[Senate Report 118-165]
[From the U.S. Government Publishing Office]
Calendar No. 356
118th Congress} { Report
SENATE
2d Session } { 118-165
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PILOT BUTTE POWER PLANT CONVEYANCE ACT
_______
April 9, 2024.--Ordered to be printed
_______
Mr. Manchin, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 1662]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1662) to direct the Secretary of the
Interior to convey to the Midvale Irrigation District the Pilot
Butte Power Plant in the State of Wyoming, 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 ``Pilot Butte Power Plant Conveyance
Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means the agreement
entered into under section 3(a).
(2) District.--The term ``District'' means the Midvale
Irrigation District located in Pavillion, Wyoming.
(3) Power plant.--The term ``Power Plant'' means the Pilot
Butte Power Plant and other appurtenant facilities in the State
of Wyoming authorized under the Act of March 2, 1917 (39 Stat.
969, chapter 146), transferred to the jurisdiction of the
Bureau of Reclamation under the Act of June 5, 1920 (41 Stat.
874, chapter 235), and incorporated into the Riverton Unit of
the Pick-Sloan Missouri Basin Program under Public Law 91-409
(84 Stat. 861), including the underlying land.
(4) Secretary.--The term ``Secretary'' means the Secretary of
the Interior, acting through the Commissioner of Reclamation.
SEC. 3. AGREEMENT, CONVEYANCE, AND REPORT.
(a) Agreement.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall enter into good
faith negotiations with the District to enter into an agreement
to determine the legal, institutional, and financial terms for
the conveyance of the Power Plant from the Secretary to the
District.
(2) Requirement.--Notwithstanding section 8002(3)(B) of the
John D. Dingell, Jr. Conservation, Management, and Recreation
Act (43 U.S.C. 2902(3)(B)), the Secretary shall negotiate the
agreement under paragraph (1) in accordance with the criteria,
terms, and conditions described in subtitle A of title VIII of
that Act (43 U.S.C. 2901 et seq.).
(b) Conveyance.--
(1) In general.--The Secretary shall offer to convey and
assign to the District all right, title, and interest of the
United States in and to the Power Plant--
(A) subject to valid leases, permits, rights-of-way,
easements, and other existing rights; and
(B) in accordance with--
(i) the terms and conditions described in the
Agreement; and
(ii) this Act.
(2) Status of land.--Effective on the date of the conveyance
of the Power Plant to the District under paragraph (1), the
Power Plant shall not be considered to be a part of a Federal
reclamation project.
(c) Report.--If the conveyance authorized under subsection (b)(1)
is not completed by the date that is 1 year after the date of enactment
of this Act, the Secretary shall submit to the Committee on Energy and
Natural Resources of the Senate and the Committee on Natural Resources
of the House of Representatives a report that describes--
(1) the status of the conveyance under that subsection;
(2) any obstacles to completing the conveyance under that
subsection; and
(3) an anticipated date for the completion of the conveyance
under that subsection.
SEC. 4. COMPLIANCE WITH OTHER LAWS.
Effective on the date of the conveyance of the Power Plant to the
District under section 3(b)(1), the District shall comply with all
applicable Federal, State, and local laws (including regulations) with
respect to the operation of the Power Plant.
PURPOSE
The purpose of S. 1662 is to direct the Secretary of the
Interior to convey to the Midvale Irrigation District the Pilot
Butte Power Plant in the State of Wyoming.
BACKGROUND AND NEED
The Pilot Butte Power Plant located in central Wyoming was
authorized in 1918 and is part of the Bureau of Reclamation's
Riverton Unit (Public Law 64-369). The Pilot Butte Power Plant
is located at the drop from the Wyoming Canal to Pilot Butte
Reservoir. The plant began generating power in 1925 and has two
generating units which operate under a maximum head of 105 feet
with a total capacity of 1,600 kilowatts. Power was distributed
over 76 miles of transmission lines. The power plant was
originally designed to provide power to the Reclamation
project. Midvale Irrigation District was formed in 1921 and
serves approximately 73,000 acres of irrigable lands with water
from the Wind River and storage from Bull Lake and Pilot Butte
Reservoirs. In 1951, Reclamation transferred the operation and
maintenance of portions of the Riverton Unit to the Midvale
Irrigation District but retained ownership and operation of the
Pilot Butte Power Plant.
In 1973, the Pilot Butte Power Plant was shut down in 1973
on account of high operation and maintenance costs and penstock
problems. The penstock was replaced and the units were placed
back in service in June 1990. The units continued to be in
service until 2008. Following an economic analysis, the Bureau
of Reclamation decided to shut down the power plant in 2008 due
to increasing operation and maintenance costs and needed plant
repairs. With the facility in mothball status, Reclamation has
plans to demolish the site. Instead, Midvale Irrigation
District has stated that they wish to take control of and
retrofit the facility. Proponents argue that legislation is
needed to transfer the Pilot Butte Power Plant from the Bureau
of Reclamation to the Midvale Irrigation District to retrofit
the facility.
LEGISLATIVE HISTORY
S. 1662 was introduced by Senators Barrasso and Lummis on
May 17, 2023. The Subcommittee on Water and Power held a
hearing on S. 1662 on July 19, 2023.
Companion legislation, H.R. 3415, was introduced in the
House of Representatives on the same day by Representative
Hageman. The Subcommittee on Water, Wildlife, and Fisheries of
the House Committee on Natural Resources held a hearing on H.R.
3415 on September 28, 2023. The House Committee on Natural
Resources favorably reported H.R. 3415 at its business meeting
on October 26, 2023.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on December 14, 2023, by a voice vote of
a quorum present, recommends that the Senate pass S. 1662, if
amended as described herein.
COMMITTEE AMENDMENT
During its consideration of S. 1662, the Committee adopted
an amendment in the nature of a substitute. The amendment
directs the Secretary of the Interior, acting through the
Commissioner of Reclamation, to enter into negotiations with
Midvale Irrigation District to determine the terms of the
conveyance of the Pilot Butte Power Plant from the Secretary to
the Irrigation District. It requires the Secretary to negotiate
the agreement in accordance with the criteria, terms and
conditions specified in the Bureau of Reclamation's title
transfer authority (subtitle A of title VII of Public Law 116-
9).
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 establishes the short title of the Act as the
``Pilot Butte Power Plant Conveyance Act.''
Section 2. Definitions
Section 2 provides definitions of the Act.
Section 3. Agreement, conveyance, and report
Subsection (a) directs the Secretary of the Interior,
acting through the Commissioner of Reclamation, to enter into
negotiations with Midvale Irrigation District to determine the
terms of the conveyance of the Pilot Butte Power Plant from the
Secretary to the Irrigation District. It requires the Secretary
to negotiate the agreement in accordance with the criteria,
terms and conditions specified in the Bureau of Reclamation's
title transfer authority (subtitle A of title VIII of Public
Law 116-9).
Subsection (b) directs the Secretary of the Interior to
offer and convey all right, title and interest of the Pilot
Butte Power Plant to Midvale Irrigation District.
Subsection (c) directs the Secretary of the Interior to
submit a report 1 year after the date of enactment to the
Senate Committee on Energy and Natural Resources and the House
Committee on Natural Resources on the status and anticipated
completion of the conveyance.
Section 4. Compliance with other laws
Section 4 requires the Secretary to comply with applicable
Federal and state environmental laws.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
S. 1662 would require the Bureau of Reclamation (BOR) to
negotiate an agreement within two years with the Midvale
Irrigation District located in Pavillion, Wyoming, to convey
the Pilot Butte Power Plant and related facilities to the
district.
Under current law, BOR holds title to the power plant and
related facilities, and ownership of the power plant cannot be
transferred unless authorized by the Congress. The plant has
not produced electricity since 2008 when BOR determined that
increasing operation and maintenance costs made electricity
generation at the plant economically infeasible. The district
has expressed interest in taking ownership and rehabilitating
and operating the power plant and related facilities to provide
power to the district's water users.
Using information from BOR, CBO estimates that total costs
to implement the bill would be less than $20,000 for staff to
coordinate surveys, complete reviews under the National
Environmental Policy Act, and transfer the title to the
district. Under the bill, the district and BOR would negotiate
the distribution of these costs. Spending by BOR for those
costs would be subject to the availability of appropriated
funds.
CBO estimates that enacting the bill would insignificantly
increase offsetting receipts, which are recorded as reductions
in direct spending, from amounts transferred to the government
to pay for the district's share of the cost of administrative
activities to complete the transfer. The spending of those
receipts would increase direct spending and any excess
contributions would be returned to the district. Thus, CBO
estimates that by the end of 2033 there would be no net effect
on direct spending under S. 1662.
On December 15, 2023, CBO transmitted a cost estimate for
H.R. 3415, the Pilot Butte Power Plant Conveyance Act, as
ordered reported by the House Committee on Natural Resources on
October 26, 2023. The two bills are similar, and CBO's
estimates of their budgetary effects are the same.
The CBO staff contact for this estimate is Alaina Rhee. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
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. 1662.
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. 1662, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 1662, 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 Bureau of Reclamation at the
Subcommittee on Water and Power on July 19, 2023, on S. 1662
follows:
Statement of Camille Calimlim Touton, Commissioner, U.S. Bureau of
Reclamation
s. 1662, pilot butte power plant conveyance act
The Bureau of Reclamation has constructed numerous dams,
canals, and hydropower plants that provide water and power
across the 17 western states. For most of these project
facilities, Reclamation has transferred all or part of the
responsibility for operation, maintenance, and replacement to a
project beneficiary. Title, or ownership, to Reclamation
facilities, however, remains with the United States Government
unless Congress passes legislation directing otherwise.
The transfer of title divests Reclamation of responsibility
for the operation, maintenance, replacement, management,
regulation of, and most of the liability for Federal interests
in lands and project facilities, while providing non-Federal
entities with greater autonomy and flexibility to manage the
facilities.
From 1995 through 2019, Reclamation conveyed title of
thirty projects or parts of projects across the West pursuant
to various acts of Congress. These title transfers generally
have provided mutual benefits to both Reclamation and the non-
federal entities involved. The title transfer process followed
a framework that Reclamation and its partners collaboratively
developed, but which required the passage of individual acts of
Congress.
In 2019 the John D. Dingell, Jr. Conservation, Management
and Recreation Act (P.L. 116-9) was signed into law. Title VIII
of this Act provides Reclamation with new authority to transfer
title to certain eligible facilities to qualifying entities
without separate and individual acts of Congress. Section
8001(3)(B) of P.L. 116-9 included provisions that excluded
title transfer authority for certain facilities, including for
any reserved works as of the date of enactment. The term
``reserved works'' means any building, structure, facility, or
equipment that is owned, operated, and maintained by
Reclamation.
The Pilot Butte Power Plant is a reserved work and is part
of Reclamation's Riverton Unit, as incorporated into the
Riverton Unit of the Pick-Sloan Missouri Basin Program by the
Act of September 25, 1970 (Public Law 91-409). The Powerplant
receives water through the Wyoming Canal and discharges water
directly to the Pilot Butte Reservoir. The Wyoming Canal and
Pilot Butte Reservoir are Reclamation facilities for which the
operation and maintenance has been transferred to the Midvale
Irrigation District (District) via contract with Reclamation.
The Powerplant started generating power in 1925. The
Powerplant was taken out of service in 1973 due to high
operation and maintenance (O&M) costs as well as a
deteriorating penstock. The penstock was replaced and the
Powerplant was put back into service in 1990. From 1990 through
2008, the Powerplant operated seasonally from mid-April through
late September. In 2007, Reclamation estimated the cost of
needed repairs to continue to operate the Powerplant to be
approximately $3.2 million. In 2008, the Powerplant was placed
in a mothballed status (removed from service) because it was no
longer economically viable to operate it. In 2016, the Wyoming
Water Development Office estimated these repairs to cost
between $4.4 and $8.3 million.
As a reserved works, the transfer to the Pilot Butte Power
Plant and related facilities is not eligible under the
authority granted to Reclamation and requires an act of
Congress. S. 1662 would provide Reclamation with the authority
to convey title of the Power Plant to the district, subject to
the necessary leases, permits, rights-of-way, easements, and
terms necessary to ensure: the title transfer would not result
in an adverse impact on existing water or power delivery
obligations, that it complies with all applicable federal and
state laws, and that conveyance of these facilities is in the
financial interest of the United States. As the facilities have
been removed from service, transfer of the facilities would
minimally reduce costs associated with ongoing operation and
maintenance and would potentially eliminate costs associated
with removal and demolition, as necessary.
Section 3 further directs Reclamation to enter into good
faith negotiations to enter into an agreement within two years
with the District to determine and outline a framework for the
terms of conveyance of the Power Plant. It requires a report to
Congress, if conveyance is not completed within a year of
enactment, outlining the status of the conveyance, any
obstacles to completion, and the anticipated date of
completion.
Section 6 directs Reclamation to provide an equal share
with the District for the administrative costs for the
conveyance of the Power Plant to the District. It should be
noted, under P.L. 116-9, administrative costs for conveyance
are fully the requester's expense.
The Department supports the conveyance of the Power Plant
to the District, as outlined in S. 1662, and if enacted and
subject to appropriations, Reclamation would work to negotiate
an agreement that ensures the transfer is mutually beneficial
to the United States and the District. The Department supports
S. 1662 and looks forward to working with the bill sponsor to
address any necessary technical edits.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill as ordered
reported.
[all]