[Senate Report 109-27]
[From the U.S. Government Publishing Office]
Calendar No. 40
109th Congress Report
SENATE
1st Session 109-27
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KENDRICK PROJECT, WYOMING
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March 10, 2005.--Ordered to be printed
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Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 99]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 99) to authorize the Secretary of the
Interior to contract with the City of Cheyenne, Wyoming, for
the storage of the city's water in the Kendrick Project,
Wyoming, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
PURPOSE OF THE MEASURE
The purpose of S. 99 is to authorize the Secretary of the
Interior to enter into one or more contracts with the City of
Cheyenne, Wyoming, for the storage of the city's water in the
Kendrick Project, Wyoming.
BACKGROUND AND NEED
The Kendrick Project (formerly Casper-Alcova), located in
Carbon and Natrona Counties in Central Wyoming, provides water
from the North Platte River for irrigation and electrical power
generation. Major features of the project include: the Seminoe
Dam, Reservoir, and Powerplant; and the Alcova Dam, Reservoir,
and Powerplant. The City of Cheyenne, Wyoming, through its
Board of Public Utilities, has developed a water supply system,
a component of which involves storage at Seminoe Reservoir.
In 1983, the Bureau of Reclamation and the City of Cheyenne
entered into an Interim Water Storage Contract which provided
the City with 10,000 acre-feet of storage space at Seminoe
Reservoir. This agreement allowed the City to store water for
use in the spring and summer months to compensate for water
that the City released during winter months to fulfill minimum
flow requirements for fish habitat. The original agreement was
for a term of fifteen years, with the option for a five-year
renewal. The agreement also provided that the City, like other
Kendrick Project users, would pay a reasonable sum for storage
rights. The original agreement and the five-year extension have
now expired. Since the original agreement, the Bureau has only
given the City one-year storage contracts. This legislation
clarifies the authority of the Bureau of Reclamation to enter
into long-term contracts with the City of Cheyenne for the
storage of the City's water for municipal and industrial use in
Seminoe Reservoir.
LEGISLATIVE HISTORY
S. 99 was introduced by Senator Enzi on January 24, 2005.
S. 99 is identical to S. 943 as passed by the Senate in the
108th Congress. S. 943 was introduced by Senator Enzi on April
29, 2003. The Water and Power Subcommittee held a hearing on S.
943 on October 15, 2003 (S. Hrg. 108-271). At the business
meeting on February 11, 2004, the Committee on Energy and
Natural Resources ordered S. 943 favorably reported with an
amendment in the nature of a substitute. S. 943 was passed by
the Senate, as amended, by unanimous consent on May 19, 2004.
At a business meeting on February 16, 2005, the Committee on
Energy and Natural Resources ordered S. 99 favorably reported.
COMMITTEE RECOMMENDATION
The Committee on Energy and Natural Resources, in an open
business session on February 16, 2005, by unanimous vote of a
quorum present, recommends that the Senate pass S. 99.
SECTION-BY-SECTION ANALYSIS
Section 1(a) defines key terms used in the Act.
Subsection (b)(1) allows the Secretary to enter into
contracts with the City of Cheyenne, Wyoming, for annual
storage of the City's water for municipal and industrial use in
Seminoe Dam and Reservoir.
Subsection (b)(2) limits the contract term to no more than
40 years and sets parameters for contract renewal.
Subsection (b)(2)(B) provides for the disposition of
revenues received under the contract. Specifically, operation
and maintenance charges received under a contract executed
under paragraph (1) are to be credited against applicable
operation and maintenance costs of the Kendrick Project. Any
other revenues received under such a contract shall be credited
to the Reclamation Fund as a credit to the construction costs
of the Kendrick Project.
Subsection (b)(2)(c) of the bill states that the contract
shall not adversely affect the Kendrick Project, any existing
Kendrick Project contractor, or any existing Reclamation
contractor on the North Platt River System.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
February 22, 2005.
Hon. Pete V. Domenici,
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. 99, a bill to
authorize the Secretary of the Interior to contract with the
city of Cheyenne, Wyoming, for the storage of the city's water
in the Kendrick Project, Wyoming.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton. This estimate was approved by Peter H. Fontaine,
Director for Budget Analysis.
Sincerely,
Douglas Holtz-Eakin.
Enclosure.
S. 99--A bill to authorize the Secretary of the Interior to contract
with the city of Cheyenne, Wyoming, for the storage of the
city's water in the Kendrick Project, Wyoming
S. 99 would authorize the Secretary of the Interior,
through the Bureau of Reclamation, to renew a water storage
contract with the city of Cheyenne, Wyoming, for the storage of
the city's municipal and industrial water. The term of this and
subsequent contracts would be limited to 50 years.
CBO estimates that implementing S. 99 would have no
significant impact on the federal budget. Currently, the bureau
provides water storage services under a temporary one-year
contract to the city of Cheyenne through the Kendrick Project
on the North Platte River. The temporary contract has the same
terms as the expired contract. Under the temporary contract,
the city makes an annual payment of $70,000 to the federal
government. Under S. 99, the city would negotiate a contract
with the federal government for water storage services. Under
that contract, the bureau expects that the city would make an
annual payment of about $53,000 to the federal government. CBO
estimates that enacting S. 99 would decrease offsetting
receipts (a form of direct spending), but the loss of such
receipts would be less than $500,000 over the 2006-2015 period.
S. 99 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Julie Middleton.
This estimate was approved by Peter H. Fontaine, 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. 99.
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. 99, as ordered reported.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of the Interior at
the Subcommittee hearing on S. 943, as introduced in the 108th
Congress, follows:
Statement of John W. Keys III, Commissioner, Bureau of Reclamation,
Department of the Interior
My name is John Keys and I am the Commissioner of the
Bureau of Reclamation. I appreciate the opportunity to provide
the Administration's views on S. 943, legislation to authorize
the Secretary of the Interior to enter into one or more
contracts with the City of Cheyenne, Wyoming, for the storage
of water in the Kendrick Project in the State of Wyoming.
Madam Chairman, the Department could support S. 943 subject
to modifications recommended in this statement.
The Bureau of Reclamation has several dams and reservoirs
located on the North Platte River in Wyoming. The North Platte
River System is operated to optimize irrigation and power
benefits. To accomplish these activities, vacant space becomes
available in Seminoe Reservoir as water is released to other
downstream Reclamation reservoirs.
By enacting S. 943, the Secretary of the Interior would be
authorized to enter into long-term contracts with the City of
Cheyenne to store water in Seminoe Reservoir for municipal and
industrial use.
The Department does not support S. 943 as drafted because
it is vague regarding whose water is to be stored in Seminoe
Reservoir and the disposition of revenues received. To provide
clarity, the Department recommends the amendment attached to my
statement be adopted by the Committee.
Thank you for the opportunity to appear before you today.
To assist the Subcommittee in understanding the modifications
offered here today, I am including a copy of the entire bill
with the additions and deletions. Again, Madam Chairman, with
the above modifications, the Department could support this
legislation.
ATTACHMENT: PROPOSED REVISIONS
1. Modify the Introduction to read: ``To authorize the
Secretary of the Interior to contract with the city of
Cheyenne, Wyoming, for the storage of the City's water in the
Kendrick Project, Wyoming.''
2. Modify Section 1(a)(2) to read:
``(2) Kendrick project.--The term `Kendrick Project'
shall mean the Bureau of Reclamation project on the
North Platte River, authorized by a finding of
feasibility approved by the President on August 30,
1935, constructed for irrigation and electric power
generation whose major features include Seminoe Dam,
Reservoir, and Powerplant; and Alcova Dam, and
Powerplant.''
3. Modify Section 1(b) and (c) to read:
(b) Contracts.--The Secretary is authorized to enter
into one or more contracts with the City for annual
storage of the City's water for municipal and
industrial use in Seminoe Dam and Reservoir of the
Kendrick Project.
(c) Conditions.--
(1) Term; renewal.--Any contract under
subsection (b) shall--
(A) have a term of not to exceed 40
years; and
(B) may be renewed upon terms
mutually agreeable to the Secretary and
the City, for successive periods not to
exceed 40 years each.
(2) Revenues.--Without regard to the Act of
May 9, 1938, (52 Stat. 322; U.S.C. Sec. 392a),
the revenues received under any contract
executed pursuant to this section shall be
credited as follows: All operation and
maintenance charges shall be credited against
applicable operation and maintenance costs of
the Kendrick Project; all remaining revenues
shall be credited to the Reclamation Fund as a
credit to the construction costs of the
Kendrick Project.
(3) Impacts to existing contractors.--
Contracts under subsection (c) shall not
negatively impact the Kendrick Project, any
existing Kendrick Project contractor, or any
existing Reclamation contractor on the North
Platte River System.
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 S. 99, as ordered
reported.