[House Report 115-911]
[From the U.S. Government Publishing Office]


115th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      115-911

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



 
                    CONTRA COSTA CANAL TRANSFER ACT

                                _______
                                

August 31, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Bishop of Utah, from the Committee on Natural Resources, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 6040]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 6040) to authorize the Secretary of the Interior 
to convey certain land and facilities of the Central Valley 
Project, 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 ``Contra Costa Canal Transfer Act''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Acquired land.--The term ``acquired land'' means land in 
        Federal ownership and land over which the Federal Government 
        holds an interest for the purpose of the construction and 
        operation of the Contra Costa Canal, including land under the 
        jurisdiction of--
                  (A) the Bureau of Reclamation;
                  (B) the Western Area Power Administration; and
                  (C) the Department of Defense in the case of the 
                Clayton Canal diversion traversing the Concord Naval 
                Weapons Station.
          (2) Contra costa canal agreement.--The term ``Contra Costa 
        Canal Agreement'' means an agreement between the District and 
        the Bureau of Reclamation to determine the legal, 
        institutional, and financial terms surrounding the transfer of 
        the Contra Costa Canal, including but not limited to 
        compensation to the reclamation fund established by the first 
        section of the Act of June 17, 1902 (32 Stat. 388, chapter 
        1093), equal to the net present value of miscellaneous revenues 
        that the United States would otherwise derive over the 10 years 
        following enactment of this Act from the eligible lands and 
        facilities to be transferred, as governed by reclamation law 
        and policy and the contracts.
          (3) Contra costa canal.--
                  (A) In general.--The term ``Contra Costa Canal'' 
                means the Contra Costa Canal Unit of the Central Valley 
                Project, which exclusively serves the Contra Costa 
                Water District in an urban area of Contra Costa County, 
                California.
                  (B) Inclusions.--The term ``Contra Costa Canal'' 
                includes pipelines, conduits, pumping plants, 
                aqueducts, laterals, water storage and regulatory 
                facilities, electric substations, related works and 
                improvements, and all interests in land associated with 
                the Contra Costa Canal Unit of the Central Valley 
                Project in existence on the date of enactment of this 
                Act.
                  (C) Exclusion.--The term ``Contra Costa Canal'' does 
                not include the Rock Slough fish screen facility.
          (4) Contracts.--The term ``contracts'' means the existing 
        water service contract between the District and the United 
        States, Contract No. 175r-3401A-LTR1 (2005), Contract No. 14-
        06-200-6072A (1972, as amended), and any other contract or land 
        permit involving the United States, the District, and Contra 
        Costa Canal.
          (5) District.--The term ``District'' means the Contra Costa 
        Water District, a political subdivision of the State of 
        California.
          (6) Rock slough fish screen facility.--
                  (A) In general.--The term ``Rock Slough fish screen 
                facility'' means the fish screen facility at the Rock 
                Slough intake to the Contra Costa Canal.
                  (B) Inclusions.--The term ``Rock Slough fish screen 
                facility'' includes the screen structure, rake cleaning 
                system, and accessory structures integral to the screen 
                function of the Rock Slough fish screen facility, as 
                required under the Central Valley Project Improvement 
                Act (Public Law 102-575; 106 Stat. 4706).
          (7) Rock slough fish screen facility title transfer 
        agreement.--The term ``Rock Slough fish screen facility title 
        transfer agreement'' means an agreement between the District 
        and the Bureau of Reclamation to--
                  (A) determine the legal, institutional, and financial 
                terms surrounding the transfer of the Rock Slough fish 
                screen facility; and
                  (B) ensure the continued safe and reliable operations 
                of the Rock Slough fish screen facility.
          (8) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.

SEC. 3. CONVEYANCE OF LAND AND FACILITIES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, in consideration for the District assuming from the United 
States all liability for the administration, operation, maintenance, 
and replacement of the Contra Costa Canal, consistent with the terms 
and conditions set forth in the Contra Costa Canal Agreement and 
subject to valid existing rights and existing recreation agreements 
between the Bureau of Reclamation and the East Bay Regional Park 
District for Contra Loma Regional Park and other local agencies within 
the Contra Costa Canal, the Secretary shall offer to convey and assign 
to the District--
          (1) all right, title, and interest of the United States in 
        and to--
                  (A) the Contra Costa Canal; and
                  (B) the acquired land; and
          (2) all interests reserved and developed as of the date of 
        enactment of this Act for the Contra Costa Canal in the 
        acquired land, including existing recreation agreements between 
        the Bureau of Reclamation and the East Bay Regional Park 
        District for Contra Loma Regional Park and other local agencies 
        within the Contra Costa Canal.
  (b) Rock Slough Fish Screen Facility.--
          (1) In general.--The Secretary shall convey and assign to the 
        District all right, title, and interest of the United States in 
        and to the Rock Slough fish screen facility pursuant to the 
        Rock Slough fish screen facility title transfer agreement.
          (2) Cooperation.--No later than 180 days after the conveyance 
        of the Contra Costa Canal, the Secretary and the District shall 
        enter into good faith negotiations to accomplish the conveyance 
        and assignment under paragraph (1).
  (c) Payment of Costs.--The District shall pay to the Secretary any 
administrative and real estate transfer costs incurred by the Secretary 
in carrying out the conveyances and assignments under subsections (a) 
and (b), including the cost of any boundary survey, title search, 
cadastral survey, appraisal, and other real estate transaction required 
for the conveyances and assignments.
  (d) Compliance With Environmental Laws.--
          (1) In general.--Before carrying out the conveyances and 
        assignments under subsections (a) and (b), the Secretary shall 
        comply with all applicable requirements under--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                  (C) any other law applicable to the Contra Costa 
                Canal or the acquired land.
          (2) Effect.--Nothing in this Act modifies or alters any 
        obligations under--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.); or
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.).

SEC. 4. RELATIONSHIP TO EXISTING CENTRAL VALLEY PROJECT CONTRACTS.

  (a) In General.--Nothing in this Act affects--
          (1) the application of the reclamation laws to water 
        delivered to the District pursuant to any contract with the 
        Secretary; or
          (2) subject to subsection (b), the contracts.
  (b) Amendments to Contracts.--The Secretary and the District may 
modify the contracts as necessary to comply with this Act.
  (c) Liability.--
          (1) In general.--Except as provided in paragraph (2), the 
        United States shall not be liable for damages arising out of 
        any act, omission, or occurrence relating to the Contra Costa 
        Canal or the acquired land.
          (2) Exception.--The United States shall continue to be liable 
        for damages caused by acts of negligence committed by the 
        United States or by any employee or agent of the United States 
        before the date of the conveyance and assignment under section 
        3(a), consistent with chapter 171 of title 28, United States 
        Code (commonly known as the ``Federal Tort Claims Act'').
          (3) Limitation.--Nothing in this Act increases the liability 
        of the United States beyond the liability provided under 
        chapter 171 of title 28, United States Code.

SEC. 5. REPORT.

  If the conveyance and assignment authorized by section 3(a) is not 
completed by the date that is 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that--
          (1) describes the status of the conveyance and assignment;
          (2) describes any obstacles to completing the conveyance and 
        assignment; and
          (3) specifies an anticipated date for completion of the 
        conveyance and assignment.

                          PURPOSE OF THE BILL

    The purpose of H.R. 6040 is to authorize the Secretary of 
the Interior to convey certain land and facilities of the 
Central Valley Project.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Contra Costa Water District is a public utility that 
delivers water to approximately 500,000 people.\1\ The 
District's service area comprises much of Contra Costa County, 
located on the south side of the Sacramento-San Joaquin Delta 
in California's Central Valley. Congress authorized key 
components of the California Central Valley Project in 1937 (50 
Stat. 844, 850) including the Contra Costa Canal that serves as 
the backbone of the District's water conveyance system.
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    \1\https://www.ccwater.com/27/About-Us.
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    The Bureau of Reclamation holds title to the individual 
water, power supply and delivery, and recreational facilities 
it has constructed over the last century, including the Canal. 
The federal government provided the initial capital 
contribution to build the vast majority of these early 
projects. However, the water, power, and recreational customers 
who benefitted from the facilities entered into long-term 
contracts with the federal government to repay their part of 
the initial taxpayer investment. Under the Reclamation Act of 
1902 (Public Law 57-161), Reclamation may transfer day-to-day 
operational and maintenance responsibilities to project 
beneficiaries; however, the title or ownership of any facility 
must remain in federal ownership until Congress enacts 
legislation specifically authorizing such a transfer. Since 
1996, more than three dozen Reclamation projects have been 
transferred or authorized to be transferred to local 
entities.\2\
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    \2\U.S. Bureau of Reclamation, Title Transfer of Projects and 
Facilities, Title Transfer of Projects and Facilities of the Bureau of 
Reclamation; available at: http://www.usbr.gov/title/.
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    A title transfer can provide many benefits to end users. A 
transfer can reduce regulatory paperwork and staff time at both 
the federal and local levels, reduce the federal backlog on 
repairing and upgrading infrastructure and help improve the 
environment and public safety. Additionally, a title transfer 
can reduce federal liability since the local entity assumes a 
transferred facility's liability. At a 2008 Water and Power 
Subcommittee hearing, Mr. Dan Keppen, Executive Director for 
the Family Farm Alliance stated, ``Experience throughout the 
West demonstrates that when control of projects is assumed by 
local interests, the projects are run more cost effectively and 
with far fewer items of deferred maintenance.''\3\ It is 
because of these and other benefits, Reclamation included in 
its Fiscal Year 2018 budget language reaffirming the agency's 
commitment to facilitate title transfers when they are mutually 
beneficial to all parties.\4\
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    \3\Submitted Testimony of Mr. Dan Keppen, Executive Director, The 
Family Farm Alliance, before the House Water and Power Subcommittee 
legislative hearing, September 25, 2008, p. 2.
    \4\Bureau of Reclamation Fiscal Year 2018 Budget in Brief, pg BH-
36.
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    The Contra Costa Water District seeks a title transfer of 
the Contra Costa Canal system which includes several pipelines, 
conduits, pumping plants and other support facilities, along 
with the Rock Slough Fish Screen Facility. The District 
believes that taking title to the Canal system would improve 
both water supply and public safety. The District has 
documented 81 drownings in the Canal, or approximately one 
every year.\5\ The District wants to enclose the Canal, and 
title transfer removes duplicative federal approvals and allows 
the District to leverage its ownership for additional 
financing. According to the District, the Canal system is a 
single-purpose facility well-suited to title transfer. The 
District claims that it has completed Reclamation's 
administrative process to prepare for title transfer 
legislation.\6\
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    \5\Borba, L. M. (2018, June 11). June 13, 2018 Hearing--Contra 
Costa Canal Transfer Act (S. 3001) [Letter to Sen. Jeff Flake and Sen. 
Catherine Cortez Masto], at 2.
    \6\Id.
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    The Senate Committee on Energy and Natural Resources' 
Subcommittee on Water and Power held a legislative hearing on 
identical legislation, S. 3001, introduced by Sen. Dianne 
Feinstein (D-CA).\7\ The Department of the Interior (DOI) 
stated concerns that environmental compliance activities still 
need to be completed and that DOI and local stakeholders still 
need to address some technical details and agreements.\8\ 
Despite those concerns, DOI acknowledged that ``the District 
has completed its repayment obligation for its share of 
construction costs of the Canal'' and that, when its concerns 
are addressed, ``the Department is pleased to support this 
legislation.''\9\
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    \7\https://www.energy.senate.gov/public/index.cfm/hearings-and-
business-meetings?ID=6E245B 44-DA4F-428D-96F2-BC6AD3E9DF49.
    \8\Legislative Hearing on S. 3001, H.R. 132, and H.R. 1967 Before 
the S. Comm. on Energy Natural Resources, Subcomm. on Water and Power, 
115th Cong., 2, (2018) (Statement of Timothy Petty, U.S. Department of 
the Interior), available at https://www.energy.senate.gov/public/
index.cfm/files/serve?File_id=916FC45F-5A34-4515-B6F4-45741D357740, at 
2.
    \9\Id.
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    This legislation is supported by the Contra Costa Water 
District, the East Bay Regional Park District, and Defenders of 
Wildlife.

                            COMMITTEE ACTION

    H.R. 6040 was introduced on June 7, 2018, by Congressman 
Mark DeSaulnier (D-CA). The bill was referred to the Committee 
on Natural Resources, and within the Committee to the 
Subcommittee on Water, Power and Oceans. On July 11, 2018, the 
Subcommittee held a hearing on the bill. On July 18, 2018, the 
Natural Resources Committee met to consider the bill. The 
Subcommittee was discharged by unanimous consent. Congressman 
Jared Huffman (D-CA) offered an amendment designated #1; it was 
adopted by unanimous consent. No additional amendments were 
offered, and the bill, as amended, was ordered favorably 
reported to the House of Representatives by unanimous consent.

            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.

      COMPLIANCE WITH HOUSE RULE XIII AND CONGRESSIONAL BUDGET ACT

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 29, 2018.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6040, the Contra 
Costa Canal Transfer Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aurora 
Swanson.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 6040--Contra Costa Canal Transfer Act

    H.R. 6040 would authorize the Bureau of Reclamation (BOR), 
the Western Area Power Administration, and the Department of 
Defense to transfer the Contra Costa Canal, the Rock Slough 
Fish Screen, and the associated federal land and facilities to 
the Contra Costa County Water District located in California.
    Under the bill, BOR would modify the Rock Slough Fish 
Screen to ensure the screen is operating safely before 
transferring it. Using information from BOR, CBO estimates that 
the federal share of the costs to complete that work would be 
$2 million, subject to the availability of appropriated funds.
    Under current law, the federal government collects leasing 
and grazing fees of about $80,000 per year from the property 
that would be transferred under H.R. 6040. Those amounts are 
recorded in the federal budget as offsetting receipts, or 
reductions in direct spending. Under the bill, to compensate 
the federal government for those lost receipts, the district 
would pay the federal government an amount equal to the net 
present value of 10 years of receipts (discounted using the 10-
year Treasury rate). CBO estimates that the district would pay 
the federal government $750,000 in the next few years and that 
the net effect on direct spending over the 2019-2028 period 
would be negligible.
    Because enacting H.R. 6040 would affect direct spending, 
pay-as-you-go procedures apply. Enacting H.R. 6040 would not 
affect revenues.
    CBO estimates that enacting H.R. 6040 would not 
significantly increase net direct spending or on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2029.
    H.R. 6040 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.
    2. 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 convey certain land and facilities 
of the Central Valley Project.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                       COMPLIANCE WITH H. RES. 5

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                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 to existing 
law.

                                  [all]