[Senate Report 116-156]
[From the U.S. Government Publishing Office]
Calendar No. 277
116th Congress } { Report
SENATE
1st Session } { 116-156
======================================================================
WATER SUPPLY INFRASTRUCTURE REHABILITATION AND UTILIZATION ACT
_______
October 29, 2019.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 2044]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2044) to amend the Omnibus Public Land
Management Act of 2009 to establish an Aging Infrastructure
Account, to amend the Reclamation Safety of Dams Act of 1978 to
provide additional funds under that Act, to establish a review
of flood control rule curves pilot project within the Bureau of
Reclamation, and for other purposes, having considered the
same, reports favorably thereon with an amendment (in the
nature of a substitute) and recommends that the bill, as
amended, do pass.
Amendment
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 ``Water Supply Infrastructure
Rehabilitation and Utilization Act''.
SEC. 2. AGING INFRASTRUCTURE ACCOUNT.
Section 9603 of the Omnibus Public Land Management Act of 2009 (43
U.S.C. 510b) is amended by adding at the end the following:
``(d) Aging Infrastructure Account.--
``(1) Establishment.--There is established in the general
fund of the Treasury a special account, to be known as the
`Aging Infrastructure Account' (referred to in this subsection
as the `Account'), to provide funds to, and provide for the
extended repayment of the funds by, a transferred works
operating entity or project beneficiary responsible for
repayment of reimbursable costs for the conduct of
extraordinary operation and maintenance work at a project
facility, which shall consist of--
``(A) any amounts that are specifically appropriated
to the Account under section 9605; and
``(B) any amounts deposited in the Account under
paragraph (3)(B).
``(2) Expenditures.--Subject to appropriations and paragraph
(3), the Secretary may expend amounts in the Account to fund
and provide for extended repayment of the funds for eligible
projects identified in a report submitted under paragraph
(5)(A).
``(3) Repayment contract.--
``(A) In general.--The Secretary may not expend
amounts under paragraph (2) with respect to an eligible
project described in that paragraph unless the
transferred works operating entity or project
beneficiary responsible for repayment of reimbursable
costs has entered into a contract to repay the amounts
under subsection (b)(2).
``(B) Deposit of repaid funds.--Amounts repaid by a
transferred works operating entity or project
beneficiary responsible for repayment of reimbursable
costs receiving funds under a repayment contract
entered into under this subsection shall be deposited
in the Account and shall be available to the Secretary
for expenditure in accordance with this subsection
without further appropriation.
``(4) Application for funding.--
``(A) In general.--Not less than once per fiscal
year, the Secretary shall accept, during an application
period established by the Secretary, applications from
transferred works operating entities or project
beneficiaries responsible for payment of reimbursable
costs for funds and extended repayment for eligible
projects.
``(B) Eligible project.--A project eligible for
funding and extended repayment under this subsection is
a project that--
``(i) qualifies as an extraordinary operation
and maintenance work under this section;
``(ii) is for the major, non-recurring
maintenance of a mission-critical asset; and
``(iii) is not eligible to be carried out or
funded under the repayment provisions of
section 4(c) of the Reclamation Safety of Dams
Act of 1978 (43 U.S.C. 508(c)).
``(C) Guidelines for applications.--Not later than 60
days after the date of enactment of this subsection,
the Secretary shall issue guidelines describing the
information required to be provided in an application
for funds and extended repayment under this subsection
that require, at a minimum--
``(i) a description of the project for which
the funds are requested;
``(ii) the amount of funds requested;
``(iii) the repayment period requested by the
transferred works operating entity or project
beneficiary responsible for repayment of
reimbursable costs;
``(iv) alternative non-Federal funding
options that have been evaluated;
``(v) the financial justification for
requesting an extended repayment period; and
``(vi) the financial records of the
transferred works operating entity or project
beneficiary responsible for repayment of
reimbursable costs.
``(D) Review by the Secretary.--The Secretary shall
review each application submitted under subparagraph
(A)--
``(i) to determine whether the project is
eligible for funds and an extended repayment
period under this subsection;
``(ii) to determine if the project has been
identified by the Bureau of Reclamation as part
of the major rehabilitation and replacement of
a project facility; and
``(iii) to conduct a financial analysis of--
``(I) the project; and
``(II) the transferred works
operating entity or project beneficiary
responsible for repayment of
reimbursable costs.
``(5) Report.--Not later than 90 days after the date on which
an application period closes under paragraph (4)(A), the
Secretary shall submit to the Committees on Energy and Natural
Resources and Appropriations of the Senate and the Committees
on Natural Resources and Appropriations of the House of
Representatives a report that--
``(A) identifies each project eligible for funds and
extended repayment under this subsection;
``(B) with respect to each eligible project
identified under subparagraph (A), includes--
``(i) a description of--
``(I) the eligible project;
``(II) the anticipated cost and
duration of the eligible project; and
``(III) any remaining engineering or
environmental compliance that is
required before the eligible project
commences;
``(ii) an analysis of--
``(I) the repayment period proposed
in the application; and
``(II) if the Secretary recommends a
minimum necessary repayment period that
is different than the repayment period
proposed in the application, the
minimum necessary repayment period
recommended by the Secretary; and
``(iii) an analysis of alternative non-
Federal funding options; and
``(C) describes the balance of funds in the Account
as of the date of the report.
``(6) Effect of subsection.--Nothing in this subsection
affects--
``(A) any funding provided, or contracts entered
into, under subsection (a) before the date of enactment
of this subsection; or
``(B) the use of funds otherwise made available to
the Secretary to carry out subsection (a).''.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS FOR THE RECLAMATION SAFETY OF
DAMS ACT OF 1978.
Section 5 of the Reclamation Safety of Dams Act of 1978 (43 U.S.C.
509) is amended, in the first sentence, by inserting ``, and, effective
October 1, 2019, not to exceed an additional $550,000,000 (October 1,
2019, price levels)'' before ``, plus or minus''.
SEC. 4. REVIEW OF FLOOD CONTROL RULE CURVES PILOT PROJECT.
(a) Definitions.--In this section:
(1) Bureau.--The term ``Bureau'' means the Bureau of
Reclamation.
(2) Eligible works.--
(A) In general.--The term ``eligible works''' means a
reserved works, or a transferred works for which--
(i) the flood control rule curve has not been
substantially adjusted during the 10-year
period ending on the date of enactment of this
Act; and
(ii) the Secretary receives a request in
accordance with subsection (c)(1)(A).
(B) Exclusions.--The term ``eligible works''' does
not include--
(i) any project authorized by the Boulder
Canyon Project Act (43 U.S.C. 617 et seq.);
(ii) any project authorized by the Act of
April 11, 1956 (commonly known as the
``Colorado River Storage Project Act'') (43
U.S.C. 620 et seq.); or
(iii) any project of the Pick-Sloan Missouri
River Basin Program (authorized by section 9 of
the Act of December 22, 1944 (commonly known as
the ``Flood Control Act of 1944'') (58 Stat.
891, chapter 665)).
(3) Pilot Project.--The term ``pilot project'' means the
pilot project established under subsection (b).
(4) Responsible party.--The term ``responsible party''
means--
(A) with respect to a reserved works--
(i) a non-Federal water user or power
contractor that has an active repayment, water
service, or power service contract with the
Bureau;
(ii) a power contractor that has an active
contract with a Federal power marketing
administration for energy, capacity, or energy
and capacity, from a hydropower facility owned
by the Bureau; or
(iii) a non-Federal operating entity,
including a joint powers authority or board of
control, that has assumed responsibility on
behalf of multiple water users, through a
contract with the Bureau, for the operation and
maintenance of the reserved works; and
(B) with respect to a transferred works, the
operating entity of the transferred works.
(5) Secretary.--The term ``Secretary'' means Secretary of the
Interior.
(b) Establishment of Pilot Project.--The Secretary, in consultation
with the Secretary of the Army, shall establish within the Bureau a
pilot project to adjust flood control rule curves in accordance with
subsection (d).
(c) Selection of Eligible Works.--
(1) Request.--
(A) In general.--In order for an eligible works to be
selected for inclusion in the pilot project, a
responsible party shall submit a written request to the
Secretary seeking a flood control rule curve
adjustment.
(B) Notice.--Not later than 30 days after the date on
which the Secretary receives a request under
subparagraph (A), the Secretary shall notify--
(i) each responsible party of that request,
using lists maintained by the Bureau; and
(ii) if applicable, the appropriate Federal
power marketing administration.
(2) Selection.--Each year, the Secretary shall--
(A) select 1 or more eligible works for inclusion in
the pilot project; and
(B) submit a list of those eligible works to--
(i) the Secretary of the Army;
(ii) the Committee on Natural Resources of
the House of Representatives; and
(iii) the Committee on Energy and Natural
Resources of the Senate.
(3) Exclusion.--The Secretary shall not select an eligible
works for inclusion in the pilot project under paragraph (2)(A)
if, not later than 60 days after the date on which the notice
is provided to each responsible party under paragraph
(1)(B)(i), a majority of the responsible parties submit to the
Secretary an objection to the inclusion of the eligible works
in the pilot project.
(d) Adjustment of a Flood Control Rule.--
(1) In general.--The flood control rule curve of an eligible
works shall be adjusted pursuant to section 7 of the Act of
December 22, 1944 (33 U.S.C. 709), if the Secretary of the Army
determines that the adjustment would enhance the authorized
purposes of the eligible works.
(2) Considerations.--In the adjustment of a flood control
rule curve under paragraph (1), the following factors shall be
considered:
(A) Forecast-informed reservoir operations.
(B) Improved hydrologic forecasting for--
(i) precipitation;
(ii) snowpack;
(iii) runoff; and
(iv) soil moisture conditions.
(C) Any new watershed data, including data provided
by a responsible party for the eligible works.
(3) Consultation.--In the adjustment of a flood control rule
curve under paragraph (1), the following entities shall be
consulted:
(A) Each responsible party for the eligible works.
(B) In the case of an eligible works that produces
power marketed by the Federal Government, the Federal
power marketing administration that markets the power.
(C) The Secretary.
(e) Consultation.--The Secretary shall consult with the Secretary
of the Army with respect to any action taken by the Secretary of the
Army--
(1) pursuant to section 7 of the Act of December 22, 1944 (33
U.S.C. 709); and
(2) that relates to the pilot project.
(f) Funding.--The Secretary or the Secretary of the Army, as
appropriate, may accept amounts from responsible parties for eligible
works to fund all or a portion of the cost of carrying out an
adjustment of a flood control rule under subsection (d), including a
review or revision of operational documents (including water control
plans, water control manuals, water control diagrams, release
schedules, rule curves, operational agreements with non-Federal
entities, and any associated environmental documentation).
(g) Effect.--Nothing in this section--
(1) affects or modifies any existing authority to review or
modify--
(A) reservoir operations, including any existing
forecast-informed reservoir operations at a facility of
the Corps of Engineers, such as Coyote Dam; and
(B) flood control operations; or
(2) affects or modifies any authorized purpose of any project
carried out by the Secretary.
(h) Termination.--
(1) In general.--The pilot project shall terminate on the
date that is 15 years after the date of enactment of this Act.
(2) Effect.--Termination of the pilot project under paragraph
(1) shall not affect any flood control rule curve developed as
part of the pilot project.
Purpose
The purpose of S. 2044 is to amend the Omnibus Public Land
Management Act of 2009 to establish an Aging Infrastructure
Account, to amend the Reclamation Safety of Dams Act of 1978 to
provide additional funds under that Act, and to establish a
review of flood control rule curves pilot project within the
Bureau of Reclamation (BOR).
Background and Need
The BOR owns 480 dams and dikes, nearly 40,000 miles of
water conveyance facilities, and 58 power plants, along with
various buildings, lands, and other facilities. The majority of
this infrastructure is over 50 years old, and a growing number
have been in operation for over a century. Roughly two-thirds
of these assets--referred to as ``transferred works''--are
maintained and operated by non-federal entities, such as water
or irrigation districts, through contracts with the BOR while
title of the property remains with the federal government. So
called ``reserved works''--those projects that are owned,
operated, and maintained by the BOR--make up the remaining one-
third of the assets and are often the larger, multipurpose
facilities.
Traditionally, the BOR has funded 100 percent of the
upfront capital for projects through appropriated dollars, and
water and power beneficiaries would repay the federal capital
investment and annual operations and maintenance (O&M) costs.
The specific terms of O&M payments for individual projects
often vary depending on a variety of factors, but typically
these costs are required to be paid in the year that they are
incurred.
As BOR facilities age, O&M costs at many projects are
significantly increasing and becoming more capital intensive in
nature. For major rehabilitation, repair, or replacement
projects, it can be difficult for some BOR contractors to cover
the total cost in a single year. In some cases, water districts
seek debt financing to allow payment of capital O&M over time,
but private capital is often difficult or expensive to access
because the underlying asset is owned by the federal
government.
In response to these challenges, Congress provides the BOR
with authority to fund ``extraordinary maintenance'' projects
and have the cost repaid over up to 50 years in the Omnibus
Public Land Management Act of 2009 (Public Law 111-11).
However, the often lengthy and opaque process for getting a
project designated as extraordinary maintenance and limited
opportunities for Congress to direct appropriated dollars
specifically for this purpose within the BOR budget has made
the program less useful as a tool to address aging
infrastructure.
The BOR Safety of Dams program was authorized in 1978 in
the Reclamation Safety of Dams Act (Public Law 95-578) and is
another important tool for protecting the structural integrity
of facilities based on up-to-date standards and data. There is
currently roughly $1.4 billion in authorized funding levels
remaining in the program. Due to large variability in potential
expenditures, the BOR indicates that this cap could be reached
anywhere between 2022 and 2030 based on the current inventory.
Additionally, BOR's safety evaluation of existing dams (SEED)
program conducts ongoing inspections and analysis and
significant fluctuations to the anticipated inventory can
occur.
In addition to rehabilitation of aging infrastructure,
there are efforts to more fully use existing surface storage
facilities by using improved atmospheric and watershed data to
manage flood control risk more precisely. By temporarily
storing water that would have been released downstream under
the guise of flood protection based on older data, water
managers are able to move and store water across a system to
increase the amount of water that is left in storage to be
carried over for delivery during drought and low-water years.
In most cases, changing reservoir operations in this way
requires changes to Army Corps of Engineers Water Control
Manuals.
Legislative History
S. 2044 was introduced by Senators McSally and Sinema on
June 27, 2019. The Subcommittee on Water and Power held a
hearing on the measure on July 18, 2019.
The Senate Committee on Energy and Natural Resources met in
open business session on September 25, 2019, and ordered S.
2044 favorably reported, as amended.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on September 25, 2019, by a majority
voice vote of a quorum present, recommends that the Senate pass
S. 2044, if amended as described herein. Senator Lee asked to
be recorded as voting no.
Committee Amendment
During its consideration of S. 2044, the Committee adopted
an amendment in the nature of a substitute and an amendment to
the substitute. The substitute, as amended, replaces the term
``transferred works'' with ``a project facility'' and makes
other conforming changes in section 2 to allow both transferred
and reserved works owned by BOR to qualify for funding from the
Aging Infrastructure Account. In addition, the substitute adds
in section 2 a requirement that information on alternative non-
Federal funding options that have been evaluated be included in
an application, strikes the requirement that BOR include an
analysis of the effect on the affordability in the required
report, and adds a provision clarifying that the section does
not affect funds or contracts entered into pursuant to section
9603 of the Omnibus Public Land Management Act of 2009 prior to
enactment of this subsection or the use of funds otherwise
available to the secretary to carry out that section.
The substitute adds a definition of ``responsible party''
in section 4.
The amendment also makes technical and clarifying changes
to language throughout the bill.
Section-by-Section Analysis
Section. 1. Short title
Section 1 sets forth the short title.
Sec. 2. Aging infrastructure account
Section 2 amends section 9603 of the Omnibus Public Lands
Management Act of 2009 to add a new subsection (d). The new
subsection (d)(1) establishes an aging infrastructure account
to provide funds to transferred works operating entities or
project beneficiaries responsible for repayment of reimbursable
costs for the conduct of extraordinary operation and
maintenance work at BOR facilities. The new subsection (d)(2)
authorizes the Secretary of the Interior to provide for the
extended repayment of the funds by eligible projects. The new
subsection (d)(3) requires a repayment contract to be in place
before funds can be expended, and authorizes funds repaid under
such contract to be deposited in the Aging Infrastructure
Account without further appropriation. The new subsection
(d)(4) requires the Secretary to accept applications for
funding and extended repayment for eligible projects, outlines
project eligibility, and requires guidelines for the
application to be developed. The new subsection (d)(5) requires
the Secretary to analyze the applications and submit a report
to Congress.
Sec. 3. Authorization of appropriations for the Reclamation Safety of
Dams Act of 1978
Section 3 amends the Safety of Dams Act of 1978 to add an
additional $550 million to the authorization ceiling.
Sec. 4. Review of flood control rule curves pilot project
Subsection (a) defines terms specific to this section.
Subsection (b) directs the Secretary of the Interior, in
consultation with the Secretary of the Army, to establish a
pilot program within the BOR to adjust flood control rule
curves for eligible BOR projects. Flood control rule curves are
set by the Army Corps of Engineers and are used to determine
how much of a project storage space should remain available for
flood control purposes, along with the rate of release from
reservoirs and other operational parameters.
Subsection (c) sets a process and criteria for the
selection of eligible works by the Secretary and submission of
the selected works to the Secretary of the Army.
Subsection (d) requires the Secretary of the Army to adjust
flood control rule curves of an eligible work if the Secretary
of the Army determines that the adjustment would enhance the
authorized purposes of the work, and outlines specific
considerations that should be taken into account.
Subsection (e) requires the Secretary of the Interior and
Secretary of the Army to consult on actions taken by the pilot
program.
Subsection (f) authorizes the Secretary of the Army or
Interior, as appropriate, to accept funds from a responsible
party to adjustment a flood control rule curve.
Subsection (g) states that nothing in this section affects
existing authority to review or modify reservoir operations at
an Army Corps of Engineers facility or flood control
operations. It also states that nothing affects or modifies any
authorized purpose of any project carried out by the Secretary
of the Interior.
Subsection (h) terminates the pilot program after 15 years
and states that flood control rule curves modified under the
pilot program are not affected by its termination.
Cost and Budgetary Considerations
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the Congressional Budget Office
completes its cost estimate, it will be posted on the internet
at www.cbo.gov.
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. 2044. 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. 2044, as ordered reported.
Congressionally Directed Spending
S. 2044, as ordered 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 Department of the Interior at
the July 18, 2019, hearing on S. 2044 follows:
Statement of Brenda Burman, Commissioner, Bureau of Reclamation, U.S.
Department of the Interior
Chairman McSally, Ranking Member Cortez Masto, and members
of the Subcommittee, I am Brenda Burman, Commissioner for the
Bureau of Reclamation within the Department of the Interior
(Interior). Thank you for the opportunity to provide Interior's
views on S. 1932, the Drought Resiliency and Water Supply
Infrastructure Act, S. 2044, the Water Supply Infrastructure
Rehabilitation and Utilization Act, and S. 1570, the Aquifer
Recharge Flexibility Act.
Reclamation's dams and reservoirs, water conveyance
systems, and power generating facilities are integral
components of the Nation's infrastructure. This infrastructure
is key to Reclamation's continued success. Approximately 50
percent of Reclamation's dams were built between 1900 and 1950,
and approximately 90 percent of the dams were built before
adoption of currently used, state-of-the-art design and
construction practices. Effectively managing the modernization
of this infrastructure and the benefits that these structures
provide is among the significant challenges facing Reclamation
in the next several years. The reliability, safety, efficiency,
and cost effectiveness of Reclamation's infrastructure to
ensure water deliveries and power generation is a high
priority. Our FY 2020 budget proposed increases in funding for
extraordinary maintenance, including dam safety, to modernize
infrastructure. We appreciate that the bill sponsors are
working to improve western water reliability.
S. 2044--Water Supply Infrastructure Rehabilitation and Utilization Act
The Department supports the intent of S. 2044 to address
Reclamation's aging infrastructure. We applaud this bipartisan
effort to assist the Bureau in making major updates and
replacements. We have stated on the record that it is our
priority to make investments in modernizing our infrastructure,
and this bill would advance our mutual goal. We would
appreciate the opportunity to continue working with the
Committee on improvements to the bill that we believe would
clarify and improve implementation.
aging infrastructure account
Section 2 of S.2044 amends Section 9603 of Public Law 111-
11 (43 U.S.C. 510b) to create a new extraordinary maintenance
(XM) account (account) to fund eligible XM projects at
transferred works. The account would be funded with
appropriations under Section 9605 of P.L. 111-11 and through
project beneficiaries' repayment of Federal expenditures from
it. It would fund non-emergency XM only, leaving emergency XM
projects to be funded as they are currently funded under P.L.
111-11, through continuing Section 9605 appropriations outside
the account. The bill sets forth various conditions and
processes for using the account, including an annual
application process and annual reports to specified
Congressional Committees on the eligible projects, some key
details of their evaluations, and the Secretary's
recommendations regarding repayment periods. Based on our
analysis of Section of S. 2044, expenditures out the newly
created account would still be subject to appropriations, and
project beneficiaries' repayments of XM would incur interest,
consistent with existing Reclamation law and policy.
appropriations for the reclamation safety of dams act
This section would provide an increase to the
appropriations ceiling for the Reclamation Safety of Dams
Program. Raising the dam safety authorization ceiling would
assure that Reclamation can continue to meet crucial dam safety
needs across the West. Dam safety projects are vital to
sustaining the benefits Reclamation projects provide and enable
Reclamation to incorporate new information as relevant
knowledge and technology change.
flood control rule curves pilot
Section 4 of the Water Supply Infrastructure Rehabilitation
and Utilization Act would authorize Interior to establish a
pilot project within the Bureau of Reclamation to review flood
control rule curves. In general, Reclamation could implement
the pilot project as proposed in the legislation. However,
clarifying the role of the Secretary of the Army and the Army
Corps of Engineers (USACE) in approving changes to flood
control rule curves may help ensure effective implementation.
The considerations described in section 4 for assessing
potential changes to flood rule curves are consistent with
approaches currently being implemented by Reclamation. For
example, Reclamation recently completed five reservoir
operations pilot studies using improved forecasting and
hydrologic information to assess opportunities to better meet
water demands. Reclamation also is implementing the October
2018 ``Presidential Memorandum on Promoting the Reliable Supply
and Delivery of Water in the West'', specifically Section 3:
Improve Forecasts of Water Availability, and is engaged with
Federal and non-Federal partners on several forecasting
applications in California.
conclusion
Thank you for the opportunity to provide the Department's
views on these pieces of legislation. We look forward to
continuing our work with the sponsors and the Committee on
these bills.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the changes in existing law made
by S. 2044, as 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):
THE OMNIBUS PUBLIC LAND MANAGEMENT ACT of 2009
PUBLIC LAW 111-11
To designate certain land as components of the National Wilderness
Preservation System, to authorize certain programs and activities in
the Department of the Interior and the Department of Agriculture, and
for other purposes.
* * * * * * *
TITLE IX--BUREAU OF RECLAMATION AUTHORIZATIONS
* * * * * * *
Subtitle G--Aging Infrastructure
* * * * * * *
SEC. 9603. EXTRAORDINARY OPERATION AND MAINTENANCE WORK PERFORMED BY
THE SECRETARY.
(a) In General.--The Secretary or the transferred works
operating entity may carry out, in accordance with subsection
(b) and consistent with existing transfer contracts, any
extraordinary operation and maintenance work on a project
facility that the Secretary determines to be reasonably
required to preserve the structural safety of the project
facility.
(b) Reimbursement of Costs Arising From Extraordinary
Operation and Maintenance Work.--
(1) Treatment of costs.--For reserved works, costs
incurred by the Secretary in conducting extraordinary
operation and maintenance work will be allocated to the
authorized reimbursable purposes of the project and
shall be repaid within 50 years, with interest, from
the year in which work undertaken pursuant to this
subtitle is substantially complete.
(2) Authority of secretary.--For transferred works,
the Secretary is authorized to advance the costs
incurred by the transferred works operating entity in
conducting extraordinary operation and maintenance work
and negotiate appropriate 50-year repayment contracts
with project beneficiaries providing for the return of
reimbursable costs, with interest, under this
subsection: Provided, however, That no contract entered
into pursuant to this subtitle shall be deemed to be a
new or amended contract for the purposes of section
203(a) of the Reclamation Reform Act of 1982 (43 U.S.C.
390cc(a)).
(3) Determination of interest rate.--The interest
rate used for computing interest on work in progress
and interest on the unpaid balance of the reimbursable
costs of extraordinary operation and maintenance work
authorized by this subtitle shall be determined by the
Secretary of the Treasury, as of the beginning of the
fiscal year in which extraordinary operation and
maintenance work is commenced, on the basis of average
market yields on outstanding marketable obligations of
the United States with the remaining periods of
maturity comparable to the applicable reimbursement
period of the project, adjusted to the nearest 1/8 of 1
percent on the unamortized balance of any portion of
the loan.
(c) Emergency Extraordinary Operation and Maintenance
Work.--
(1) In general.--The Secretary or the transferred
works operating entity shall carry out any emergency
extraordinary operation and maintenance work on a
project facility that the Secretary determines to be
necessary to minimize the risk of imminent harm to
public health or safety, or property.
(2) Reimbursement.--The Secretary may advance funds
for emergency extraordinary operation and maintenance
work and shall seek reimbursement from the transferred
works operating entity or benefitting entity upon
receiving a written assurance from the governing body
of such entity that it will negotiate a contract
pursuant to section 9603 for repayment of costs
incurred by the Secretary in undertaking such work.
(3) Funding.--If the Secretary determines that a
project facility inspected and maintained pursuant to
the guidelines and criteria set forth in section
9602(a) requires extraordinary operation and
maintenance pursuant to paragraph (1), the Secretary
may provide Federal funds on a nonreimbursable basis
sufficient to cover 35 percent of the cost of the
extraordinary operation and maintenance allocable to
the transferred works operating entity, which is needed
to minimize the risk of imminent harm. The remaining
share of the Federal funds advanced by the Secretary
for such work shall be repaid under subsection (b).
(d) Aging Infrastructure Account.--
(1) Establishment.--There is established in the
general fund of the Treasury a special account, to be
known as the `Aging Infrastructure Account' (referred
to in this subsection as the `Account'), to provide
funds to, and provide for the extended repayment of the
funds by, a transferred works operating entity or
project beneficiary responsible for repayment of
reimbursable costs for the conduct of extraordinary
operation and maintenance work at a project facility,
which shall consist of--
(A) any amounts that are specifically
appropriated to the Account under section 9605;
and
(B) any amounts deposited in the Account
under paragraph (3)(B).
(2) Expenditures.--Subject to appropriations and
paragraph (3), the Secretary may expend amounts in the
Account to fund and provide for extended repayment of
the funds for eligible projects identified in a report
submitted under paragraph (5)(A).
(3) Repayment contract.--
(A) In general.--The Secretary may not expend
amounts under paragraph (2) with respect to an
eligible project described in that paragraph
unless the transferred works operating entity
or project beneficiary responsible for
repayment of reimbursable costs has entered
into a contract to repay the amounts under
subsection (b)(2).
(B) Deposit of repaid funds.--Amounts repaid
by a transferred works operating entity or
project beneficiary responsible for repayment
of reimbursable costs receiving funds under a
repayment contract entered into under this
subsection shall be deposited in the Account
and shall be available to the Secretary for
expenditure in accordance with this subsection
without further appropriation.
(4) Application for funding.--
(A) In general.--Not less than once per
fiscal year, the Secretary shall accept, during
an application period established by the
Secretary, applications from transferred works
operating entities or project beneficiaries
responsible for payment of reimbursable costs
for funds and extended repayment for eligible
projects.
(B) Eligible project.--A project eligible for
funding and extended repayment under this
subsection is a project that--
(i) qualifies as an extraordinary
operation and maintenance work under
this section;
(ii) is for the major, non-recurring
maintenance of a mission-critical
asset; and
(iii) is not eligible to be carried
out or funded under the repayment
provisions of section 4(c) of the
Reclamation Safety of Dams Act of 1978
(43 U.S.C. 508(c)).
(C) Guidelines for Applications.--Not later
than 60 days after the date of enactment of
this subsection, the Secretary shall issue
guidelines describing the information required
to be provided in an application for funds and
extended repayment under this subsection that
require, at a minimum--
(i) a description of the project for
which the funds are requested;
(ii) the amount of funds requested;
(iii) the repayment period requested
by the transferred works operating
entity or project beneficiary
responsible for repayment of
reimbursable costs;
(iv) alternative non-Federal funding
options that have been evaluated;
(v) the financial justification for
requesting an extended repayment
period; and (vi) the financial records
of the transferred works operating
entity or project beneficiary
responsible for repayment of
reimbursable costs.
(D) Review by the secretary.--The Secretary
shall review each application submitted under
subparagraph (A)--
(i) to determine whether the project
is eligible for funds and an extended
repayment period under this subsection;
(ii) to determine if the project has
been identified by the Bureau of
Reclamation as part of the major
rehabilitation and replacement of a
project facility; and
(iii) to conduct a financial analysis
of--
(I) the project; and
(II) the transferred works
operating entity or project
beneficiary responsible for
repayment of reimbursable
costs.
(5) Report.--Not later than 90 days after the date on
which an application period closes under paragraph
(4)(A), the Secretary shall submit to the Committees on
Energy and Natural Resources and Appropriations of the
Senate and the Committees on Natural Resources and
Appropriations of the House of Representatives a report
that--
(A) identifies each project eligible for
funds and extended repayment under this
subsection;
(B) with respect to each eligible project
identified under subparagraph (A), includes--
(i) a description of--
(I) the eligible project;
(II) the anticipated cost and
duration of the eligible
project; and
(III) any remaining
engineering or environmental
compliance that is required
before the eligible project
commences;
(ii) an analysis of--
(I) the repayment period
proposed in the application;
and
(II) if the Secretary
recommends a minimum necessary
repayment period that is
different than the repayment
period proposed in the
application, the minimum
necessary repayment period
recommended by the Secretary;
and
(iii) an analysis of alternative non-
Federal funding options; and
(C) describes the balance of funds in the
Account as of the date of the report.
(6) Effect of subsection.--Nothing in this subsection
affects--
(A) any funding provided, or contracts
entered into, under subsection (a) before the
date of enactment of this subsection; or
(B) the use of funds otherwise made available
to the Secretary to carry out subsection (a).
* * * * * * *
THE RECLAMATION SAFETY OF DAMS ACT OF 1978, AS AMENDED
PUBLIC LAW 95-518, AS AMENDED
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. 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, 2015, not to
exceed an additional $1,100,000,000 (October 1, 2003, price
levels), and, effective October 1, 2019, not to exceed an
additional $550,000,000 (October 1, 2019, 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 subchapter to remain available until expended if so
provided by the appropriations Act: Provided, That no funds
exceeding $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 subchapter prior to 30
calendar days from the date that the Secretary has transmitted
a report on such existing dam to the 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, 2015, 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 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.
* * * * * * *