[Senate Report 118-165]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 356

118th Congress}                                           { Report
                                 SENATE
   2d Session }                                           { 118-165

======================================================================
 
                 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]