[House Report 106-836]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-836
======================================================================
REAUTHORIZATION AND AMENDMENT OF RECLAMATION SAFETY OF DAMS ACT OF 1978
_______
September 12, 2000.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 3595]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 3595) to increase the authorization of appropriations for
the Reclamation Safety of Dams Act of 1978, and for other
purposes, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. INCREASED AUTHORIZATION OF APPROPRIATIONS FOR THE
RECLAMATION SAFETY OF DAMS ACT OF 1978.
The Reclamation Safety of Dams Act of 1978 is amended--
(1) in section 4 (43 U.S.C. 508)--
(A) in subsection (a), by striking ``or from
nonperformance of reasonable and normal maintenance of
the structure by the operating entity'';
(B) in subsection (c), by--
(i) inserting after ``1984'' the following:
``and the additional $380,000,000 further
authorized to be appropriated by amendments to
that Act in 2000'';
(ii) striking paragraph (2) and redesignating
paragraphs (3) and (4) as paragraphs (2) and
(3), respectively; and
(iii) in the first sentence of paragraph (3),
as so redesignated, inserting ``irrigation,''
after ``Costs allocated to the purpose of'',
and inserting ``without regard to water users'
ability to pay'' before the period at the end;
and
(C) in subsection (d), by inserting before the period
at the end the following: ``: Provided further, That
the Secretary is authorized to expend payments of such
reimbursable costs made pursuant to a repayment
contract at any time prior to completion of
construction'';
(2) in section 5 (43 U.S.C. 509), by--
(A) inserting after ``levels)'' the following: ``and,
effective October 1, 1997, not to exceed an additional
$380,000,000 (October 1, 2000, price levels)'';
(B) striking ``$750,000'' and inserting ``$1,200,000
(October 1, 2000, price levels), plus or minus such
amounts, if any, as may be justified by reason of
ordinary fluctuations in construction costs as
indicated by engineering cost indexes applicable to the
types of construction involved herein,''; and
(C) striking ``sixty days (which'' and all that
follows through ``day certain)'' and inserting ``30
calendar days''; and
(3) in section 2 (43 U.S.C. 506), by inserting ``(a)'' before
``In order to'', and by adding at the end the following:
``(b) Prior to selecting a Bureau of Reclamation facility for
modification, the Secretary shall notify project beneficiaries in
writing of such selection and solicit their interest in participating
in evaluating the facility for modification. If requested by the
project beneficiaries, the Secretary, acting through the Commissioner
of the Bureau of Reclamation, is authorized to negotiate an agreement
with project beneficiaries for the cooperative oversight of planning,
design, cost containment, procurement, construction, and management of
the modifications. Prior to submitting the modification reports
required by section 5, the Secretary shall consider, and where
appropriate implement, alternatives recommended by project
beneficiaries. Within 30 days after receiving such recommendations, the
Secretary shall provide to the project beneficiaries a written response
detailing proposed actions to address the recommendations. The
Secretary's response to the project beneficiaries shall be included in
the modification reports required by section 5.
``(c) Following submission of the reports required by section 5,
project beneficiaries who wish to receive regular information
concerning the status and costs of modifications shall notify the
Secretary in writing. During the construction phase of the
modifications, the Secretary shall keep such beneficiaries informed of
the costs and status of such modifications. The Secretary shall
consider, and where appropriate implement, alternatives recommended by
project beneficiaries concerning the cost containment measures and
construction management techniques needed to carry out such
modifications.''.
Purpose of the Bill
The purpose of H.R. 3595 is to increase the authorization
of appropriations for the Reclamation Safety of Dams Act of
1978, and for other purposes.
Background
The Bureau of Reclamation spends approximately $60 million
per year for dam safety purposes and estimates that the
existing $650 million ceiling contained in the Reclamation
Safety of Dams Act of 1978 will be exceeded in fiscal year
2001. Existing law requires the Bureau of Reclamation to send a
dam modification report to Congress for dam safety work costing
more than $750,000. The report must rest before Congress for 60
legislative days prior to the Bureau of Reclamation obligating
funds for dam safety construction. H.R. 3595 would raise the
threshold for a Congressional report to $1.2 million and reduce
to 30 calendar days the time required for a dam safety
modification report rest before Congress prior to Reclamation
commencing dam safety repair work.
In addition to increasing the ceiling and shortening the
review period, the legislation would make additional changes to
the program. Under existing law, irrigators are required to pay
a portion of the dam safety costs within 50 years without
interest. The bill would amend the statute to charge interest
on the dam safety costs allocated for irrigation purposes. This
makes irrigation repayment terms for dam safety activities
consistent with municipal and industrial water supply
repayment. The criteria for allocating costs for irrigators
under this bill would be equalized throughout the 17 western
states. Although this legislation would also charge interest on
the modification project costs allocated for irrigation
purposes for the first time, the National Water Resources
Association stated in a March 6, 2000, letter that its members
in the 17 western states ``consider the added expense a worthy
investment''.
The bill requires the Secretary to provide written notice
to project beneficiaries prior to selecting a Reclamation
facility for modification. The intent of the language is to
give project beneficiaries a ``place at the table'' when
decisions concerning the need to modify a structure are under
consideration. This will allow project beneficiaries an
opportunity to submit their views and recommendations regarding
the planning, design, and other details regarding modifications
proposed for Reclamation facilities. Project beneficiaries are
those entities that have existing contracts for repayment or
water service and/or operation and maintenance with the Bureau
of Reclamation.
The Committee stresses that maintaining public safety is
the Secretary's paramount concern in implementing the
Reclamation Safety of Dams Act. The United States is liable for
the facilities and the Secretary is the ultimate decision maker
regarding dam safety. The bill provides project beneficiaries
opportunities to voice their concerns to the Bureau of
Reclamation and to make recommendations regarding modifications
to project facilities, and gives the Secretary the authority to
negotiate an agreement that sets forth the details of the
``cooperative oversight'' the Secretary may receive from the
project beneficiaries. The bill does not diminish the
Secretary's authority to take corrective action the Secretary
deems necessary to protect life and property, pursuant to the
Secretary's responsibilities under the Reclamation Safety of
Dams Act.
Finally, the Secretary is required to keep project
beneficiaries informed of the costs and status of dam safety
modifications, if the project beneficiaries notify the
Secretary in writing of their interest in this information. The
Secretary shall consider recommendations provided by the
project beneficiaries regarding cost containment and
construction management techniques, and implement appropriate
recommendations. The Committee believes that project
beneficiaries should be informed of the plans and progress and
be provided the opportunity to suggest ways to control dam
safety modification costs. However, the Committee again
stresses that the Secretary is the ultimate decision maker in
all aspects of maintaining dam safety and performing
modifications. A project beneficiary may suggest an alternative
approach to a dam safety modification, but the Secretary is not
required to implement such recommendation.
Committee Action
H.R. 3595 was introduced on February 8, 2000, by
Congressman George Miller (D-CA). The bill was referred to the
Committee on Resources, and within the Committee to the
Subcommittee on Water and Power. On June 15, 2000, the
Subcommittee met to consider the bill. Congressman John
Doolittle (R-CA) offered an amendment to increase the project
beneficiaries' ability to participate in the planning and cost
containment of any proposed dam safety modification. The
amendment was adopted by voice vote. The bill, as amended, was
then ordered to be reported to the Full Committee by voice
vote. On June 21, 2000, the Full Resources Committee met to
consider the bill. Congressman Miller offered an amendment to
further address the water users' ability to participate in the
planning process. Congressman Doolittle offered an amendment to
the Miller amendment that made additional technical
clarifications to the language. The Doolittle amendment passed
by unanimous consent and the Miller amendment, as amended, was
adopted by voice vote. The bill, as amended, was then ordered
favorably reported to the House of Representatives by voice
vote.
Section-by-Section Analysis
Section 1. Increased authorization of appropriations for the
Reclamation Safety of Dams Act of 1978
This section reauthorizes the dam safety program. It raises
the authorized ceiling on expenditures of the dam safety
program. It also requires interest to be placed on the
irrigation component and eliminates the ability-to-pay
provision in existing law.
The section also requires the Secretary to solicit more
participation from project beneficiaries prior to selecting a
Bureau of Reclamation facility for modification.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the Houseof Representatives, the
Committee on Resources' oversight findings and recommendations are
reflected in the body of this report.
Constitutional Authority Statement
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, credit
authority, or an increase or decrease in tax expenditures.
According to the Congressional Budget Office, enactment of this
bill would result in an increase in direct spending of
approximately $5 million over the 2001-2005 time period. In
addition, the bill would result in increased offsetting
receipts of $12 million over a ten year period.
3. Government Reform Oversight Findings. Under clause
3(c)(4) of rule XIII of the Rules of the House of
Representatives, the Committee has received no report of
oversight findings and recommendations from the Committee on
Government Reform on this bill.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 8, 2000.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3595, a bill to
increase the authorization of appropriations for the
Reclamation Safety of Dams Act of 1978, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Rachel
Applebaum.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3595--A bill to increase the authorization of appropriations for
the Reclamation Safety of Dams Act of 1978, and for other
purposes
Summary: H.R. 3595 would authorize the appropriation of
$380 million (plus additional amounts to account for
inflation), and raise the total authorization level for the Dam
Safety Program from its current ceiling of $650 million. H.R.
3595 also would authorize the government to spend repayment
receipts from beneficiaries of new dam safety projects while a
project undergoes construction, require the Bureau of
Reclamation to charge interest on new capital costs attributed
to irrigation needs, and make other changes to the Dam Safety
Program.
Assuming appropriation of the authorized level, CBO
estimates that implementing H.R. 3595 would cost $168 million
over the 2001-2005 period, and an additional $257 million after
2005. CBO expects that enacting H.R. 3595 would increase direct
spending by about $5 million over the 2001-2005 period. Because
H.R. 3595 would affect direct spending, pay-as-you-go
procedures would apply.
H.R. 3595 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Some state and local governments would probably incur
additional costs as a result of the bill's enactment, but these
costs would stem from voluntary contractual agreements with the
federal government.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3595 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2001 2002 2003 2004 2005
------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
Estimated Authorization 63 65 6 0 0
Level \1\..................
Estimated Outlays........... 62 64 29 8 1
Proposed Changes:
Estimated Authorization 0 0 62 70 72
Level......................
Estimated Outlays........... 0 0 37 61 70
Spending Under H.R. 3595:
Estimated Authorization 63 65 68 70 72
Level......................
Estimated Outlays........... 62 64 66 69 71
CHANGES IN DIRECT SPENDING
Estimated Budget Authority...... 0 0 1 2 2
Estimated Outlays............... 0 0 1 2 2
------------------------------------------------------------------------
\1\ The 2001-2003 levels are CBO's estimates of the bureau's use of its
remaining authority under the Dam Safety Program.
Basis of estimate: CBO expects that the current
authorization ceiling for the Dam Safety Program of $650
million will be met in fiscal year 2003, and that
appropriations for additional amounts that would be authorized
by the bill would begin in fiscal year 2003. Estimates of
discretionary outlays are based on information from the Bureau
of Reclamation and the historical spending pattern of this
program.
Because H.R. 3595 would authorize the bureau to spend all
repayment receipts while new projects undergo construction. CBO
estimates that enacting the bill would increase direct
spending. Based on information from the bureau, CBO expects
that about 25 percent of project beneficiaries would choose to
prepay their obligations as a result of the bureau's new
authority to spend repayments during construction. (This may
allow construction of some projects to be completed faster.)
These prepayments would change the timing of total repayment
receipts to the federal government, increasing receipts in the
short term and decreasing receipts in the long term. Including
these prepayments along with regular scheduled repayments, CBO
estimates that the authority to spend all new project
repayments would cost $36 million over the next 10 years.
H.R. 3595 would require the bureau to charge interest on
capital costs attributed to irrigation needs, so we estimate
that enacting the bill also would increase offsetting receipts
by about $12 million over the same 10-year period. These
estimates are based on information from the bureau, and assume
that project beneficiaries repay their obligations over a 25-
year period. According to the bureau, about 15 percent of these
projects' capital costs are repaid by project beneficiaries,
and irrigation users contribute 59 percent of this repayment.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. The net
change in outlays that are subject to pay-as-you-go procedures
are shown in the following table. For the purposes of enforcing
pay-as-you-go procedures, only the effects in the current year,
the budget year, and the succeeding four years are counted.
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays................. 0 0 0 1 2 2 3 3 4 4 5
Changes in receipts................ Not applicable
----------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 3595
contains no intergovernmental or private-sector mandates as
defined in UMRA. As a result of this legislation, amounts paid
by irrigators to reimburse the federal costs of dam safety
projects would include interest. Some of these beneficiaries
would be public entities. The additional costs, however, would
stem from voluntary contractual agreements with the Bureau of
Reclamation.
Estimate prepared by: Federal Costs: Rachel Applebaum.
Impact on State, Local, and Tribal Governments: Marjorie
Miller. Impact on the Private Sector: Sarah Sitarek and Patrice
Gordon.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as 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):
RECLAMATION SAFETY OF DAMS ACT OF 1978
AN ACT To authorize the Secretary of the Interior to construct,
restore, operate, and maintain new or modified features at existing
Federal reclamation dams for safety of dams purposes
* * * * * * *
Sec. 2. (a) In order to preserve the structural safety of
Bureau of Reclamation dams and related facilities the Secretary
of the Interior is authorized to perform such modifications as
he determines to be reasonably required. Said performance of
work shall be in accordance with the Federal reclamation laws
(Act of June 17, 1902, 32 Stat. 388, and Acts amendatory or
supplementary thereto).
(b) Prior to selecting a Bureau of Reclamation facility for
modification, the Secretary shall notify project beneficiaries
in writing of such selection and solicit their interest in
participating in evaluating the facility for modification. If
requested by the project beneficiaries, the Secretary, acting
through the Commissioner of the Bureau of Reclamation, is
authorized to negotiate an agreement with project beneficiaries
for the cooperative oversight of planning, design, cost
containment, procurement, construction, and management of the
modifications. Prior to submitting the modification reports
required by section 5, the Secretary shall consider, and where
appropriate implement, alternatives recommended by project
beneficiaries. Within 30 days after receiving such
recommendations, the Secretary shall provide to the project
beneficiaries a written response detailing proposed actions to
address the recommendations. The Secretary's response to the
project beneficiaries shall be included in the modification
reports required by section 5.
(c) Following submission of the reports required by section
5, project beneficiaries who wish to receive regular
information concerning the status and costs of modifications
shall notify the Secretary in writing. During the construction
phase of the modifications, the Secretary shall keep such
beneficiaries informed of the costs and status of such
modifications. The Secretary shall consider, and where
appropriate implement, alternatives recommended by project
beneficiaries concerning the cost containment measures and
construction management techniques needed to carry out such
modifications.
* * * * * * *
Sec. 4. (a) Costs heretofore or hereafter incurred in the
modification of structures under this Act, the cause of which
results from age and normal deterioration of the structure [or
from nonperformance of reasonable and normal maintenance of the
structure by the operating entity] shall be considered as
project costs and will be allocated to the purposes for which
the structure was authorized initially to be constructed and
will be reimbursable as provided by existing law.
* * * * * * *
(c) With respect to the additional $650,000,000 authorized to
be appropriated in The Reclamation Safety of Dams Act
Amendments of 1984 and the additional $380,000,000 further
authorized to be appropriated by amendments to that Act in
2000, costs incurred in the modification of structures under
this Act, the cause of which results from new hydrologic or
seismic data or changes in state-of-the-art criteria deemed
necessary for safety purposes, shall be reimbursed to the
extent provided in this subsection.
(1) * * *
[(2) Costs allocated to irrigation water service and
capable of being repaid by the irrigation water users
shall be reimbursed within 50 years of the year in
which the work undertaken pursuant to this Act is
substantially complete. Costs allocated to irrigation
water service which are beyond the water users' ability
to pay shall be reimbursed in accordance with existing
law.]
[(3)] (2) Costs allocated to recreation or fish and
wildlife enhancement shall be reimbursed in accordance
with the Federal Water Project Recreation Act (79 Stat.
213), as amended.
[(4)] (3) Costs allocated to the purpose of
irrigation, municipal, industrial, and miscellaneous
water service, commercial power, and the portion of
recreation and fish and wildlife enhancement costs
reimbursable under the Federal Water Project Recreation
Act, shall be repaid within 50 years with interest. The
interest rate used shall be determined by the Secretary
of the Treasury, taking into consideration average
market yields on outstanding marketable obligations of
the United States with remaining periods to maturity
comparable to the applicable reimbursement period
during the month preceding the fiscal year in which the
costs are incurred. To the extent that more than one
interest rate is determined pursuant to the preceding
sentence, the Secretary of the Treasury shall establish
an interest rate at the weighted average of the rates
so determined without regard to water users' ability to
pay.
(d) The Secretary is authorized to negotiate appropriate
contracts with project beneficiaries providing for the return
of reimbursable costs under this Act: Provided, however, That
no contract entered into pursuant to this Act shall be deemed
to be a new or amended contract for the purposes of section
203(a) of Public Law 97-293: Provided further, That the
Secretary is authorized to expend payments of such reimbursable
costs made pursuant to a repayment contract at any time prior
to completion of construction.
Sec. 5. There are hereby authorized to be appropriated for
fiscal year 1979 and ensuing fiscal years such sums as may be
necessary and, effective October 1, 1983, not to exceed an
additional $650,000,000 (October 1, 1983, price levels) and,
effective October 1, 1997, not to exceed an additional
$380,000,000 (October 1, 2000, price levels), plus or minus
such amounts, if any, as may be justified by reason of ordinary
fluctuations in construction costs as indicated by engineering
cost indexes applicable to the types of construction involved
herein, to carry out the provisions of this Act to remain
available until expended if so provided by the appropriations
Act: Provided, That no funds exceeding [$750,000] $1,200,000
(October 1, 2000, price levels), plus or minus such amounts, if
any, as may be justified by reason of ordinary fluctuations in
construction costs as indicated by engineering cost indexes
applicable to the types of construction involved herein, shall
be obligated for carrying out actual construction to modify an
existing dam under authority of this Act prior to [sixty days
(which sixty days shall not include days on which either the
House of Representatives or the Senate is not in session
because of an adjournment of more than three calendar days to a
day certain)] 30 calendar days from the date that the Secretary
has transmitted a report on such existing dam to the Congress.
The report required to be submitted by this section will
consist of a finding by the Secretary of the Interior to the
effect that modifications are required to be made to insure the
safety of an existing dam. Such finding shall be accompanied by
a technical report containing information on the need for
structural modification, the corrective action deemed to be
required, alternative solutions to structural modification that
were considered, the estimated cost of needed modifications,
and environmental impacts if any resulting from the
implementation of the recommended plan of modification.
* * * * * * *