[House Report 117-644]
[From the U.S. Government Publishing Office]


117th Congress     }                                  {     Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                  {     117-644

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

 
  PACIFIC NORTHWEST PUMPED STORAGE HYDROPOWER DEVELOPMENT ACT OF 2021

                                _______
                                

 December 15, 2022.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 2641]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 2641) to amend the Reclamation Project Act of 
1939 to authorize pumped storage hydropower development 
utilizing multiple Bureau of Reclamation reservoirs, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 2641 is to amend the Reclamation 
Project Act of 1939 to authorize pumped storage hydropower 
development utilizing multiple Bureau of Reclamation 
reservoirs.

                  Background and Need for Legislation

    Pumped storage hydropower projects move water between two 
reservoirs located at different elevations in order to generate 
electricity and store energy. Power is generated when water 
stored in an upper reservoir is released to the lower reservoir 
through hydroelectric turbines. When electricity demand is low, 
water is pumped from the lower to the upper reservoir to store 
that water--and its energy potential--at the higher reservoir 
for later use.
    Both the U.S. Bureau of Reclamation (Reclamation) and the 
Federal Energy Regulatory Commission (FERC) are authorized to 
permit the use of Reclamation facilities to non-federal 
entities for the purposes of hydropower development, including 
pumped storage hydropower. Whether a hydropower project is 
subject to Reclamation or FERC jurisdiction depends on whether 
a Reclamation facility was originally authorized for hydropower 
development. For Reclamation projects with hydropower as an 
authorized project purpose, Reclamation is responsible for 
permitting through its Lease of Power Privilege process. All 
other hydropower projects using Reclamation facilities are 
subject to FERC jurisdiction pursuant to the Federal Power 
Act.\1\ For pumped storage hydropower projects, which require 
the use of multiple reservoirs, a situation can arise in which 
a single project is subject to both Reclamation and FERC's 
permitting processes.
---------------------------------------------------------------------------
    \1\Act of June 10, 1920, ch. 285, Sec. 4, 41 Stat. 1063, 1065, 
http://uscode.house.gov/statviewer.htm?volume=41&page=1065 (codified as 
amended at 16 U.S.C. Sec. 797, http://uscode.house.gov/table3/
1920_285.htm) (statutory compilation as amended through P.L. 117-58 at 
https://www.govinfo.gov/content/pkg/COMPS-834/pdf/COMPS-834.pdf).
---------------------------------------------------------------------------
    H.R. 2641 amends the Reclamation Project Act of 1939\2\ to 
specify that pumped storage hydropower projects that use 
multiple Reclamation reservoirs shall be subject to a single 
Reclamation permitting process. Reclamation's permitting 
process requires pumped storage projects to comply with the 
National Environmental Policy Act (NEPA), the Endangered 
Species Act, the National Historic Preservation Act, and other 
statutory requirements.
---------------------------------------------------------------------------
    \2\Act of Aug. 4, 1939, ch. 418, 53 Stat. 1187, http://
uscode.house.gov/statviewer.htm?volume=53&page=1187 (codified as 
amended at various, see http://uscode.house.gov/table3/1939_418.htm) 
(statutory compilation as amended through P.L. 117-58 at https://
www.govinfo.gov/content/pkg/COMPS-10509/pdf/COMPS-10509.pdf).
---------------------------------------------------------------------------
    The proposed Banks Lake pumped storage project in 
Washington State is one project that prior to this bill was 
subject to both Reclamation and FERC's permitting processes. 
The project proposes to pump water between Roosevelt Lake 
(subject to Reclamation jurisdiction) and Banks Lake (subject 
to FERC jurisdiction). Section 3 of H.R. 2641 incorporates 
feedback from the Confederated Tribes of the Colville 
Reservation and the Spokane Tribe of Indians of the Spokane 
Reservation to ensure additional opportunities for tribal 
consultation and input during Reclamation's permitting process 
for the proposed Banks Lake pumped storage project. This 
section does not apply to other pumped storage projects 
employing two Reclamation facilities.
    H.R. 2641 was enacted as sections 40335 and 40336 of the 
Infrastructure Investment and Jobs Act\3\ (the ``IIJA,'' or 
sometimes called the Bipartisan Infrastructure Framework or 
``BIF'' or the Bipartisan Infrastructure Law or ``BIL''), which 
became public law on November 15, 2021. With the enactment of 
the IIJA, the jurisdiction of the proposed Banks Lake project 
is now fully under Reclamation.
---------------------------------------------------------------------------
    \3\Pub. L. No. 117-58, 135 Stat. 429 (2021), https://
uscode.house.gov/statviewer.htm?volume=135&page=429.
---------------------------------------------------------------------------

                            Committee Action

    H.R. 2641 was introduced on April 19, 2021, by 
Representative Dan Newhouse (R-WA). The bill was referred 
solely to the Committee on Natural Resources, and within the 
Committee to the Subcommittee on Water, Oceans, and Wildlife 
and to the Subcommittee for Indigenous Peoples of the United 
States. On May 26, 2021, the Natural Resources Committee met to 
consider the bill. The Subcommittees were discharged by 
unanimous consent. No amendments were offered, and the bill was 
adopted and ordered favorably reported to the House of 
Representatives by unanimous consent.

                                Hearings

    Regarding clause 3(c)(6) of House rule XIII, the Committee 
does not expect the measure to be considered pursuant to a 
special order of business reported by the Committee on Rules, 
as it has already been enacted via another bill.

            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, as well as clause 3(d) of rule XIII of the Rules of the 
House of Representatives, 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, July 26, 2021.
Hon. Raul M. Grijalva,
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. 2641, the Pacific 
Northwest Pumped Storage Hydropower Development Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Aurora 
Swanson.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    Under current law, nonfederal entities that propose to 
develop hydropower at reservoirs administered by the Bureau of 
Reclamation (BOR) must enter into a lease with BOR or obtain a 
license from the Federal Energy Regulatory Commission (FERC). 
The regulatory jurisdiction of each BOR reservoir was 
previously negotiated by the agencies to clarify which 
permitting process would be in effect for each reservoir.
    At least one project, a proposal to develop pumped storage 
hydropower within BOR's Colombia Basin Project (CBP) in the 
state of Washington, would need permits from both agencies 
because it would be constructed on two reservoirs; Banks Lake 
would require a BOR lease and Lake Roosevelt reservoir would 
require a FERC license. (Pumped storage hydropower is a type of 
storage for hydroelectric energy used by electric power systems 
for load balancing.) H.R. 2641 would make BOR the sole 
regulatory authority for developers seeking a lease for a 
pumped storage hydropower facility at federal reservoirs.
    The bill also would require the nonfederal developer to 
negotiate an agreement with the Confederated Tribes of the 
Colville Reservation and the Spokane Tribe of Indians of the 
Spokane Reservation as a condition for a BOR lease on CBP 
facilities. The agreement would establish the terms for 
interactions between the developer and tribes including studies 
to analyze the potential adverse effects of the project on 
annual payments due to the tribes under their respective 
settlements; on hunting, fishing, and boating rights of the 
Tribes; and on the environment. The bulk of the costs for those 
studies would be incurred by the project developer while the 
rest would be incurred by BOR; however, most of those costs to 
the agency would ultimately be paid by the developer under the 
terms of a cost recovery agreement between BOR and the 
developer.
    CBO estimates that enacting H.R. 2641 would increase 
offsetting receipts (which are recorded as reductions in direct 
spending) from payments the project developer would make to BOR 
in advance for the costs of additional staff hours to negotiate 
lease agreements and to facilitate development of the planned 
studies and agreement between the developer and the tribes. 
Using information from BOR, CBO estimates that those offsetting 
receipts would total about $1 million over the 2021-2031 
period. However, because BOR is authorized to spend amounts 
collected without further appropriations action, CBO estimates 
that the net effect on direct spending would be negligible over 
that period.
    Some costs incurred by BOR to litigate appeals related to 
the agreement may not be recoverable from the project developer 
and instead would be covered by the agency's regular 
appropriation. CBO estimates that those costs would total less 
than $500,000 over the 2021-2026 period; such spending would be 
subject to the availability of appropriated funds.
    Lastly, FERC recovers 100 percent of its costs, which are 
controlled by annual appropriations, through user fees. Thus, 
any reduction in FERC's costs resulting from shifting its 
licensing responsibilities to BOR would be offset by an 
equivalent change in fees, resulting in no net change in 
discretionary spending.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to amend the Reclamation Project 
Act of 1939 to authorize pumped storage hydropower development 
utilizing multiple Bureau of Reclamation reservoirs.

                           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.

                 Unfunded Mandates Reform Act Statement

    According to CBO, this bill contains no unfunded mandates 
as defined by the Unfunded Mandates Reform Act.

                           Existing Programs

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                    RECLAMATION PROJECT ACT OF 1939



           *       *       *       *       *       *       *
  Sec. 9. (a) No expenditures for the construction of any new 
project, new division of a project, or new supplemental works 
on a project shall be made, nor shall estimates be submitted 
therefor, by the Secretary until after he has made an 
investigation thereof and has submitted to the President and to 
the Congress his report and findings on--
  (1) the engineering feasibility of the proposed construction;
  (2) the estimated cost of the proposed construction;
  (3) the part of the estimated cost which can properly be 
allocated to irrigation and probably be repaid by the water 
users;
  (4) the part of the estimated cost which can properly be 
allocated to power and probably be returned to the United 
States in net power revenues;
  (5) the part of the estimated cost which can properly be 
allocated to municipal water supply or other miscellaneous 
purposes and probably be returned to the United States.
If the proposed construction is found by the Secretary to have 
engineering feasibility and if the repayable and returnable 
allocations to irrigation, power, and municipal water supply or 
other miscellaneous purposes found by the Secretary to be 
proper, together with any allocation to flood control or 
navigation made under subsection (b) of this section, equal the 
total estimated cost of construction as determined by the 
Secretary, then the new project, new division of a project, or 
supplemental works on a project, covered by his findings, shall 
be deemed authorized and may be undertaken by the Secretary. If 
all such allocations do not equal said total estimated cost, 
then said new project, new division, or new supplemental works 
may be undertaken by the Secretary only after provision 
therefor has been made by Act of Congress enacted after the 
Secretary has submitted to the President and the Congress the 
report and findings involved.
  (b) In connection with any new project, new division of a 
project, or supplemental works on a project there may be 
allocated to flood control or navigation the part of said total 
estimated cost which the Secretary may find to be proper. Items 
for any such allocations made in connection with projects which 
may be undertaken pursuant to subsection (a) of this section 
shall be included in the estimates of appropriations submitted 
by the Secretary for said projects, and funds for such portions 
of the projects shall not become available except as directly 
appropriated or allotted to the Department of the Interior. In 
connection with the making of such an allocation, the Secretary 
shall consult with the Chief of Engineers and the Secretary of 
the Army, and may perform any of the necessary investigations 
or studies under a cooperative agreement with the Secretary of 
the Army. In the event of such an allocation the Secretary of 
the Interior shall operate the project for purposes of flood 
control or navigation, to the extent justified by said 
allocation therefor.
  (c)
           (1) The Secretary is authorized to enter into 
        contracts to furnish water for municipal water supply 
        or miscellaneous purposes: Provided, That any such 
        contract either (A) shall require repayment to the 
        United States, over a period of not to exceed forty 
        years from the year in which water is first delivered 
        for the use of the contracting party, with interest not 
        exceeding the rate of 3\1/2\ per centum per annum if 
        the Secretary determines an interest charge to be 
        proper, of an appropriate share as determined by the 
        Secretary of that part of the construction costs 
        allocated by him to municipal water supply or other 
        miscellaneous purposes; or (B) shall be for such 
        periods, not to exceed forty years, and at such rates 
        as in the Secretary's judgment will produce revenues at 
        least sufficient to cover an appropriate share of the 
        annual operation and maintenance cost and an 
        appropriate share of such fixed charges as the 
        Secretary deems proper, and shall require the payment 
        of said rates each year in advance of delivery of water 
        for said year. Any sale of electric power or lease of 
        power privileges, made by the Secretary in connection 
        with the operation of any project or division of a 
        project, shall be for such periods, not to exceed forty 
        years, and at such rates as in his judgment will 
        produce power revenues at least sufficient to cover an 
        appropriate share of the annual operation and 
        maintenance cost, interest on an appropriate share of 
        the construction investment at not less than 3 per 
        centum per annum, and such other fixed charges as the 
        Secretary deems proper: Provided further, That in said 
        sales or leases preference shall be given to 
        municipalities and other public corporations or 
        agencies; and also to cooperatives and other nonprofit 
        organizations financed in whole or in part by loans 
        made pursuant to the Rural Electrification Act of 1936 
        and any amendments thereof. Nothing in this subsection 
        shall be applicable to provisions in existing 
        contracts, made pursuant to law, for the use of power 
        and miscellaneous revenues of a project for the benefit 
        of users of water from such project. The provisions of 
        this subsection respecting the sales of electric power 
        and leases of power privileges shall be an 
        authorization in addition to and alternative to any 
        authority in existing laws related to particular 
        projects[, including small conduit hydropower 
        development] and reserve to the Secretary the exclusive 
        authority to develop small conduit hydropower using 
        Bureau of Reclamation facilities and pumped storage 
        hydropower exclusively using Bureau of Reclamation 
        reservoirs. No contract relating to municipal water 
        supply or miscellaneous purposes or to electric power 
        or power privileges shall be made unless, in the 
        judgment of the Secretary, it will not impair the 
        efficiency of the project for irrigation purposes.
                  (2)(A) When carrying out this subsection, the 
                Secretary shall first offer the lease of power 
                privilege to an irrigation district or water 
                users association operating the applicable 
                transferred conduit, or to the irrigation 
                district or water users association receiving 
                water from the applicable reserved conduit. The 
                Secretary shall determine a reasonable time 
                frame for the irrigation district or water 
                users association to accept or reject a lease 
                of power privilege offer for a small conduit 
                hydropower project.
                          (B) If the irrigation district or 
                        water users association elects not 
                        accept a lease of power privilege offer 
                        under subparagraph (A), the Secretary 
                        shall offer the lease of power 
                        privilege to other parties in 
                        accordance with this subsection.
                  (3) The Bureau of Reclamation shall apply its 
                categorical exclusion process under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) to small conduit 
                hydropower development under this subsection, 
                excluding siting of associated transmission 
                facilities on Federal lands.
                  (4) The Power Resources Office of the Bureau 
                of Reclamation shall be the lead office of 
                small conduit hydropower policy and procedure-
                setting activities conducted under this 
                subsection.
                  (5) Nothing in this subsection shall obligate 
                the Western Area Power Administration, the 
                Bonneville Power Administration, or the 
                Southwestern Power Administration to purchase 
                or market any of the power produced by the 
                facilities covered under this subsection and 
                none of the costs associated with production or 
                delivery of such power shall be assigned to 
                project purposes for inclusion in project 
                rates.
                  (6) Nothing in this subsection shall alter or 
                impede the delivery and management of water by 
                Bureau of Reclamation facilities, as water used 
                for conduit hydropower generation shall be 
                deemed incidental to use of water for the 
                original project purposes. Lease of power 
                privilege shall be made only when, in the 
                judgment of the Secretary, the exercise of the 
                lease will not be incompatible with the 
                purposes of the project or division involved, 
                nor shall it create any unmitigated financial 
                or physical impacts to the project or division 
                involved. The Secretary shall notify and 
                consult with the irrigation district or water 
                users association operating the transferred 
                conduit before offering the lease of power 
                privilege and shall prescribe terms and 
                conditions that will adequately protect the 
                planning, design, construction, operation, 
                maintenance, and other interests of the United 
                States and the project or division involved.
                  (7) Nothing in this subsection shall alter or 
                affect any existing agreements for the 
                development of conduit hydropower projects or 
                disposition of revenues.
                  (8) Nothing in this subsection shall alter or 
                affect any existing preliminary permit, 
                license, or exemption issued by the Federal 
                Energy Regulatory Commission under Part I of 
                the Federal Power Act (16 U.S.C. 792 et seq.) 
                or any project for which an application [has 
                been filed with the Federal Energy Regulatory 
                Commission as of the date of the enactment of 
                the Bureau of Reclamation Small Conduit 
                Hydropower Development and Rural Jobs Act] was 
                filed with the Federal Energy Regulatory 
                Commission before August 9, 2013, and is still 
                pending.
                  (9) In this subsection:
                          (A) Conduit.--The term ``conduit'' 
                        means any Bureau of Reclamation tunnel, 
                        canal, pipeline, aqueduct, flume, 
                        ditch, or similar manmade water 
                        conveyance that is operated for the 
                        distribution of water for agricultural, 
                        municipal, or industrial consumption 
                        and not primarily for the generation of 
                        electricity.
                          (B) Irrigation district.--The term 
                        ``irrigation district'' means any 
                        irrigation, water conservation or 
                        conservancy, multicounty water 
                        conservation or conservancy district, 
                        or any separate public entity composed 
                        of two or more such districts and 
                        jointly exercising powers of its member 
                        districts.
                          (C) Reserved conduit.--The term 
                        ``reserved conduit'' means any conduit 
                        that is included in project works the 
                        care, operation, and maintenance of 
                        which has been reserved by the 
                        Secretary, through the Commissioner of 
                        the Bureau of Reclamation.
                          (D) Transferred conduit.--The term 
                        ``transferred conduit'' means any 
                        conduit that is included in project 
                        works the care, operation, and 
                        maintenance of which has been 
                        transferred to a legally organized 
                        water users association or irrigation 
                        district.
                          (E) Small conduit hydropower.--The 
                        term ``small conduit hydropower'' means 
                        a facility capable of producing 5 
                        megawatts or less of electric capacity.
  (d) No water may be delivered for irrigation of lands in 
connection with any new project, new division of a project, or 
supplemental works on a project until an organization, 
satisfactory in form and powers to the Secretary, has entered 
into a repayment contract with the United States, in a form 
satisfactory to the Secretary, providing among other things--
          (1) That the Secretary may fix a development period 
        for each irrigation block, if any, of not to exceed ten 
        years from and including the first calendar year in 
        which water is delivered for the lands in said block; 
        and that during the development period water shall be 
        delivered to the lands in the irrigation block involved 
        at a charge per annum per acre-foot, or other charge, 
        to be fixed by the Secretary each year and to be paid 
        in advance of delivery of water: Provided, That where 
        the lands included in an irrigation block are for the 
        most part lands owned by the United States, the 
        Secretary, prior to execution of a repayment contract, 
        may fix a development period, but in such case 
        execution of such a contract shall be a condition 
        precedent to delivery of water after the close of the 
        development period: Provided further, That when the 
        Secretary, by contract or by notice given thereunder, 
        shall have fixed a development period of less than ten 
        years, and at any time thereafter but before 
        commencement of the repayment period conditions arise 
        which in the judgment of the Secretary would have 
        justified the fixing of a longer period, he may amend 
        such contract or notice to extend such development 
        period to a date not to exceed ten years from its 
        commencement, and in a case where no development period 
        was provided, he may amend such contract within the 
        same limits: Provided further, That when the Secretary 
        shall have deferred the payment of all or any part of 
        any installments of construction charges under any 
        repayment contract pursuant to the authority of the Act 
        of September 21, 1959 (73 Stat. 584), he may, at any 
        time prior to the due date prescribed for the first 
        installment not reduced by such deferment, and by 
        agreement with the contracting organization, terminate 
        the supplemental contract by which such deferment was 
        effected, credit the construction payments made, and 
        exercise the authority granted in this section. After 
        the close of the development period, any such charges 
        collected and which the Secretary determines to be in 
        excess of the cost of the operation and maintenance 
        during the development period shall be credited to the 
        construction cost of the project in the manner 
        determined by the Secretary.
          (2) That the part of the construction costs allocated 
        by the Secretary to irrigation shall be included in a 
        general repayment obligation of the organization; and 
        that the organization may vary its distribution of 
        construction charges in a manner that takes into 
        account the productivity of the various classes of 
        lands and the benefits accruing to the lands by reason 
        of the construction: Provided, That no distribution of 
        construction charges over the lands included in the 
        organization shall in any manner be deemed to relieve 
        the organization or any party or any land therein of 
        the organization's general obligation to the United 
        States.
          (3) That the general repayment obligation of the 
        organization shall be spread in annual installments, of 
        the number and amounts fixed by the Secretary, over a 
        period of not more than 40 years, exclusive of any 
        development period fixed under paragraph (1) of this 
        subsection, for any project contract unit or, if the 
        project contract unit be divided into two or more 
        irrigation blocks, for any such block, or as near to 
        said period of not more than forty years as is 
        consistent with the adoption and operation of a 
        variable payment formula which, being based on full 
        repayment within such period under average conditions, 
        permits variance in the required annual payments in the 
        light of economic factors pertinent to the ability of 
        the organization to pay.
          (4) That the first annual installment for any project 
        contract unit, or for any irrigation block, as the case 
        may be, shall accrue, on the date fixed by the 
        Secretary, in the year after the last year of the 
        development period or, if there be not development 
        period, in the calendar year after the Secretary 
        announces that the construction contemplated in the 
        repayment contract is substantially completed or is 
        advanced to a point where delivery of water can be made 
        to substantially all of the lands in said unit or block 
        to be irrigated; and if there be no development period 
        fixed, that prior to and including the year in which 
        the Secretary makes said announcement water shall be 
        delivered only on the toll charge basis hereinbefore 
        provided for development periods.
  (e) In lieu of entering into a repayment contract pursuant to 
the provisions of subsection (d) of this section to cover that 
part of the cost of the construction of works connected with 
water supply and allocated to irrigation, the Secretary, in his 
discretion, may enter into either short- or long-term contracts 
to furnish water for irrigation purposes. Each such contract 
shall be for such period, not to exceed forty years, and at 
such rates as in the Secretary's judgment will produce revenues 
at least sufficient to cover an appropriate share of the annual 
operation and maintenance cost and an appropriate share of such 
fixed charges as the Secretary deems proper, due consideration 
being given to that part of the cost of construction of works 
connected with water supply and allocated to irrigation; and 
shall require payment of said rates each year in advance of 
delivery of water for said year. In the event such contracts 
are made for furnishing water for irrigation purposes, the 
costs of any irrigation water distribution works constructed by 
the United States in connection with the new project, new 
division of a project, or supplemental works on a project, 
shall be covered by a repayment contract entered into pursuant 
to said subsection (d).
  (f) No less than sixty days before entering into or amending 
any repayment contract or any contract for the delivery of 
irrigation water (except any contract for the delivery of 
surplus or interim irrigation water whose duration is for one 
year or less) the Secretary shall--
          (1) publish notice of the proposed contract or 
        amendment in newspapers of general circulation in the 
        affected area and shall make reasonable efforts to 
        otherwise notify interested parties which may be 
        affected by such contract or amendment, together with 
        information indicating to whom comments or inquiries 
        concerning the proposed actions can be addressed; and
          (2) provide an opportunity for submission of written 
        data, views and arguments, and shall consider all 
        substantive comments so received.

           *       *       *       *       *       *       *


        Supplemental, Minority, Additional, or Dissenting Views

    None.

                                  [all]