and maintenance of
transferred works in developing reporting requirements for Asset
Management Reports with respect to the condition of, and planned
maintenance for, transferred works that are similar to the reporting
requirements described in section 4(b)
(b) Guidance.--
(1) In general.--After considering input from water and power
contractors of the Bureau of Reclamation, the Secretary shall
develop and implement a rating system for transferred works
that incorporates, to the maximum extent practicable, the
rating system for reserved works developed under section
4(b)(3).
(2) Updates.--The ratings system developed under paragraph
(1) shall be included in the updated Asset Management Reports
under section 4(c).
PURPOSE
The purpose of S. 1800 is to require the Secretary of the
Interior to submit to Congress a report on the efforts of the
Bureau of Reclamation to manage its infrastructure assets.
BACKGROUND AND NEED
Founded in 1902, the Bureau of Reclamation provides vital
services for irrigators, hydropower, dams, recreation, and
canals in the seventeen western states. Reclamation's inventory
includes 476 dams and dikes, creating 337 reservoirs with a
total storage capacity of 245 million acre-per-feet of water.
Much of Reclamation's infrastructure was constructed over 50
years ago and the department has faced challenges maintaining
this aging infrastructure.
Reclamation has prepared an annual ``Asset Management
Plan,'' which describes current business practices and
performance metrics in the past, but does not provide
information at the project level. S. 1800 seeks to expand on
the information provided by the Asset Management Plan by
providing a detailed assessment of major repair and
rehabilitation needs at the project level at all Reclamation
sites. In order to better understand the state of Reclamation's
infrastructure, S. 1800 requires the Bureau to provide a report
with: (1) an itemized list of major repair and rehabilitation
needs at each Bureau of Reclamation facility; (2) cost estimate
of the expenditures needed to address those repairs; and (3)
categorical safety rating, using the Bureau's own existing
categorical system, of the importance of addressing each item.
LEGISLATIVE HISTORY
S. 1800 was introduced by Senators Barrasso and Schatz on
December 11, 2013. A hearing was held by the Subcommittee on
Water and Power on February 27, 2014 (S. Hrg. 113-284). At its
business meeting on June 18, 2014, the Senate Energy and
Natural Resources Committee ordered S. 1800 favorably reported
with an amendment in the nature of a substitute.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on June 18, 2014, by a voice vote of a
quorum present, recommends that the Senate pass S. 1800, if
amended as described herein.
COMMITTEE AMENDMENT
During its consideration of S. 1800, the Committee adopted
an amendment in the nature of a substitute. The amendment adds
several definitions including ``asset'', ``major repair and
rehabilitation need'', ``reserved works'', and ``transferred
works''. The amendment separates the Asset Management Report
into two parts; one for reserved works and one for transferred
works, which is addressed in a new section 5. In section 4, the
amendment directs the Secretary of the Interior to issue
guidance.
The amendment is explained in detail in the section-by-
section analysis below.
SECTION-BY-SECTION ANALYSIS
Section 1 provides a short title.
Section 2 contains Congressional findings about the need
for a report addressing the Bureau of Reclamation's aging
infrastructure.
Section 3 includes definitions of terms.
Section 4 directs the Secretary to submit a report to
Congress describing the efforts of the Bureau of Reclamation to
manage Reclamation facilities considered reserved works which
includes facilities and structures that are owned by the Bureau
of Reclamation. The report will also help to standardize and
streamline data reporting processes and expands on the
information otherwise provided in Asset Management Reports,
including a detailed assessment of major repair and
rehabilitation needs, with a cost estimate for completion of
each item and a categorical rating. Section 4 includes a
confidentiality clause giving the Secretary of the Interior
discretion to exclude sensitive or classified information from
the report. Finally, the Secretary shall consult with the
Secretary of the Army in preparing the Asset Management Report.
Section 5 directs the Secretary of the Interior to
coordinate with non-Federal entities responsible for the
operation and maintenance of transferred works in developing
reporting requirements for Asset Management Reports. In
addition, the Secretary shall develop and implement a rating
system for transferred works that incorporates the rating
system for reserved works.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 1800--Bureau of Reclamation Transparency Act
S. 1800 would direct the Bureau of Reclamation to assess
the maintenance needs of its facilities and submit a report to
the designated Congressional committees every two years. Under
current law, the bureau gathers and publishes similar
information in various reports throughout the year. Under the
bill, the bureau would be required to coordinate the timing and
analysis of that information, consolidate it, and include some
new analysis specified by the bill.
Based on information from the Bureau of Reclamation, CBO
estimates that implementing the legislation would cost about $2
million over the 2015-2019 period. Enacting S. 1800 would not
affect revenues or direct spending; therefore, pay-as-you-go
procedures do not apply.
S. 1800 would require the bureau to develop a ranking
system to prioritize the rehabilitation needs of facilities
that it operates and to work with nonfederal partners that have
taken over the operation of certain other facilities to develop
a similar system for those facilities. Under current law, the
bureau gathers data on its facilities, analyzes the data, and
makes the results of its analysis available to the Congress and
the public through its budget documents and various other
reports throughout the year. Under the bill, the bureau would
need to consolidate those results into one report every two
years and include the ranking information and the estimated
costs of necessary rehabilitation projects.
S. 1800 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no cost on state, local, or tribal governments.
Any costs incurred by public entities to comply with the
reporting requirements of this legislation would result from
participating in a voluntary federal program.
The CBO staff contact for this estimate is Aurora Swanson.
This estimate was approved by Theresa Gullo, 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. 1800.
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. 1800, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 1800, as reported, does not contain any congressionally
directed spending items, limited tax benefits, or limited
tariff benefits as defined in rule XLIV of the Standing Rules
of the Senate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Bureau of Reclamation at the
February 27, 2014, Subcommittee on Water and Power hearing on
S. 1800 follows:
Statement of Robert Quint, Senior Advisor, Bureau of Reclamation,
Department of the Interior
Chairman Schatz and members of the Subcommittee, I am Bob
Quint, Senior Advisor at the Bureau of Reclamation
(Reclamation). Jam pleased to provide the views of the
Department of the Interior (Department) on S. 1800, the Bureau
of Reclamation Transparency Act. As currently written, the
Department does not support S. 1800 but would be pleased to
work with the bill sponsors on refinements to the legislation
to address the concerns described below.
Under Section 4 of S. 1800, the Secretary of the Interior
would be required to submit biennial reports to Congress on
`the efforts of the Bureau of Reclamation to manage all
Reclamation facilities,' including efforts to standardize and
streamline data reporting and processes for managing
Reclamation facilities. S. 1800 directs that the reports
provide itemized lists of ``major repair and rehabilitation
needs'' at all Reclamation facilities, showing estimated costs,
and ranked via a categorical rating system to be developed
through new regulations pursuant to Section 4(b)(3)(B) of the
bill. Sensitive or classified information could be excluded
from a required public version of the report, but that
information would be required in the versions delivered to
Congress. The Department has several concerns with this
legislation as introduced, and believes that the preparation
and publication of the reports in this bill would constitute a
duplication of other existing efforts which will not improve
the body of information available on Reclamation's
infrastructure, nor result in more effective application of
available resources to address facility maintenance. Having
said that, the Department is aware of the desire in Congress
for more information on the status of Reclamation's
infrastructure, and in accordance with the Administration's
Open Data Policy and Executive Order, the Department is
committed to openness and transparency of data, including
Reclamation data on facility management. To that end we would
appreciate the opportunity to work with the sponsors on
potential amendments to the bill that would provide Congress
and the public additional information regarding Reclamation's
infrastructure though augmentation of other existing reporting
efforts.
Reclamation's annual budget requests include the best
yearly representations of the appropriated funds needed for
maintenance at Reclamation facilities. Reclamation's budget
documents, delivered to Congress annually and posted online,
are developed over a multi-step 18-month process that begins at
the field office level where managers consider the condition of
the facilities under their jurisdiction, safety considerations
associated with facilities' condition, and--very importantly--
the ability of operating partners to fund the work identified
pursuant to the terms of their contract and requirements of
Reclamation Law. Investments in major rehabilitations and
replacements are analyzed and prioritized at the field,
regional, and bureau levels based on criteria such as:
Engineering Need; Risks and Consequences of Failure; Efficiency
Opportunities; Financial Feasibility; and availability of Non-
Federal Cost Share.
During this process, Reclamation categorizes the
information that will go into its budget requests using its
Programmatic Budget Structure (PBS). The PBS uses two of its
five primary categories to show the budget request for
Operations and Maintenance (O&M) activities: I. Facility
Operations, and 2. Facility Maintenance and Rehabilitation. It
should be noted that in addition to the appropriated funds in
these two budget categories, a generally equal amount of O&M
activities are paid for directly by water and power users with
their own funds or project revenues.
The Facility Operations category includes items and
activities that are necessary to operate Reclamation facilities
to produce authorized project benefits for water supplies,
power, flood control, fish and wildlife, and recreation. This
category includes not only facility operations by Reclamation
at reserved works, but also Reclamation's oversight of the
operations of facilities performed by water user entities at
transferred works. Facility Operations includes all routine or
preventive maintenance activities. Routine maintenance is
defined as recurring daily, weekly, monthly, or annually, and
most tasks performed by Reclamation maintenance staff are
included in this category. Also included in this category are
routine safety and occupational health items, including those
for workplace safety inspection and hazard abatement. The
amount budgeted under this category for each facility is the
funding necessary to perform routine O&M activities. On an
annual basis, each region, along with centralized program
management staff, determines the appropriate budget level to
support staffing and other resources necessary at each facility
for continued operations to deliver authorized project
benefits.
The second category, Facility Maintenance and
Rehabilitation, addresses the needs over and above the
resources in Facility Operations, and corresponds roughly to
the concept of major rehabilitations and replacements. The
Facility Maintenance and Rehabilitation category includes major
and non-routine replacements and extraordinary maintenance of
existing infrastructure. This category also includes activities
to review and conduct condition assessments (facility O&M, dam
safety and site security inspections), as well as funding
necessary for the correction of dam safety deficiencies (dam
safety modifications), the implementation of security upgrades,
and building seismic safety retrofits. Consequently, most of
the budgeted items under this category are related to site-
specific facility needs.
After the field offices identify prioritized major
rehabilitation and replacement activities in their jurisdiction
that require appropriated funds, they are evaluated at the
regional level where these are compared to the needs and
priorities of other activities and facilities in that region.
There are five regions within Reclamation. The regions' PBS
allotments for Facility Maintenance and Rehabilitation each
year are then evaluated at the next level of internal review,
with Reclamation's Budget Review Committee (BRC) process. A
given year's BRC is working in advance of a budget request two
years into the future, and is comprised of senior management
from across the agency, providing the maximum breadth of
relevant experience and program knowledge. The region presents
its priorities to the BRC, which evaluates the major
rehabilitation and replacement needs and priorities against
those of other regions in order to ensure that Facility
Maintenance and Rehabilitation activities reflect Reclamation's
greatest overall need and agency priorities. No urgent
maintenance issues necessary to the safe operation of a
facility are deferred in the budgeting or facility review
processes. The end result is a budget request that has been
prioritized and vetted across the organization, concurrent with
input from the Department and Reclamation leadership.
To better understand upcoming needs, and for the purpose of
reporting asset condition at a specific point in time to the
Federal Real Property Profile to meet requirements of the
Executive order 13327, ``Federal Real Property Management'', in
a separate effort which informs the annual budget process,
Reclamation develops and annually updates estimates of major
rehabilitation and replacement (MR&R) needs, including deferred
maintenance, for its infrastructure looking out five years. As
a result, these ``MR&R needs'' represent an outlook of
Reclamation's best estimate of identified extraordinary
maintenance, repairs, rehabilitation, and replacement needs at
a point in time looking forward five years, regardless of
funding source, for all assets. The estimated total in 2011
amounted to $2.6 billion over five years (fiscal years 2012-
2016).\1\ It is important to note that a substantial portion of
projected needs to address the rehabilitation of aging
infrastructure (roughly $1.2 billion of the $2.6 billion
estimate) will be financed directly by our water and power
customers. Cost estimates associated with these identified
needs range from ``preliminary'' to ``appraisal/feasibility''
level. Thus, these estimates should not be collectively assumed
to be at one particular uniform level of detail. Variability in
the MR&R estimates from year to year may be the result of
additional information received from the estimating source
(i.e., Reclamation field offices and non-federal operating
entities), changes in field conditions, further evaluations
conducted, and work priorities, thus impacting the inclusion or
deletion of specific identified needs within a particular year,
or from year to year.
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\1\www.usbr.gov/Assetmanagement/Asset%20Inventory/
AssetManagementPlanFY2011 FinalWithSignaturePageOnly.pdf
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As stated in prior testimony before this Subcommittee, one
of the main challenges Reclamation faces in securing funding
for the identified near-term needs as well as longer-term MR&R
needs is the varying economic strength of our operating
partners. Given the requirement under Reclamation Law for the
repayment of maintenance costs either in the year incurred or
over time, Reclamation must work in collaboration with our
water and power partners that must repay these investments. For
some of these partners, the cost-share requirements associated
with MR&R work are simply beyond the financial capabilities of
their beneficiaries. Like any organization tasked with
constructing, operating, and maintaining a wide portfolio of
assets, Reclamation has to prioritize its actions to maximize
the benefits derived from its investment of both federal and
non-federal funds. Over the past 10 years, funds requested for
Facility Operations and Facility Maintenance and Rehabilitation
have kept pace with or grown relative to Reclamation's overall
Water and Related Resources budget (graphic attached). Given
the substantial economic and financial interest of
Reclamation's non-federal partners, the development of cost
estimates for maintenance requirements on reserved and
transferred works is both collaborative and dynamic.
Reclamation must also balance its asset management
responsibilities with other aspects of its mission to manage
water and related resources in the West. We acknowledge there
are tradeoffs associated with decisions to fund one identified
need versus another, but Reclamation's annual budget request
reflects our best effort to balance those constantly evolving
needs associated with all elements of our mission.
The requirements of S. 1800 would duplicate and draw
resources away from the processes described above, and the bill
makes no allowance for the valuable input from operating
partners that is central to Reclamation's asset management
program. Based on arrangements originating with Section 6 of
the Reclamation Act of 1902, over two-thirds of Reclamation's
facilities are managed by non-federal project beneficiaries.
These operating entities provide valuable input to the
formulation of Reclamation's annual asset management
activities. Reclamation believes the requirements of S. 1800
will complicate Reclamation's and our operating entities'
budget processes, since the reporting requirements would make
no allowance for operating partners' budgeting and financing
processes associated with most of the tasks that would be
identified. Reclamation also believes that providing a new
layer of reports separate and apart from the annual budget
request process would create unnecessary difficulties, since
budget requests for subsequent years would not be consistent
with the maintenance snapshot provided by the reports under S.
1800. If possible, we would like to propose amendments to S.
1800 which would still provide additional information on the
status of Reclamation's infrastructure, but allow for the
bill's reporting requirements to better integrate with
Reclamation's existing budget formulation process and schedule
and fully consider the needs and interests of our water and
power contractors.
In conclusion, the Department of the Interior is aware of
and appreciates the concerns expressed by some Members of
Congress about the accessibility of data on Reclamation's
infrastructure. In accordance with the Administration's Open
Data Policy and Executive Order, we are working to improve the
availability and accessibility of data on Reclamation's
infrastructure and would be happy to keep the committee
informed of our progress in this area. In recent years,
Reclamation has made substantial progress in developing and
improving estimates of MR&R needs for both reserved and
transferred works, and has provided testimony at hearings of
the Senate Energy and Natural Resources Committee on this
topic, as well as responding in writing to several questions
for the record. It is also worth noting that the Federal
Government is making important strides in improving the
accuracy, efficiency and level of data available on the federal
real property portfolio. The Office of Management and Budget
(OMB) established the Real Property Advisory Committee (RPAC)
in 2011 to work across agencies to determine real property best
practices, opportunities for short and long-term cost savings,
and realigning real property inventories to agency mission and
service delivery. We believe these processes should be allowed
to work or be accounted for in the requirements of this bill
before S. 1800 or similar legislation is enacted.
This concludes my written statement. I am pleased to answer
questions at the appropriate time.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
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 S. 1800 as ordered
reported.
[all]