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                                                        Calendar No. 646
                                                       
115th Congress    }                                           {    Report
                                 SENATE
 2d Session       }                                           {   115-359

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



 
                    CONTRA COSTA CANAL TRANSFER ACT

                                _______
                                

               November 14, 2018.--Ordered to be printed

                                _______
                                

  Ms. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 3001]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 3001) to authorize the Secretary of the 
Interior to convey certain land and facilities of the Central 
Valley Project, having considered the same, reports favorably 
thereon with an amendment in the nature of a substitute and 
recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Contra Costa Canal Transfer Act''.

SEC. 2. DEFINITIONS.

    In this Act:
          (1) Acquired land.--The term ``acquired land'' means land in 
        Federal ownership and land over which the Federal Government 
        holds an interest for the purpose of the construction and 
        operation of the Contra Costa Canal, including land under the 
        jurisdiction of--
                  (A) the Bureau of Reclamation;
                  (B) the Western Area Power Administration; and
                  (C) the Department of Defense in the case of the 
                Clayton Canal diversion traversing the Concord Naval 
                Weapons Station.
          (2) Contra costa canal agreement.--The term ``Contra Costa 
        Canal Agreement'' means an agreement between the District and 
        the Bureau of Reclamation to determine the legal, 
        institutional, and financial terms surrounding the transfer of 
        the Contra Costa Canal, including but not limited to 
        compensation to the reclamation fund established by the first 
        section of the Act of June 17, 1902 (32 Stat. 388, chapter 
        1093), equal to the net present value of miscellaneous revenues 
        that the United States would otherwise derive over the 10 years 
        following enactment of this Act from the eligible lands and 
        facilities to be transferred, as governed by reclamation law 
        and policy and the contracts.
          (3) Contra costa canal.--
                  (A) In general.--The term ``Contra Costa Canal'' 
                means the Contra Costa Canal Unit of the Central Valley 
                Project, which exclusively serves the Contra Costa 
                Water District in an urban area of Contra Costa County, 
                California.
                  (B) Inclusions.--The term ``Contra Costa Canal'' 
                includes pipelines, conduits, pumping plants, 
                aqueducts, laterals, water storage and regulatory 
                facilities, electric substations, related works and 
                improvements, and all interests in land associated with 
                the Contra Costa Canal Unit of the Central Valley 
                Project in existence on the date of enactment of this 
                Act.
                  (C) Exclusion.--The term ``Contra Costa Canal'' does 
                not include the Rock Slough fish screen facility.
          (4) Contracts.--The term ``contracts''' means the existing 
        water service contract between the District and the United 
        States, Contract No. 175r-3401A-LTR1 (2005), Contract No. 14-
        06-200-6072A (1972, as amended), and any other contract or land 
        permit involving the United States, the District, and Contra 
        Costa Canal.
          (5) District.--The term ``District'' means the Contra Costa 
        Water District, a political subdivision of the State of 
        California.
          (6) Rock slough fish screen facility.--
                  (A) In general.--The term ``Rock Slough fish screen 
                facility'' means the fish screen facility at the Rock 
                Slough intake to the Contra Costa Canal.
                  (B) Inclusions.--The term ``Rock Slough fish screen 
                facility'' includes the screen structure, rake cleaning 
                system, and accessory structures integral to the screen 
                function of the Rock Slough fish screen facility, as 
                required under the Central Valley Project Improvement 
                Act (Public Law 102-575; 106 Stat. 4706).
          (7) Rock slough fish screen facility title transfer 
        agreement.--The term ``Rock Slough fish screen facility title 
        transfer agreement'' means an agreement between the District 
        and the Bureau of Reclamation to--
                  (A) determine the legal, institutional, and financial 
                terms surrounding the transfer of the Rock Slough fish 
                screen facility; and
                  (B) ensure the continued safe and reliable operations 
                of the Rock Slough fish screen facility.
          (8) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.

SEC. 3. CONVEYANCE OF LAND AND FACILITIES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, in consideration for the District assuming from 
the United States all liability for the administration, operation, 
maintenance, and replacement of the Contra Costa Canal, consistent with 
the terms and conditions set forth in the Contra Costa Canal Agreement 
and subject to valid existing rights and existing recreation agreements 
between the Bureau of Reclamation and the East Bay Regional Park 
District for Contra Loma Regional Park and other local agencies within 
the Contra Costa Canal, the Secretary shall offer to convey and assign 
to the District--
          (1) all right, title, and interest of the United States in 
        and to--
                  (A) the Contra Costa Canal; and
                  (B) the acquired land; and
          (2) all interests reserved and developed as of the date of 
        enactment of this Act for the Contra Costa Canal in the 
        acquired land, including existing recreation agreements between 
        the Bureau of Reclamation and the East Bay Regional Park 
        District for Contra Loma Regional Park and other local agencies 
        within the Contra Costa Canal.
    (b) Rock Slough Fish Screen Facility.--
          (1) In general.--The Secretary shall convey and assign to the 
        District all right, title, and interest of the United States in 
        and to the Rock Slough fish screen facility pursuant to the 
        Rock Slough fish screen facility title transfer agreement.
          (2) Cooperation.--No later than 180 days after the conveyance 
        of the Contra Costa Canal, the Secretary and the District shall 
        enter into good faith negotiations to accomplish the conveyance 
        and assignment under paragraph (1).
    (c) Payment of Costs.--The District shall pay to the Secretary any 
administrative and real estate transfer costs incurred by the Secretary 
in carrying out the conveyances and assignments under subsections (a) 
and (b), including the cost of any boundary survey, title search, 
cadastral survey, appraisal, and other real estate transaction required 
for the conveyances and assignments.
    (d) Compliance With Environmental Laws.--
          (1) In general.--Before carrying out the conveyances and 
        assignments under subsections (a) and (b), the Secretary shall 
        comply with all applicable requirements under--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                  (C) any other law applicable to the Contra Costa 
                Canal or the acquired land.
          (2) Effect.--Nothing in this Act modifies or alters any 
        obligations under--
                  (A) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.); or
                  (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.).

SEC. 4. RELATIONSHIP TO EXISTING CENTRAL VALLEY PROJECT CONTRACTS.

    (a) In General.--Nothing in this Act affects--
          (1) the application of the reclamation laws to water 
        delivered to the District pursuant to any contract with the 
        Secretary; or
          (2) subject to subsection (b), the contracts.
    (b) Amendments to Contracts.--The Secretary and the District may 
modify the contracts as necessary to comply with this Act.
    (c) Liability.--
          (1) In general.--Except as provided in paragraph (2), the 
        United States shall not be liable for damages arising out of 
        any act, omission, or occurrence relating to the Contra Costa 
        Canal or the acquired land.
          (2) Exception.--The United States shall continue to be liable 
        for damages caused by acts of negligence committed by the 
        United States or by any employee or agent of the United States 
        before the date of the conveyance and assignment under section 
        3(a), consistent with chapter 171 of title 28, United States 
        Code (commonly known as the ``Federal Tort Claims Act'').
          (3) Limitation.--Nothing in this Act increases the liability 
        of the United States beyond the liability provided under 
        chapter 171 of title 28, United States Code.

SEC. 5. REPORT.

    If the conveyance and assignment authorized by section 3(a) is not 
completed by the date that is 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that--
          (1) describes the status of the conveyance and assignment;
          (2) describes any obstacles to completing the conveyance and 
        assignment; and
          (3) specifies an anticipated date for completion of the 
        conveyance and assignment.

                                PURPOSE

    The purpose of S. 3001 is to authorize the Secretary of the 
Interior (Secretary) to convey certain lands and facilities of 
the Central Valley Project.

                          BACKGROUND AND NEED

    The Contra Costa Canal System in California, which includes 
the Rock Slough intake channel, Main Canal, Loop Canal, 
Shortcut Pipeline, the Clayton and Ygnacio Re-lift Canals and 
pumping plants, and the Martinez Reservoir and pumping plants, 
was authorized in 1937 through the Rivers and Harbors Act of 
1937 (Public Law 75-392). Construction was completed in 1948, 
and additional features were finished in 1967.
    The Contra Costa Water District (CCWD) has operated and 
maintained these facilities since 1972 under agreement with the 
Bureau of Reclamation (BOR), and in 2010 repaid its contract 
for the cost of construction in full. The repayment contract 
states that at completion of repayment, title to the facilities 
is to be transferred to CCWD, following authorization by 
Congress.
    With repayment for these facilities complete, CCWD has 
asked for authorization to receive title of the Contra Costa 
Canal System as provided in its contract with BOR. Conveying 
title to CCWD will facilitate a planned $650 million project to 
convert the open main canal to closed pipe in order to increase 
public safety and water conservation, and to provide needed 
upgrades to the main canal and other system components.

                          LEGISLATIVE HISTORY

    Senator Feinstein introduced S. 3001 on June 6, 2018. The 
Subcommittee on Water and Power held a hearing on S. 3001 on 
June 13, 2018.
    Representative DeSaulnier introduced H.R. 6040, companion 
legislation, in the House of Representatives on June 7, 2018. 
The Natural Resources Committee's Subcommittee on Water, Power 
and Oceans held a hearing on H.R. 6040 on July 11, 2018, and it 
was favorably reported, as amended, by the Natural Resources 
Committee on August 31, 2018. H.R. 6040 passed the House of 
Representatives by voice vote on September 12, 2018.
    The Senate Committee on Energy and Natural Resources met in 
an open business session on October 2, 2018, and ordered S. 
3001 favorably reported, as amended.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on October 2, 2018, by a majority voice 
vote of a quorum present recommends that the Senate pass S. 
3001, if amended as described herein.

                          COMMITTEE AMENDMENT

    During its consideration of S. 3001, the Committee adopted 
an amendment in the nature of a substitute. The substitute 
amendment modified the definition of ``Contra Costa Canal 
Agreement'' to require the CCWD to provide compensation for 
miscellaneous revenues BOR will no longer receive. The 
substitute amendment also made a number of technical and 
conforming changes and is further described in the section-by-
section analysis.

                      SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title

    This section states the short title.

Sec. 2. Definitions

    Section 2 defines key terms.

Sec. 3. Conveyance of land and facilities

    Subsection (a) directs BOR to convey all right, title and 
interest of the United States in the Contra Costa Canal and the 
acquired land, as well as all interest in the acquired land to 
date, to CCWD within 180 days of the Act's enactment. As 
consideration for the conveyance, CCWD must assume all 
liability for the administration, operation, maintenance, and 
replacement of the Contra Costa Canal, in accordance with 
applicable agreements and valid existing rights.
    Subsection (b) directs the Secretary to convey the Rock 
Slough fish screen facility to the CCWD pursuant to that 
facility's title transfer agreement. This subsection also 
directs the Secretary and CCWD to enter into negotiations to 
accomplish the fish screen facility conveyance within 180 days 
of the Contra Costa Canal conveyance.
    Subsection (c) requires the CCWD to pay any conveyance-
related administrative and real estate transfer costs to the 
Secretary.
    Subsection (d) requires the Secretary to comply with 
applicable environmental laws prior to conveyance.

Sec. 4. Relationship to existing central valley project contracts

    Section 4 states that nothing in the Act affects the 
application of reclamation laws to water delivered to CCWD and 
authorizes the modification of existing contracts to comply 
with the Act. This section further shields the United States 
from liability related to the conveyed property after the date 
of conveyance.

Sec. 5. Report

    Section 5 requires the Secretary to submit an explanatory 
report to Congress if the conveyance and assignment of the 
Contra Costa Canal is not completed within one year after the 
Act's enactment.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office: S. 3001 would 
authorize the Bureau of Reclamation (BOR), the Western Area 
Power Administration, and the Department of Defense to transfer 
the Contra Costa Canal, the Rock Slough Fish Screen, and the 
associated federal land and facilities to the Contra Costa 
County Water District located in California.
    Under the bill, BOR would modify the Rock Slough Fish 
Screen to ensure the screen is operating safely before 
transferring it. Using information from BOR, CBO estimates that 
the federal share of the costs to complete that work would be 
$2 million, subject to the availability of appropriated funds.
    Under current law, the federal government collects leasing 
and grazing fees of about $80,000 per year from the property 
that would be transferred under S. 3001. Those amounts are 
recorded in the federal budget as offsetting receipts, or 
reductions in direct spending. Under the bill, to compensate 
the federal government for those lost receipts, the district 
would pay the federal government an amount equal to the net 
present value of 10 years of receipts (discounted using the 10-
year Treasury rate). CBO estimates that the district would pay 
the federal government $750,000 in the next few years and that 
the net effect on direct spending over the 2019-2028 period 
would be negligible.
    Because enacting S. 3001 would affect direct spending, pay-
as-you-go procedures apply. Enacting S. 3001 would not affect 
revenues.
    CBO estimates that enacting S. 3001 would not significantly 
increase net direct spending or on-budget deficits in any of 
the four consecutive 10-year periods beginning in 2029.
    S. 3001 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    On August 29, 2018, CBO transmitted a cost estimate for 
H.R. 6040, the Contra Costa Canal Transfer Act, as ordered 
reported by the House Committee on Natural Resources on July 
18, 2018. The two pieces of legislation are similar and CBO's 
estimates of their budgetary effects are the same.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 3001. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 3001, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 3001, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    The testimony provided by the Department of the Interior at 
the July 13, 2018, hearing on S. 3001 follows:

Statement of Timothy R. Petty, Ph.D., Assistant Secretary for Water and 
                Science, U.S. Department of the Interior

    Chairman Flake, Ranking Member Cortez Masto and members of 
the Subcommittee, I am Dr. Tim Petty, the Assistant Secretary 
for Water and Science at the Department of the Interior 
(Department). Thank you for the opportunity to provide the 
views of the Department on S. 3001, the Contra Costa Canal 
Title Transfer Act.
    S. 3001 directs the Department to offer to transfer and 
convey to the Contra Costa County Water District (District) all 
right, title, and interest of the United States in and to the 
Contra Costa Canal (Canal) within 180 days of enactment of this 
Act. The Canal, as defined in S. 3001, includes the entirety of 
the Contra Costa Canal Unit of the Central Valley Project 
(CVP), including pipelines, conduits, pumping plants, 
aqueducts, laterals, water storage and regulatory facilities, 
electric substations, related works, and improvements and all 
interests in land associated within the unit, not including the 
Rock Slough fish screen facility. The lands under consideration 
to be transferred are currently under the jurisdiction of the 
Bureau of Reclamation, the Western Area Power Administration, 
and the Department of Defense. The District has been 
effectively operating and maintain these facilities. The title 
transfer of the Canal will maintain this arrangement into the 
future.
    The Department recognizes that the District is a longtime 
CVP contractor, and that even with enactment of S. 3001, the 
District would continue to pay their share of CVP operations 
and maintenance and repayment through their water service 
rates.
    If the conveyance has not been completed within 12 months, 
Interior is required to submit Congress an explanation and the 
date by which the conveyance will be completed.
    The Department has an active title transfer program and 
supports transferring certain Reclamation project facilities to 
non-Federal entities, particularly in cases where transfers 
could create opportunities, not just for those who receive 
title, but for other stakeholders and the public as well. 
Specifically, a streamlined title transfer process for 
uncomplicated transfers creates incentives for non-Federal 
entities to closely engage with Reclamation to complete the 
process and allow for appropriate transfers to take place 
without legislation. This approach is reflected in the 
Administration's Title Transfer legislative proposal, 
transmitted to Congress in February of this year.
    Mr. Chairman, it is important to note that in most cases, 
Reclamation and the entity interested in taking title must 
complete environmental compliance activities and negotiate the 
terms and conditions of the transfer before pursuing 
legislation. Reclamation has been working with the District 
closely on this effort and will continue to do so. However, 
this legislation, as currently drafted would authorize the 
transfer before those steps are completed.
    Instead, we recommend that the conveyance be completed 
pursuant to a title transfer agreement developed between the 
Department and the District, in consultation with other 
stakeholders, including the East Bay Regional Park District, 
the City of Antioch and the City of Walnut Creek. This will 
enable Reclamation, the District and the other stakeholders to 
work through the upfront activities necessary to complete a 
title transfer. We have had situations in previous transfers 
where additional legislation was required because the terms and 
conditions were dictated exclusively in the legislation and 
there was no flexibility to address unanticipated problems on 
this matter.
    Further, it is important that the legislation protect the 
financial interests of the taxpayers. While the District has 
completed its repayment obligation for its share of 
construction costs of the Canal, we need to account for 
revenues from other contracts, leases and agreements that 
currently come to the United States, but would transfer to the 
District under this Act. We recommend that the legislation 
acknowledge this requirement.
    We would be pleased to work with the Committee, the 
sponsors and the District on legislative language to reflect 
these necessary modifications. In the meantime, we recommend 
that Reclamation and the District complete a valuation analysis 
to ensure that the financial interests of the United States are 
protected and that the results be reflected in the title 
transfer agreement that is referenced in the legislation.
    Mr. Chairman, Reclamation has been working closely with the 
District on this issue and we look forward to continuing that 
progress. We believe that if structured properly, the transfer 
of these facilities will improve the efficiency and 
effectiveness of the Canal's operations by getting control of 
the lands and facilities into the hands of those who best 
understand the needs of the community.
    With these modifications, the Department is pleased to 
support this legislation. This completes my statement, I am 
happy to answer questions at the appropriate time.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill as ordered 
reported.