19–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–303 

AMENDING THE WILD AND SCENIC RIVERS ACT RELATED TO A SEGMENT OF THE LOWER MERCED RIVER 

IN CALIFORNIA, AND FOR OTHER PURPOSES 

DECEMBER 1, 2011.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HASTINGS of Washington, from the Committee on Natural 

Resources, submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 2578] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 2578) to amend the Wild and Scenic Rivers Act related 

to a segment of the Lower Merced River in California, and for other 

purposes, having considered the same, report favorably thereon 

without amendment and recommend that the bill do pass. 

PURPOSE OF THE BILL

The purpose of H.R. 2578 is to amend the Wild and Scenic Rivers 

Act related to a segment of the Lower Merced River in California. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 2578 would adjust the Merced Wild and Scenic River boundary to coincide with the Federal Energy Regulatory Commission 

(FERC) operational boundary for the Merced Irrigation District’s 

(MID) New Exchequer Dam project at Lake McClure on the Merced 

River. 

When the Merced Wild and Scenic River was designated, it encroached nearly half a mile into an existing FERC operational 


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boundary for the Exchequer Dam. Aligning the Merced Wild and 

Scenic River boundary with the standing project boundary will 

allow FERC to consider for MID’s relicensing a temporary seasonal 

increase of Lake McClure that is 10 feet above the currently established 867 feet mean sea level. This would be for a maximum of 

60 days from May 1 to July 31 during above-normal water years 

in an area that naturally floods to levels over 890 feet and impacts 

less than one mile of the 122.5 miles of the Merced River. 

Wild and Scenic River designations are not absolute. The ability 

to create or annex Wild and Scenic River designations provides the 

same latitude for reducing or limiting them. Congress can adjust 

Wild and Scenic River boundaries, especially if it serves a greater 

good. 

The bill is common sense legislation that will allow for desperately needed storage of up to 70,000 acre-feet of water, which 

has the potential for the generation of an additional 10,000 megawatt hours of clean renewable electricity, increased recreation activity in the area and agricultural benefits, as well as the creation 

of about 840 jobs. It will also increase desperately needed water 

supply to the San Joaquin Valley. 

COMMITTEE ACTION

H.R. 2578 was introduced on July 18, 2011, by Congressman Jeff 

Denham (R–CA). The bill was referred to the Committee on Natural Resources, and within the Committee to the Subcommittee on 

National Parks, Forests and Public Lands. On July 16, 2011, the 

Subcommittee held a hearing on the bill. On October 5, 2011, the 

Full Natural Resources Committee met to consider the bill. The 

Subcommittee on National Parks, Forests and Public Lands was 

discharged by unanimous consent. No amendments were offered, 

and the bill was 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 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

COMPLIANCE WITH HOUSE RULE XIII 

1. Cost of Legislation. Clause 3(d)(1) 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. However, clause 3(d)(2)(B) 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 402 of the Congressional Budget Act of 1974. 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 received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 


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H.R. 2578—A bill to amend the Wild and Scenic Rivers Act related 

to a segment of the Lower Merced River in California, and for 

other purposes 

Under current law, certain portions of the Lower Merced River 

in California are designated as wild and scenic under the Wild and 

Scenic Rivers Act, which specifies procedures and policies regarding 

the use of such rivers and adjacent lands. H.R. 2578 would remove 

that designation from about one-half mile of the river. According to 

the Bureau of Land Management (BLM), this change would effectively expand the boundary of a hydroelectric facility (project number 2179) licensed by the Federal Energy Regulatory Commission 

(FERC). 

CBO estimates that implementing H.R. 2578 would have no significant impact on the federal budget. Based on information from 

BLM, we estimate that any changes in the agency’s costs to manage the affected area would not exceed $500,000 in any year, assuming the availability of appropriated funds. Modifying the 

boundary of FERC project 2179 could affect FERC’s costs related 

to licencing and regulating that project. However, because FERC 

recovers 100 percent of its costs through user fees, any change in 

administrative costs (which are controlled through annual appropriation acts) would be offset by an equal change in fees that the 

commission charges, resulting in no net change in federal spending. 

Enacting H.R. 2578 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. H.R. 2578 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 CBO staff contacts for this estimate are Megan Carroll and 

Jeff LaFave. The estimate was approved by Theresa Gullo, Deputy 

Assistant Director for Budget Analysis. 

2. Section 308(a) of 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, spending authority, credit authority, or an increase or decrease in revenues or 

tax expenditures. CBO estimates that implementing H.R. 2578 

would have no significant impact on the federal budget. Based on 

information from the Bureau of Land Management, CBO estimates 

that any changes in the agency’s costs to manage the affected area 

would not exceed $500,000 in any year, assuming the availability 

of appropriated funds. Modifying the boundary of the Federal Energy Regulatory Commission (FERC) project 2179 could affect 

FERC’s costs related to licensing and regulating that project. However, because FERC recovers 100 percent of its costs through user 

fees, any change in administrative costs (which are controlled 

through annual appropriation acts) would be offset by an equal 

change in fees that the commission charges, resulting in no net 

change in federal spending. 

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 amend the Wild and Scenic Rivers Act related to 

a segment of the Lower Merced River in California. 


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EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

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 MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

WILD AND SCENIC RIVERS ACT 

* * * * * * * 

SEC. 3. (a) The following rivers and the land adjacent thereto are 

hereby designated as components of the national wild and scenic 

rivers system: 

(1) * * * 

* * * * * * * 

(62) MERCED, CALIFORNIA.—(A) * * * 

(B)(i) The main stem from a point 300 feet upstream of the confluence with Bear Creek downstream to øthe normal maximum operating pool water surface level of Lake McClure (elevation 867 feet 

mean sea level) consisting of approximately 8 miles, as generally 

depicted on the map entitled ‘‘Merced Wild and Scenic River’’, 

dated April, 1990.¿ the boundary of FERC Project No. 2179 as it 

existed on July 18, 2011, consisting of a point approximately 2,480 

feet downstream of the confluence with the North Fork of the Merced 

River, consisting of approximately 7.4 miles. The Secretary of the 

Interior shall administer the segment as recreational, from a point 

300 feet upstream of the confluence with Bear Creek downstream 

to a point 300 feet west of the boundary of the Mountain King 

Mine, and as wild, from a point 300 feet west of the boundary of 

the Mountain King Mine to øthe normal maximum operating pool 

water surface level of Lake McClure¿ the boundary of FERC 

Project No. 2179 as it existed on July 18, 2011, consisting of a point 

approximately 2,480 feet downstream of the confluence with the 

North Fork of the Merced River. The requirements of subsection (b) 

of this section shall be fulfilled by the Secretary of the Interior 

through appropriate revisions to the Sierra Management Framework Plan for the Sierra Planning Area of the Folsom Resource 

Area, Bakersfield District, Bureau of Land Management. There are 


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authorized to be appropriated such sums as may be necessary to 

carry out the purposes of this subparagraph. 

* * * * * * * 

SECTION 3 OF PUBLIC LAW 102–432 

SEC. 3. NEW EXCHEQUER PROJECT. 

The designation of the river segments referred to in section 1 of 

this Act as components of the Wild and Scenic Rivers System shall 

not affect the continued operation and maintenance (including flood 

control operations) of the New Exchequer Project (Project No. 2179) 

as licensed by the Federal Energy Regulatory Commission on the 

date of enactment of this Act or the Commission’s authority to 

issue a new license to the existing licensee for such project within 

the project boundaries set forth in the license on the date of enactment of this øAct: Provided, That if the Commission issues a new 

license to the existing licensee for such a project, the normal maximum operating pool water surface level authorized in the project’s 

license shall not exceed elevation 867.0 mean sea level.¿ Act. 


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(6) 

DISSENTING VIEWS 

H.R. 2578 proposes to amend the National Wild & Scenic Rivers 

Act to expand the storage capacity of Lake McClure, which would 

result in a recurring, temporary inundation of approximately 1 

mile of the Merced River. More important, H.R. 2578 would renege 

on a promise between the Merced Irrigation Water District and 

other stakeholders made nearly two decades ago when the designation was signed into law by President George H.W. Bush. 

Proponents of the legislation tout the significance of additional 

storage in the Central Valley. The project is expected to increase 

yield in the reservoir on average of 10,000 acre-feet per year. This 

is only a one percent increase to the one million acre-feet capacity 

of Lake McClure. Congress has never before authorized the flooding of a designated Wild and Scenic River and there is no justification for doing so in this case. 

EDWARD J. MARKEY. 

GRACE F. NAPOLITANO. 

RAU ́ L M. GRIJAVLA. 

RUSH HOLT. 

BEN R. LUJA ́ N. 

DALE E. KILDEE. 

NIKI TSONGAS. 

Æ 


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