[Senate Report 118-68]
[From the U.S. Government Publishing Office]


                                                   Calendar No. 142

118th Congress}                                            { Report
                                 SENATE
 1st Session  }                                            { 118-68

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               SMALL WATER STORAGE AND CAREY ACT PROJECTS

                                _______
                                

                 July 19, 2023.--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. 843]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 843), to amend the Infrastructure 
Investment and Jobs Act to authorize the use of funds for 
certain additional Carey Act projects, and for other purposes, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                Purpose

    The purpose of S. 843 is to amend the Infrastructure 
Investment and Jobs Act 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 IIJA 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. 843, 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. 843 was introduced by Senator Risch on March 16, 2023. 
At its business meeting on May 17, 2023, the Committee on 
Energy and Natural Resources ordered S. 843 favorably reported 
without amendment.
    Similar legislation, S. 4176, was introduced in the 117th 
Congress 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 ordered S. 
4176 reported favorably with amendment (Senate Report 117-188). 
Section 1(b) of S. 4176, relating to the minimum project size 
eligibility requirement and amending section 40903(b)(1)(B)(i) 
of the Infrastructure Investment and Jobs Act, was enacted into 
law as section 105 of division CC of the Consolidated 
Appropriations Act, 2023, Public Law 117-328 on December 29, 
2022.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in an 
open business session on May 17, 2023, by a voice vote of a 
quorum present, recommends that the Senate pass S. 843.

                      Section-by-Section Analysis


Section 1. Eligibility Under the Infrastructure Investment and Jobs Act 
        of Additional Carey Act Projects for Certain Funds.

    Section 1 amends section 40904(b) of 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. 
This section 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. 
843, 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. 843. 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. 843, as ordered reported.

                   Congressionally Directed Spending

    S. 843, 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, similar 
legislation that was filed during the 117th Congress, in the 
117th Congress 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

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SEC. 40904. CRITICAL MAINTENANCE AND REPAIR.

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    (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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