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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-284

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



 
  KLAMATH BASIN EMERGENCY OPERATION AND MAINTENANCE REFUND ACT OF 2001

                                _______
                                

 November 13, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 2828]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2828) to authorize refunds of amounts collected from 
Klamath Project irrigation and drainage districts for operation 
and maintenance of the Project's transferred and reserved works 
for water year 2001, and for other purposes, having considered 
the same, report favorably thereon with amendments and 
recommend that the bill as amended do pass.
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Klamath Basin Emergency Operation and 
Maintenance Refund Act of 2001''.

SEC. 2. QUALIFIED KLAMATH PROJECT ENTITY DEFINED.

  In this Act, the term ``qualified Klamath Project entity'' means an 
entity that--
          (1) has executed a water supply contract with the United 
        States for water from the Upper Klamath Lake and the Klamath 
        River of the Klamath Project pursuant to the reclamation laws, 
        including the Act of June 17, 1902 (32 Stat. 388), and Acts 
        amendatory thereof or supplementary thereto;
          (2) distributes water received under the contract;
          (3) received a severely limited irrigation supply from the 
        Upper Klamath Lake and the Klamath River based on the Bureau of 
        Reclamation 2001 annual operations plan dated April 6, 2001; 
        and
          (4) was not reimbursed for its operation and maintenance 
        expenses for 2001 pursuant to State law.

SEC. 3. REFUND AND WAIVER OF ASSESSMENTS AND CHARGES FOR OPERATION AND 
                    MAINTENANCE OF KLAMATH RECLAMATION PROJECT.

  (a) In General.--The Secretary of the Interior is authorized to pay 
to each qualified Klamath Project entity an amount equal to the amount 
assessed or charged to members of the qualified Klamath Project entity, 
or to other persons receiving water or drainage service from such an 
entity, for operation and maintenance of Klamath Project transferred 
and reserved works for 2001.
  (b) Conditions.--Payment under this section may be made to a 
qualified Klamath Project entity only after the entity has--
          (1) provided to the Secretary documentation satisfactory to 
        the Bureau of Reclamation, demonstrating the total amount 
        assessed or charged to members of the entity or to persons 
        receiving service from the entity; and
          (2) executed a binding agreement under which the funds paid 
        to the entity under this section shall be distributed to each 
        member of the entity or persons receiving service from the 
        entity in an amount equal to the amount collected by the entity 
        from the member or person for operation and maintenance for 
        2001.
  (c) Waiver of Remaining and Additional Charges.--The Secretary may 
waive any requirement that a qualified Klamath Project entity pay 
remaining or additional charges for operation and maintenance of 
Klamath Project reserved works for 2001.
  (d) Payments and Waivers for Individuals.--The Secretary--
          (1) may pay, to any individual within the Klamath Project who 
        holds a contract entered into pursuant to the Act of February 
        21, 1911 (36 Stat. 925; 43 U.S.C. 523-525), popularly known as 
        the ``Warren Act'', and who is not within a district that 
        receives a payment pursuant to subsection (a) and a waiver 
        under subsection (c), an amount equal to the amount collected 
        from such individual for operation and maintenance of Klamath 
        Project reserved works for 2001; and
          (2) may forego collection from such individual of charges for 
        operation and maintenance of such works for the remainder of 
        2001.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

  Amounts not paid by a qualified Klamath Project entity to the Bureau 
of Reclamation for the operation and maintenance of the reserved works 
for 2001 shall be funded from the appropriations authorized by this 
Act. Costs incurred by the Bureau of Reclamation in carrying out this 
Act shall not be reimbursable.

SEC. 5. NO SUPPLEMENTAL OR ADDITIONAL BENEFIT.

  Activities under this Act or funded pursuant to this Act shall not be 
considered a supplemental or additional benefit under the Act of June 
17, 1902 (82 Stat. 388), and all Acts amendatory thereof or 
supplementary thereto.

  Amend the title so as to read:

      A bill to authorize payments to certain Klamath Project 
water distribution entities for amounts assessed by the 
entities for operation and maintenance of the Project's 
transferred works for 2001, to authorize refunds to such 
entities of amounts collected by the Bureau of Reclamation for 
reserved works for 2001, and for other purposes.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2828 is to authorize refunds of amounts 
collected from qualified Klamath Project entities or to other 
persons receiving water or drainage service from such entity 
for operation and maintenance of the Project's transferred and 
reserved works for 2001, and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The U.S. Bureau of Reclamation Klamath Project lies within 
three counties along the Oregon and California border; Klamath 
County in southern Oregon, and Modoc and Siskiyou Counties in 
Northern California. Authorized in 1905 primarily for 
irrigation, the Klamath Project serves approximately 1,400 
farms and provides irrigation water to approximately 220,000 
acres in an otherwise arid area.
    In 1988, the U.S. Fish and Wildlife Service listed the 
Shortnose and Lost River sucker fish as ``endangered'' under 
the Endangered Species Act (ESA). For the first time in the 
Klamath Reclamation Project's history, irrigation deliveries 
were curtailed at the end of the 1992 growing season to meet 
minimum lake levels for these species.
    In 1996, the Bureau of Reclamation agreed to meet certain 
minimum instream flows below the Iron Gate Dam (which controls 
the level of Klamath Lake) to protect habitat for anadromous 
fish which are Indian tribal trust resources. In 1997, Southern 
Oregon and Northern California Coastal Coho salmon were listed 
under the ESA as ``threatened'' species. A 1999 biological 
opinion from the National Marine Fisheries Service concluded 
that the Klamath Project operations would affect, but not 
likely jeopardize, coho salmon.
    Following a declaration of severe drought for the Klamath 
Basin in 2001, two new biological opinions from the U.S. Fish 
and Wildlife Service and the National Marine Fisheries Service 
were issued on April 5 and April 6, 2001. The opinions stated 
that the Bureau of Reclamation's operation of the Klamath 
Project for the year would jeopardize the continued existence 
of the endangered sucker fish and threatened coho salmon, and 
would harm but not jeopardize the continued existence of bald 
eagles who also rely on Project water. The opinions also called 
for the minimum elevation in upper Klamath Lake to be raised to 
4,140 feet above sea level, with no tolerance for lower 
elevations in drought years.
    On April 6, 2001, the Bureau of Reclamation released the 
Klamath Project 2001 Operations Plan, stating that based on the 
requirements of the biological opinions issued under the ESA 
and the drought conditions, only limited deliveries of Project 
water would be made for irrigation. Only a small area (Langell 
Valley and Bonanza) would receive water from Clear Lake and 
Gerber Reservoirs. Additional minor relief was also provided on 
July 24, 2001, when, after Congressional pressure, the 
Department of the Interior announced it would release about 
70,000 to 75,000 acre feet of water from upper Klamath Lake to 
assist farmers in the Klamath Project area.
    Despite that water was not delivered to most Klamath Basin 
farmers, they were still asked to pay this year's operations 
and maintenance expenses for the Project. This legislation 
would repay costs already paid and forgive future operation and 
maintenance costs in 2001. This is interim and only for 2001.
    These payments are limited to a ``qualified Klamath Project 
entity'' and only after the entity has:
          (1) Provided to the Secretary documentation 
        satisfactory to the Bureau of Reclamation, 
        demonstrating the total amount assessed or charged to 
        members of the entity or to persons receiving service 
        from the entity; and
          (2) Executed a binding agreement under which the 
        funds paid to the entity under this legislation be 
        distributed to each member or persons receiving service 
        from the entity in an amount equal to the amount 
        assessed and collected by the entity from the member or 
        person for operation and maintenance for 2001.
    H.R. 2828 also authorizes the Secretary to waive any 
requirement that a qualified Klamath Project Project entity pay 
remaining or additional charges for operation and maintenance 
of Klamath Project reserved works for 2001. The bill also 
allows the Secretary to issue refunds and to waive collections 
for operation and maintenance costs from individuals party to a 
Warren Act contract for water.

                            COMMITTEE ACTION

    H.R. 2828 was introduced on August 2, 2001, by Congressman 
Greg Walden (R-OR). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Water and Power. On November 7, 2001, the Full Resources 
Committee met to consider the bill. The Subcommittee on Water 
and Power was discharged from further consideration of the bill 
by unanimous consent. Mr. Walden offered an amendment in the 
nature of a substitute to make conforming changes requested by 
the Administration clarifying who is eligible to receive 
refunds and to limit refunds only to those who have not 
received substantial amounts of water or have not been 
reimbursed under State law. The amendment was 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

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII 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 this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation.--Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. The Committee believes that 
enactment of this bill will have an insignificant impact on the 
budget of the United States.
    2. Congressional Budget Act.--As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures. The 
bill will authorize the Secretary of the Interior to repay 2001 
operation and maintenance costs of certain Klamath Project 
entities who have not received water from the Project and allow 
those entities to forego paying any future operation and 
maintenance costs for the remainder of 2001. The Committee 
believes the combination of refunds and foregone payments will 
equal less than $4 million in 2001.
    3. General Performance Goals and Objectives.--As required 
by clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to authorize payments to certain 
Klamath Project water distribution entities for amounts 
assessed by the entities for operation and maintenance of the 
Project's transferred works for 2001, and to authorize refunds 
to such entities of amounts collected by the Bureau of 
Reclamation for reserved works for 2001.
    4. Congressional Budget Office Cost Estimate.--Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.