39–006 

108TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 108–719 

PROVO RIVER PROJECT TRANSFER ACT 

OCTOBER 4, 2004.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. POMBO, from the Committee on Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 3391] 

The Committee on Resources, to whom was referred the bill 

(H.R. 3391) to authorize the Secretary of the Interior to convey certain lands and facilities of the Provo River Project, having considered the same, report favorably thereon with an amendment and 

recommend 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 ‘‘Provo River Project Transfer Act’’. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) AGREEMENT.—The term ‘‘Agreement’’ means the contract numbered 04– 

WC–40–8950 and entitled ‘‘Agreement Among the United States, the Provo 

River Water Users Association, and the Metropolitan Water District of Salt 

Lake & Sandy to Transfer Title to Certain Lands and Facilities of the Provo 

River Project’’. 

(2) ASSOCIATION.—The term ‘‘Association’’ means the Provo River Water 

Users Association, a nonprofit corporation organized under the laws of the 

State. 

(3) DISTRICT.—The term ‘‘District’’ means the Metropolitan Water District of 

Salt Lake & Sandy, a political subdivision of the State. 

(4) PLEASANT GROVE PROPERTY.— (A) IN GENERAL.—The term ‘‘Pleasant Grove Property’’ means the 3.79- 

acre parcel of land acquired by the United States for the Provo River 

Project, Deer Creek Division, located at approximately 285 West 1100 

North, Pleasant Grove, Utah, as in existence on the date of enactment of 

this Act. 

(B) INCLUSIONS.—The term ‘‘Pleasant Grove Property’’ includes the office 

building and shop complex constructed by the Association on the parcel of 

land described in subparagraph (A). 

(5) PROVO RESERVOIR CANAL.—The term ‘‘Provo Reservoir Canal’’ means the 

canal, and any associated land, rights-of-way, and facilities acquired, constructed, or improved by the United States as part of the Provo River Project, 

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Deer Creek Division, extending from, and including, the Murdock Diversion 

Dam at the mouth of Provo Canyon, Utah, to and including the Provo Reservoir 

Canal Siphon and Penstock, as in existence on the date of enactment of this 

Act. 

(6) SALT LAKE AQUEDUCT.—The term ‘‘Salt Lake Aqueduct’’ means the aqueduct and associated land, rights-of-way, and facilities acquired, constructed or 

improved by the United States as part of the Provo River Project, Aqueduct Division, extending from, and including, the Salt Lake Aqueduct Intake at the 

base of Deer Creek Dam to and including the Terminal Reservoirs located at 

3300 South St. and Interstate Route 215 in Salt Lake City, Utah, as in existence on the date of enactment of this Act. 

(7) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. 

(8) STATE.—The term ‘‘State’’ means the State of Utah. 

SEC. 3. CONVEYANCE OF LAND AND FACILITIES. 

(a) CONVEYANCES TO ASSOCIATION.— 

(1) PROVO RESERVOIR CANAL.— 

(A) IN GENERAL.—In accordance with the terms and conditions of the 

Agreement and subject to subparagraph (B), the Secretary shall convey to 

the Association, all right, title, and interest of the United States in and to 

the Provo Reservoir Canal. 

(B) CONDITION.—The conveyance under subparagraph (A) shall not be 

completed until the Secretary accepts future arrangements entered into by 

the Association, the District, the Central Utah Water Conservancy District, 

and the Jordan Valley Water Conservancy District providing for the operation, ownership, financing, and improvement of the Provo Reservoir Canal. 

(2) PLEASANT GROVE PROPERTY.—In accordance with the terms and conditions 

of the Agreement, the Secretary shall convey to the Association, all right, title, 

and interest of the United States in and to the Pleasant Grove Property. 

(b) CONVEYANCE TO DISTRICT.— 

(1) IN GENERAL.—In accordance with the terms and conditions of the Agreement, the Secretary shall convey to the District, all right, title, and interest of 

the United States in and to Salt Lake Aqueduct. 

(2) EASEMENTS.— 

(A) IN GENERAL.—As part of the conveyance under paragraph (1), the Secretary shall grant to the District permanent easements to— 

(i) the National Forest System land on which the Salt Lake Aqueduct 

is located; and 

(ii) land of the Aqueduct Division of the Provo River Project that 

intersects the parcel of non-Federal land authorized to be conveyed to 

the United States under section 104(a) of Public Law 107–329 (116 

Stat. 2816). 

(B) PURPOSE.—The easements conveyed under subparagraph (A) shall be 

for the use, operation, maintenance, repair, improvement, or replacement of 

the Salt Lake Aqueduct by the District. 

(C) LIMITATION.—The United States shall not carry out any activity on 

the land subject to the easements conveyed under subparagraph (A) that 

would materially interfere with the use, operation, maintenance, repair, improvement, or replacement of the Salt Lake Aqueduct by the District. 

(D) BOUNDARIES.—The boundaries of the easements conveyed under subparagraph (A) shall be determined by the Secretary, in consultation with 

the District. 

(E) REVOCATION OF WITHDRAWALS.—On conveyance of the easement to 

the land described in subparagraph (A)(i), the Secretary, subject to the 

easement and any terms and conditions of the Agreement, shall revoke any 

public land orders withdrawing National Forest System land for the Aqueduct Division of the Provo River Project. 

(F) TRANSFER OF ADMINISTRATIVE JURISDICTION.— 

(i) IN GENERAL.—On conveyance of the easement to the land described in subparagraph (A)(ii), the Secretary, subject to the easement, 

shall transfer to the Secretary of Agriculture administrative jurisdiction over the land. 

(ii) ADMINISTRATIVE SITE.—The land transferred under clause (i) shall 

be administered by the Secretary of Agriculture as an administrative 

site. 

(G) ADMINISTRATION.—The easements conveyed under subparagraph (A) 

shall be administered by the Secretary of Agriculture in accordance with 

section 501(b)(3) of the Federal Land Policy and Management Act of 1976 

(43 U.S.C. 1761(b)(3)). 

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(c) CONSIDERATION.— 

(1) ASSOCIATION.— 

(A) IN GENERAL.—In exchange for the conveyance under subsection (a)(1), 

the Association shall pay the Secretary an amount that is equal to the sum 

of— 

(i) the net present value of any remaining debt obligation of the 

United States with respect to the Provo Reservoir Canal; and 

(ii) the net present value of any revenues from the Provo Reservoir 

Canal that, based on past history— 

(I) would be available to the United States but for the conveyance of the Provo Reservoir Canal under subsection (a)(1); and 

(II) would be deposited in the reclamation fund established under 

the first section of the Act of June 17, 1902 (43 U.S.C. 391), and 

credited under the terms of Reclamation Manual/Directives and 

Standards PEC 03–01. 

(B) DEDUCTION.—In determining the net present values under clauses (i) 

and (ii) of subparagraph (A), the Association may deduct from the net 

present value such sums as are required for the reimbursement described 

in the Agreement. 

(2) DISTRICT.— 

(A) IN GENERAL.—In exchange for the conveyance under subsection (b)(1), 

the District shall pay the Secretary an amount that is equal to the sum of— 

(i) the net present value of any remaining debt obligation of the 

United States with respect to the Salt Lake Aqueduct; and 

(ii) the net present value of any revenues from the Salt Lake Aqueduct that, based on past history— 

(I) would have been available to the United States but for the 

conveyance of the Salt Lake Aqueduct under subsection (b)(1); and 

(II) would be deposited in the reclamation fund established under 

the first section of the Act of June 17, 1902 (43 U.S.C. 391), and 

credited under the terms of Reclamation Manual/Directives and 

Standards PEC 03–01. 

(B) DEDUCTION.—In determining the net present values under clauses (i) 

and (ii) of subparagraph (A), the District may deduct from the net present 

value such sums as are required for the reimbursement described in the 

Agreement. 

(d) PAYMENT OF COSTS.—In addition to amounts paid to the Secretary under subsection (c), the Association and the District shall, in accordance with the Agreement, 

pay the Secretary— 

(1) any necessary and reasonable administrative and real estate transfer costs 

incurred by the Secretary in carrying out the conveyance; and 

(2) 1⁄2 of any necessary and reasonable costs associated with complying with— 

(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)(i) the National Historic Preservation Act (16 U.S.C. 470 et seq.); and 

(ii) any other Federal cultural resource laws. 

(e) COMPLIANCE WITH ENVIRONMENTAL LAWS.— 

(1) IN GENERAL.—Before conveying land and facilities 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 land and facilities. 

(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. EXISTING CONTRACTS. 

(a) DEER CREEK DIVISION CONSTRUCTION CONTRACT.—Notwithstanding the conveyances under subsections (a) and (b)(1) of section 3, any portion of the Deer Creek 

Division, Provo River Project, Utah, that is not conveyed under that section shall 

continue to be operated and maintained by the Association, in accordance with the 

contract numbered I1r–874, dated June 27, 1936, and entitled the ‘‘Contract Between the United States and Provo River Water Users Association Providing for the 

Construction of the Deer Creek Division of the Provo River Project, Utah’’. 

(b) PROVO RIVER PROJECT AND JORDAN AQUEDUCT SYSTEM CONTRACTS.—Any written contract of the United States in existence on the date of enactment of this Act 

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relating to the operation and maintenance of any division or facility of the Provo 

River Project or the Jordan Aqueduct System is confirmed and declared to be a valid 

contract of the United States that is enforceable in accordance with the express 

terms of the contract. 

(c) USE OF CENTRAL UTAH PROJECT WATER.— 

(1) IN GENERAL.—Subject to paragraph (2), any entity with contractual Provo 

Reservoir Canal or Salt Lake Aqueduct capacity rights in existence on the date 

of enactment of this Act may, in addition to the uses described in the existing 

contracts, use the capacity rights, without additional charge or further approval 

from the Secretary, to transport Central Utah Project water on behalf of the entity or others. 

(2) LIMITATIONS.—An entity shall not use the capacity rights to transport 

Central Utah Project water under paragraph (1) unless— 

(A) the use is expressly authorized by the entity responsible for operation 

and maintenance of the Central Utah Project water facility; and 

(B) carrying Central Utah Project water through Provo River Project facilities would not— 

(i) materially impair the ability of the Central Utah Water Conservancy District or the Secretary to meet existing express environmental 

commitments for the Bonneville Unit; or 

(ii) require the release of additional Central Utah Project water to 

meet those environmental commitments. 

(d) AUTHORIZED MODIFICATIONS.—The Agreement may provide for— 

(1) the modification of the 1936 Repayment Contract for the Deer Creek Division of the Provo River Project to reflect the partial prepayment, the adjustment 

of the annual repayment amount, and the transfer of the Provo Reservoir Canal 

and the Pleasant Grove Property; and 

(2) the modification or termination of the 1938 Repayment Contract for the 

Aqueduct Division of the Provo River Project to reflect the complete payout and 

transfer of all facilities of the Aqueduct Divsion. 

(e) EFFECT OF ACT.—Nothing in this Act impairs any contract (including subscription contracts) in effect on the date of enactment of this Act that allows for or creates a right to convey water through the Provo Reservoir Canal. 

SEC. 5. EFFECT OF CONVEYANCE. 

On conveyance of any land or facility under subsection (a) or (b)(1) of section 3— 

(1) the land and facilities shall no longer be part of a Federal reclamation 

project; 

(2) the Association and the District shall not be entitled to receive any future 

reclamation benefits with respect to the land and facilities, except for benefits 

that would be available to other nonreclamation facilities; and 

(3) the United States shall not be liable for damages arising out of any act, 

omission, or occurrence relating to the land and facilities, but 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 conveyance, consistent with chapter 171 of title 28, United States Code. 

SEC. 6. REPORT. 

If a conveyance required under subsection (a) or (b)(1) of section 3 is not completed by the date that is 18 months after the date of enactment of this Act, the 

Secretary shall submit to Congress a report that— 

(1) describes the status of the conveyance; 

(2) describes any obstacles to completing the conveyance; and 

(3) specifies an anticipated date for completion of the conveyance. 

PURPOSE OF THE BILL

The purpose of H.R. 3391 is to authorize the Secretary of the Interior to convey certain lands and facilities of the Provo River 

Project. 

BACKGROUND AND NEED FOR LEGISLATION

The Bureau of Reclamation holds the title of the Provo River 

Project. The Project provides approximately 100,000 acre-feet of 

supplemental irrigation and domestic water each year to water districts, cities, irrigation interests, private companies, and individuals in Wasatch, Summit, Utah, and Salt Lake Counties in Utah. 

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Key features of the Project include Deer Creek Dam and Reservoir, 

the Salt Lake Aqueduct and Terminal Reservoir, the Murdock Diversion Dam, the Provo Reservoir Canal, and several transbasin diversion and conveyance facilities. As many as one million people receive some portion of their water supply from the Project. 

The bill transfers two water conveyance facilities and a 3.79 acre 

property to the local water users. The Provo Reservoir Canal is currently operated by the Provo River water users Association under 

a contract with the Bureau. The Pleasant Grove property, consisting of 3.79 acres of land in north Pleasant Grove, Utah, is currently used by the Provo River Water Users Association for its 

maintenance shop and yard, vehicle storage, and office buildings. 

The Salt Lake Aqueduct is currently operated by the Metropolitan 

Water District of Salt Lake and Sandy under a contract with the 

Bureau. The Provo River Water users Association and the Metropolitan Water District of Salt Lake and Sandy are seeking title 

transfer of these facilities and property primarily to obtain low-interest, tax-exempt financing to improve their facilities and to address human safety concerns. A cost-sharing agreement between 

the Bureau and these agencies has been finalized for completing 

the necessary environmental compliance work as required for a 

title transfer. 

COMMITTEE ACTION

H.R. 3391 was introduced by Congressman Chris Cannon (R–UT) 

on October 29, 2003. The bill was referred to the Committee on Resources and within the Committee to the Subcommittee on Water 

and Power. On October 30, 2003, the Subcommittee held a hearing 

on the bill. On July 8, 2004, the Subcommittee met to consider the 

bill. Subcommittee Chairman Ken Calvert (R–CA) offered an 

amendment in the nature of a substitute. The amendment was 

adopted by unanimous consent and the bill as amended was forwarded to the Full Resources Committee by unanimous consent. 

On September 22, 2004, the Resources Committee met to consider 

the bill. Congressman Ken Calvert offered an amendment in the 

nature of a substitute which safeguarded the environment, allowed 

Central Utah Project water to flow through the appropriate facilities, confirmed existing federal contracts, and made a number of 

technical changes to improve the underlying bill. It was adopted by 

unanimous consent. The bill, as amended, was then ordered favorably reported to the House of Representatives by unanimous consent. 

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 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. 

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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. The Committee concludes that enacting this bill 

would result in short-term revenue to the United States from the 

consideration paid for the Provo River Project facilities. However, 

the United States will forego future payments from the Project 

beneficiaries. In addition, all administrative expenses associated 

with the Project transfer will be paid by the Association and the 

District, saving the Bureau of Reclamation these costs. 

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 tax expenditures. As noted 

above, the United States will receive revenues from the Association 

and the District for the conveyance. 

3. General Performance Goals and Objectives. This bill does not 

authorize funding and therefore, clause 3(c)(4) of rule XIII of the 

Rules of the House of Representatives does not apply. 

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 requested but not received a cost estimate for this bill 

from the Director of the Congressional Budget Office. 

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

If enacted, this bill would make no changes in existing law. 

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