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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-604
_______________________________________________________________________


 
           IRRIGATION PROJECT CONTRACT EXTENSION ACT OF 1998

                                _______
                                

 June 25, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2795]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 2795) to extend certain contracts between the Bureau of 
Reclamation and irrigation water contractors in Wyoming and 
Nebraska that receive water from Glendo Reservoir, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Irrigation Project Contract Extension 
Act of 1998''.

SEC. 2. EXTENSION OF CONTRACTS.

  (a) In General.--The Secretary of the Interior shall extend each of 
the water service or repayment contracts for the Glendo Unit of the 
Missouri River Basin Project that are identified in subsection (c) for 
a period of 3 years until December 31, 2000.
  (b) Extensions Coterminous With Cooperative Agreement.--If the 
cooperative agreement entitled ``Cooperative Agreement for Platte River 
Research and other Efforts Relating to Endangered Species Habitats 
Along the Central Platte River, Nebraska'', entered into by the 
Governors of the States of Wyoming, Nebraska, and Colorado and the 
Secretary of the Interior, is extended for a term beyond December 31, 
2000, the contracts identified in subsection (c) shall be extended for 
the same term, but not to go beyond December 31, 2001. If the 
cooperative agreement terminates prior to December 31, 2000, the 
contracts identified in subsection (c) shall be subject to renewal on 
the date of cooperative agreement terminates.
  (c) Contracts.--The contracts identified in this subsection are--
          (1) the contract between the United States and the New 
        Grattan Ditch Company for water service from Glendo Reservoir 
        (Contract No. 14-06-700-7591), dated March 7, 1974;
          (2) the contract between the United States and Burbank Ditch 
        for water service from Glendo Reservoir (Contract No. 14-06-
        700-6614), dated May 23, 1969;
          (3) the contract between the United States and the Torrington 
        Irrigation District for water service from Glendo Reservoir 
        (Contract No. 14-06-700-1771), dated July 14, 1958;
          (4) the contract between the United States and the Lucerne 
        Canal and Power Company for water from service Glendo Reservoir 
        (Contract No. 14-06-700-1740, as amended), dated June 12, 1958, 
        and amended June 10, 1960;
          (5) the contract between the United States and the Wright and 
        Murphy Ditch Company for water service from Glendo Reservoir 
        (Contract No. 14-06-700-1741), dated June 12, 1958;
          (6) the contract between the United States and the Bridgeport 
        Irrigation District for water service from Glendo Reservoir 
        (Contract No. 14-06-700-8376, renumbered 6-07-70-W0126), dated 
        July 9, 1976;
          (7) the contract between the United States and the 
        Enterprises Irrigation District for water service from Glendo 
        Reservoir (Contract No. 14-06-700-1742), dated June 12, 1958;
          (8)(A) the contract between the United States and the 
        Mitchell Irrigation District for an increase in carryover 
        storage capacity in Glendo Reservoir (Contract No. 14-06-700-
        1743, renumbered 8-07-70-W0056 Amendment No. 1), dated March 
        22, 1985; and
          (B) the contract between the United States and the Mitchell 
        Irrigation District for water service from Glendo Reservoir 
        (Contract No. 14-06-700-1743, renumbered 8-07-70-W0056) dated 
        June 12, 1958; and
          (9) the contract between the United States and the Central 
        Nebraska Public Power and Irrigation District for repayment of 
        allocated irrigation costs of Glendo Reservoir (Contract No. 5-
        07-70-W0734), dated December 31, 1984.
  (d) Statutory Construction.--Nothing in this section precludes the 
Secretary of the Interior from making an extension under subsection (a) 
or (b) in the form of annual extensions.

                          purpose of the bill

    The purpose of H.R. 2795 is extend certain contracts 
between the Bureau of Reclamation and irrigation water 
contractors in Wyoming and Nebraska that receive water from 
Glendo Reservoir.

                  background and need for legislation

    Glendo Dam of the Glendo Unit was authorized under the 
Flood Control Act of December 22, 1944, Public Law 534 (58 
Stat. 887) and was constructed under a modified plan as 
presented in the Definite Plan Report of December 1952 and 
approved by Public Law 503, (68 Stat. 486) 83rd Congress, July 
16, 1954.
    The Glendo Unit includes Glendo Dam, Reservoir, and 
Powerplant, as well as Fremont Powerplant and Gray Reef Dam and 
Reservoir. The Glendo Unit is authorized to provide irrigation 
water, hydro power generation, flood control, fish and wildlife 
enhancement, recreational opportunities, sediment retention, 
pollution abatement, and improved municipal and industrial 
water supplies.
    The Glendo Reservoir provides supplemental water under 
provisions of a 1945 U.S. Supreme Court Decree as modified for 
Glendo in 1953 which allows for water from Glendo storage to be 
divided between Nebraska and Wyoming. The Bureau of Reclamation 
can contract for delivery of up to 15,000 acre feet of water 
annually for irrigation use in Wyoming and for up to 25,000 
acre feet annually for use in Nebraska. The 25,000 acre feet 
for use in Nebraska and 4,400 acre feet of the water allotted 
to Wyoming is now under water service contracts which will 
expire on December 31, 1998. The existing Glendo water service 
contracts are with: New Grattan Ditch Company, Torrington 
Irrigation District, Lucerne Canal and Power Company, Wright 
and Murphy Ditch Company, Bridgeport Irrigation District, 
Enterprises Irrigation District, Mitchell Irrigation District, 
and Central Nebraska Public Power and Irrigation District.
    On July 1, 1997, the States of Wyoming, Nebraska, and 
Colorado entered into a cooperative agreement for Platte River 
research and other efforts relating to endangered species 
habitats along the central Platte River with the Department of 
the Interior. The purpose of the cooperative agreement is to 
jointly undertake a basin-wide effort to improve the habitat of 
four threatened and endangered species that use the Platte 
River.
    By extending the contracts, H.R. 2795 will improve the 
Department's ability to complete a plan to provide additional 
river flow and improve the habitat for the benefit of the 
whooping crane, interior least tern, piping plover and the 
pallid sturgeon in the Central Platte Region in Nebraska. In 
addition, the contract extension will enable appropriate 
consultation to take place consistent with the Endangered 
Species Act.

                            committee action

    H.R. 2795 was introduced on November 4, 1997, by 
Congressman Bill Barrett (R-NE). There are three additional 
cosponsors: Congresswoman Barbara Cubin (R-WY), Congressman Jon 
Christensen (R-NE), and Congressman Doug Bereuter (R-NE). The 
bill was referred to the Committee on Resources, and within the 
Committee to the Subcommittee on Water and Power. On May 20, 
1998, the Full Resources Committee met to consider H.R. 2795. 
At that time, the Subcommittee on Water and Power was 
discharged from further consideration of the bill. An amendment 
to the bill making minor date changes was offered by Mrs. Cubin 
and adopted by voice vote. The bill, as amended, was then 
ordered favorably reported to the House of Representatives by 
voice vote.

            Committee oversight findings and recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   Constitutional authority statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 2795.

                        cost of the legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 2795. However, clause 7(d) of that Rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     compliance with house rule xi

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2795 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in tax 
expenditures. According to the Congressional Budget Office, 
enactment of H.R. 2795 would result in a small loss of 
offsetting receipts which would match a reduction in Bureau of 
Reclamation spending subject to appropriation.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2795.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2795 from the Director of the Congressional Budget Office.

               congressional budget office cost estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 19, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2795, the 
Irrigation Project Contract Extension Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts for federal 
costs are Joanna Wilson and Gary Brown. The contact for the 
impact on state and local governments is Majorie Miller.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 2795--Irrigation Project Contract Extension Act of 1997

    CBO estimates that enacting H.R. 2795 would not have a 
significant impact on the federal budget. Enacting H.R. 2795 
would affect direct spending by reducing offsetting receipts; 
therefore, pay-as-you-go procedures would apply, but the 
amounts involved would be insignificant.
    H.R. 2795 would extend--for up to three years--contracts 
between the Bureau of Reclamation and purchasers of irrigation 
water in Wyoming and Nebraska that receive water from the 
Glendo Reservoir. The existing contracts will expire on 
December 31, 1998, but the Secretary of the Interior has the 
authority under current law to renew these contracts on an 
annual basis. Such annual renewals require the secretary to 
prepare an environmental impact statement and carry out 
mitigation efforts that are in addition to an ongoing study 
involving uses of water in the area. Based on information 
provided by the Bureau of Reclamation, CBO estimates that 
enacting H.R. 2795 would allow the bureau to avoid costs of 
about $200,000 in 1999 and smaller amounts in future years. 
Those costs are subject to the availability of appropriated 
funds, but the agency is reimbursed by individuals contracting 
for water and the reimbursements are deposited in the Treasury 
as offsetting receipts (a form of direct spending). The 
potential loss of offsetting receipts would match the potential 
reduction in spending subject to appropriation, and both would 
be insignificant.
    H.R. 2705 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act and would impose no costs 
on state, local, or tribal governments. The contractors 
affected by this bill generally are governmental entities. 
Under current law, these contractors would be required to 
reimburse the Bureau of Reclamation for some of the costs 
associated with the annual renewal of their contracts, 
including preparation of environmental impact statements. By 
extending the contracts for up to three years, this bill would 
allow the contractors to avoid these costs. As noted above, CBO 
estimates that the avoided costs would total about $200,000 in 
the first year, and less thereafter.
    The CBO staff contacts for the estimate of federal costs 
are Joanna Wilson and Gary Brown. The contract for the impact 
on state and local governments is Majorie Miller. This estimate 
was approved by Robert A. Sunshine, Deputy Assistant Director 
for Budget Analysis.

                    Compliance With Public Law 104-4

    H.R. 2795 contains no unfunded mandates.

                        Changes in Existing Law

    If enacted, H.R. 2795 would make no changes in existing 
law.