[Senate Report 117-188]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 539
117th Congress     }                             {          Report
                                 SENATE
 2d Session        }                             {          117-188

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               SMALL WATER STORAGE AND CAREY ACT PROJECTS

                                _______
                                

                October 18, 2022.--Ordered to be printed

 Filed, under authority of the order of the Senate of October 14, 2022

                                _______
                                

   Mr. Manchin, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 4176]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 4176), to amend the Infrastructure 
Investment and Jobs Act to modify the eligibility requirements 
for certain small water storage and groundwater storage 
projects and to authorize the use of funds for certain 
additional Carey Act projects, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.

                               Amendment

    The amendment is as follows:
    1. On page 2, line 11, strike ``2'' and insert ``200''.

                                Purpose

    The purpose of S. 4176 is to amend the Infrastructure 
Investment and Jobs Act to modify the eligibility requirements 
for certain small water storage and groundwater storage 
projects and to authorize the use of funds for certain 
additional Carey Act projects.

                          Background and Need

    Investments in water infrastructure are needed to address 
the growing challenges across the West. Congress addressed this 
need by investing $8.3 billion in the Bureau of Reclamation and 
western water infrastructure, as passed in the Infrastructure 
Investment and Jobs Act (IIJA; Public Law 117-58). The IIJA 
created several new grant programs and funding opportunities to 
address the diverse water infrastructure needs in the West.
    The small water storage and groundwater storage program, 
created in the IIJA, funds small storage projects with a 
required minimum project size of 2,000 acre-feet. This minimum 
project size limits the types of projects that are eligible for 
funding and excludes many small regulating reservoirs on canal 
systems in the western United States. Regulating reservoirs 
constructed on canal systems are typically smaller than 2,000 
acre-feet and can provide flexibility and efficiencies in the 
operations of conveying water for irrigation. For example, 
regulating reservoirs can capture and release excess water 
flows in a canal to meet actual water demand and thus reduce 
diversions from river flows or storage during irrigation 
season. S. 4176, as ordered reported, changes the minimum 
project size for small water storage and groundwater storage 
projects from 2,000 acre-feet to 200 acre-feet to accommodate 
water storage projects with a smaller footprint.
    The IIJA also made a significant investment in the Bureau 
of Reclamation's aging infrastructure and included a $100 
million set-aside (IIJA section 40904(b)) to provide funding 
for the rehabilitation, reconstruction, and replacement of dams 
developed pursuant to the Carey Act (43 U.S.C. 641). S. 4176, 
as ordered reported, clarifies eligibility to make funds 
available to additional Carey Act projects after funding is 
provided to projects eligible under the original IIJA language.

                          Legislative History

    S. 4176 was introduced by Senator Risch on May 10, 2022. 
The Subcommittee on Water and Power held a hearing on S. 4176 
on May 25, 2022. At its business meeting on July 21, 2022, the 
Committee on Energy and Natural Resources ordered S. 4176 
favorably reported with amendment.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 21, 2022, by a voice vote of a 
quorum present, recommends that the Senate pass S. 4176, if 
amended as described herein.

                          Committee Amendment

    During its consideration of S. 4176, the Committee adopted 
an amendment changing the minimum size of a project from 2 
acre-feet to 200 acre-feet.

                      Section-by-Section Analysis


Section 1. Eligibility under the Infrastructure Investment and Jobs Act 
        of small water storage and groundwater storage projects for 
        certain grants and additional Carey Act projects for certain 
        funds

    Subsection (a) amends the eligibility requirements of 
projects funded under Bureau of Reclamation's small water 
storage and groundwater storage program from a minimum project 
size of 2,000 acre-feet to 200 acre-feet.
    Subsection (b) amends the Infrastructure Investments and 
Jobs Act of 2021 (Public Law 117-58) and expands the list of 
eligible projects for the rehabilitation and reconstruction of 
dams developed pursuant to the Carey Act. Subsection (b) 
stipulates that funds will be made available to these newly 
eligible projects after providing funds to projects eligible 
under the original program.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of S. 
4176, as ordered reported, 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. 4176. 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. 4176, as ordered reported.

                   Congressionally Directed Spending

    S. 4176, 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 May 25, 2022, subcommittee hearing on S. 4176 follows:

     Statement of Camille Calimlim Touton, Commissioner, Bureau of 
              Reclamation, U.S. Department of the Interior

    The Carey Act authorized land grants to states, on which 
states could have irrigation dams and other water management 
facilities constructed. The BIL's original section 40904(b) 
authorizes up to $100 million in funding for Carey Act dams 
meeting stated criteria, upon a Governor's request. The 
language of S. 4176 authorizes funding for additional Carey Act 
dams from this $100 million, provided the funds have not been 
exhausted by this initial request. Financial assistance 
agreements would be developed to provide the funding.
    Reclamation takes no issue with the amendment to section 
40904(b), as provided, since it alerts those who might request 
funding that requests under the original authority take 
priority and funding may therefore be unavailable.
    The amendments also include a provision lowering the 
threshold on the new Small Water Storage Program enacted last 
November in BIL from a 2,000 acre-foot minimum, to a two (2) 
acre-foot minimum. Reclamation's Small Storage Program is a 
newly established grant program authorized by sections 40901(1) 
and 40903 of BIL to promote federal assistance to enhance small 
scale water storage opportunities for future generations.
    The reduction in project minimums, from 2,000 acre-feet 
down to 2 acre-feet would significantly alter the types of 
applications submitted for this specifically tailored program. 
It would also be challenging to apply the feasibility standards 
set forth for that program, for which Reclamation issued 
guidance in January, to such small projects. In August 2022, 
Reclamation plans to publish the first funding opportunity for 
the Small Storage Program with the planned distribution of 
$20,000,000 in FY 2023.
    Reclamation has existing programs under its WaterSMART 
grant opportunities that address these much smaller types of 
storage activities and would continue to encourage entities 
with needs for projects of that scale to apply to those 
programs, most of which have a lower non-federal cost share 
than the Small Storage Program. The Department looks forward to 
working with the sponsor and committee to address specific 
needs associated with the proposed amendments.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 4176, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                           Public Law 117-58


  AN ACT To authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes

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DIVISION D--ENERGY

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TITLE IX--WESTERN WATER INFRASTRUCTURE

           *       *       *       *       *       *       *


SEC. 40903. SMALL WATER STORAGE AND GROUNDWATER STORAGE PROJECTS.

    (a) Establishment of a Competitive Grant Program for Small 
Water Storage and Groundwater Storage Projects.--The Secretary 
shall establish a competitive grant program, under which the 
non-Federal project sponsor of any project in a Reclamation 
State, including the State of Alaska or Hawaii, determined by 
the Secretary to be feasible under subsection (b)(2)(B) shall 
be eligible to apply for funding for the planning, design, and 
construction of the project.
    (b) Eligibility and Selection.--
          (1) Submission to the secretary.--
                  (A) In general.--A non-Federal project 
                sponsor described in subsection (a) may submit 
                to the Secretary a proposal for a project 
                eligible to receive a grant under this section 
                in the form of a completed feasibility study.
                  (B) Eligible projects.--A project shall be 
                considered eligible for consideration for a 
                grant under this section if the project--
                          (i) has water storage capacity of not 
                        less than [2,000] 200 acre-feet and not 
                        more than 30,000 acre-feet; and
                          (ii)(I) increases surface water or 
                        groundwater storage; or (II) conveys 
                        water, directly or indirectly, to or 
                        from surface water or groundwater 
                        storage.

           *       *       *       *       *       *       *


SEC. 40904. CRITICAL MAINTENANCE AND REPAIR.

           *       *       *       *       *       *       *


    (b) Carey Act Projects.--[The Secretary]
          (1) In general.--The Secretary shall use amounts made 
        available under section 40901(2)(B) to fund the 
        rehabilitation, reconstruction, or replacement of a 
        dam--
                  [(1)] (A) the construction of which began on 
                or after January 1, 1905;
                  [(2)] (B) that was developed pursuant to 
                section 4 of the Act of August 18, 1894 
                (commonly known as the ``Carey Act'') (43 
                U.S.C. 641; 28 Stat. 422, chapter 301);
                  [(3)] (C) that the Governor of the State in 
                which the dam is located has--
                          [(A)] (i) determined the dam has 
                        reached its useful life;
                          [(B)] (ii) determined the dam poses 
                        significant health and safety concerns; 
                        and
                          [(C)] (iii) requested Federal 
                        support; and
                  [(4)] (D) for which the estimated 
                rehabilitation, reconstruction, or replacement, 
                engineering, and permitting costs would exceed 
                $50,000,000.
          (2) Additional projects.--
                  (A) In general.--On making the affirmative 
                determinations described in subparagraph (B), 
                the Secretary shall use amounts made available 
                under section 40901(2)(B) to fund the 
                rehabilitation, reconstruction, or replacement 
                of any dams that were developed pursuant to, 
                and continue to operate as dams under, section 
                4 of the Act of August 18, 1894 (commonly known 
                as the ``Carey Act'') (43 U.S.C. 641; 28 Stat. 
                422, chapter 301).
                  (B) Determinations described.--The 
                determinations referred to in subparagraph (A) 
                are--
                          (i) a determination by the Secretary 
                        that any dams that meet the criteria 
                        described in paragraph (1) have 
                        received the necessary funding to 
                        complete rehabilita1tion, 
                        reconstruction, or replacement 
                        activities under this subsection; and
                          (ii) a determination by the Secretary 
                        that amounts made available under 
                        section 40901(2)(B) remain available.

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