[Senate Report 107-268]
[From the U.S. Government Publishing Office]
Calendar No. 585
107th Congress Report
SENATE
2d Session 107-268
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MNI WICONI RURAL WATER SUPPLY PROJECT
_______
September 11, 2002.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1999]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1999) to reauthorize the Mni Wiconi Rural
Water Supply Project, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill, as amended, do pass.
The amendment is as follows:
On page 2, line 4, delete ``2007'' and insert ``2008''.
Purpose of the Measure
The purpose of S. 1999 is to amend the Mni Wiconi Project
Act of 1988, as amended, to reauthorize the Mni Wiconi Water
Supply Project in South Dakota. The bill, as ordered reported
increases the project ceiling by $58.8 million (1997 price
levels) and extends the current sunset date for the
authorization from 2003 to 2008.
Background and Need
The Mni Wiconi Project Act of 1988 (Pub. L. No. 100-516)
directed the Secretary of the Interior to construct the Mni
Wiconi Rural Water Supply Project. The Project is to provide a
municipal, rural, and industrial water supply to both Indian
and non-Indian residents of South Dakota. As originally
authorized, the Project included the Oglala Sioux Rural Water
Supply System, the West River Rural Water System, and the
Lyman-Jones Rural Water System. In 1994, the West River and the
Lyman-Jones Systems were merged into one system, known as the
West River/Lyman-Jones Rural Water System.
The Mni Wiconi Act Amendments of 1994 (Pub. L. No. 103-434,
Title 8) added the Rosebud Sioux and the Lower Brule Sioux
Rural Water Systems, raised the authorized appropriation
ceiling for the Project from $87.5 to $263.2 million, subject
to cost indexing, and provided that the systems would generally
be constructed in accordance with Project's Final Engineering
Report, dated May 1993.
The Mni Wiconi Project includes a water treatment plant,
4,500 miles of pipeline, 60 booster pump stations, and 35 water
storage reservoirs. The Project will serve an estimated 52,000
people, including more than 40,000 people on the three Indian
reservations. Project beneficiaries, especially those on the
Indian reservations, have among the lowest income levels in the
Nation.
The Project was to be completed within 10 years. In 1994,
the Mni Wiconi Project Act of 1988 was amended, and
appropriations were authorized through 2003. However, annual
appropriations have been insufficient to complete construction
within this time frame. This legislation is needed to extend
the authorization for appropriations to complete the Project.
It also increases the authorized ceiling to cover expenses that
were not identified until after the Final Engineering Report
was released.
Legislative History
S. 1999 was introduced by Senators Johnson and Daschle on
March 7, 2002. The Subcommittee on Water and Power held a
hearing on S. 1999 on June 6, 2002. At the business meeting on
July 31, 2002, the Committee on Energy and Natural Resources
ordered S. 1999, as amended, favorably reported.
Committee Recommendation
The Committee on Energy and Natural Resources, in open
business session on July 31, 2002, by a voice vote of a quorum
present, recommends that the Senate pass S. 1999, if amended,
as described herein.
Committee Amendments
During the consideration of S. 1999, the Committee adopted
an amendment that conforms the language of the bill to the
current construction schedule for the Mni Wiconi Rural Water
Supply Project by deleting ``2007'' and inserting ``2008''.
Section-by-Section Analysis
Section 1 amends the legislation to index the current
authorization at 1992 price levels and provide an additional
$58.8 million based on 1997 price levels. The section also
extends the authorization until 2008.
Cost and Budget Considerations
The following estimate of the cost of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 9, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1999, a bill to
reauthorize the Mni Wiconi Rural Water Supply Project.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
S. 1999--A bill to reauthorize the Mni Wiconi Rural Water Supply
Project
Summary: S. 1999 would reauthorize the Mni Wiconi Rural
Water Supply Project by increasing the amounts authorized to be
appropriated for this project by $58.8 million (in 1997 dollar)
and extending the completion date for the project from 2003 to
2008.
Assuming appropriation of the authorized amounts, CBO
estimates that implementing S. 1999 would cost about $55
million over the 2003-2007 period. S. 1999 would not affect
direct spending or receipts; therefore, pay-as-you-go
procedures would not apply. S. 1999 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1999 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
--------------------------------------------
2003 2004 2005 2006 2007
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................................... 13 14 14 14 14
Estimated Oulays................................................... 4 9 14 14 14
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Basis of Estimate: For this estimate, CBO assumes that S.
1999 will be enacted by the start of fiscal year 2003 and that
the necessary funds will be appropriated for each year. CBO
estimates that the bill would authorize the appropriation of
about $69 million (including adjustments for anticipated
inflation) to complete the construction of the Mni Wiconi Rural
Water Supply Project in addition to the original authorization
level of $263 million. Of this original authorization level,
approximately $184 million has been spent on project
construction costs.
Based on information from the Bureau of Reclamation, we
expect that construction of the rural water supply project
would take five more years and that funds will be appropriated
in roughly equal installments over that period to complete
construction. CBO estimates that implementing S. 1999 would
cost $55 million over the 2003-2007 period and an additional
$14 million after that period.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 1999
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimate: On August 5, 2002, CBO prepared a
cost estimate for H.R. 4638, a bill to reauthorize the Mni
Wiconi Rural Water Supply Project, as ordered reported by the
House Committee on Resources on June 26, 2002. The two bills
are identical, as are our cost estimates.
Estimate prepared by: Federal Costs: Julie Middleton;
Impact on State, Local, and Tribal Governments: Marjorie
Miller; and Impact on the Private Sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
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. 1999. 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. 1999.
Executive Communications
The pertinent legislative report received by the Committee
from the Department of the Interior setting forth Executive
agency recommendation relating to S. 1999 are set forth below:
U.S. Department of the Interior,
Office of the Secretary,
Washington, DC, August 8, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: This letter responds to your request for
the views of the Department of the Interior on S. 1999,
concerning authorization of the Mni Wiconi Rural Water Supply
Project. This confirms the testimony of Mark A. Limbaugh,
Director, External & Intergovernmental Affairs, Bureau of
Reclamation, before the Committee on June 6, 2002.
The Mni Wiconi Rural Water Supply Project serves the Pine
Ridge, Rosebud, and Lower Brule Indian Reservations and seven
counties in southwestern South Dakota. S. 1999 would increase
the authorization ceiling for the Project and extend by five
(5) years the time period for which appropriations are
authorized. Since the Project cannot be completed unless these
changes are made, the Department supports enactment of S. 1999.
The Mni Wiconi Rural Water Supply Project was authorized in
1988 (P.L. 100-516) and included the Oglala Sioux Rural Water
System, the Oglala Sioux Core System, the West River Rural
Water System, and the Lyman-Jones Rural Water System. The Mni
Wiconi Project was expanded in 1994 (P.L. 103-434, Title VIII)
to include the Rosebud Sioux and Lower Brule Sioux Rural Water
Systems.
The authorizations intended construction to be completed
within 10 years, and appropriations were authorized through
2003. However, annual appropriations have been insufficient to
complete construction on the Project within the time-frame
originally planned in the Final Engineering Report.
S. 1999 extends to the year 2008 the authorization for
appropriations to complete the project. The bill also increases
the authorized ceiling by $58.8 million to cover expenses that
were not identified until after the sponsors (the Oglala,
Rosebud and Lower Brule Sioux Tribes and West River/Lyman-Jones
Rural Water Systems) released their Final Engineering Report,
plus estimated administrative costs related to the extension
from 2003 to 2008.
The Administration is firmly committed to completing the
Mni Wiconi Rural Water Supply Project. If S. 1999 is not
enacted, the authority for appropriations will expire in 2003.
Project construction would be shut down and the full benefits
of the Project would not be realized. Only a portion of the
Project population would be served water. If the expiration
date is extended without a corresponding increase in the cost
ceiling, the project would have to be redesigned to determine
which features could be constructed within the available
ceiling. This unfortunate prospect may be averted if S. 1999 is
enacted, and we reiterate the Department's support for the
bill.
The Office of Management and Budget advises that there is
no objection to the presentation of this report from the
standpoint of the Administration's program.
Sincerely,
John W. Keys III,
Commissioner, Bureau of Reclamation.
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. 1999, 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).
THE MNI WICONI PROJECT ACT OF 1988
(Pub. Law No. 100-516, as amended by Pub. Law No. 103-434)
AN ACT To authorize construction of the Mni Wiconi Rural Water Supply
Project, and for other purposes
* * * * * * *
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
(a) Planning, Design, and Construction.--There are
authorized to be appropriated $263,241,000 (based on October 1,
1992, price levels) and $58,800,000 (based on October 1, 1997,
price levels) for the planning, design, and construction of the
Oglala Sioux Rural Water Supply System, the Rosebud Sioux Rural
Water Supply System, the Lower Brule Sioux Rural Water Supply
System, the West River Rural Water Supply System, and the
Lyman-Jones Rural Water Supply System described in section 3,
3A, 3B, and 4. Such funds are authorized to be appropriated
only through the end of the year [2003] 2008. The funds
authorized to be appropriated by the first sentence of this
section, less any amounts previously obligated for the Systems,
may be increased or decreased by such amounts as may be
justified by reason of ordinary fluctuations in development
costs incurred after October 1, 1992 (with respect to the
$263,241,000), and October 1, 1997 (with respect to the
$58,800,000), as indicated by engineering costs indices
applicable for the type of construction involved.
* * * * * * *