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[Senate Report 110-21]
[From the U.S. Government Publishing Office]

                                                        Calendar No. 47
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-21

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        YAKIMA-TIETON IRRIGATION DISTRICT CONVEYANCE ACT OF 2007

                                _______
                                

               February 16, 2007.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 235]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 235) to authorize the Secretary of the 
Interior to convey certain buildings and lands of the Yakima 
Project, Washington, to the Yakima-Tieton Irrigation District, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                PURPOSE

    The purpose of S. 235 is to authorize the Secretary of the 
Interior to convey certain buildings and lands of the Yakima 
Project, Washington, to the Yakima-Tieton Irrigation District.

                          BACKGROUND AND NEED

    The Yakima Project provides irrigation water for 
approximately 464,000 acres of land along 175 miles of the 
Yakima River in south-central Washington. The Yakima-Tieton 
Irrigation District (District) is one of the main beneficiaries 
of the Project, delivering water to 28,000 acres of land. The 
Yakima Project began providing water to the District in 1910. 
In 1947, the District assumed operations and maintenance of 
water conveyance works benefiting the District and fulfilled 
its capital repayment obligations to Reclamation. In 1988, the 
District repaid its obligations to Reclamation for a 
rehabilitation and betterment project. The District is seeking 
title to federally-owned buildings and lands, including a 
warehouse, an office building, approximately nine acres of 
land, and two houses and appurtenant structures. According to 
the District, it has sought ownership of these structures and 
land for many years. Since 1995, when Reclamation promulgated 
policies for title transfer, Reclamation and the District have 
worked to advance the title transfer. S. 235 will effectuate a 
transfer of title from the United States to the District of the 
identified buildings and lands of the Yakima Project.

                          LEGISLATIVE HISTORY

    S. 235 was introduced by Senator Cantwell on January 10, 
2007 and referred to the Committee on Energy and Natural 
Resources. At its business meeting on January 31, 2007, the 
Committee on Energy and Natural Resources ordered S. 235 
favorably reported.
    During the 109th Congress, the Committee considered similar 
legislation, S. 1965, introduced by Senator Cantwell on 
November 11, 2005. The Subcommittee on Water and Power held a 
hearing on S. 1965 on June 28, 2006. S. Hrg. 109-677. No 
further action occurred on S. 1965 prior to the sine die 
adjournment of the 109th Congress. A companion measure, H.R. 
1564, was considered by the House of Representatives under 
suspension of the rules, and passed by a voice vote on November 
15, 2005.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in an 
open business meeting on January 31, 2007, by voice vote of a 
quorum present, recommends that the Senate pass S. 235.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 provides the short title.
    Section 2(a) directs the Secretary of the Interior to 
convey to the Yakima-Tieton Irrigation District all right, 
title, and interest of the United States to certain buildings 
and lands of the Yakima Project, Washington, in accordance with 
an existing agreement between the District and the United 
States.
    Section 2(b) provides that upon the date that title is 
conveyed, the United States is not liable for damages of any 
kind arising out of any act, omission, or occurrence relating 
to the conveyed buildings and lands, except for damages caused 
by acts of negligence committed by the United States or its 
employees or agents before the conveyance. Nothing in the 
section increases the United States' liability beyond that 
provided by the Federal Tort Claims Act.
    Section 2(c) provides that after conveyance of the 
buildings and lands, they will no longer be considered part of 
the Federal reclamation project, and that the District shall 
not be eligible to receive any benefits, except those available 
to persons similarly situated.
    Section 2(d) contains a reporting requirement for the 
Secretary in the event the conveyance is not completed within 
12 months following the enactment of S. 235.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 235--Yakima-Tieton Irrigation-District Conveyance Act of 2007

    S. 235 would direct the Secretary of the Interior to convey 
certain lands and buildings comprising a portion of the Yakima 
Project in Yakima County, Washington, to the Yakima-Tieton 
Irrigation District. Based on information from the Bureau of 
Reclamation, CBO estimates that enacting S. 235 would have no 
significant effect on the federal budget.
    This bill would transfer title for approximately nine acres 
of land and several buildings to the irrigation district. Other 
parts of the project, including the Tieton diversion dam and 
associated canals, would not be affected. The district has 
fully complied with all repayment agreements associated with 
the project, and currently makes only small payments to 
reimburse the bureau for the operation and maintenance of the 
Yakima-Tieton facilities. Such payments are recorded as 
offsetting receipts (a credit against direct spending), and 
would no longer be made if this bill were enacted, resulting in 
a negligible loss of receipts to the U.S. Treasury. Under the 
bill, the bureau would no longer be responsible for the minor 
discretionary costs associated with operations and maintenance 
of the conveyed facilities.
    S. 235 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments. 
The land conveyance authorized by this bill would be voluntary 
on the part of the Yakima-Tieton Irrigation District. Any costs 
they might incur to comply with the conditions of the 
conveyance would be incurred voluntarily.
    The CBO staff contact for this estimate is Julie Middleton. 
The estimate was approved by Peter H. Fontaine, 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. 235. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant responsibilities on private individuals and 
business.
    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. 235, as ordered reported.

                        EXECUTIVE COMMUNICATIONS

    Because S. 235 is similar to legislation considered in the 
109th Congress, the Committee did not request Executive Agency 
views. The testimony provided by the Bureau of Reclamation at 
the Subcommittee hearing on S. 1965 in the 109th Congress 
follows:

     Statement of William E. Rinne, Acting Commissioner, Bureau of 
                Reclamation, Department of the Interior

    Madam Chairwoman, members of the Subcommittee, I am Bill 
Rinne, Acting Commissioner of Reclamation for the Bureau of 
Reclamation. I am pleased to provide the Department of the 
Interior's views on S. 1965, legislation to authorize the 
Secretary of the Interior to convey certain buildings and lands 
of the Yakima Project in Washington to the Yakima-Tieton 
Irrigation District. We support this legislation and thank the 
committee for considering it today.
    The transfer proposed in S. 1965 is the culmination of a 
collaborative and cooperative process and should be a model for 
other districts and groups interested in title transfer.
    What we experienced in this case, and what has made other 
title transfers successful, is that Reclamation and the non-
Federal entities interested in title transfer followed a simple 
plan identifying obstacles and dealing with them at the local 
or regional level before draftmg legislation.
    S. 1965 would authorize the title transfer of federally 
owned buildings and lands to the Yakima-Tieton Irrigation 
District. Reclamation and the Yakima-Tieton Irrigation District 
have worked collaboratively and efficiently to lay the 
groundwork for this title transfer. Thanks to the cooperative 
efforts of the District, the process has successfully addressed 
all the elements of Reclamation's policy framework that guides 
our title transfers.
    One of the Administration's goals in title transfer is to 
protect the financial interest of the United States, that is, 
to make sure that the United States is no worse off financially 
following title transfer. In this case, the full costs of the 
lands, buildings and facilities to be transferred have already 
been repaid pursuant to the district's original repayment 
contract. All the lands to be transferred under this 
legislation were acquired by Reclamation when the project was 
built. Thus the original repayment contract incorporated their 
value together with the costs associated with the construction 
of the facilities and buildings. There are no ongoing revenue 
streams associated with these lands and facilities, and the 
value of all the assets has been repaid. The district has 
fulfilled its repayment obligation under the contract and thus 
no payment is required.
    On December 6, 2004, Reclamation and the District entered 
into a title transfer agreement for the federally owned 
facilities (Contract No. 5-07-10-L1658) which spells out the 
terms and conditions for this title transfer and which is the 
basis for the transfer of the facilities in the legislation. 
Subsequently, Reclamation worked with the District and with 
Representative Hastings and Senator Cantwell on how to 
structure the legislation to authorize the implementation of 
the title transfer agreement.
    We believe that this title transfer will give the District 
more local control of buildings that were constructed for their 
use. It will also eliminate the need for duplicative and 
unnecessary administrative obligations that exist for the 
District based on the fact that title to the buildings and 
associated properties is held by the United States. For 
example, the District currently has to seek approval for 
utility work, building improvements, and similar activities by 
virtue of the fact that the buildings and properties are 
Federally owned.
    For Reclamation, the title transfer will obviate the 
periodic facility reviews and processing of paperwork that 
currently consumes significant staff time.
    In summary, we support passage of S. 1965. It is a good 
bill, a good title transfer, and reflects a cooperative and 
cost effective process that will provide a benefit to the 
District and to Reclamation.
    That concludes my testimony; I would be pleased to answer 
any questions.

                        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 S. 235, as ordered 
reported.

                                  
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