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[Senate Report 112-48]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 128
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-48

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                 C.C. CRAGIN DAM AND RESERVOIR PROJECT

                                _______
                                

   August 30 (legislative day August 2), 2011.--Ordered to be printed

  Filed, under authority of the order of the Senate of August 2, 2011

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 201]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 201) to clarify the jurisdiction of the 
Secretary of the Interior with respect to the C.C. Cragin Dam 
and Reservoir, and for other purposes, having considered the 
same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                                PURPOSE

    The purpose of S. 201 is to clarify the jurisdiction of the 
Secretary of the Interior with respect to the C.C. Cragin Dam 
and Reservoir in the State of Arizona.

                          BACKGROUND AND NEED

    The C.C. Cragin Project (``Cragin Project'') is a component 
of the Bureau of Reclamation's Salt River Project and is 
located on approximately 512 acres of land within the Coconino 
and Tonto National Forests in Arizona. The Cragin Project 
consists of the C.C. Cragin Dam and Reservoir, an 11.5-mile 
utility corridor containing an electric transmission line and a 
water pipeline, and other associated facilities. The Cragin 
Project was acquired by the United States pursuant to section 
213(i) of the Arizona Water Settlements Act of 2004, Public Law 
108-451, which authorized the Secretary of the Interior to 
accept title to the C.C. Cragin Dam and Reservoir and directed 
the Salt River Valley Water Users' Association and the Salt 
River Project Agricultural Improvement and Power District 
(``District'') to be responsible for the care, operation, and 
maintenance of the Cragin Project pursuant to a 1917 contract 
between the United States and the Association.
    The Bureau of Reclamation and the Forest Service generally 
coordinate the administration of National Forest System land on 
which Bureau of Reclamation projects are located pursuant to a 
1948 Memorandum of Understanding. The District, the Forest 
Service, and the Bureau of Reclamation entered into a more 
specific agreement in 1979 relating to the management of the 
Salt River Project within the Tonto National Forest. However, 
the acquisition of the Cragin Project pursuant to the 2004 Act 
resulted in a unique situation prompting legislation on the 
subject to clarify the respective jurisdiction of the Forest 
Service and the Bureau of Reclamation.

                          LEGISLATIVE HISTORY

    Senator McCain introduced S. 201 on January 26, 2011. The 
bill is co-sponsored by Senator Kyl. The Committee on Energy 
and Natural Resources held a hearing on S. 201 on May 19, 2011 
and considered the bill its business meeting on July 14, 2011. 
The Committee ordered S. 201 favorably reported without 
amendment.
    A similar bill, H.R. 489, was reported by the Committee on 
Natural Resources of the House of Representatives on July 20, 
2011 (H. Rpt. 112-160).
    During the 111th Congress, the Committee considered 
identical legislation, S. 1080, sponsored by Senators McCain 
and Kyl. The Subcommittee on Water and Power held a hearing on 
S. 1080 on July 23, 2009 (S. Hrg. 111-91) and the Committee 
ordered S. 1080 favorably reported with an amendment in the 
nature of a substitute on June 21, 2010 (S. Rpt. 111-255).

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 14, 2011, by voice vote of a 
quorum present, recommends that the Senate pass S. 201.

                      SECTION-BY-SECTION ANALYSIS

    Section 1(a) defines key terms used in the bill.
    Subsection (b) permanently withdraws the covered land, 
subject to valid existing rights, from all forms of entry, 
appropriation, or disposal under the public land laws, entry 
and patent under the mining laws, and disposition under all 
laws pertaining to mineral and geothermal leasing or mineral 
materials.
    Subsection (c) requires the Secretary of the Interior, in 
coordination with the Secretary of Agriculture, to prepare a 
map and legal description of the covered land.
    Subsection (d) confers exclusive administrative 
jurisdiction, except as provided in subsection (e), to the 
Secretary of the Interior, acting through the Commissioner of 
Reclamation, to manage the Project on the covered land. 
Included in the Secretary of the Interior's administrative 
jurisdiction is authority to control Project access by the 
District on the covered land. This subsection also states that 
the Secretary of the Interior and the District shall ensure 
compliance with applicable Federal environmental laws and 
regulations in operating, maintaining, or replacing the 
Project.
    Subsection (e) confers administrative jurisdiction to the 
Secretary of Agriculture over specific land management 
activities on the covered land that do not conflict with or 
adversely affect the operation, maintenance, or replacement of 
the Project. Paragraph (2) authorizes the Secretaries to enter 
into an agreement regarding additional management activities 
that may be undertaken by the Secretary of Agriculture, 
including emergency activities such as fire suppression.

                   COST AND BUDGETARY CONSIDERATIONS

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

S. 201--A bill to clarify the jurisdiction of the Secretary of the 
        Interior with respect to the C.C. Cragin Dam and Reservoir

    S. 201 would clarify that the Secretary of the Interior has 
exclusive jurisdiction to manage the C.C. Cragin Dam and 
Reservoir, an area including about 512 acres of land within the 
Coconino and Tonto National Forests in northern Arizona. Based 
on information from the Bureau of Reclamation and the Forest 
Service, CBO estimates that enacting the legislation would have 
no significant impact on the federal budget. Because the 
legislation would not affect direct spending or revenues, pay-
as-you-go procedures do not apply.
    The Arizona Water Settlements Act of 2004 transferred 
administrative authority for the C.C. Cragin Dam, Reservoir, 
and 10 miles of existing pipeline to the Bureau of Reclamation. 
The legislation did not explicitly divest the Forest Service 
from managing the underlying National Forest lands, resulting 
in uncertainty over which agency has the authority to approve 
management activities for the Cragin Project. The Cragin 
project involves operating and maintaining 10 miles of pipeline 
and constructing 14.5 miles of additional pipeline to deliver 
water to Northern Gila County. Currently, the project is 
subject to the approval requirements of both agencies. The 
legislation would clarify the authority of the Bureau of 
Reclamation to be the sole manager of the project.
    S. 201 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.
    On June 24, 2011, CB0 transmitted a cost estimate for H.R. 
489, a bill to clarify the jurisdiction of the Secretary of the 
Interior with respect to the C.C. Cragin Dam and Reservoir, as 
ordered reported by the House Committee on Natural Resources, 
on June 15, 2011. The two pieces of legislation are similar and 
CBO's cost estimates are the same.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was approved by Theresa Gullo, 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. 201.
    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. 201, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 201, 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 Bureau of Reclamation at the 
May 19, 2011, Subcommittee on Water and Power hearing on S. 201 
follows:

Statement of David Murillo, Deputy Commissioner, Operations, Bureau of 
                Reclamation, Department of the Interior

    Madam Chairman and Members of the Subcommittee, I am David 
Murillo, Deputy Commissioner of Operations of the Bureau of 
Reclamation (Reclamation). Thank you for the opportunity to 
provide the views of the U.S. Department of the Interior 
(Department) on S. 201, legislation specific to lands 
underlying the C.C. Cragin Dam, Reservoir and utility corridor 
(C.C. Cragin project) in Arizona. The legislation seeks to 
clarify federal jurisdiction with respect to the C.C. Cragin 
project, which includes a dam, reservoir, and 11.5-mile utility 
corridor containing a transmission line and high-pressure 
pipeline. The project is located nearly entirely within the 
Coconino National Forest in north-central Arizona.
    Language included in the Arizona Water Settlements Act 
(AWSA, Public Law 108-451) created questions about the 
respective jurisdiction of the U.S. Forest Service (Forest 
Service) and Reclamation related to the C.C. Cragin project. We 
have come to an agreement that we think can resolve this issue. 
This legislation is consistent with that arrangement. We look 
forward to continue working with the Committee on reaching a 
resolution.
    Reclamation and the Forest Service worked closely with the 
Salt River Project Agricultural Improvement and Power District 
(SRP), the entity that operates and maintains the C.C. Cragin 
project under the AWSA, and reached agreement in mid-2010 on 
legislation to clarify jurisdiction of the Federal agencies. 
The legislation, S. 1080, was considered during the 2nd session 
of the 111th Congress. The bill was not enacted during the last 
Congress, but both S. 201 and its companion bill, H.R. 489, 
contain the same provisions as S. 1080, as reported.
    This legislation accommodates the needs of Reclamation and 
SRP by ceding exclusive administrative jurisdiction over the 
lands underlying the C.C. Cragin project to Reclamation and by 
expressly acknowledging SRP's responsibility for operating and 
maintaining the C.C. Cragin project pursuant to the AWSA and 
the 1917 agreement between the Department and SRP. This is a 
unique situation due to the AWSA. In addition, this approach 
accommodates the Forest Service by allowing the agency to 
manage the lands underlying the utility corridor with respect 
to recreation, wildfire, law enforcement, and other activities 
consistent with the Forest Service's authorities, 
responsibilities, and expertise; the AWSA; the 1917 agreement; 
and the existing right-of-way over the utility corridor held by 
another party. This approach would allow for integrated 
management of tens of thousands of acres of ecosystems across 
National Forest System lands underlying and adjacent to the 
C.C. Cragin project, including watershed, wildlife habitat, 
range, and vegetation management. S. 201 allows for a workable 
agreement for both day-to-day activities and other activities 
that will improve the management and safety of the covered 
land. The Administration believes that this legislation 
provides a sound approach for future management of the C.C. 
Cragin project. Both Reclamation and the Forest Service are 
committed to working diligently with SRP to ensure needed work 
for the C.C. Cragin project can be accomplished expeditiously, 
including any necessary emergency and non-emergency repairs and 
replacement of improvements, in full compliance with applicable 
law, including the National Environmental Policy Act and the 
Endangered Species Act, as provided in the AWSA.
    Reclamation's long-standing experience working with SRP 
over nearly a century has been very productive. SRP has proven 
to be a responsible and reliable operator and caretaker of U.S. 
interests and resources. Reclamation and SRP have nearly a 
century of responsible stewardship in regard to both the 
technical operation of dams and reservoirs and protection of 
natural resources. It is our hope that combining that history 
with the Forest Service's land management authorities and 
expertise would result in even more effective stewardship.
    This concludes my testimony. I will 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 S. 201, as ordered 
reported.

                                  
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