[Pages S13157-S13158]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CBO COST ESTIMATE FOR S. 986

Mr. MURKOWSKI. Mr. President, at the time Senate Report No. 106-173
was filed to accompany S. 986 the Congressional Budget Office report
was not available. I ask unanimous consent that the report which is now
available be printed in the Congressional Record for the information of
the Senate.
There being no objection, the report was ordered to be printed in the
Record, as follows:

U.S. Congress,

Congressional Budget Office,

Washington, DC, October 18, 1999.
Hon. Frank H. Murkowski,
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. 986, the Griffith
Project Prepayment and Conveyance Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Megan
Carroll (for federal costs), who can be reached at 226-2860,
and Marjorie Miller (for the state and local impact), who can
be reached at 225-3220.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE, OCTOBER 18, 1999

S. 986: Griffith Project Prepayment and Conveyance Act

(As reported by the Senate Committee on Energy and Natural Resources on
October 6, 1999)

summary

S. 986 would direct the Secretary of the Interior, acting
through the Bureau of Reclamation (Bureau) to convey the
Robert B. Griffith Water Project (Griffith Project) to the
Southern Nevada Water Authority (SNWA). The transfer would
occur after the SNWA pays about $121 million to the Bureau to
meet its outstanding obligations under an existing repayment
contract with the federal government. A substantial portion
of the Griffith Project is located on federal land
administered by the National Park Service (NPS) and the
Bureau of Land Management. Under S. 986, the SNWA would
retain rights-of-way across this federal land at no cost.
CBO estimates that enacting S. 986 would yield a net
increase in asset sale receipts of $112 million in 2000, but
that this near-term cash savings would be offset on a present
value basis by the loss of other offsetting receipts over the
2001-2033 period. Because the bill would affect direct
spending, pay-as-you-go procedures would apply. CBO also
estimates that implementing S. 986 could cost up to $50,000 a
year in appropriated funds over the 2001-2004 period. S. 986
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act (UMRA). The
project conveyance, and any costs associated with it, would
be voluntary on the part of the SNWA. The bill would impose
no costs on any other state, local, or tribal governments.

estimated cost to the federal government

The estimated budgetary impact of S. 986 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
--------------------------------------------
2000 2001 2002 2003 2004
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING \1\

Estimated Budget Authority......................................... -112 9 9 9 9
Estimated Outlays.................................................. -112 9 9 9 9
----------------------------------------------------------------------------------------------------------------
\1\ S. 986 also would authorize additional spending, subject to appropriation, of up to $50,000 a year over the
2001-2004 period.

basis of estimate

For this estimate, we assume that S. 986 will be enacted
early in fiscal year 2000. Based on information from the SNWA
and

[[Page S13158]]

the Bureau, CBO expects that the authority will make the
prepayment during fiscal year 2000, and that the formal
project conveyance will be completed during fiscal year 2001.
Direct Spending. S. 986 would direct the Secretary of the
Interior to sell the Griffith Project to the SNWA, in
exchange for a one-time payment of about $121 million. The
sales price would be adjusted to reflect any additional
payments made by SNWA before the project transfer is
completed. CBO expects the prepayment to occur during fiscal
year 2000 and estimates that those receipts would be offset
by the loss of currently scheduled repayments of about $9
million a year between 2000 and 2022 and $6 million a year
between 2023 and 2033.
Spending Subject to Appropriation. Presently, the SNWA
bears the full cost of operating and maintaining the Griffith
Project. In addition, pursuant to an agreement with the
Bureau, the SNWA will absorb all administrative costs
associated with the conveyance. Thus, implementing this
provision would not affect discretionary spending. The NPS
currently collects about $50,000 a year from the SNWA to
offset the costs of administering and monitoring rights-of-
way within the Lake Mead National Recreation Area. Under S.
986, the SNWA would maintain rights-of-way across these
federal lands at no cost after the conveyance is completed.
CBO estimates that implementing this provision would require
a net increase in amounts appropriated to the NPS of about
$50,000 annually to continue administrative activities
related to monitoring these rights-of-way.

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 changes 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 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays............................................ -112 9 9 9 9 9 9 9 9 9
Changes in receipts........................................... Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

Under the Balanced Budget Act, proceeds from nonroutine
asset sales (sales that are not authorized under current law)
may be counted for pay-as-you-go purposes only if the sale
would entail no financial cost to the government. Based on
information provided by the bureau, CBO estimates that the
sale of the Griffith Project as specified in S. 986 would
result in a net savings to the government, and therefore, the
proceeds would count for pay-as-you-go purposes.

estimated impact on state, local, and tribal governments

S. 986 contains no intergovernmental mandates as defined in
UMRA. In order to receive title to the Griffith project, the
bill would require the SNWA to assume all costs associated
with the project and to prepay their outstanding liability to
the federal government. The conveyance would be voluntary on
the part of the authority, however, and these costs would be
accepted by it on that basis. Further, the authority is
already responsible for all costs of operating and
maintaining the facility. The bill would impose no costs on
any other state, local, or tribal governments.

estimated impact on the private-sector

This bill contains no new private-sector mandates as
defined in UMRA.
Estimated prepared by: Federal Costs: Megan Carroll (226-
2860). Impact on State, Local, and Tribal Governments:
Marjorie Miller (225-3220).
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.

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