[House Report 118-709]
[From the U.S. Government Publishing Office]


118th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 2d Session }                                                { 118-709

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



 
                COLORADO RIVER SALINITY CONTROL FIX ACT

                                _______
                                

October 22, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 7872]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 7872) to amend the Colorado River Basin Salinity 
Control Act to modify certain requirements applicable to 
salinity control units, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                       Purpose of the Legislation

    The purpose of H.R. 7872 is to amend the Colorado River 
Basin Salinity Control Act to modify certain requirements 
applicable to salinity control units, and for other purposes.

                  Background and Need for Legislation

    Congress enacted the Colorado River Basin Salinity Control 
Act (Salinity Control Act, P.L. 93-320) in June of 1974. The 
Salinity Control Act authorized salinity control projects in 
Colorado, Wyoming, Utah, and Nevada and planning studies in 
Arizona, California, New Mexico, and Wyoming. High salinity 
levels in water can reduce crop yields, and at higher 
concentrations over long periods, can kill trees and make the 
land unsuitable for agricultural purposes. The Bureau of 
Reclamation's Basin States Program and the U.S. Department of 
Agriculture's Natural Resources Conservation Service's (NRCS) 
Environmental Quality Incentives Program (EQIP) provide cost-
share assistance to landowners who install salinity control 
measures.
    The Colorado River Basin Salinity Control Program (Program) 
is funded through appropriations and power revenues. Generally, 
the Program receives 70 percent of its funds from 
appropriations (also referred to as the ``nonreimbursable 
portion'') and power revenues (the ``reimbursable portion''). 
The Salinity Control Act dictates that 15 percent of the 
reimbursable money is funded by the Upper Colorado River Basin 
Fund (Upper Basin Fund) and that the remaining 85 percent of 
reimbursable funds are from the Lower Colorado River Basin Fund 
(Lower Basin Fund).
    Unlike the Upper Basin Fund, where rates can be adjusted to 
cover allocated costs, salinity dollars to the Lower Basin Fund 
are fixed by the Hoover Power Plant Act (P.L. 98-381) at $2.50 
per MWh regardless of Program needs. This has created an 
imbalance of up-front, reimbursable funding between the lower 
basin (Arizona, California, and Nevada) and upper basin states 
(Colorado, New Mexico, Utah, and Wyoming), particularly as the 
lower basin has struggled with reduced levels of hydropower 
production.
    H.R. 7872 represents the work of the seven Colorado River 
basin states to address this imbalance by keeping funding 
arrangements in place but adjusting the percentages of 
reimbursable and nonreimbursable funds. First, the legislation 
reduces the reimbursable portion of operations and maintenance 
at three Bureau of Reclamation projects, freeing up $1.2 
million in the Lower Basin Fund. Additionally, the legislation 
reduces the EQIP reimbursable portion from 30 percent to 15 
percent. This change would save the Lower Basin Fund an 
additional $3.1 million. This legislation will ensure that the 
costs associated with salinity control units are shared equally 
across the Upper and Lower Colorado River Basins.
    H.R. 7872 has five Republican cosponsors and four Democrat 
cosponsors.

                            Committee Action

    H.R. 7872 was introduced on April 5, 2024, by Rep. John 
Curtis (R-UT). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water, Wildlife and Fisheries. On March 22, 2024, the 
Subcommittee on Water, Wildlife and Fisheries held a hearing on 
the bill. On June 12, 2024, the Committee on Natural Resources 
met to consider the bill. The Subcommittee on Water, Wildlife 
and Fisheries was discharged from further consideration of H.R. 
7872 by unanimous consent. The bill was ordered favorably 
reported to the House of Representatives by unanimous consent.

                                Hearings

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Water, Wildlife and Fisheries 
held on March 22, 2024.

                      Section-by-Section Analysis

Section 1. Short title

    Establishes the short title of this bill as the ``Colorado 
River Salinity Control Fix Act.''

Section 2. Salinity control units

    Amends Section 205 of the Colorado River Salinity Control 
Act (43 U.S.C. 1595).
    Adjusts the cost share aspects of the Colorado River 
salinity control units. The principal funding agreement remains 
in place, but percentages of reimbursable funds and non-
reimbursable funds are adjusted. The reimbursable percentage of 
operations is reduced at three Bureau of Reclamation projects 
and the reimbursable portion of EQIP is reduced from 30 percent 
to 15 percent.

            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. 
Pursuant to clause 3(c)(2) of House rule XIII and section 
308(a) of the Congressional Budget Act of 1974, and pursuant to 
clause 3(c)(3) of House rule XIII and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received from the Director of the Congressional Budget 
Office a budgetary analysis and a cost estimate of this bill.
    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 amend the Colorado River Basin 
Salinity Control Act to modify certain requirements applicable 
to salinity control units, and for other purposes.

                           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

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee, if such 
estimate is not publicly available on the Congressional Budget 
Office website.

                           Existing Programs

    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.

                  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):

         SECTION 205 OF THE COLORADO RIVER BASIN SALINITY 
                            CONTROL ACT

  [Sec. 205. (a) The Secretary]

SEC. SALINITY CONTROL UNITS; AUTHORITY AND FUNCTIONS OF THE 
           SECRETARY OF THE INTERIOR.

  (a) Allocation of Costs.--The Secretary shall allocate the 
total costs (excluding costs borne by non-federal participants) 
of the on-farm measures authorized by section 202(c), of all 
measures to replace incidental fish and wildlife values 
foregone, and of each unit or separable feature thereof 
authorized by section 202(a) of this title, as follows:
  [(1) In recognition of Federal responsibility for the 
Colorado River as an interstate stream and for international 
comity with Mexico, Federal ownership of the lands of the 
Colorado River Basin from which most of the dissolved salts 
originate, and the policy embodied in the Federal Water 
Pollution Control Act Amendments of 1972 (86 Stat. 816), 75 per 
centum of the total costs of construction, operation, 
maintenance, and replacement of each unit or separable feature 
thereof authorized by section 202(a)(1), (2), and (3), 
including 75 per centum of the total costs of construction, 
operation, and maintenance of the associated measures to 
replace incidental fish and wildlife values foregone, 70 per 
centum of the total costs of construction, operation, 
maintenance, and replacement of each unit, or separable feature 
thereof authorized by paragraphs (4) through (6) of section 
202(a), including 70 per centum of the total costs of 
construction, operation, and maintenance of the associated 
measures to replace incidental fish and wildlife values 
foregone, and 70 per centum of the total costs of 
implementation of the on-farm measures authorized by section 
202(c), including 70 per centum of the total costs of the 
associated measures to replace incidental fish and wildlife 
values foregone, shall be nonreimbursable. The total costs 
remaining after these allocations shall be reimbursable as 
provided for in paragraphs (2), (3), (4), and (5), of section 
205(a)]
          (1) Nonreimbursable costs; reimbursable costs.--
                  (A) Nonreimbursable costs.--
                          (i) In general.--In recognition of 
                        Federal responsibility for the Colorado 
                        River as an interstate stream and for 
                        international comity with Mexico, 
                        Federal ownership of the land of the 
                        Colorado River Basin from which most of 
                        the dissolved salts originate, and the 
                        policy established in the Federal Water 
                        Pollution Control Act (33 U.S.C. 1251 
                        et seq.) and except as provided in 
                        clause (ii), the following shall be 
                        nonreimbursable:
                                  (I) 75 percent of the total 
                                costs of construction and 
                                replacement of each unit or 
                                separable feature of a unit 
                                authorized by section 
                                202(a)(1), including 90 percent 
                                of--
                                          (aa) the costs of 
                                        operation and 
                                        maintenance of each 
                                        unit or separable 
                                        feature of a unit 
                                        authorized by that 
                                        section; and
                                          (bb) the total costs 
                                        of construction, 
                                        operation, and 
                                        maintenance of the 
                                        associated measures to 
                                        replace incidental fish 
                                        and wildlife values 
                                        foregone.
                                  (II) 75 percent of the total 
                                costs of construction and 
                                replacement of each unit or 
                                separable feature of a unit 
                                authorized by section 
                                202(a)(2), including 100 
                                percent of--
                                          (aa) the costs of 
                                        operation and 
                                        maintenance of each 
                                        unit or separable 
                                        feature of a unit 
                                        authorized by that 
                                        section; and
                                          (bb) the total costs 
                                        of construction, 
                                        operation, and 
                                        maintenance of the 
                                        associated measures to 
                                        replace incidental fish 
                                        and wildlife values 
                                        foregone.
                                  (III) 75 percent of the total 
                                costs of construction, 
                                operation, maintenance, and 
                                replacement of each unit or 
                                separable feature of a unit 
                                authorized by section 
                                202(a)(3), including 75 percent 
                                of the total costs of 
                                construction, operation, and 
                                maintenance of the associated 
                                measures to replace incidental 
                                fish and wildlife values 
                                foregone.
                                  (IV) 70 percent of the total 
                                costs of construction, 
                                operation, maintenance, and 
                                replacement of each unit or 
                                separable feature of a unit 
                                authorized by paragraphs (4) 
                                and (6) of section 202(a), 
                                including 70 percent of the 
                                total costs of construction, 
                                operation, and maintenance of 
                                the associated measures to 
                                replace incidental fish and 
                                wildlife values foregone.
                                  (V) 70 percent of the total 
                                costs of construction and 
                                replacement of each unit or 
                                separable feature of a unit 
                                authorized by section 
                                202(a)(5), including 100 
                                percent of--
                                          (aa) the costs of 
                                        operation and 
                                        maintenance of each 
                                        unit or separable 
                                        feature of a unit 
                                        authorized by that 
                                        section; and
                                          (bb) the total costs 
                                        of construction, 
                                        operation, and 
                                        maintenance of the 
                                        associated measures to 
                                        replace incidental fish 
                                        and wildlife values 
                                        foregone.
                                  (VI) 85 percent of the total 
                                costs of implementation of the 
                                on-farm measures authorized by 
                                section 202(c), including 85 
                                percent of the total costs of 
                                the associated measures to 
                                replace incidental fish and 
                                wildlife values foregone.
                          (ii) Special rule for nonreimbursable 
                        costs for fiscal years 2024 and 2025.--
                        Notwithstanding clause (i), for each of 
                        fiscal years 2024 and 2025, the 
                        following shall be nonreimbursable:
                                  (I) 75 percent of all costs 
                                described in clause (i)(I).
                                  (II) 75 percent of all costs 
                                described in clause (i)(II).
                                  (III) 70 percent of all costs 
                                described in clause (i)(V).
                                  (IV) The percentages of all 
                                costs described in subclauses 
                                (III), (IV), and (VI) of clause 
                                (i).
                  (B) Reimbursable costs.--The total costs 
                remaining after the allocations under clauses 
                (i) and (ii) of subparagraph (A) shall be 
                reimbursable as provided for in paragraphs (2), 
                (3), (4), and (5).
  (2) The reimbursable portion of the total costs shall be 
allocated between the Upper Colorado River Basin Fund 
established by section 5(a) of the Colorado River Storage 
Project Act (70 Stat. 107) and the Lower Colorado River Basin 
Development Fund established by section 403(a) of the Colorado 
River Basin Project Act (82 Stat. 895), after consultation with 
the Advisory Council created in section 204 (a) of this title 
and consideration of the following items:
          (i) benefits to be derived in each basin from the use 
        of water of improved quality and the use of works for 
        improved water management;
          (ii) causes of salinity; and
          (iii) availability of revenues in the Lower Colorado 
        River Basin Development Fund and increased revenues to 
        the Upper Colorado River Basin Fund made available 
        under section 205(d) of this title: Provided, That 
        costs allocated to the Upper Colorado River Basin Fund 
        under section 205(a)(2) of this title shall not exceed 
        15 per centum of the costs allocated to the Upper 
        Colorado and the Lower Colorado River Basin Development 
        Fund.
  (3) Costs of construction and replacement of each unit or 
separable feature thereof authorized by sections 202(a)(1), 
(2), and (3) and costs of construction of measures to replace 
incidental fish and wildlife values foregone, when such 
measures are a part of the units authorized by sections 
202(a)(1), (2), and (3), allocated to the upper basin and to 
the lower basin under section 205(a)(2) of this title shall be 
repaid within a fifty-year period or within a period equal to 
the estimated life of the unit, separable feature thereof, or 
replacement, whichever is less, without interest from the date 
such unit, separable feature, or replacement is determined by 
the Secretary to be in operation.
  (4)(i) Costs of construction and replacement of each unit or 
separable feature thereof authorized by paragraphs (4) through 
(6) of section 202, costs of construction of measures to 
replace incidental fish and wildlife values foregone, when such 
measures are a part of the on-farm measures authorized by 
section 202(c) or of the unit authorized by paragraphs (4) 
through (6) of section 202, and costs of implementation of the 
on-farm measures authorized by section 202(c) allocated to the 
upper basin and to the lower basin under section 205(a)(2) of 
this title shall be repaid as provided in subparagraphs (ii) 
and (iii), respectively, of this paragraph.
  (ii) Costs allocated to the upper basin shall be repaid with 
interest within a fifty-year period, or within a period equal 
to the estimated life of the unit, separable feature thereof, 
replacement, or on-farm measure, whichever is less, from the 
date such unit, separable feature thereof, replacement, or on-
farm measure is determined by the Secretary or the Secretary of 
Agriculture to be in operation.
  (iii) Costs allocated to the lower basin shall be repaid 
without interest as such costs are incurred to the extent that 
money is available from the Lower Colorado River Basin 
development fund to repay costs allocated to the lower basin. 
If in any fiscal year the money available from the Lower 
Colorado River Basin development fund for such repayment is 
insufficient to repay the costs allocated to the lower basin, 
as provided in the preceding sentence, the deficiency shall be 
repaid with interest as soon as money becomes available in the 
fund for repayment of those costs.
  (iv) The interest rates used pursuant to this Act shall be 
determined by the Secretary of the Treasury, taking into 
consideration average market yields on outstanding marketable 
obligations of the United States with remaining periods to 
maturity comparable to the reimbursement period during the 
month preceding the date of enactment of the Act entitled ``An 
Act to amend the Colorado River Basin Salinity Control Act to 
authorize certain additional measures to assure accomplishment 
of the objectives of title I1 of such Act, and for other 
purposes'' for costs outstanding at that date, or, in the case 
of costs incurred subsequent to enactment of such Act, during 
the month preceding the fiscal year in which the costs are 
incurred.
  (5) Costs of operation and maintenance of each unit or 
separable feature thereof authorized by section 202(a) and of 
measures to replace incidental fish and wildlife values 
foregone allocated to the upper basin and to the lower basin 
under section 205(a)(2) of this title shall be repaid without 
interest in the fiscal year next succeeding the fiscal year in 
which such costs are incurred. In the event that revenues are 
not available to repay the portion of operation and maintenance 
costs allocated to the Upper Colorado River Basin fund and to 
the Lower Colorado River Basin development fund in the year 
next succeeding the fiscal year in which such costs are 
incurred, the deficiency shall be repayed with interest 
calculated in the same manner as provided in section 
205(a)(4)(iv). Any reimbursement due non-Federal entities 
pursuant to section 202(b)(2) shall be repaid without interest 
in the fiscal year next succeeding the fiscal year in which 
such operation and maintenance costs are incurred.
  [(b)(1) Costs of construction]
  (b) Costs Payable From Lower Colorado River Basin Development 
Fund.--
          (1) In general.--Costs of construction, operation, 
        maintenance, and replacement of each unit or separable 
        feature thereof authorized by section 202(a), costs of 
        construction, operation, and maintenance of measures to 
        replace incidental fish and wildlife values foregone, 
        and costs of implementation of the on-farm measures 
        authorized by section 202(c) allocated for repayment by 
        the lower basin under section 205(a)(2) of this title 
        shall be paid in accordance with subsection 205(b)(2) 
        of this title, from the Lower Colorado River Basin 
        Development Fund.
  (2) [Omitted--Amends other Act]
  [(c) Costs of construction]
  (c) Costs Payable From Upper Colorado River Basin Fund.--
Costs of construction, operation, maintenance, and replacement 
of each unit or separable feature thereof authorized by section 
202(a), costs of construction, operation, and maintenance of 
measures to replace incidental fish and wildlife values 
foregone, and costs of implementation of the on-farm measures 
authorized by section 202(c) allocated for repayment by the 
upper basin under section 205 (a) (2) of this title shall be 
paid in accordance with section 205(d) of this title from the 
Upper Colorado River Basin Fund within the limit of the funds 
made available under section 205(e) of this title.
  (d) [Omitted--Amends other Act]
  [(e) The Secretary is ]
  (e) Upward Adjustment of Rates for Electrical Energy.--The 
Secretary is authorized to make upward adjustments in rates 
charged for electrical energy under all contracts administered 
by the Secretary under the Colorado River Storage Project Act 
(70 Stat. 105, 43 U.S.C. 620) as soon as practicable and to the 
extent necessary to cover the costs allocated to the Upper 
Colorado River Basin Fund under section 205(a)(2) and in 
conformity with section 205(a)(3), section 205(a)(4) and 
section 205(a)(5) of this title: Prozyided, That revenues 
derived from said rate adjustments shall be available solely 
for the construction, operation, maintenance, and replacement 
of salinity control units, for the construction, operation, and 
maintenance of measures to replace incidental fish and wildlife 
values foregone, and for the implementation of on-farm measures 
in the Colorado River Basin herein authorized.
  (f) Up-Front Cost Share.--
          (1) In general.--Effective beginning on the date of 
        enactment of this paragraph, subject to paragraph (3), 
        the cost share obligations required by this section 
        shall be met through an up-front cost share from the 
        Basin Funds, in the same proportions as the cost 
        allocations required under subsection (a), as provided 
        in paragraph (2).
          (2) Basin states program.--The Secretary shall expend 
        the required cost share funds described in paragraph 
        (1) through the Basin States Program for salinity 
        control activities established under section 202(a)(7).
          (3) Existing salinity control activities.--The cost 
        share contribution required by this section shall 
        continue to be met through repayment in a manner 
        consistent with this section for all salinity control 
        activities for which repayment was commenced prior to 
        the date of enactment of this paragraph.

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