69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–714 

EASTERN NEW MEXICO RURAL WATER SYSTEM 

AUTHORIZATION ACT 

JUNE 17, 2008.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. RAHALL, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 5710] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 5710) to authorize the Secretary of the Interior to provide 

financial assistance to the Eastern New Mexico Rural Water Authority for the planning, design, and construction of the Eastern 

New Mexico Rural Water System, 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. 5710 is to authorize the Secretary of the Interior to provide financial assistance to the Eastern New Mexico 

Rural Water Authority for the planning, design, and construction 

of the Eastern New Mexico Rural Water System, and for other purposes. 

BACKGROUND AND NEED FOR LEGISLATION

The proposed Eastern New Mexico Rural Water System Project 

would deliver potable water for municipal and industrial use to the 

cities of Clovis, Portales, Texico, Melrose, Elida, and Grady, and 

the Counties of Curry, Roosevelt and Quay. Water is also proposed 

to be delivered to Cannon Air Force Base in Eastern New Mexico. 

Currently, most of these communities in Eastern New Mexico 

rely on groundwater from the Entrada aquifer, part of the larger 

Ogallala Aquifer to the south, as the main source of water. Water 


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levels in the vicinity of Clovis have declined in excess of 100 feet, 

with an estimated recharge of only 1⁄2 inch per year. At current 

pumping rates, the aquifers near the cities of Clovis and Portales 

will not be able to sustain existing water demand from the aquifers 

after 40 years. 

In 1959, the New Mexico State Legislature enacted legislation instructing the State Engineer to create a reservoir on the Canadian 

River that could be used for future water demands in the region. 

The Interstate Stream Commission (ISC) completed the construction of the Ute Dam and Reservoir in 1962, and the State is allowed to store up to 200,000 acre feet of water for use in New Mexico. 

The Ute Dam and Reservoir stores approximately 200,000 acre 

feet of water. The Ute Water Commission (UWC) was first organized in 1987 for the purposes of contracting with the Interstate 

Stream Commission for purchase, acquisition, and distribution of 

water from the Ute Reservoir. In 1997, UWC and ISC entered into 

the agreement for sale and purchase of 24,000 acre feet annually 

from the Ute Reservoir. 

The proposed Eastern New Mexico Rural Water System Project 

would use Ute Reservoir water to deliver 16,500 acre feet of water 

annually via 94.8 miles of lateral pipelines. The water would be 

centrally treated and delivered to the communities through a ‘‘take 

or pay’’ program, where participating member agencies use or pay 

for their reserved allocation of Ute water annually. The Eastern 

New Mexico Rural Water Authority was formed in November 2001 

by members from the three participating counties and will be responsible for the operation, maintenance and replacement costs associated with the proposed Eastern New Mexico Rural Water System Project. 

COMMITTEE ACTION

H.R. 5710 was introduced on April 3, 2008, by Rep. Tom Udall 

(D–NM). The bill was referred to the Committee on Natural Resources, and within the Committee to the Subcommittee on Water 

and Power. On May 8, 2008, the Subcommittee held a hearing on 

the bill. 

On May 22, 2008, the Subcommittee met to mark up the bill. 

H.R. 5710 was forwarded to the Full Committee with no amendments. On June 11, 2008, the Full Natural Resources Committee 

met to consider the bill. H.R. 5710 was ordered favorably reported 

to the House of Representatives by unanimous consent. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Section 1 provides that this Act may be cited as the ‘‘Eastern 

New Mexico Rural Water System Authorization Act.’’ 

Section 2. Definitions 

Section 2 provides definitions for the terms used in the bill. 

Section 3. Eastern New Mexico Rural Water System 

Section 3 specifies the federal cost share, the purposes for which 

the financial and technical assistance for the project can be used, 


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and ownership of the project infrastructure. The Secretary of the 

Interior may provide technical and financial assistance to the Eastern New Mexico Rural Water Authority (Authority), limited to the 

Eastern New Mexico Rural Water System Project (System). The 

federal cost share under this Act is limited to 75 percent of the 

total System costs. The total system costs include funds incurred 

by the State and the Authority on or after October 1, 2003. No 

funds can be used until an operation, maintenance and replacement plan is developed by the Authority in consultation with the 

Secretary of the Interior. Environmental compliance must also be 

completed before funds can be used. The title of the infrastructure 

will be held by the Authority. 

The Committee expects the Bureau of Reclamation and other relevant planning authorities to obtain landowner permission before 

entering private property that could be affected by the pipeline 

route. 

Section 4. Operation, maintenance and replacement costs 

Section 4 specifies the Authority’s responsibility for all operation, 

maintenance and replacement costs associated with the System. 

The Authority must also develop an operation, maintenance and replacement plan. 

Section 5. Administrative provisions 

Section 5 outlines the details and provisions of the cooperative 

agreement for financial and technical assistance. The Secretary 

shall also consult with the Authority in preparing any biological assessment under the Endangered Species Act. 

Section 6. Authorization of appropriations 

Section 6 authorizes $327,000,000 to carry out this Act, adjusted 

to reflect changes in construction costs after January 1, 2007. The 

funds made available to the Authority are non-reimbursable and 

nonreturnable to the United States and any funds not used at the 

end of the fiscal year is retained for use on this project. 

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. 

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. However, clause 3(d)(3)(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 preVerDate Aug 31 2005 04:56 Jun 18, 2008 Jkt 069006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR714.XXX HR714

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pared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. 

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, spending authority, credit authority, or an increase or decrease in revenues or tax expenditures. 

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 the Secretary of the Interior to provide 

financial assistance to the Eastern New Mexico Rural Water Authority for the planning, design, and construction of the Eastern 

New Mexico Rural Water System, and for other purposes. 

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 received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 

H.R. 5710—Eastern New Mexico Rural Water System Authorization 

Act 

Summary: H.R. 5710 would authorize the Secretary of the Interior to provide financial and technical assistance to the Eastern 

New Mexico Rural Water Authority to help plan, design, and construct a water delivery project. 

Based on information from the Bureau of Reclamation and assuming appropriation of the necessary amounts, CBO estimates 

that implementing H.R. 5710 would cost $348 million over the 

2009–2013 period. Enacting the legislation would not affect direct 

spending or revenues. 

H.R. 5710 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5710 is shown in the following table. The costs 

of this legislation fall within budget function 300 (natural resources 

and environment). 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 2009– 

2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ...................................................... 80 100 100 80 0 360 

Estimated Outlays ........................................................................ 48 80 97 88 35 348 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted near the start of fiscal year 2009 and that 

the necessary amounts will be appropriated for each year. 

H.R. 5710 would authorize the appropriation of $327 million, 

plus additional amounts to reflect changes in construction costs 

after January 1, 2007. Under the bill, the Secretary would not be 

able to provide federal funds for operation and maintenance costs 

of the project. The maximum federal share of any activity related 

to the project would be limited to 75 percent. Any federal funds 

contributed to construct the project would be non-reimbursable. 


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Based on information from the Bureau of Reclamation and assuming appropriation of the necessary amounts, CBO estimates 

that implementing the legislation would cost $348 million over the 

2009–2013 period, and an additional $12 million thereafter. 

Intergovernmental and private-sector impact: H.R. 5710 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. Funds authorized in the bill to design, plan, and construct 

a system for delivering water would benefit the Eastern New Mexico Rural Water Authority. Any costs the authority might incur 

would result from complying with conditions for receiving federal 

assistance. 

Previous estimate: On June 11, 2008, CBO transmitted a cost estimate for S. 2814, the Eastern New Mexico Rural Water System 

Authorization Act as ordered reported by the Senate Committee on 

Energy and Natural Resources on May 7, 2008. The bills are similar, and the estimated costs of implementing them are identical. 

Estimate prepared by: Federal Costs: Tyler Kruzich; Impact on 

State, Local, and Tribal Governments: Melissa Merrell; Impact on 

the Private Sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates. 

EARMARK STATEMENT

H.R. 5710 does not contain any congressional earmarks, limited 

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

or 9(f) of rule XXI. 

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. 

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