[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


                  H.R. 1607, H.R. 3027, AND H.R. 3675

=======================================================================

                          LEGISLATIVE HEARING

                               BEFORE THE

                     SUBCOMMITTEE ON WATER, WILDLIFE AND 
                                ISHERIES

                                 OF THE

                     COMMITTEE ON NATURAL RESOURCES
                      U.S. HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                               __________

                        Wednesday, June 14, 2023

                               __________

                           Serial No. 118-39

                               __________

       Printed for the use of the Committee on Natural Resources
       
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                    U.S. GOVERNMENT PUBLISHING OFFICE                    
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                     COMMITTEE ON NATURAL RESOURCES

                     BRUCE WESTERMAN, AR, Chairman
                    DOUG LAMBORN, CO, Vice Chairman
                  RAUL M. GRIJALVA, AZ, Ranking Member

Doug Lamborn, CO		Grace F. Napolitano, CA		
Robert J. Wittman, VA		Gregorio Kilili Camacho Sablan, 
Tom McClintock, CA		  CNMI
Paul Gosar, AZ			Jared Huffman, CA
Garret Graves, LA		Ruben Gallego, AZ
Aumua Amata C. Radewagen, AS	Joe Neguse, CO
Doug LaMalfa, CA		Mike Levin, CA
Daniel Webster, FL		Katie Porter, CA
Jenniffer Gonzalez-Colon, PR    Teresa Leger Fernandez, NM
Russ Fulcher, ID		Melanie A. Stansbury, NM
Pete Stauber, MN		Mary Sattler Peltola, AK
John R. Curtis, UT		Alexandria Ocasio-Cortez, NY
Tom Tiffany, WI			Kevin Mullin, CA
Jerry Carl, AL			Val T. Hoyle, OR
Matt Rosendale, MT		Sydney Kamlager-Dove, CA
Lauren Boebert, CO		Seth Magaziner, RI
Cliff Bentz, OR			Nydia M. Velazquez, NY                                 
Jen Kiggans, VA			Ed Case, HI
Jim Moylan, GU			Debbie Dingell, MI
Wesley P. Hunt, TX		Susie Lee, NV
Mike Collins, GA
Anna Paulina Luna, FL
John Duarte, CA
Harriet M. Hageman, WY                                

                    Vivian Moeglein, Staff Director
                      Tom Connally, Chief Counsel
                 Lora Snyder, Democratic Staff Director
                   http://naturalresources.house.gov
                                 ------                                

             SUBCOMMITTEE ON WATER, WILDLIFE AND FISHERIES

                       CLIFF BENTZ, OR, Chairman
                      JEN KIGGANS, VA, Vice Chair
                   JARED HUFFMAN, CA, Ranking Member

Robert J. Wittman, VA                Grace F. Napolitano, CA
Tom McClintock, CA                   Mike Levin, CA
Garret Graves, LA                    Mary Sattler Peltola, AK
Aumua Amata C. Radewagen, AS         Kevin Mullin, CA
Doug LaMalfa, CA                     Val T. Hoyle, OR
Daniel Webster, FL                   Seth Magaziner, RI
Jenniffer Gonzalez-Colon, PR         Debbie Dingell, MI
Jerry Carl, AL                       Ruben Gallego, AZ
Lauren Boebert, CO                   Joe Neguse, CO
Jen Kiggans, VA                      Katie Porter, CA
Anna Paulina Luna, FL                Ed Case, HI
John Duarte, CA                      Raul M. Grijalva, AZ, ex officio
Harriet M. Hageman, WY
Bruce Westerman, AR, ex officio

                              ----------
                              
                               CONTENTS

                              ----------                              
                                                                   Page

Hearing held on Wednesday, June 14, 2023.........................     1

Statement of Members:

    Bentz, Hon. Cliff, a Representative in Congress from the 
      State of Oregon............................................     2
    Huffman, Hon. Jared, a Representative in Congress from the 
      State of California........................................     3

    Panel I:

    Boebert, Hon. Lauren, a Representative in Congress from the 
      State of Colorado..........................................     4
    Porter, Hon. Katie, a Representative in Congress from the 
      State of California........................................     5
    Schweikert, Hon. David, a Representative in Congress from the 
      State of Arizona...........................................     6
    Stanton, Hon. Greg, a Representative in Congress from the 
      State of Arizona...........................................     6

Statement of Witnesses:

    Panel II:

    Brain, Michael, Deputy Commissioner, Bureau of Reclamation, 
      Washington, DC.............................................     7
        Prepared statement of....................................     9
        Questions submitted for the record.......................    12
    Michael, Cannon, Chairman, San Luis & Delta-Mendota Water 
      Authority, Los Banos, California...........................    12
        Prepared statement of....................................    14
        Questions submitted for the record.......................    16
    Meyers, Leslie, Associate General Manager and Chief Water 
      Resources Executive, Salt River Project, Phoenix, Arizona..    16
        Prepared statement of....................................    18

Additional Materials Submitted for the Record:

    Submissions for the Record by Representative Huffman

        Center for Biological Diversity, Statement for the Record    31
        Hoopa Valley Tribe v. U.S. Bureau of Reclamation, Case 
          No. 1:20-cv-01814-JLT-EPG..............................    32

    Submission for the Record by Representatives Boebert and 
      Porter

        National Water Resources Association, Letter dated June 
          13, 2023...............................................    33
                                     


 
LEGISLATIVE HEARING ON H.R. 1607, TO CLARIFY JURISDICTION WITH RESPECT 
 TO CERTAIN BUREAU OF RECLAMATION PUMPED STORAGE DEVELOPMENT, AND FOR 
 OTHER PURPOSES; H.R. 3027, TO REAUTHORIZE FUNDING FOR THE RECLAMATION 
  CLIMATE CHANGE AND WATER PROGRAM, ``RECLAMATION CLIMATE CHANGE AND 
 WATER PROGRAM REAUTHORIZATION ACT OF 2023''; AND H.R. 3675, TO AMEND 
  THE WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION ACT TO EXTEND 
  CERTAIN CONTRACT PREPAYMENT AUTHORITY, ``WESTERN WATER ACCELERATED 
                        REVENUE REPAYMENT ACT''

                              ----------                              


                        Wednesday, June 14, 2023

                     U.S. House of Representatives

             Subcommittee on Water, Wildlife and Fisheries

                     Committee on Natural Resources

                             Washington, DC

                              ----------                              

    The Subcommittee met, pursuant to notice, at 1:31 p.m. in 
Room 1324, Longworth House Office Building, Hon. Cliff Bentz 
[Chairman of the Subcommittee] presiding.
    Present: Representatives Bentz, LaMalfa, Gonzalez-Colon, 
Boebert, Duarte, Hageman; Huffman, Napolitano, Hoyle, Dingell, 
Gallego, and Porter.
    Also present: Representatives Schweikert; and Stanton.

    Mr. Bentz. The Subcommittee on Water, Wildlife, and 
Fisheries will come to order.
    Good afternoon, everyone. I want to welcome our witnesses, 
Members, and our guests in the audience to today's hearing.
    Without objection, the Chair is authorized to declare a 
recess of the Subcommittee at any time.
    Under Committee Rule 4(f), any oral opening statements at 
hearings are limited to the Chairman and Ranking Member. I 
therefore ask unanimous consent that all other Members' opening 
statements be made part of the hearing record if they are 
submitted in accordance with Committee Rule 3(o).
    Without objection, so ordered.
    I also ask unanimous consent that the gentleman from 
Arizona, Mr. Schweikert, be allowed to participate in today's 
hearing.
    Without objection, so ordered.
    We are here today to consider three legislative measures: 
H.R. 1607, a bill to clarify jurisdiction with respect to 
certain Bureau of Reclamation pumped storage development, 
sponsored by Representative Schweikert of Arizona; H.R. 3027, 
the ``Reclamation Climate Change and Water Program 
Authorization Act of 2023,'' sponsored by Representative Porter 
of California; and H.R. 3675, the ``Western Water Accelerated 
Revenue Repayment Act,'' sponsored by Representative Boebert of 
Colorado.

    I now recognize myself for a 5-minute opening statement.

STATEMENT OF THE HON. CLIFF BENTZ, A REPRESENTATIVE IN CONGRESS 
                    FROM THE STATE OF OREGON

    Mr. Bentz. Today, we are meeting to discuss the three 
Bureau of Reclamation bills just mentioned.

    First, H.R. 1607, introduced by Mr. Schweikert of Arizona, 
which would extend the current Bureau of Reclamation withdrawal 
of land from Forest Service property on the Salt River in 
Arizona by a maximum of 2 miles in order to clarify 
jurisdiction and facilitate the development of pumped storage 
hydropower. Pumped storage hydropower utilizes two water 
reservoirs at different elevations to generate power by moving 
water down from one reservoir to the other through turbines.

    Next, H.R. 3027, introduced by Ms. Porter of California, 
would reauthorize the Bureau of Reclamation's WaterSMART Basin 
Studies Program until 2033. I know Ms. Porter is aware that her 
bill would require changes to ensure compliance with our floor 
protocols. This includes a 7-year sunset and funding levels 
equal to or less than the Fiscal Year 2023 funding levels.

    Last, H.R. 3675, introduced by Mrs. Boebert of Colorado, 
would extend authorities that allow Bureau of Reclamation 
Project water users to prepay what they owe to the Federal 
Government. This bill continues what was a program created 
under the Water Infrastructure Improvements for the Nations 
Act, which was signed into law by President Obama in 2016.

    Unless specifically authorized, most Bureau of Reclamation 
projects do not have the ability to make early payments to the 
U.S. Treasury. More than 80 entities took advantage of this 
program. Clearly, it was successful.

    With that, I look forward to hearing from our Members and 
witnesses before us today.

    I now recognize Ranking Member Huffman for his opening 
statement.

    Mr. Huffman. Thank you, Mr. Chairman.

    Before we begin, I would like to ask unanimous consent for 
Representative Greg Stanton of Arizona to participate in 
today's hearing.

    Mr. Bentz. Without objection.

   STATEMENT OF THE HON. JARED HUFFMAN, A REPRESENTATIVE IN 
             CONGRESS FROM THE STATE OF CALIFORNIA

    Mr. Huffman. Thank you, Mr. Chairman, and thanks to the 
witnesses for joining us for today's hearing on three bills 
relating to the Bureau of Reclamation.
    The Bureau serves as the largest wholesaler of water in the 
country, providing water to more than 30 million people and one 
out of five farmers in the American West. I look forward to 
hearing more about the bills on the agenda today and how they 
will affect Reclamation's work.
    The first bill we will discuss is Representative 
Schweikert's H.R. 1607. This would reserve certain lands to the 
United States, specifically for the development, generation, 
and transmission of electrical power and energy for the use of 
the Salt River Federal Reclamation Project. The legislation has 
been proposed to assist that project in Arizona to expand 
pumped storage for hydropower facilities to meet increasing 
energy demands.
    I look forward to hearing more about the effects of this 
bill in general. I like pumped hydropower a lot as a resource 
and a strategy.
    The next bill on the agenda is Representative Boebert's 
H.R. 3675, and this bill would permanently reauthorize a 
section of the WIIN Act to allow Federal water contractors to 
convert their Federal water contracts to permanent contracts. 
It would also allow water contractors to pay back their 
repayment obligations to taxpayers at a discounted rate, and 
eliminate important requirements, specifically the requirement 
that contractors pay the full cost of water on farms larger 
than 960 acres.
    The Committee has heard similar legislation over the years 
regarding accelerated prepayment. And before the passage of the 
WIIN Act, the Obama administration, taxpayer advocacy groups, 
and many others raised significant concerns about provisions 
like this. These concerns are just as relevant today, and they 
should be fully considered before moving forward with this 
legislation.
    The final bill on the agenda is Representative Porter's 
H.R. 3027, the Reclamation, Climate Change, and Water Program 
Reauthorization Act. It would reauthorize Reclamation's 
successful Basin Study Program, which helps water managers plan 
and develop water strategies responding to climate change. We 
have already completed 19 basin studies that have helped 
identify and analyze approaches and strategies to meet future 
water needs using the best available scientific information.
    Ms. Porter's legislation would reauthorize this program to 
ensure water management strategies assess the risks and impacts 
of climate change on our water resources. This is a big deal.
    As the West continues to endure the effects of drought, it 
is critical that Federal technical experts effectively 
collaborate with state, tribal, and local water managers to 
address water supply and demand imbalances.
    I hope today's hearing will facilitate a robust discussion 
in which we can work together toward true bipartisan solutions 
to address water management needs in the West.
    With that, I yield back.
    Mr. Bentz. I will now introduce our first panel.
    As is typical with legislative hearings, the bills' 
sponsors are recognized for 5 minutes each to discuss their 
bills. With us today, or soon to join us, are Congresswoman 
Lauren Boebert, Congresswoman Katie Porter, and Congressman 
David Schweikert.
    I now recognize Mrs. Boebert for 5 minutes.

   STATEMENT OF THE HON. LAUREN BOEBERT, A REPRESENTATIVE IN 
              CONGRESS FROM THE STATE OF COLORADO

    Mrs. Boebert. Thank you, Mr. Chairman. I am proud to 
testify in support of H.R. 3675, my Western Water Accelerated 
Revenue Repayment Act.
    This common-sense bill follows bipartisan precedent by 
allowing agriculture and municipal water users to prepay what 
they owe to the Federal Government. This prepayment generates 
early revenue for the Treasury, while also decreasing Federal 
paperwork requirements and operating costs for water users.
    Without this authority, the vast majority of irrigation 
districts do not have the ability to make an early repayment to 
the Treasury. This is like telling a homeowner who has a 
mortgage that they cannot make early payments to pay it off, or 
like telling someone with a 5-year car loan they cannot pay off 
anything early and must wait the full 5 years.
    Under current law, Bureau of Reclamation water storage and 
delivery project costs are allocated to the project 
beneficiaries. Under the beneficiary pays principle, irrigation 
and water districts that have contracts with the Federal 
Government for water delivered from the Bureau of Reclamation 
projects must repay the costs that they are allocated.
    As long as the repayment obligation exists, these water 
users have to jump through more red tape, burdensome paperwork 
requirements, and limitations on how much acreage a farmer is 
allowed to plant. Prior to the passage of this provision, if 
water users wanted to repay what they owed early, Congress 
would have to enact a Federal law authorizing the repayment.
    Prior to its expiration in 2020, the Bureau of Reclamation 
entered into agreements with 86 contractors for contract 
prepayments. This ultimately generated $344 million for water 
storage account funding.
    One of those contractors that took advantage of this 
authority is located in my district, the Florida Water 
Conservancy District in Durango, Colorado. It utilized the 
prepayment option back in 2019 for the Lemon Dam, which is a 
reclamation project on the Florida River. They support this 
legislation, and called this process ``smooth as silk.''
    My bill is supported by many groups, including the Florida 
Water Conservancy District in Durango, Mesa County Farm Bureau, 
the Mesa County Commissioners, the San Luis & Delta-Mendota 
Water Authority, and many others.
    In their letter of support, the National Water Resources 
Association stated, ``This added tool will assist water systems 
in managing their operations in the most effective and 
efficient way possible at the time of rising costs and higher 
interest rates. The immersed water resource challenges in the 
Western United States require a strong partnership and regular 
collaboration between the water community and Federal 
agencies.'' Mr. Chairman, I would like to submit this letter 
that I am quoting from to the record.
    Mr. Bentz. Without objection.
    Mrs. Boebert. Thank you. I encourage the Committee to 
continue to move on this common-sense bill, and move it forward 
through the Committee to see its ultimate passage.
    Thank you so much, Mr. Chairman. I yield.

    Mr. Bentz. Thank you, Mrs. Boebert. I now recognize Ms. 
Porter for 5 minutes.

    STATEMENT OF THE HON. KATIE PORTER, A REPRESENTATIVE IN 
             CONGRESS FROM THE STATE OF CALIFORNIA

    Ms. Porter. Thank you very much, Mr. Chairman.
    Most people who want to hear a one-liner go to a comedy 
club, not to a congressional hearing. But today, you all are 
lucky. I am going to give you two one-liners. Here is the first 
one: How many lawmakers does it take to extend a program that 
provides our constituents with water? I know. That is not 
funny. I guess you can see why I don't do stand-up.
    Actually, what worries me about the very serious question 
that I asked is that I don't know the answer. Reclamation's 
Basin Study Program is going to expire in September, and 
Washington still hasn't acted. We are running out of time 
before our September deadline. Are we going to extend the 
program or miss the target?
    That brings me to my second one-liner, a one-line bill to 
extend the program. Here is the line: Section 9503(f) of the 
Omnibus Public Land Management Act of 2009 is amended by 
striking ``2023,'' and--hold it, hold it for the punch line--
inserting ``2033.'' This one-liner isn't a joke, either. It is 
a solution that keeps this program intact without increasing 
its funding or changing any policy. It is a proposal that helps 
people retain access to water, and that is actually no joke, 
that is actually very serious.
    This one line means that Colorado Basin states will 
continue to have the tools needed to assess water supply and 
identify long-term challenges that serve as a baseline, that 
help water utilities make informed decisions about providing 
water to Western Americans.
    This one line means that the Bureau of Reclamation can 
continue to assure utilities that they are operating from the 
same baseline, and encourage innovative partnerships and 
conservation programs and policies to sustain current and 
future supplies.
    Washington needs to pass my clean extension--just one 
line--of the Reclamation Basin Study Program.
    If making sure our constituents don't go thirsty wasn't 
enough, I am even prepared to sweeten the deal. I have agreed 
to legislative changes if my bill, my one-liner, advances to 
mark-up. To comply with current House rules, I have agreed to 
change the 10-year reauthorization to an authorization of 7 
years at the annual level most recently provided to the 
program, $15.017 million.
    If anyone can find any other changes that I could make to 
this incredibly short bill, I am all ears. There aren't too 
many words left to scrutinize. You want a different title? 
Let's talk. But people are tired of all the talk from 
Washington.
    This bill should be a no-brainer. I am a teacher. I used to 
always tell my students, ``You don't have to wait to the last 
minute to do your homework.'' We don't need to wait to 
September 2023, when this program expires, to reauthorize it. 
We can do it now.
    With debilitating droughts, stopping our constituents from 
going thirsty should be a top priority. And we have a 
straightforward solution right now. If we believe in protecting 
water utilities and users, this bill should advance without 
delay to a mark-up, and then to a House Floor vote under the 
suspension of the rules.
    I yield back.

    Mr. Bentz. Thank you, Ms. Porter.
    I now recognize Mr. Schweikert for 5 minutes.

  STATEMENT OF THE HON. DAVID SCHWEIKERT, A REPRESENTATIVE IN 
               CONGRESS FROM THE STATE OF ARIZONA

    Mr. Schweikert. You snuck up on me there, Mr. Chairman and 
Mr. Ranking Member. I am actually here to make the pitch on 
H.R. 1607. It is a pumped storage.
    For those of you who may know Arizona, we have a couple of 
unique sources of water. One is we fight with our friends in 
California over the Colorado River, but we also have our own 
watershed.
    There is something called the Salt River Project. It is a 
really, really unique quasi-municipality. It actually predates 
statehood, which is sort of amazing to think about. But within 
that is a chain of lakes in these brutally rugged mountains. 
But it turns out that, and Stanton is an expert on this, he 
knows this as well as any of us, in there is an opportunity to 
do what we call pumped storage. And within that is the 
uniqueness.
    For those of us in the desert southwest, we actually have 
time during parts of the day, because of our photovoltaic 
portfolio, where power basically almost falls to minimal price, 
the concept of pump up, and when the sun goes down and the air 
conditioners are running, run the water back down the cliff.
    It is a terrific spot. It mathematically looks like it 
works. We just need the direction with the managing partner, 
which we hope will be Salt River Project, or we assume, and the 
Bureau of Reclamation, which is actually the true owner and 
controller of the land. And then, obviously, the neighboring 
Park Service.
    So, Mr. Stanton and I have this concept and would like it 
to continue to move forward.
    With that, I yield back.

    Mr. Bentz. Thank you, Mr. Schweikert. I thank the Members 
for their testimony. I will now introduce our second panel.
    Mr. Huffman. Did you want to give Stanton time?
    Mr. Bentz. I am sorry, Mr. Stanton, we will indulge a short 
statement.
    Proceed.

    STATEMENT OF THE HON. GREG STANTON, A REPRESENTATIVE IN 
               CONGRESS FROM THE STATE OF ARIZONA

    Mr. Stanton. Thank you very much, Mr. Chairman and Mr. 
Ranking Member, and thank you for the opportunity to join the 
Subcommittee for today's hearing.
    I, too, want to speak in favor of H.R. 1607, an issue that 
is of great importance to my home state of Arizona.
    The population in the Phoenix Metro Area, already one of 
the most populous regions in the country, is growing rapidly, 
and our economy is growing right along with it, bringing new 
energy demands. Back home, we are already seeing daily 
temperatures in the hundreds. The hot summer months are when 
demand for electricity are at its highest. That is why it is so 
critical for our region to invest in our energy infrastructure.
    Having a robust, diverse, renewable energy mix, including 
hydropower, makes our power grid more resilient and better able 
to meet the demands of our constituents.
    Congressman Schweikert and I teamed up to introduce H.R. 
1607 to help enable the evaluation and exploration of 
additional pumped storage hydropower facilities to the Salt 
River Reservoir System, which serves more than 2 million energy 
customers in the Greater Phoenix area.
    Pumped hydropower storage uses excess electricity when 
demand is low, like during the day, when renewables like solar 
panels are generating power, to pump water to a higher-
elevation reservoir. Throughout the night, when the other 
renewable resources are ramping down, that water can be used to 
generate hydropower to provide electricity to customers.
    Not only do pumped storage projects help integrate 
renewable energy into our power grid, they provide greater 
flexibility and reliability for the entire system. And 
critically, it cuts utility costs for Arizona families and 
businesses.
    And I hope the Committee will move quickly with this bill, 
and thank my colleagues for their support.
    I yield back.

    Mr. Bentz. Thank you, Mr. Stanton. I thank the Members for 
their testimony.
    I will now introduce our second panel: Mr. Michael Brain, 
Deputy Commissioner, Bureau of Reclamation, Washington, DC; Mr. 
Cannon Michael, Chairman, San Luis & Delta-Mendota Water 
Authority, Los Banos, California; and Ms. Leslie Meyers, 
Associate General Manager and Chief Water Resources Executive, 
Salt River Project, Tempe, Arizona.
    Let me remind the witnesses that under Committee Rules, 
they must limit their oral statements to 5 minutes, but their 
entire statement will appear in the hearing record.
    To begin your testimony, please press the ``talk'' button 
on the microphone.
    We use timing lights. When you begin, the light will turn 
green. When you have 1 minute remaining, the light will turn 
yellow. And at the end of the 5 minutes, the light will turn 
red, and I will ask you to please complete your statement.
    I will also allow all witnesses to testify before Member 
questioning.
    I now recognize Deputy Commissioner Brain for 5 minutes.

  STATEMENT OF MICHAEL BRAIN, DEPUTY COMMISSIONER, BUREAU OF 
                  RECLAMATION, WASHINGTON, DC

    Mr. Brain. Good afternoon and thank you, Chairman Bentz, 
Ranking Member Huffman, members of the Subcommittee for the 
opportunity to provide Interior's views on the bills before you 
today. My name is Michael Brain, and I have the privilege of 
serving as the Deputy Commissioner for the Bureau of 
Reclamation within the Department of the Interior.
    As you are aware, the West is experiencing unprecedented 
drought, and in Western watersheds there have been successive 
and compounding years of dry hydrology. The drought highlights 
the need for immediate actions, as well as for thoughtful 
planning and on-the-ground work to make both our infrastructure 
and our operational decisions more resilient.
    Meeting Reclamation's mission today means addressing 
drought resilience, water security, issues of equity, climate 
change adaptation, and ecosystem health. Fortunately, with the 
resources made available by Congress through the Bipartisan 
Infrastructure Law and the Inflation Reduction Act, Reclamation 
has been able to prioritize and accelerate projects that will 
help us to respond to the issues that we are faced with.
    In the year-and-a-half that Reclamation has been charged 
with implementation of the Bipartisan Infrastructure Law, we 
are proud of our efforts to engage with our tribal, 
stakeholder, and congressional partners. Due to the strength of 
these partnerships and the hard work of Reclamation's dedicated 
staff, we have allocated $2.5 billion of Bipartisan 
Infrastructure Law funding to 369 projects across 12 program 
areas, and in all 17 Western states plus Alaska, Hawaii, and 
Puerto Rico.
    Reclamation has issued more than a dozen Bipartisan Infra-
structure Law-related funding opportunities to date, with more 
on the way for the rest of 2023. We have established new 
programs in small storage, aquatic ecosystem restoration, and 
environmental water resource projects, and planning and design.
    Aging Infrastructure Account funding made available in the 
Bipartisan Infrastructure Law has enabled numerous major 
rehabilitation activities on facilities maintained by our 
partners that would otherwise have been difficult to realize, 
such as major lining projects on the New York and Truckee 
Canals that will improve safety, reduce long-term maintenance 
needs, and conserve precious water supplies.
    Additionally, in Fiscal Year 2022 Reclamation distributed a 
higher-than-ever 1-year investment of $420 million in the Rural 
Water Program across six projects, some that benefit tribal 
areas. In Fiscal Year 2023, we announced $278 million across 
seven projects. We also allotted $60 million for the Arkansas 
Valley Conduit Project, which benefits disadvantaged Americans, 
and was able to break ground last month.
    In addition to funding announcements that have already 
taken place in the Colorado River Basin, Reclamation 
anticipates making additional announcements pertaining to other 
sections of the Inflation Reduction Act this summer.
    Like the Bipartisan Infrastructure Law and Inflation 
Reduction Act, the legislation being considered today seeks to 
address the challenges we currently face and those we will face 
in the future. For example, H.R. 1607 will increase energy 
storage through a pumped storage project that will help 
Reclamation meet its mission to deliver power by improving grid 
reliability, avoiding transmission congestion and potential 
interruptions in energy supply.
    This bill does not grant Reclamation any new authorities, 
but will allow the Salt River Project to continue its path 
toward construction.
    The Department supports this bill, and looks forward to 
working with the bill's sponsor and the Subcommittee on 
technical edits.
    Additionally, H.R. 3027, which would reauthorize 
Reclamation's Climate Change and Water Program, gives 
Reclamation and our stakeholders the tools we need to address 
long-term challenges posed by climate change and shifting 
hydrologic realities. The Department supports this bill and the 
reauthorization of the Climate Change and Water Program.
    Lastly, H.R. 3675 would allow for expedited repayment of 
irrigation construction obligations, making more funding 
available for additional water storage needs, as well as 
providing additional flexibility for Reclamation's water users 
and contract holders. The Department looks forward to working 
with the bill's sponsor and the Subcommittee to address 
technical edits.
    The Department recognizes the bills before the Committee 
today seek to address the impacts from the ongoing drought, 
building a more resilient infrastructure and ecosystems, and 
appreciates the work of all the bills' sponsors.
    I look forward to discussing this legislation in more 
detail, and to continuing to work with the Committee and the 
bills' sponsors on potential technical edits as they move 
forward.
    Thank you, Mr. Chairman.

    [The prepared statement of Mr. Brain follows:]
 Prepared Statement of Michael Brain, Deputy Commissioner, U.S. Bureau 
                             of Reclamation
                 on H.R. 1607, H.R. 3027, and H.R. 3675

    Chairman Bentz, Ranking Member Huffman, and members of the 
Subcommittee, I am Michael Brain, Deputy Commissioner for the Bureau of 
Reclamation within the Department of the Interior (Interior). Thank you 
for the opportunity to provide Interior's views on these bills.
H.R. 1607--To clarify jurisdiction with respect to certain Bureau of 
        Reclamation pumped storage development, and for other purposes

    The Bureau of Reclamation (Reclamation) is the largest water 
supplier in the United States, owning and operating 188 projects across 
the western states with dams, reservoirs, canals, and other 
distribution infrastructure. Reclamation is interested in and supports 
the potential to develop pumped storage projects at existing 
facilities. Pumped storage is an efficient means to store energy when 
supply exceeds demand and has been shown to be one of the most useful 
methods for regulating intermittent renewable generation resources, 
such as wind and solar. Increased energy storage provided by a pumped 
storage project improves grid reliability, avoids transmission 
congestion periods, and avoids potential interruptions in energy 
supply.
    Reclamation's Salt River Federal Reclamation Project, located near 
Phoenix, Arizona is one of Reclamation's first projects, authorized in 
1903, and includes facilities located across portions of Maricopa, 
Gila, and Pinal Counties. The Salt River Federal Reclamation Project is 
operated by the Salt River Project. The Salt River Project or ``SRP'' 
is comprised of two entities, the Salt River Valley Water Users' 
Association, which operates the Reclamation Project, and the Salt River 
Project Agricultural Improvement and Power District, a political 
Subdivision of the State of Arizona, which operates the non-
hydrogeneration resources and provides power to central Arizona. Seven 
storage reservoirs furnish water supply from the Salt and Verde Rivers 
to the Phoenix metropolitan area. The power system includes 
hydroelectric, natural gas, oil, coal, wind, and solar generation 
resources. SRP is reducing its carbon dioxide emissions through the 
retirement of older generation resources and development of renewable 
generation and storage projects.
    In 2014, Reclamation prepared a Reclamation-wide Pumped Storage 
Screening Study that identified a location for pumped storage along the 
Salt River. Based on that initial work, SRP developed two possible 
locations for the construction of a pumped storage development project. 
The results of that work indicated the potential for a project with a 
generating capacity between 1,000 and 1,150 megawatts (MW) utilizing 
pump-turbines housed alongside a water conveyance tunnel for generation 
and pumping water from Apache Lake to an upper reservoir.
    Using the data acquired from the previous studies, H.R. 1607 would 
allow for the withdrawal of Federal land from the National Forest 
System to the Bureau of Reclamation, through the Secretary of the 
Interior, for the development, generation, and transmission of 
electrical power and energy for the use of and benefit of the Salt 
River Federal Reclamation Project in Arizona.
    Through the transfer of this land, H.R. 1607 would allow the 
proposed pumped storage project to be developed entirely within the 
authorities and footprint of the Federal Reclamation Project--
streamlining development and maximizing Federal Reclamation Project 
benefits.
    H.R. 1607 would not grant Reclamation new authorities to fund the 
construction of the project, but instead would allow the Salt River 
Valley Water Users' Association to continue to evaluate and construct 
the project at their cost.
    Title to the facilities developed on such land would be held by the 
United States as a part of the Project, with operation and maintenance 
remaining a responsibility of the Salt River Valley Water Users' 
Association as an authorized feature of the Project. H.R. 1607 would 
also direct the Secretary of Agriculture to prepare a map, as soon as 
practicable, depicting the boundaries of the covered land and make it 
available at the appropriate offices of the Forest Service and the 
Bureau of Reclamation.
    The Department supports the development of pumped storage projects, 
where feasible, as an efficient means to store energy and improve grid 
reliability. The Department supports H.R. 1607 and looks forward to 
working with the bill sponsor and the Subcommittee to address a few 
technical edits.
H.R. 3027--Reclamation Climate Change and Water Program Reauthorization 
        Act of 2023

    The American West faces serious water challenges. Increasing 
populations, competition for finite water supplies, along with drought 
and floods, all strain existing water and hydropower resources. At the 
same time, extended droughts are impacting water availability and 
climate change is likely to compound the impacts. Changes to 
temperature, precipitation (rainfall and snowfall), and the timing and 
quantity of snowpack and runoff pose a significant challenge to the 
protection and use of water resources. Ensuring a safe and secure water 
supply remains a fundamental pursuit for life in the West.
    The Science and Engineering to Comprehensively Understand and 
Responsibly Enhance Water Act (SECURE Water Act), included in the 
Omnibus Public Land Management Act of 2009, authorized several Interior 
programs to help address the Nation's water challenges. The Reclamation 
Climate Change and Water Program, along with other critical programs 
authorized by the SECURE Water Act, are set to expire at the end of 
Fiscal Year 2023. H.R. 3027 would extend the Reclamation Climate Change 
and Water Program authorization to 2033. The 2009 SECURE Water Act 
provided Reclamation with specific authority and responsibility to use 
appropriations to:

     Assess the risks from climate change to water supplies in 
            each major Reclamation river basin

     Analyze how such changes will impact various water uses 
            and services

     Coordinate and collaborate with other federal agencies, 
            including the United States Geological Survey and the 
            National Oceanic and Atmospheric Administration, to use the 
            best available science to assess changes to water supplies

     Provide resources to our partners and stakeholders to 
            collaboratively address current and future impacts to water 
            supply and demand

     Conduct Reservoir Operations Pilots to identify potential 
            improvements to reservoir operations to manage water 
            through increased extreme events (e.g., floods and 
            droughts). (For more information, please see: Reservoir 
            Operation Pilots/WaterSMART (usbr.gov))

    In carrying out the assessments, Reclamation has developed 
consistent, West-wide approaches to assess climate change risks and 
impacts to water resources as well as tools and information applicable 
Reclamation-wide. Reclamation has leveraged research and development 
activities when undertaking West-wide Climate Change Risk Assessments. 
These assessments provide consistent projections within the Program for 
Reclamation's WaterSMART (Sustain and Manage America's Resources for 
Tomorrow) Basin Study Program, where stakeholder-driven Basin Studies 
identify long-term water supply and demand imbalances and develop 
strategies and tools needed by water managers to address those 
imbalances. Non-Federal partners cost-share to evaluate the impacts of 
climate change and identify a broad range of potential strategies and 
tools to address current and future shortages.
    Since authorization in 2009, Reclamation has funded 32 Basin 
Studies in 15 Western States. Notable examples include the 2012 
Colorado River Basin Water Supply and Demand Study that identified an 
array of potential adaptation and mitigation strategies that are 
fundamental to the follow-on efforts underway today, and the 2019 Upper 
Deschutes Basin Study in Oregon that brought together different basin 
interests in working toward strategies to improve streamflow for 
ecosystem benefits while also recognizing the challenges facing 
irrigated agriculture. These studies have strengthened relationships 
with non-federal entities and have created a technical foundation 
contributing to inform and allow for additional follow-on efforts. 
Basin Studies have brought together partners with competing demands for 
water and have paved the way for a common understanding of hydrology 
and built a collaborative approach to identifying solutions, avoiding 
conflict, and providing an alternative to litigation.
    With our Federal, State, Tribal, and local partners, the Basin 
Study Program addresses challenges resulting from climate change and 
shifting demographics. Reclamation uses a multi-faceted approach to 
support reliable water and hydropower deliveries; to help maintain 
healthy ecosystems; to protect federally listed fish, wildlife, and 
plants, as well as designated critical habitat; and to manage risks 
(e.g., droughts, floods, and fires). Implementing the SECURE Water Act 
has served as a catalyst for collaboration and innovation, improving 
our understanding of climate change impacts to water resources and our 
ability to provide a way for water users to collaboratively address 
those impacts.
    Given the historic drought conditions experienced over the past 
decade, the authorities provided by the Section 9503 of the SECURE 
Water Act remain an important tool for Reclamation's mission. The 
Department supports H.R. 3027 and the reauthorization of the Climate 
Change and Water Program.
H.R. 3675--Western Water Accelerated Revenue Repayment Act

    The principle of ``beneficiaries pay'' has been a fundamental 
aspect of Reclamation law since the early 1900s, requiring that 
investments be repaid by the beneficiaries of that investment, except 
where that benefit is for the common welfare or accrues to taxpayers 
generally. Section 4011 of the Water Infrastructure Improvements for 
the Nation (WIIN) Act (P.L. 114-322) directed Reclamation to convert 
water service contracts to repayment contracts under Section 9(d) of 
the Reclamation Project Act of 1939, 53 Stat. 1195, allowing for full 
and accelerated repayment of capital obligations owed to Reclamation 
for facilities repayment upon a contractor's request, allowing for 
repayment, either in lump sum or by accelerated prepayment, of the 
remaining construction costs.
    Under Section 4011 of the WIIN Act, upon a contractor's compliance 
with and discharge of the obligation of repayment of the construction 
costs, certain provisions of the Reclamation Reform Act of 1982 (96 
Stat. 1269), including certain limitations on farm acreage and federal 
reporting requirements no longer apply.
    Section 4011(e) further provided that subject to several 
conditions, such prepayment of contracts beyond amounts necessary to 
cover forgone receipts from scheduled payments for 10 years after 
enactment shall be allocated to a Reclamation Storage Account to fund 
construction of water storage project, with a cap of $335,000,000.
    The direction provided by Congress under Section 4011 expired at 
the end of 2020. H.R. 3675 would amend Section 4013, allowing for the 
direction provided under Section 4011 to be extended with no 
expiration.
    Prior to expiration, Reclamation entered into agreements with 86 
contractors that requested consideration under Section 4011(a) for 
contract prepayment. While Reclamation received inquiries from other 
regions and projects, the vast majority of requests were from 
contractors that operate in the Central Valley Project (CVP) within the 
California-Great Basin Region. As such, if this Section were to be 
extended, it is unclear how many contractors would have interest. Since 
enactment of the WIIN Act, storage account funding from contract 
prepayment is currently $344 million.
    It should be noted that under Section 4011, any new irrigation 
repayment obligations taken on in support of new construction would be 
subject to the provisions of the Reclamation Reform Act.
    H.R. 3675 would allow for contracts repayment to be expediated, 
allowing for funding to more quickly be returned to the Treasury and 
provide additional flexibility for Reclamation's water users and 
contract holders. The Department looks forward to working with the bill 
sponsor and Subcommittee to address technical edits.

                                 ______
                                 

      Questions Submitted for the Record to Michael Brain, Deputy 
                Commissioner, U.S. Bureau of Reclamation
             Questions Submitted by Representative Boebert
    Question 1. Deputy Commissioner Brain, you testified that this bill 
provides ``additional flexibility for Reclamation's water users and 
contract holders.'' Can you go into more detail on that?

    Answer. Section 4011 of the Water Infrastructure Improvements for 
the Nation (WIIN) Act (P.L. 114-322) allowed Reclamation water users 
and contract holders to convert water service contracts into repayment 
contracts. The conversion allows for accelerated repayment of 
construction obligations owed to Reclamation for facilities repayment. 
As Section 4011 is a voluntary process, it gives contract holders an 
additional option to address their long-term needs. Further, under 
Section 4011, once contractors fully repay their construction 
obligation, they are no longer subject to the acreage limitation 
requirements of the Reclamation Reform Act. This would allow for use of 
Reclamation irrigation water on farming operations greater than 960 
acres.

    Question 2. Deputy Commissioner Brain, you testified that the 
Bureau of Reclamation worked with 86 contractors that requested 
consideration for contract prepayment when this was previously 
authorized. Can you further discuss the successes of the program and 
how the dollars collected from prepayment are being used?

    Answer. As noted, Reclamation entered into agreements with 86 
contractors that requested conversion of their water service contracts 
into repayment contracts under Section 401l(a) of the WIIN Act. Under 
Section 4011, the funding from these payments has been deposited in a 
Reclamation Water Storage Account to fund construction of water storage 
projects.

                                 ______
                                 

    Mr. Bentz. Thank you, Deputy Commissioner, and I now 
recognize Mr. Michael for 5 minutes.

STATEMENT OF CANNON MICHAEL, CHAIRMAN, SAN LUIS & DELTA-MENDOTA 
             WATER AUTHORITY, LOS BANOS, CALIFORNIA

    Mr. Michael. Good afternoon, Chairman Bentz, Ranking Member 
Huffman, members of the Subcommittee. It is a pleasure to be 
here. I do feel quite a long way from the farm sitting here in 
front of you, but I am pleased to be here.
    My name is Cannon Michael. I run my family's farming 
operation in the Central Valley of California. We grow over 20 
different crops, both organic and conventional. We also manage 
wildlife habitat that we own adjacent to the Grasslands 
Wildlife Management Area. And we have an active compost center 
on the farm, where we are taking green waste from urban centers 
to turn it into valuable compost on the farm and help avoid the 
organics going into landfills.
    Over my career in farming, I have become interested in 
California water issues and, obviously, it is essential to 
farming, but it is also essential to our communities and to all 
those around us and the environment.

    I became Chairman of the San Luis & Delta-Mendota Water 
Authority because of my interest in that organization and our 
27 members that have quite a bit of diversity with urban 
representatives of San Benito and Santa Clara. Over 2 million 
residents of California fall underneath the authority's 
umbrella, as well as over 1.2 million acres of irrigated 
farmland and over 130,000 acres of wetland habitat, being the 
grassland. So, Ag, urban, and environmental users all working 
together, which is essentially how I see the most sustainable 
pathway in terms of California water. And I am a Director on 
the Board of Directors of the Family Farm Alliance.

    I am here today testifying about H.R. 3675, and thanks to 
Congresswoman Boebert for bringing this forward.

    There has been a lot of discussion about the streamlining 
effect that this bill would have and the help that it is for 
our members, actually, for the water authority. Almost all of 
our members took advantage of this opportunity under the WIIN 
Act. You can find in my written testimony quite a bit more 
detail.

    I think one of the most important aspects of this bill is 
the provision that the funds repaid to the Federal Government 
will be deposited in the water storage account that can be used 
to construct new water facilities, which are desperately 
needed, not just in California, but throughout the West.

    Infrastructure is really the backbone of California. We 
saw, certainly this year, the importance in the extreme wet 
hydrology of the existing above-ground storage investments that 
were made many years ago to protect communities such as 
Sacramento and also provide the flood control benefits.

    I think we also, with the excessive hydrology, saw quite a 
bit of a missed opportunity in terms of a lot of water that was 
not able to be captured. So, having additional funding for 
water storage is critical.

    And I would also highlight, in light of climate change, 
cold water for anadromous fish is going to become increasingly 
important, so having some of that infrastructure will provide 
cold water pool for fish, which is important.

    Again, our members have seen a huge benefit. As was stated 
earlier, more than 80 entities have pursued that prepayment. I 
believe there are up to 200 that could still take part in this, 
so it certainly seems like an opportunity that should be 
extended and opened up to others. Again, it has been very 
beneficial for our folks.

    I am happy to take some questions, and with that I will 
yield my time.

    [The prepared statement of Mr. Michael follows:]
   Prepared Statement of Cannon Michael, Chairman, San Luis & Delta-
                        Mendota Water Authority
                              on H.R. 3675

    My name is Cannon Michael, and I am the Chairman of the San Luis & 
Delta-Mendota Water Authority. The San Luis & Delta-Mendota Water 
Authority (Water Authority or SLDMWA) serves 27 member agencies within 
the western San Joaquin Valley, San Benito and Santa Clara counties, 
who provide water service to approximately 1,200,000 acres of irrigated 
agriculture, over 2 million people, and more than 130,000 acres of 
wetlands providing habitat critical to migratory waterfowl along the 
Pacific Flyway. I also serve on the Board of Directors of the Family 
Farm Alliance (Alliance) which has supported giving Reclamation 
accelerated repayment authority for nearly two decades and also endorse 
my comments.
    Thank you for the opportunity to testify on H.R. 3675, a bill to 
amend the Water Infrastructure Improvements for the Nation Act to 
extend certain contract prepayment authority. The Water Authority and 
the Alliance fully support enactment of this bill, which will extend 
important, win-win authorities that allow water users to accelerate 
repayment of capital construction costs for Reclamation facilities. We 
appreciate Congresswoman Boebert for introducing this bill and want to 
thank all of the co-sponsors.
H.R. 3675 and Accelerated Repayment

    Since its inception, the Reclamation program has generally operated 
under the principle that the federal government expends the upfront 
capital to construct water projects, with those capital costs repaid by 
the beneficiaries of the projects under a contract with the Bureau of 
Reclamation. Under Reclamation law, repayment obligations to the 
federal government are typically repaid over as long as 40 or 50 years 
through either a repayment contract or a water service contract. Water 
users are also responsible for operations and maintenance (O&M) costs 
of Reclamation facilities.
    While both repayment and water service contracts ensure all capital 
and O&M costs of the associate Reclamation facilities are paid, the 
structure of repayment and application of regulations after all capital 
cost have been repaid differ. For repayment contracts, capital is 
amortized over the contract term (which is often determined by 
Congress) at a fixed, annual payment and O&M is paid as it is incurred. 
Water service contracts on the other hand, pay a combined rate for 
water delivered that includes in capital repayment, O&M, and in some 
cases, other costs that Congress has allocated to water users.
    Once a Reclamation contractor has fulfilled all its capital 
repayment obligations, those facilities are considered ``paid out.'' As 
discussed further below, under current law, paid out repayment 
contractors are no longer subject to restrictive acreage limits and 
certain other regulations in Reclamation law. Water service contractors 
do not get the same relief upon full repayment of capital obligations.
    In the past, Congress has specifically allowed early repayment for 
certain projects or facilities, though until a temporary authorization 
was enacted in the Water Infrastructure Improvements for the Nation Act 
(WIIN Act; P.L. 114-322) there was no general allowance or prescribed 
process in Reclamation law to allow accelerate payout. That authority 
has now expired.

    H.R. 3675 would extend these WIIN Act authorities and allow 
Reclamation contractors that remain interested in early repayment to 
pursue such an action with the agency. Specifically, H.R. 3675 would 
permanently address the numerous important aspects of Reclamation law 
relevant to accelerated repayment, including:

     Allowing for conversion from a water service contract to a 
            repayment contract for agricultural and municipal 
            contractors.

     Authorizing prepayment of capital costs through a lump sum 
            or with accelerated installments.

     Clarifying that current law related relief from acreage 
            limits, reporting requirements, and other components of the 
            Reclamation Reform Act (RRA) applies to all contractors 
            that pay out capital costs early under this authority, 
            while ensuring continued compliance with Reclamation law 
            and relevant requirements.

     Establishing a discount rate to determine present value 
            for the purposes of repayment.

     Prohibiting power revenues from being used in repayment of 
            capital costs under this authority.

     Ensuring that accelerated repayment will not affect the 
            repayment obligations of other Reclamation contractors.

     Ensuring that any remaining costs, including O&M, that are 
            not part of the accelerated repayment remain the obligation 
            of the contractor.

    As outlined further below, accelerated repayment can bring several 
benefits for Reclamation contractors and the federal government, and we 
fully support making the pathway to those benefits permanent though 
enactment of H.R. 3675.
Benefit of Accelerated Repayment for Water Users and the Federal 
        Government

    Reclamation contractors pursue accelerated repayment of their 
capital obligations for various reasons depending on their unique 
circumstances. One common reason water users pursue accelerated 
repayment is to remove the acreage limits and reporting requirements 
established by the RRA which can be cumbersome and restrictive.
    The RRA, enacted in 1982, modified Reclamation law by increasing 
the per owner limits on acreage that can receive Reclamation water, 
while also requiring that those limits account for all of a 
contractor's land, including lands that are leased or in another 
Reclamation project boundary. RRA also established increased water 
prices (so called full-cost water) for water delivered to lands in 
excess of established limits and requires extensive reporting and 
paperwork each year. As referenced above, under current law, 
contractors that are considered paid out under a repayment contract are 
no longer subject to these RRA requirements, while water service 
contractors remain subject to RRA limitations and reporting even after 
capital repayment is complete. The efficiencies gained by removing RRA 
restrictions and requirements can be significant and lead many 
contractors to seek pay out sooner than their contract would otherwise 
require.
    Additionally, paying out federal obligations increases certainty 
for contractors regarding long-term water supply, allows entities that 
are interested to pursue title transfer in order to increase financing 
opportunities and streamline approvals, and achieves other specific 
goals like avoiding RRA related Securities and Exchange Commission 
disclosures for publicly traded companies.
    From the Federal perspective, authorizing early repayment will 
accelerate Treasury receipts and raise revenue for the federal 
government. Importantly, H.R. 3675 would ensure that all contractual 
repayment obligations are repaid in full at present value, including 
some that currently do not carry interest, ensuring that no additional 
costs are shouldered by U.S. taxpayers.
    However, the benefits from utilizing Sec. 4011 contract conversion 
authority benefits more than a specific project or the Treasury. Funds 
received from prepayment or accelerated repayment are held in a 
Treasury account to be used for funding additional water storage 
projects. The western United States has been experiencing significant 
variations in hydrology, ranging from drought to flooding, and 
expediting funds back to the federal government that can be turned 
around to support additional water storage is of upmost priority. In 
California, if the past few years have shown us anything, it's that we 
must continue investing in additional water storage capacity so that we 
can capture more water in wet periods like the ones we saw this year 
that can be used in dry periods like we've had over the prior few 
years. Since the WIIN Act was signed into law, more than 80 entities 
have pursued prepayment of their federal obligations under the Sec. 
4011 authority--which includes nearly all of our 27 members at the 
Water Authority. These numbers illustrate the need and desire in our 
region to utilize the Sec. 4011 authority under the WIIN Act, and the 
legislation would allow other regions and water managers to consider 
the benefits. H.R. 3675 permanently extends the Sec. 4011 authority 
which expired in 2021, allowing the opportunity for more entities to 
pursue contract conversions and prepayment while significantly 
expediting receipts to the Treasury.
Conclusion

    Thank you again for the opportunity to testify. We urge the 
subcommittee to pass H.R. 3675 which will extend the benefits of early 
repayment for additional Reclamation contractors and the federal 
government. We look forward to working with the bill sponsor and the 
Subcommittee on this proposal and stand ready to answer any questions 
you might have.

                                 ______
                                 
Questions Submitted for the Record to Mr. Cannon Michael, Chairman, San 
                  Luis & Delta-Mendota Water Authority
Mr. Michael did not submit responses to the Committee by the 
appropriate deadline for inclusion in the printed record.
             Questions Submitted by Representative Boebert
    Question 1. Chairman Michael, thank you for your excellent 
testimony and for making the trip. I greatly appreciate the Water 
Authority's support of my bill. H.R. 3675. As you are aware, Colorado 
and the West have suffered from extreme drought in recent years. Water 
Storage projects are a great tool to help supply our communities with 
clean water in dry times.

    Can you elaborate how the funding generated from this common-sense 
bill will lead to more water storage projects in the West?

    Question 2. Chairman Michael, I know you touched on it your written 
testimony, but is this bill good for taxpayers and if so, can you 
explain why?

    Question 3. Chairman Michael, can you further discuss how removing 
the RRA limitations and burdensome requirements benefits contractors?

    Question 4. Chairman Michael, can you elaborate on how H.R. 3675 
will permanently address the numerous important aspects of Reclamation 
law in relation to accelerated repayment?

    Question 5. Chairman Michael, in this country, would we ever tell a 
homeowner they couldn't pay off their home loan early? How about 
someone with a car loan, we allow hard-working Americans to pay off 
their car loans early if they are able to, correct?

    Do you agree agriculture and municipal water users should also be 
able to pay off what they owe through a similar, permanent program?

                                 ______
                                 

    Mr. Bentz. Thank you, Mr. Michael, and I now recognize Ms. 
Meyers for 5 minutes.

STATEMENT OF LESLIE MEYERS, ASSOCIATE GENERAL MANAGER AND CHIEF 
WATER RESOURCES EXECUTIVE, SALT RIVER PROJECT, PHOENIX, ARIZONA

    Ms. Meyers. Thank you, Chairman Bentz, Ranking Member 
Huffman, and members of the Subcommittee. I am Leslie Meyers, 
the Associate General Manager and Chief Water Executive for the 
Salt River Project. Thank you for the opportunity to testify in 
support of H.R. 1607, legislation clarifying the Bureau of 
Reclamation's jurisdiction over the development of hydro pumps.
    SRP has been serving Arizona since 1903, almost 10 years 
before Arizona became the 48th state. Today, we are the third-
largest not-for-profit, community-based public power entity in 
the country, providing sustainable, reliable, and affordable 
electricity to nearly 3 million people.
    SRP is also the largest raw water provider in the Phoenix 
Metropolitan Area. Formed at the turn of the 20th century to 
contract with the Federal Government for construction of 
Theodore Roosevelt Dam, SRP manages and operates seven Bureau 
of Reclamation dams and reservoirs.
    SRP began generating hydropower in 1906, later 
incorporating pumped-back storage between the reservoirs to 
provide resiliency to the system.
    Today, SRP's diverse energy portfolio includes solar, wind, 
geothermal, natural gas, coal, nuclear, and, of course, 
hydropower.

    As SRP adds significantly more solar to our power system, 
we will need long-duration storage to store excess solar 
generated during the day, and to dispatch it overnight to 
ensure reliable service around the clock. SRP is currently 
incorporating 1,100 megawatts of new 4-hour battery storage. 
Additionally, we are developing an option of adding 2,000 
megawatts of longer-duration pumped storage along Apache Lake 
on the Salt River that will be capable of generating power for 
up to 10 to 12 hours.

    Simply put, pumped storage facilities push water uphill 
from a lower reservoir to an upper reservoir when energy is 
available, like when solar is generating during the day. Then, 
when energy is needed back on the grid, water is allowed to 
flow back downhill through the turbines to generate 
electricity. Pumped storage facilities are straightforward and 
proven technology, and in this case we will use existing 
infrastructure.

    SRP is evaluating two sites for the development of new 
pumped storage. Both are located almost entirely on National 
Forest System lands previously withdrawn for Reclamation 
purposes by Congress and the Secretary of the Interior 
specifically to store water and generate hydropower for the 
beneficiaries of the Salt River Federal Reclamation Project. A 
portion of both of those sites lies just outside the existing 
withdrawal.

    H.R. 1607 addresses this deficiency by extending the 
existing withdrawal to cover both sites, which clarifies 
jurisdiction and facilitates project development. The extension 
provided in H.R. 1607 would align the development and 
management of any new pumped storage facility with SRP's 
current care, operation, and management of our existing 
reclamation facilities.

    To provide historical context, Congress and the Secretary 
of the Interior have withdrawn National Forest System lands on 
the Salt River Project watersheds more than 50 times since 1903 
to facilitate appropriate development and operation of the 
reclamation project components, like dams, reservoirs, canals, 
pipelines, and our hydropower facilities.

    It is important to note that this legislation does not 
remove the need for any Federal or state environmental 
permitting or public input processes, or tribal consultations. 
SRP is committed to working with Federal agencies, Tribal 
Nations, and many other stakeholders interested in this 
project.

    The Bureau of Reclamation, Tonto National Forest, and SRP 
will continue to coordinate on land management decisions within 
the proposed withdrawal, just as we do today under an existing 
tri-party agreement.

    Thank you, Chairman Bentz and Ranking Member Huffman, for 
this opportunity to testify today. I look forward to answering 
questions, and hope that we can continue to build off this 
important work being done under H.R. 1607.

    [The prepared statement of Ms. Meyers follows:]
   Prepared Statement of Leslie A. Meyers, Associate General Manager,
                           Salt River Project
                              on H.R. 1607

    Chairman Bentz, Ranking Member Huffman, and members of the 
Subcommittee, thank you for the opportunity to testify before you today 
in support of H.R. 1607, legislation to clarify jurisdiction with 
respect to the development of pumped storage on the Salt River in 
Arizona. My name is Leslie Meyers and I am the Associate General 
Manager & Chief Water Resources and Services Executive at Salt River 
Project (SRP).
The Salt River Project (SRP)

    SRP was formed at the turn of the 20th century to contract with the 
federal government for the construction of Theodore Roosevelt Dam, and 
other components of the Salt River Federal Reclamation Project. SRP 
manages and operates seven dams and reservoirs throughout Arizona, 
along with 1,300 miles of canals, laterals, ditches, and pipelines to 
deliver water to approximately 400 square miles of land in the greater 
Phoenix area. The dam and reservoir system can store approximately 2.3 
million acre-feet of water runoff from the Salt and Verde River and 
East Clear creek systems, making SRP the largest raw water provider in 
the Phoenix Metropolitan area.
    SRP is also the third largest not-for-profit community based public 
power utility in the country, providing reliable, affordable, and 
sustainable electricity to nearly 3,000,000 people in Arizona. SRP has 
a diverse energy portfolio that includes nuclear, solar and wind, 
natural gas, battery storage, coal, geothermal and hydropower.
Need for Energy Storage and System Operational Flexibility

    SRP is making transformative changes to its power generation 
resource portfolio over the coming decade and beyond. In addition to 
incorporating 1,100 MW of new four-hour battery storage by 2024, SRP is 
also exploring long-duration pumped storage hydropower options. As more 
renewable resources are added to the power system to meet projected 
growth in energy demand, there will be an increasing need for a diverse 
portfolio that includes longer-duration energy storage capable of 
providing grid resiliency, that can store the large amount of solar 
energy generated during the day and provide reliable electricity in the 
evening hours.
    SRP developed and operates 150 MW of pumped storage hydropower 
generation on the Salt River dam and reservoir system. For more than 40 
years, these pumped storage facilities have provided reliable 
electricity and confidence that bringing additional pumped storage onto 
SRP's system will help meet changing customer preferences and needs. 
SRP has identified two sites adjacent to Apache Lake that can power the 
equivalent of up to 500,000 homes by storing solar and other energy 
during the day and delivering it during the evening. Each site would 
use an existing reservoir (Apache Lake) as the lower reservoir and 
require construction of a new upper reservoir. A 2014 Bureau of 
Reclamation study \1\ (Reclamation-Wide Pumped Storage Screening Study) 
found that adding pumped storage to Apache Lake as a lower reservoir 
ranked 3rd out of 348 reservoir locations studied.
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    \1\ Reclamation-Wide Pumped Storage Screening Study: https://
www.usbr.gov/power/data/Pumped_Storage_Assessments/
Pumped_Storage_Screening_Study_Report_(Errata1_2)_Sep_ 2020.pdf
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    These facilities would help provide a portion of the long-duration 
energy storage while maintaining grid reliability and diversifying 
energy storage resources and supply chains. Leveraging the resiliency 
of SRP's existing reservoir system on the Salt River provides a 
reliable renewable water source for pumped storage operations even 
during severe drought.
History of SRP as a Reclamation Project & Associated Reclamation 
        Withdrawn Lands

    Congress and the Secretary of the Interior (Secretary) authorized 
the construction of the Salt River Federal Reclamation Project as one 
of the first projects under the Reclamation Act of 1902. The major dam 
sites, storage reservoirs, and hydropower generating facilities that 
SRP operates and maintains are located on National Forest System lands 
that Congress and the Secretary withdrew for the Reclamation purpose of 
storing water and generating hydropower for beneficiaries of the Salt 
River Federal Reclamation Project.
    Since 1903, Congress and the Secretary have withdrawn certain 
National Forest System lands on the Salt and Verde River and East Clear 
Creek watersheds more than 50 times to further these Reclamation 
purposes.
Purpose of Legislation

    In 1905, Congress and the Secretary withdrew the majority of the 
National Forest System lands adjacent to Apache Lake where the two 
potential pumped storage sites are located. H.R. 1607 would extend this 
withdrawal by two miles to capture the upper reservoir sites and 
associated infrastructure to clarify that the Bureau of Reclamation has 
jurisdiction to evaluate the development of such facilities. 
Accordingly, the legislation would align the jurisdiction, planning, 
development, operation and maintenance of any such facilities with 
other facilities of the Salt River Federal Reclamation Project 
including that: (1) the exploration, planning and development of such a 
project would be completed under Reclamation's jurisdiction rather than 
permitting processes under the Federal Energy Regulatory Commission 
regulations, (2) Reclamation would lead environmental compliance for 
the development of such facilities, (3) any such facility would be part 
of Reclamation's Safety of Dams Program, and (4) other uses on such 
National Forest System lands that do not conflict with Reclamation 
purposes could continue.
    It is important to note that the legislation does not remove the 
need for federal and state environmental permitting and public input 
processes including but not limited to those required under the 
National Environmental Policy Act, Endangered Species Act, Tribal 
consultations, National Historic Preservation Act and Bald and Gold 
Eagle Protection Act.
Summary

    Thank you for the opportunity to testify today in support of H.R. 
1607. I look forward to answering any questions you may have.

                                 ______
                                 

    Mr. Bentz. I thank the witnesses for their testimony, and I 
will now recognize Members for 5 minutes each for their 
questions. We will begin with Representative Hageman for 5 
minutes.

    Ms. Hageman. Thank you, Mr. Chairman, and thank you to the 
witnesses.
    Mr. Brain, I just have a couple of real quick questions for 
you. You talked an awful lot about climate change in your 
statement. What have you done in terms of working with the 
National Forest Service to address the mismanagement of our 
national forests, the catastrophic forest fires, pine beetle 
outbreak, and those kinds of things in terms of the impact on 
our reservoirs in the interior West?
    Mr. Brain. Congresswoman, thank you so much for the 
question. We work collaboratively with a number of our sister 
agencies throughout the Federal Government. I would be happy to 
get back to you on the specifics of exactly how we collaborate 
with them.
    Ms. Hageman. You don't have those answers today?
    Mr. Brain. I don't, ma'am, but I can tell you----
    Ms. Hageman. OK, but you can talk a lot about climate 
change, but you can't talk about the impact of the Forest 
Service that they are having on our reservoirs in the interior 
West?
    Mr. Brain. In an effort to accurately answer your question, 
I would like to get back with you with the specifics of those 
interactions. But I can tell you that we do share science with 
them to ensure that they are making decisions based off of the 
best available science that we have in the Federal Government.
    Ms. Hageman. Sure. And I would also like to thank the 
gentlelady from Colorado for introducing H.R. 3675, which I am 
proud to co-sponsor. It allows water users to make payments 
more quickly and remove the burden of lengthy reporting 
requirements established by the Reclamation Reform Act. It 
accelerates Treasury receipts, while ensuring that all actual 
obligations for repayment are being repaid at present value.
    Perhaps most importantly, as Mr. Michael highlighted in his 
testimony, this legislation will increase certainty for 
contractors regarding their long-term water supply. And 
providing this kind of certainty is extremely important to the 
West.
    Mr. Michael, you highlighted in your testimony the need to 
incentivize construction of additional water storage so that we 
can catch more water in wet periods, such as what we have seen 
this winter and this spring. Mr. Michael, how have you already 
seen the success of the Water Infrastructure Improvements for 
the Nation, or the WIIN Act, which we intend to permanently 
reauthorize through this legislation, strengthen Western water 
storage capacity? How has the WIIN Act impacted that?
    Mr. Michael. The WIIN Act has given opportunities for our 
members to pursue numerous different projects. So, in addition 
to the contract repayment, which has been very helpful, it has 
also incentivized, under the WaterSMART Program, many different 
projects within our member agencies to help accelerate, again, 
creative solutions to deal with the water supply challenges 
that we have. So, it is really an ability to put more dollars 
to work, and more projects on the table.
    Ms. Hageman. And you also highlighted in your testimony 
that it is typical for water users to continue making these 
payments for 40 to 50 years through a repayment contract or 
water services contract on top of the operations and 
maintenance facility payments. How have you seen the process of 
needing to do this annually stifle the confidence of 
developers, and ultimately prevent water projects from being 
developed?
    Mr. Michael. It is just another layer of difficulty and 
just challenge of every year filing numerous papers. And our 
districts are already challenged with a number of regulatory 
requirements, and it just adds to the strain already, and 
speaks to the affordability for our water users to have a huge 
amount of staff time taken up with the reporting requirements 
on top of everything else we have to do.
    Ms. Hageman. Just more bureaucratic red tape.
    Mr. Michael. A lot more work.
    Ms. Hageman. OK. So, is it safe to say that the length and 
complexity of the current process deters water project 
development?
    Mr. Michael. I don't think it helps. I mean, it definitely 
doesn't help at a time when we certainly need acceleration 
versus more difficulties.
    Ms. Hageman. And you specifically stated that the RRA 
required extensive reporting and paperwork each year for water 
delivered to lands in excess of the established limits, but 
that prepayments opened the door to removing these limitations. 
I have constituents who have been forced to either pay heavy 
fees or establish new entities every time a new operation 
exceeds 960 acres. I have one constituent who called in because 
he has had to establish five different entities at the 
recommendation of the Bureau of Reclamation, by the way, to 
avoid these fees.
    Does this legislation allow irrigators bound by the 960 
limitation to no longer be subject to those requirements if 
they make the prepayments?
    Mr. Michael. Yes, that is correct. And I would say that, in 
California, especially the regulatory burdens and just the cost 
in all aspects are forcing scale for a lot of farms. So, if you 
are operating, it is more efficient to have scale and 
effective. So, again, it is helpful to have that.
    Ms. Hageman. You bet. Thank you, and that is excellent. 
This is a great piece of legislation. I am deeply appreciative 
of the gentlelady from Colorado for leading on this.
    And I will take you up on that offer. I would sure like to 
find out the information from the Bureau of Reclamation as to 
what they are doing to work with the U.S. Forest Service to 
prevent the kind of catastrophes that we have seen that impact 
our reservoirs and our ability to store water. I look forward 
to that information.
    Mr. Brain. Certainly, Congresswoman. We look forward to it, 
as well.
    Mr. Bentz. Thank you, Ms. Hageman. The Chair now recognizes 
Ranking Member Huffman for 5 minutes.
    Mr. Huffman. Thank you, Mr. Chairman. And the heavy, 
burdensome fees that were just being discussed for farms over 
960 acres, the translation for folks that don't know some of 
this arcane lingo, that means you just pay the full cost of the 
water. You don't get a subsidy. The terms we use are very 
important sometimes.
    Mr. Brain, I want to ask you a little more about H.R. 3675. 
As I mentioned in my opening remarks, prior language along 
these lines has been objected to by taxpayer advocates and many 
others. H.R. 3675 would permanently codify this language. And 
in testimony before this Committee with a previous version of 
this language, the Obama administration said, and I quote, 
``There are concerns with the financial and discounting 
language in the bill, including the offer of a discounted 
repayment.'' And the testimony goes on to cite the 
``discounting at half the Treasury rate with respect to 
outstanding contract or repayment obligations.''
    The legislation before us today would permanently extend 
that same discounting repayment at one-half the Treasury rate 
for Federal water contractors, which was only in place for 5 
years when this language was, at the last minute, inserted into 
the WIIN Act. And when the CBO took a look at this in 2014, it 
found that taxpayers would lose $530 million in foregone 
receipts to the Treasury over the period from 2025 to 2050.
    So, Deputy Commissioner Brain, I want to just ask if the 
Bureau has assessed the long-term effects of this legislation 
with respect to payments to the Treasury, and if, in fact, this 
would result in significant losses to the Treasury, foregone 
receipts from Federal water contractors. Is that something that 
would concern you?
    Mr. Brain. Thank you so much for the question, Ranking 
Member Huffman.
    We have not assessed the long-term impacts. The reality is 
that it would result in reduced payments into the reclamation 
fund, but it would also result in increased payments into the 
storage account that was mentioned earlier. So, without knowing 
which Reclamation partners are specifically interested in 
utilizing this authority, it is a little difficult to gauge 
what the potential scope of the problem could be.
    Mr. Huffman. If it resulted in significant losses to the 
Treasury, though, is that something that would be a concern?
    Mr. Brain. It certainly would be. From our perspective, the 
reclamation fund really is something we rely on very heavily to 
respond to drought.
    One of our main concerns, however, with the legislation is 
that the funds that would be meant to be kept for project 
purposes would be going into the storage account. So, there 
could be some unintended consequences there, and we would be 
happy to work with the Committee on technical amendments that 
would address those concerns.
    Mr. Huffman. I appreciate that. I want to ask about the 
acreage limitation piece.
    Concerns have also been raised about allowing water 
contractors to immediately convert to new contracts that won't 
require interest charges for all water delivered above that 
960-acre threshold, essentially accelerating the delivery of 
federally subsidized water beyond small farms to large farming 
operations. That is a significant public policy departure.
    And I just want to ask if you could tell us how the 
Reclamation Reform Act requirements that codified that acreage 
limitation would change for contractors who converted their 
water contractors under the terms of this bill.
    Mr. Brain. Thank you again for the question, Ranking Member 
Huffman.
    A reclamation principle, a long-standing principle, has 
been beneficiary pays. I believe you mentioned it earlier. Two 
of the contractual mechanisms whereby the beneficiary does pay 
for projects is the water service contract and the long-term 
contracts.
    Allowing stake holders, which has been done in the past 
utilizing this authority, to convert from the first type of 
contract to a longer-term contract, but also pay it up front, 
would have impacts. And one of the impacts would mean that they 
would satisfy their obligations of the contract sooner, meaning 
that they will have fulfilled their obligations on the 
Reclamation Reform Act sooner than they would have.
    Mr. Huffman. And subsidized water would go to larger farms, 
right?
    Mr. Brain. Perhaps.
    Mr. Huffman. Thank you.
    I yield back.
    Mr. Bentz. Thank you, Ranking Member Huffman. The Chair now 
recognizes Congressman LaMalfa for 5 minutes.
    Mr. LaMalfa. Thank you, Mr. Chairman.
    Chairman Michael, you mentioned that funds received from 
prepayment or accelerated payment are held in a Treasury 
account to be used for funding additional water storage 
projects, correct?
    Mr. Michael. Yes.
    Mr. LaMalfa. OK. So, California, obviously, needs to 
accelerate its water storage capacity, its developments, to 
take advantage of years like this one. I mean, look how much 
water we are losing out on right now due to the massive excess 
that we have been blessed with this year. It seems shameful.
    We have pretty much Lake Shasta and Lake Oroville topped 
off. I think Folsom will top off here. New Melones is doing 
pretty good. It is a little tougher one to fill, of course. San 
Luis Reservoir, they managed to get that filled up. But Trinity 
Lake is lagging way behind. But we are doing pretty good, for 
the most part.
    So, when talking about the repayment and such, from your 
experience, what group of water users do you believe would want 
to take advantage of this early repayment option you are 
talking about? From the people you associate with or, more 
particularly, to your district.
    Mr. Michael. So, more than 90 percent of our districts 
underneath the umbrella of our agency have taken advantage of 
the repayment process under the WIIN Act and the contract 
conversions. So, it is very popular in our area, and was used 
widely and, again, seems like that should be extended as an 
opportunity for others. But it varies, I think, by 
circumstance.
    Mr. LaMalfa. You see it as a good value for the taxpayer?
    Mr. Michael. I do. Again, there are trade-offs with 
accelerating payments. But money being directed more readily 
and quickly, potentially for water storage projects, I think, 
is very valuable in light of what we are facing in California 
and throughout the West.
    Mr. LaMalfa. Certainly. We have opportunities right now 
that are close to the top of the books. Actually, in my 
neighborhood, with a possible raise of Shasta Dam, you need 
630,000 acre feet when you fill it, and then Sites Reservoir, 
which would also impound 1.5 million acre-feet, we would 
probably have 700,000 or 800,000 right now if it existed. So, 
certainly, we need to look at all these aspects.
    Deputy Commissioner Brain, as you had mentioned, with the 
enactment of the WIIN Act, storage funding from contract 
prepayments is currently $344 million. Is that a correct 
number?
    Mr. Brain. It sounds correct, sir, but I would have to get 
back to you on whether that is the actual----
    Mr. LaMalfa. Ballpark is fine, OK.
    So, the question I posed to Chairman Michael, do you have 
an estimate for how much we might expect the Treasury's account 
for water storage projects to increase with the passage of H.R. 
3675?
    Mr. Brain. No, we don't right now. I would be happy to work 
with you and your staff on that.
    The difficulty is we don't know the extent nor the type of 
entities that would be interested in utilizing this authority. 
We have the past experience that we have that was mentioned, 
the success of utilizing the authority with respect to the 86 
users that have already benefited from it. But without knowing 
more about the specifics of the types of entities that are out 
there that could use this in the future, we really are unaware 
of the impacts.
    Mr. LaMalfa. How about from existing program authorities? 
What recommendations would the Bureau be looking at that we 
could, with existing authority, be able to expand storage 
projects?
    Mr. Brain. I am sorry, sir, I don't particularly understand 
the question.
    Mr. LaMalfa. Does the Bureau have recommendations using 
existing program authorities to increase water storage project 
funding?
    Mr. Brain. No, certainly, one of the things we are doing, 
Congressman, is utilizing the funding provided to us by the 
Bipartisan Infrastructure Law to increase storage opportunities 
in the West. We have invested significant resources that were 
provided to us by the Bipartisan Infrastructure Law, and we 
stood up a new small storage program to do so, as well.
    Mr. LaMalfa. OK. With legislation like the WIIN Act, that 
was a very bipartisan effort, there are contentions made that 
important regulations might be pushed aside with a passage of 
Representative Boebert's bill. Do you agree with that 
estimation that, indeed, regulations will be pushed aside?
    Mr. Brain. I would say that we agree that there would be a 
reduction in the administrative burdens that do currently 
exist.
    Mr. LaMalfa. So, the burdens to your ability to carry out 
your tasks, your duties would be reduced.
    Mr. Brain. It would be the burdens on the project partners, 
like the ones that my colleague detailed earlier.
    Mr. LaMalfa. Yes. So, a plus. OK.
    I see my time is expired, Mr. Chairman, I yield back.
    Mr. Bentz. Thank you, Mr. LaMalfa. The Chair recognizes Ms. 
Porter for 5 minutes.
    Ms. Porter. Thank you very much, Mr. Chairman.
    About half of the members of this Subcommittee represent 
residents of the Colorado Basin states. Deputy Commissioner 
Brain, how does Reclamation's Basin Study Program prevent these 
fine folks, our constituents, from going thirsty?
    Mr. Brain. Thank you very much for the question, 
Congresswoman.
    The Basin Study Program really is a unique authority within 
Reclamation's portfolio. It allows us to bring together 
multiple types of stakeholders in a particular river basin to 
really gain intelligence as to what problems are facing their 
water scarcity issues in the future, and also what tools they 
may have in their quiver to be able to deal with those in the 
future.
    Ms. Porter. What are the biggest problems? What are the 
biggest failures of the Basin Study Program at this time?
    Mr. Brain. Congresswoman, again, I appreciate the question.
    I would say that a reauthorization of the Basin Study 
Program would allow Reclamation to continue partnering with 
their stakeholders to ensure that we continue to carry out the 
work that is already going on.
    Ms. Porter. So, here we have a successful government 
program that is collaborating with different kinds of 
stakeholders--private, public--at different levels of 
government. And the biggest problem it has is that it is not 
reauthorized.
    Deputy Commissioner Brain, without the Basin Study Program, 
how will it be harder for utilities to provide water?
    Mr. Brain. Where do we start? The challenges facing our 
Western partners in Reclamation's mission are immense, and they 
are exacerbated by climate change. You, yourself, in the state 
of California have experienced compounding years of drought, 
followed by significant atmospheric rivers that came through in 
the early part of this year.
    What the Basin Study program does is allow us to work with 
our partners, who can be state, they can be local, they can be 
tribal, they can be water managers, to really come up with a 
suite of tools that identify the problems and utilize the best 
available science to address those in the future. And that 
could even point them toward funding decisions they may make.
    Ms. Porter. Could our constituents go thirsty or have 
limited water during a drought if we don't manage our water 
resources as carefully as possible?
    Mr. Brain. Reclamation's mission, Congresswoman, is to 
provide water and power to our Western states. And, certainly, 
climate change and water scarcity is challenging our ability to 
carry out that mission.
    Ms. Porter. This is a very sort of basic question, but what 
happens when people go thirsty, are thirsty?
    Mr. Brain. I would say again the mission of the Bureau of 
Reclamation is to provide water and power to them. The first of 
those would be water, because it is primary to the needs of our 
colleagues out in the West.
    Ms. Porter. I noticed this Committee always very kindly 
provides water for all of its Members because it is not fun to 
go thirsty. It is not good for your health. Does any Member of 
Congress here want their constituents to go thirsty?
    Chairman Bentz, I knew you wouldn't raise your hand. When 
you put this bill up for a legislative hearing, I knew you were 
serious about stopping Americans from being thirsty, and I need 
your help with the next step. I would love to have your 
commitment to marking up this bill and getting it onto the 
Floor.
    I would like to yield to you for a yes or no response.
    Mr. Bentz. That is very kind of you, but I think I will 
pass until I read your bill more carefully.
    Also, I am going to be asking some questions of the Deputy 
Commissioner regarding the exact value of the program. I did 
reach out, just for your information, to folks who have used 
this program in the past. One didn't even remember it, and the 
other one was modestly supportive. We will continue to look 
into it.
    Ms. Porter. Well, I appreciate your engagement, Mr. 
Chairman, and I am looking forward to providing some more 
information to you about how this program helps folks in 
California, where we hear a lot of good things about it.
    I would like to ask unanimous consent to insert into the 
record a letter of support that my office received yesterday 
from the National Water Resources Association for this bill, 
H.R. 3027. Specifically, they are supporting this bill, as long 
as I make the change to the 7-year reauthorization, which I 
already signaled that I would do. May I enter this into the 
record?
    Mr. Bentz. Without objection.
    Ms. Porter. Thank you.
    We have 3 months to extend this program. We have about 3 to 
4 weeks left in our June, July, August before we hit that 
September reauthorization deadline. I really appreciate the 
Chairman's interest in this issue, and I look forward to 
hearing his questions to the Deputy Commissioner.
    I yield back.
    Mr. Bentz. Thank you, Ms. Porter. The Chair now recognizes 
Representative Gonzalez-Colon for 5 minutes.
    Mrs. Gonzalez-Colon. Thank you, Mr. Chairman.
    Chairman Michael, in your testimony you explained that 
since the WIIN Act was enacted into law, over 80 entities, 
including nearly all of the 27 members of the San Luis & Delta-
Mendota Water Authority, have pursued repayment of their 
Federal obligations under section 4011 authority.
    My question will be could you discuss some of the reasons 
that might explain why these entities and other Reclamation 
contractors pursue accelerated repayment of their capital 
obligations?
    And what benefits do they gain from prepaying their 
outstanding Federal obligations using the authorities provided 
under section 4011 of the WIIN Act?
    Mr. Michael. As has been highlighted a little bit, one of 
the common reasons that water users pursue accelerated 
repayment is to remove the acreage limits and reporting 
requirements established by the Reclamation Reform Act, or RRA, 
which are very cumbersome and restrictive.
    The efficiencies gained by removing the RRA restrictions 
and requirements can be significant and lead many contractors 
to seek paying out their contracts sooner, which is one of the 
primary reasons. And it also increases some certainty for 
contractors regarding long-term water supply, and allows 
entities to pursue title transfer in order to increase 
financing opportunities and streamline approvals.
    So, each entity has a different calculus that they look at 
as to why, but, essentially, probably those are the top 
reasons.
    Mrs. Gonzalez-Colon. Thank you, Mr. Chairman. And how does 
the Federal Government and the American taxpayers benefit from 
this authority provided under section 4011, allowing 
agricultural and municipal water users to prepay outstanding 
obligations?
    And how will permanently authorizing this section, as this 
bill, H.R. 3675, seeks to do, benefit both Reclamation 
contractors and the Federal Government?
    Mr. Michael. I think the primary is getting the dollars 
back to the Treasury earlier than would be in the drawn-out 
process of the long-term repayments.
    And then also, as highlighted, that money going into the 
water storage account is helpful to get badly-needed projects 
that have time sensitivity based on what we are seeing from the 
changing climate, and the variability that we are seeing, and 
the droughts. So, again, we need projects in a more rapid time 
frame, and this would essentially get those payments upfront 
into that water storage account faster.
    Mrs. Gonzalez-Colon. Thank you, Mr. Chairman. I want to 
thank the witnesses, as well, for coming today.
    And with that, Mr. Chairman, I yield back the balance of my 
time.
    Mr. Bentz. Thank you. The Chair recognizes Congresswoman 
Napolitano for 5 minutes.
    Mrs. Napolitano. Thank you, Mr. Chair.
    Mr. Brain, good to see you again, sir. My question is to 
you, Mr. Brain, in regard to the Basin Study Program, assisting 
water managers in assessing the risks and impacts of climate 
change on water resources at the regional level.
    Also, can you speak to the importance of collaboration 
between all Federal agencies and the local water managers plus 
the Native American tribes in developing effective, long-term 
management strategies and conservation?
    Mr. Brain. Thank you, Congresswoman Napolitano, it is good 
to see you, as well.
    You really hit the nail on the head with the benefits of 
the program. It really has a way of incorporating and bringing 
together a wider variety of stakeholders that are across the 
river basin that are really seeking common ground. And they do 
so by utilizing the best available science and in partnership 
with Reclamation to identify those problems that they are 
looking to address.
    And, as we mentioned earlier, they could be addressing them 
sort of operationally, they could be identifying potential 
funding opportunities that are out there. So, it really is a 
way of bringing together a diverse group of stakeholders.
    And we have carried out 33 basin studies, and would be 
happy to share with folks in the record some of the benefits of 
that.
    Mrs. Napolitano. I would like to see some of them, if you 
would, please. I think the Committee would like to see them.
    I think that it is just that this current situation in 
drought in the Western states has called for collaboration. I 
hope that this collaboration goes beyond this time. and that it 
continues, especially with the EPA. I know that I have been 
after the Army Corps of Engineers to include into their goals 
water storage, and I am hoping that goes into one of the 
agencies that you talk to.
    Mr. Brain. Congresswoman, thank you again for the question. 
We are constantly communicating with our colleagues across the 
Federal Government, and that includes the Corps of Engineers.
    As you very well know, Reclamation is a decentralized 
organization, so the vast majority of our 6,000 employees are 
spread out through the West, and they live and work in the same 
communities that our colleagues from the Corps do. So, those 
conversations and the collaboration happen on a day-to-day 
basis.
    Mrs. Napolitano. Good. I am just wondering how long that is 
going to take before any Federal agency, not just yours, 
actually puts the programs to work instead of waiting months 
and years sometimes before they are implemented.
    With that, I yield back, Mr. Chair.
    Mr. Bentz. Thank you. The Chair recognizes Congressman 
Duarte for 5 minutes.
    Mr. Duarte. Thank you, Mr. Chairman.
    Deputy Commissioner Brain, welcome. Thank you for being 
here today. The Bureau of Reclamation does some important work 
on water infrastructure throughout the arid West, correct?
    Mr. Brain. Congressman, we like to think so.
    Mr. Duarte. Yes, I do. I do believe so. And when you build 
this infrastructure, it has to be paid for over a period of 
time. It is bonded, it is financed with hundreds of millions of 
dollars, if not billions of Federal money.
    And would it be true to say that an important part of your 
valuation for projects would be water rights?
    Mr. Brain. Yes, sir.
    Mr. Duarte. In California, we have water rights 
underpinning enormous Federal investments in water 
infrastructure. And, of course, those water rights and that 
water availability underpins a $3.6 trillion annual economy and 
42 million people not going thirsty, as was of interest.
    Has the Bureau of Reclamation taken an interest in 
California Legislature's recent efforts to rewrite our water 
rights, dissolve our current common law water rights system as 
it is established, and replace it with a complete authority 
under the State Water Resources Control Board?
    Mr. Brain. Congressman, thank you very much for the 
question.
    I have colleagues within the Bureau of Reclamation that are 
aware of and intimately familiar with that. Unfortunately, I 
came today prepared to discuss the three bills that are before 
the Subcommittee, and I don't have the accurate information to 
be able to answer that question.
    Mr. Duarte. OK. I would like you to get back to me on that. 
I am very concerned that your investments in the water 
infrastructure--canals, dams--throughout California, the 
Central Valley project--you know all the assets--are direly 
threatened by some emerging legislative efforts to dissolve 
California's well-established water rights system, and to have 
those water rights allocated each year, potentially, by a newly 
elected legislature. And in doing that, even threatening to do 
that, I am very concerned that it makes future infrastructure 
investment nearly impossible.
    And without the security of the water rights, how do we 
invest in long-term water infrastructure? And I will ask that 
in the abstract, not the specifics, since I realize, although 
you are a Deputy Commissioner, you may not have been prepared 
specifically for the immediate issue.
    Mr. Brain. Thank you, Congressman. I am certainly happy to 
follow up with your staff and commit to you to work on an 
answer for that.
    Mr. Duarte. Mr. Michael, I know you have been around water 
for a while. Do you have any thoughts on these issues?
    Mr. Michael. Well, water rights are, obviously, critical 
for municipalities and agricultural users, and even our 
environmental users. So, security of water and deliveries is 
what underpins our communities and the economy that we have 
built in California.
    Certainly, I can see a path forward to some potential 
changes to address some of the concerns, but certainly would 
think a wholesale rewrite of water rights would be extremely 
problematic, and not beneficial. So, I can see there is a path 
forward, but certainly, as you pointed out, a lot of 
investments have been made, and values have been established, 
and it certainly would be very difficult.
    Mr. Duarte. Thank you. I am hoping the Bureau of 
Reclamation will take a look at this and assert itself into the 
potential, as you made the investments on behalf of the 
American taxpayer to develop the economy and the environmental 
priorities of California. Our Ag system, our communities are 
all reliant upon these water assets. And to reallocate the 
water rights from them would certainly upset the expectations 
of the Federal Government and its interests when it funded 
these water assets.
    Mr. Brain. Congressman, I look forward to following up with 
you on that. I truly do.
    Mr. Duarte. Thank you. Another issue, earlier this spring, 
and many springs, many California farmers are waiting for their 
water allocations to come down. And, understandably, there is a 
certain disposition for the Bureau of Reclamation to be 
cautious about over-committing water in a given year until the 
snowmelt comes in, and a minimum water allocation can be safely 
designated. This year, we didn't see water allocations really 
get finalized until March and April, when we had obvious 
abundant snowpack and water resources coming into the dams.
    Could you please help us understand or assure us that we 
can give earlier allocation information to our farmers, so they 
can plan their operations in the future?
    Mr. Brain. Congressman, thank you for the question. I 
certainly understand the concern. And as I mentioned before, 
the vast majority of our Reclamation employees do live and work 
in communities throughout the American West, so they are 
intimately familiar with the natures of the work that takes 
place out there.
    So, I do commit to work with you as we move forward on 
that.
    Mr. Duarte. Thank you, I appreciate it.
    I yield back to the Chair.
    Mr. Bentz. Thank you, Mr. Duarte. The Chair now recognizes 
Congressman Gallego for 5 minutes.
    Mr. Gallego. Thank you, Chairman Bentz and Ranking Member 
Huffman. I am glad to be here today to highlight a common-
sense, bipartisan bill that will improve Arizona's clean energy 
storage capacity, improve energy reliability, and fight rising 
utility costs.
    As Arizona continues to grow and become a hub of industry 
and technology, it is more important than ever to make sure 
that we are prepared to supply the energy our state needs from 
reliable, renewable sources. Not only would improving our 
state's pumped storage hydropower facilities increase our 
overall energy supply, it would improve grid reliability. This 
is especially important in the hot summer months, when 
blackouts would have major impacts on health and demand is at 
its highest. By allowing SRP to explore construction of 
additional facilities, H.R. 1607 is an important step in the 
right direction.
    Thank you, Ms. Meyers, for being here today and for the 
work that SRP does providing reliable, sustainable electricity 
in our state. I have a couple of questions for you.
    As you know, our home state of Arizona is blessed with 300-
plus days of sunshine and abundant solar resources. In fact, 
Arizona ranks as one of the top five states in the country when 
it comes to solar resources. How will pumped storage increase 
the amount of clean energy on the grid?
    Ms. Meyers. Thank you very much, Representative Gallego.
    Today, as we generate electricity from solar power, we are 
only capable of using that energy as it is produced. So, having 
the ability to store that power really expands our capability 
to use renewable energy, and expands our resiliency and 
flexibility.
    Mr. Gallego. With the proposed addition of new hydro pumped 
storage, how confident are you and SRP that there are adequate 
water supplies for this project?
    Ms. Meyers. Thank you for that question.
    We actually operate pumped-back storage on the reservoirs 
on the Salt River Project, and we keep our reservoirs full for 
that same purpose, our lower three reservoirs. So, knowing that 
we would draw water from those reservoirs, it works very well 
within the system that we have today, and we are very confident 
that we have the water supplies that we need for the pumped-
back storage project.
    Mr. Gallego. And can you tell us how SRP selected the two 
sites it is exploring adding this pump storage to, and why you 
are looking at specifically these two sites?
    Ms. Meyers. Yes. Probably the key component of the site 
selection is that they are adjacent to our existing system. We 
have access to transmission, and we have existing withdrawn 
lands for a large portion of that project already. So, it is 
actually the perfect site to add to the Federal reclamation 
project.
    Mr. Gallego. And Ms. Meyers, how much energy would this 
produce?
    Ms. Meyers. We have the potential to produce about 2,000 
megawatts, which is a significant portion of our overall 
capacity.
    Mr. Gallego. And how many megawatts does SRP generate in 1 
day?
    Ms. Meyers. Our overall capacity is 900 megawatts, I am 
sorry, 9,000 megawatts.
    Mr. Gallego. OK. But this is definitely a good additive to 
that. Well, thank you so much.
    And I yield back.

    Mr. Bentz. Thank you, and I thank the witnesses for their 
valuable testimony, and the Members for their questions.
    The members of the Committee may have some additional 
questions for the witnesses, and we will ask you to respond to 
these in writing. Under Committee Rule 3, members of the 
Committee must submit questions to the Subcommittee Clerk by 5 
p.m. Eastern Time on Tuesday, June 20. The hearing record will 
be held open for 10 business days for these responses.
    If there is no further business, without objection, the 
Subcommittee stands adjourned.

    [Whereupon, at 2:39 p.m., the Subcommittee was adjourned.]

            [ADDITIONAL MATERIALS SUBMITTED FOR THE RECORD]

Submissions for the Record by Rep. Huffman

                        Statement for the Record
                       John Buse, Senior Counsel
                    Center for Biological Diversity
                              on H.R. 3675

    Chairman Bentz, Ranking Member Huffman, and Members of the 
Subcommittee: I am a Senior Counsel at the Center for Biological 
Diversity, which is a non-profit, public interest environmental 
organization with over 87,000 members. The Center is dedicated to the 
protection of native species and their habitats through science, 
policy, and environmental law. I have worked on the Center's behalf on 
a range of federal and California state water policy and water 
infrastructure issues, and with that perspective, offer these comments 
in opposition to H.R. 3675.
    H.R. 3675 is a small bill with large consequences. H.R. 3675 would 
amend section 4013 of the Water Infrastructure Improvements for The 
Nation Act (``WIIN Act,'' Public Law 114-322) to make another section 
of the WIIN Act--section 4011--permanent. Section 4011, which expired 
in 2021, provides that federal water service contracts may be 
``converted'' to repayment contracts, where the Bureau of Reclamation 
sets a fixed repayment obligation for contractors.
    As the House Natural Resources Committee's June 14, 2023 memorandum 
states, more than 80 federal water contractors took advantage of 
section 4011's contract conversion opportunity while that provision was 
in effect. Most or all of these contractors held short-term water 
supply contracts for water supplied by California's Central Valley 
Project (``CVP''). Under the terms of section 4011 of the WIIN Act, 
these water supply contracts were converted to permanent repayment 
contracts. Reclamation converted the contracts without any compliance 
with federal environmental laws, including the National Environmental 
Policy Act (``NEPA'') and the Endangered Species Act notwithstanding 
the manifest environmental consequences of making the contracts 
permanent for California's San Francisco Bay-Delta system, for other 
watersheds affected by the CVP, such as the Trinity River Basin, for 
federally recognized tribes, and for federally protected species. 
Reclamation has acknowledged that water diversions for operation of the 
CVP have had serious adverse effects on the human environment, yet it 
has made these commitments permanent without any consideration of 
alternatives or conditions that would reduce or avoid these effects.
    If H.R. 3675 becomes law, Reclamation will doubtless persist in 
converting water service contracts to permanent repayment contracts 
without complying with NEPA and the Endangered Species Act. We have 
challenged the lawfulness of Reclamation's failure to comply with 
federal environmental laws in a case now pending in the Eastern 
District of California.\1\ However, even if we prevail in this 
litigation, H.R. 3675 will perpetuate another grave injustice that has 
occurred with the conversion of federal water contracts under the WIIN 
Act.
---------------------------------------------------------------------------
    \1\ Ctr. for Biological Diversity v. U.S. Bureau of Reclamation, 
Case No. 1:20-cv-00706-JLT-EPG.
---------------------------------------------------------------------------
    Under the Central Valley Project Improvement Act, CVP contractors 
are obligated to pay environmental restoration costs to address the 
CVP's ongoing damage to the environment and fisheries.\2\ However, in 
CVP contracts converted under the WIIN Act before section 4011 expired, 
Reclamation has consistently failed to allocate over $340 million of 
these restoration costs to contractors.\3\ Thus, H.R. 3675 would make 
permanent a provision that Reclamation has used to shift the burden of 
funding hundreds of millions of dollars of vitally needed restoration 
away from wealthy CVP contractors.
---------------------------------------------------------------------------
    \2\ See Central Valley Improvement Act Sec. 3406, Pub. L. No. 102-
575, 106 Stat. 4600, 4706-31 (1992).
    \3\ First Amended Complaint, Hoopa Valley Tribe v. U.S. Bureau of 
Reclamation, E.D. Cal. Case No. 1:20-cv-01814-JLT-EPG (attached) at 
para.121.
---------------------------------------------------------------------------
    For these reasons, the WIIN Act's contract conversion program 
should not be renewed, and we oppose H.R. 3675.

                                 ______
                                 

            Hoopa Valley Tribe v. U.S. Bureau of Reclamation


                       Case 1:20-cv-01814-JLT-EPG


       U.S. District Court for the Eastern District of California


Full document is available on our Committee Repository at:

https://docs.house.gov/meetings/II/II13/20230614/116079/HHRG-
118-II13-20230614-SD003.pdf

                                ------                                


Submission for the Record by Reps. Boebert and Porter

                  National Water Resources Association

                             Washington, DC

                                                  June 13, 2023    

Hon. Cliff Bentz, Chairman
Hon. Jared Huffman, Ranking Member
House Natural Resources Committee
Subcommittee on Water, Wildlife and Fisheries
1324 Longworth House Office Building
Washington, DC 20515

    Dear Chairman Bentz and Ranking Member Huffman:

    On behalf of the National Water Resources Association (NWRA), I am 
writing to express our support for H.R. 3675, the Western Water 
Accelerated Revenue Repayment Act and a modified H.R. 3027, the 
Reclamation Climate Change and Water Program Reauthorization Act of 
2023. These bills make available resources and tools that can enhance 
the management of water resources in the Western United States.
    NWRA is a nonprofit federation of state water resources 
associations, regional associations, and agriculture and municipal 
water agencies. Our members provide water and hydropower to 
approximately 50 million individuals, families, agricultural producers, 
and other industries in a manner that supports our communities large 
and small, our economy and our environment.
    H.R. 3675 would amend the Water Infrastructure Improvements for the 
Nation Act (WIIN) to allow for Section 4011 to once again authorize 
agriculture and municipal water users to prepay outstanding project 
costs through a single lump sum payment or over a period of three 
years. This added tool will assist water systems in managing their 
operations in the most effective and efficient way possible at a time 
of rising costs and higher interest rates.
    H.R. 3027 would reauthorize the Reclamation Climate Change and 
Water Program that was used by the Bureau of Reclamation (BOR) to 
establish the WaterSMART Basin Study Program (Program). The Program 
uses basin studies, reservoir operations pilots, and studies on 
changing weather patterns to assist the BOR and its partners enhance 
water supply management. This program is another tool water systems in 
the West can utilize to improve operational efficiencies. We recognize 
that due to House Rules, H.R. 3027 will need to be modified to proceed. 
We support modifying the bill to provide for a seven-year 
reauthorization and maintain current FY2023 funding levels.
    The immense water resource challenges in the Western United States 
require a strong partnership and regular collaboration between the 
water community and federal agencies. We believe H.R. 3675 and H.R. 
3027 look to ensure a broad range of resources are available to address 
the needs of the Western water community.

            Sincerely,

                                               Dale Nellor,
                                           Executive Vice President

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