[Senate Report 113-227]
[From the U.S. Government Publishing Office]
Calendar No. 514
113th Congress Report
SENATE
2d Session 113-227
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RECLAMATION SAFETY OF DAMS ACT OF 1978 AMENDMENTS
_______
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. 1946]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1946) to amend the Reclamation Safety of
Dams Act of 1978 to modify the authorization of appropriations,
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 1, strike lines 5 through 9 and insert the following:
(a) Authorization of Appropriations.--Section 5 of the Reclamation
Safety of Dams Act of 1978 (43 U.S.C. 509) is amended--
(1) in the first sentence, by inserting ``and, effective
October 1, 2014, not to exceed an additional $1,100,000,000
(October 1, 2014 price levels)'' before ``, plus or minus'';
(2) in the proviso--
(A) by striking ``$1,250,000'' and inserting
``$20,000,000''; and
(B) by striking ``Congress'' and inserting
``Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate''; and
(3) by adding at the end the following: ``For modification
expenditures between $1,800,000 and $20,000,000 (October 1,
2013 price levels), the Secretary of the Interior shall, at
least 30 days before the date on which the funds are expended,
submit written notice of the expenditures to the Committee on
Natural Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate that
provides a summary of the project, the cost of the project, and
any alternatives that were considered.''.
Purpose
The purpose of S. 1946 is to amend the Reclamation Safety
of Dams Act of 1978 to authorize additional appropriations.
Background and Need
The Safety of Dams Act of 1978 was enacted to enable the
Bureau of Reclamation to: ``ensure that Reclamation facilities
do not present unreasonable risks to the public, public safety,
property, and/or the environment.'' The original authorization
in 1978 set a $100 million appropriation ceiling, and the
ceiling has since been raised by Congress four times (an
additional $650 million in 1983, $95 million in 2000, $32
million in 2001, and $540 million in 2003). The Safety of Dams
program evaluates and implements corrective actions to address
dam safety concerns. Once the Bureau of Reclamation begins risk
modifications to a dam, local partners share 15% of the
associated costs.
Reclamation manages 476 dams and dikes currently, 370 of
which are listed under the ``High'' or ``Significant Hazard''
class, meaning failure of the dam or dike would cause loss of
life or significant damages. The challenge of meeting the
program's safety mission is complicated by the strains of aging
infrastructure and population growth within dam failure zones.
The Safety of Dams program is approaching its appropriation
ceiling and enactment of S. 1946 will enable Reclamation to
proceed with construction modifications for projects in its
queue.
Legislative History
S. 1946 was introduced by Senators Wyden, Schatz, and
Feinstein on January 16, 2014. The Subcommittee on Water and
Power held a hearing on S. 1946 (S. Hrg. 113-284) on February
27, 2014. At its business meeting on June 18, 2014, the Senate
Energy and Natural Resources Committee ordered S. 1946
favorably reported with amendment.
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. 1946, if
amended as described herein. Senators Lee and Scott asked to be
recorded as voting no.
Committee Amendment
During its consideration of S. 1946, the committee adopted
an amendment to modify section 5 of the Reclamation Safety of
Dams Act of 1978 (43 U.S.C. 509) to raise the authorization
ceiling an additional $1.1 billion. The amendment also modifies
the reporting requirement, which is explained in greater detail
in the section-by-section analysis, below.
Section-by-Section Analysis
Section 1(a)(1) amends section 5 of the Reclamation Safety
of Dams Act of 1978 (43 U.S.C. 509) by raising the
authorization ceiling an additional $1.1 billion. Subsection
(a)(2) requires the Secretary of the Interior to send a report
to both the House Committee on Natural Resources and the Senate
Energy and Natural Resources Committee if more than $20,000,000
is spent to modify an existing dam. Subsection (a)(3) requires
the Secretary to alert the Committees when Reclamation spends
between $1,800,000 and $20,000,000 to modify or repair an
existing dam. Subsection (b) makes a conforming amendment to
section 4(c) of the Reclamation Safety of Dams Act.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 1946--A bill to amend the Reclamation Safety of Dams Act of 1978 to
modify the authorization of appropriations
Summary: S. 1946 would authorize the appropriation of $1.1
billion (plus additional amounts to account for inflation) for
the Secretary of the Interior to carry out projects under the
Reclamation Safety of Dams Act. Based on information from the
Bureau of Reclamation, and assuming appropriation of necessary
amounts, CB0 estimates that implementing S. 1946 would cost
$196 million over the 2015-2019 period with additional spending
continuing for several subsequent years.
Enacting S. 1946 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
S. 1946 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 effect of S. 1946 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--
------------------------------------------------------------
2015 2016 2017 2018 2019 2015-2019
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................... 0 0 64 90 92 246
Estimated Outlays.................................. 0 0 38 70 87 196
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that S.
1946 will be enacted near the start of fiscal year 2015 and
that the necessary amounts will be appropriated over the next
several years. Estimated outlays are based on historical
spending patterns for those activities.
Under current law, the bureau is responsible for
maintaining the safety and reliability of 476 dams in the
western United States. About half of those dams were built
before 1950 and many are scheduled to be rehabilitated over the
next few years. Based on information from the bureau, $200
million remains under the current authorization ceiling for the
bureau's dam safety program. That amount is insufficient to
carry out the rehabilitation of six projects planned for the
next 10 to 20 years with total estimated costs of about $1
billion.
Under the bill, CBO estimates that about $90 million a
year--an amount similar to the program's recent funding
levels--would be needed for planned work over the next several
years. However, the first $200 million in funding for that work
would come under the existing authorization in law. CBO
estimates that implementing S. 1946 would cost $196 million
over the 2015-2019 period and additional amounts in subsequent
years.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 1946
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 public entities to
match or reimburse the federal funds authorized by this
legislation would result from participating in a voluntary
federal program.
Estimate prepared by: Federal Costs: Aurora Swanson; Impact
on State, Local, and Tribal Governments: Jon Sperl; Impact on
the Private Sector: Amy Petz.
Estimate 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. 1946.
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. 1946, 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. 1946 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). Thank you for the opportunity to provide the
views of the Department of the Interior (Department) on S.
1946, a bill to provide permanent authority for appropriations
under the Reclamation Safety of Dams Act. While Reclamation has
been able to carry out its priority of ensuring the safety and
reliability of Reclamation dams under current law, the
Department supports this bill which would support Reclamation's
efforts in reducing the risk associated with Reclamation's
portfolio of dams.
Reclamation's inventory of 476 dams includes 370 classified
as ``high hazard'' dams and dikes, located at 250 water
projects across the 17 Reclamation states. 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 must never take safety for
granted.
Some of Reclamation's highest priorities are to deliver
water to and generate power for its customers without
disruption, while protecting public safety. In its 111-year
history, Reclamation has had one dam failure that resulted in
loss of life and damage to property. Teton Dam failed in 1976
during initial filling due to a design and construction
deficiency. After the Teton Dam disaster Congress enacted the
Reclamation Safety of Dams Act in 1978, Public Law 95-578, and
Reclamation began its current dam safety program.
The original 1978 statute has been amended four times,
beginning in 1984. In the first amendment, Public Law 98-404,
Congress increased the authorization for appropriations by $100
million. The 1984 amendment also instituted a 15 percent non-
Federal repayment requirement for modifications made as a
result of new hydrologic or seismic information or changes in
the state-of-the-art technology. Public Law 98-404 also
increased the authorized appropriations ceiling an additional
$650 million, indexed for inflation. Public Law 106-377 in 2000
increased the ceiling another $95 million, and two years later,
Public Law 107-117 added $32 million. The last amendment,
Public Law 108-439, was enacted in 2004 and provided the
current program ceiling of $1.417 billion, indexed from October
2003 price levels. Approximately $400 million remains available
under that ceiling. Apart from changes to the program's
authorization ceiling, 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. Public Law 108-439
increased the amount to $1,250,000 (October 1, 2003, price
levels), as adjusted to reflect any ordinary fluctuations in
construction costs indicated by applicable engineering cost
indexes.
The Bureau of Reclamation has developed a dam safety
program that effectively implements the Federal Guidelines for
Dam Safety and to modifies dams in accordance with the 1978
Act. In 1996, an independent review team comprised of
representatives from the Association of Dam Safety Officials
assessed the Department of the Interior's Dam Safety Program.
In 1997, the team released a comprehensive and independent
report finding 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. In
addition, outside experts have annually reviewed Reclamation's
dam safety activities to ensure that the program has adequate
policies and procedures in place to address public safety
issues.
Reclamation's Fiscal Year 2014 budget requests lists
current modification/construction projects where funds under
the program's existing authorized appropriations ceiling have
been planned. These include Folsom Dam in California, Glendo
and Guernsey Dams in Wyoming, Echo Dam in Utah, and Red Willow
Dam in Nebraska. Stampede Dam in California, Nelson Dikes in
Montana, Bull Lake Dam in Wyoming, Hyatt Dam in Oregon, Hyrum
Dam in Utah, and Altus Dam in Oklahoma are slated to have
modification reports submitted to Congress in 2014 and 2015.
The current appropriations ceiling would be able to support
these projects but would commit all but an estimated $200
million of the remaining authorization. Six additional dams,
including planned work at B.F. Sisk Dam in California and
Scoggins Dam in Oregon, are in need of risk reduction action
with combined costs currently estimated at $1 billion. Based on
our present knowledge of these upcoming projects, an
authorization increase of at least $1 billion would be needed
to allow Reclamation to address these dam safety risks.
Since 1978, when Congress first created the Safety of Dams
program, we have carried out 80 risk reduction corrective
actions totaling approximately $1.43 billion. Reclamation has
implemented these corrective actions to protect public safety
at the lowest feasible cost. In each of these projects,
Reclamation's process benefitted from our relationships with
the end users of the water and power from these projects. With
that in mind, we have formalized requirements for communicating
the need for dam safety modifications with our customers in a
timely fashion. The Reclamation Manual now contains formal
policy and directives which 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.
However, the nature of any safety program does not always
afford the luxury of being able to schedule outlays as
precisely as we can in other programs. Sometimes the need for
corrective action presents itself with little notice. When
sudden unexpected performance of a dam requires a modification
to reduce risk, Reclamation must act quickly to protect the
project and the downstream public. One example of such
successful immediate action is the emergency work we performed
in 2006 at Deer Flat Dam in Idaho. We discovered voids beneath
the outlet works conduit and embankment material was being
removed through cracks in the outlet work conduit that required
immediate attention in order to allow for continued operation
of the dam and reservoir. Working closely with local project
beneficiaries we were able to quickly identify and implement an
interim solution to reduce risk to the downstream public
without significantly curtailing service to water users.
Without the Safety of Dams program authority, we could not have
completed the investigation and interim repairs prior to the
Spring run-off. The quick response meant the reservoir was
ready to store critically needed run-off water for beneficial
use later in 2007.
Another example of a successful action was the quick
response needed at Red Willow Dam in Nebraska after sinkholes
and extensive cracking were discovered in the dam embankment.
The reservoir was immediately drawn down to reduce risk to the
downstream public. Expedited actions were taken to implement
long term modifications to the embankment and return the water
supply as quickly as possible.
In closing, S. 1946 removes the ceiling from the program's
authorization for appropriations. Under current law, the
Department has been able to carry out its priority of ensuring
the safety and reliability of Reclamation dams under the Dam
Safety program, and has been able to do so through several
increases in the ceiling since the program was originally
authorized in 1979. S. 1946 would also preserve all of the
program's existing provisions, including the ability to respond
quickly with limited interim actions, and the obligation to
notify Congress and consult with project beneficiaries.
Throughout our implementation of these authorities we will
continue to evaluate this program for potential changes to
improve planning and operations. There are always ways to
better serve the taxpayer by clearly delineating between dam
safety modifications and other infrastructure improvements, and
protect the safety of the people and businesses that rely on
Reclamation facilities. Meanwhile, we believe the provisions
calling for regular dialogue with our customers assures a fair,
transparent program without compromising the Department's
ability to maintain dam safety and security.
This concludes my statement. Again, while Reclamation has
been able to carry out its priority of ensuring the safety and
reliability of Reclamation dams under current law, the
Department supports this bill which would support Reclamation's
efforts in reducing the risk associated with Reclamation's
portfolio of dams. I would be pleased to answer questions at
the appropriate time.
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
the bill S. 1946, 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
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 heretorore or hereafter incurred in the
modification of structures 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
project 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.
* * * * * * *
(c) Reimbursement of certain modification costs. With
respect to the [additional] amounts authorized to be
appropriated by section 5 (43 USCS Sec. 509), 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.
* * * * * * *
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), and, effective October 1, 2014, not to
exceed an additional $1,100,000,000 (October 1, 2014 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 [$1,250,000] $20,000,000 (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]
Committee on Natural Resources of the House of Representatives
and the Committee on Energy and Natural Resources of the
Senate. 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. For
modification expenditures between $1,800,000 and $20,000,000
(October 1, 2013 price levels), the Secretary of the Interior
shall, at least 30 days before the date on which the funds are
expended, submit written notice of the expenditures to the
Committee on Natural Resources of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate
that provides a summary of the project, the cost of the
project, and any alternatives that were considered.
* * * * * * *