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104TH CONGRESS

2D SESSION H. R. 2917

To authorize the Chief of Engineers of the Army Corps of Engineers to

make capital improvements for the Washington Aqueduct, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 31, 1996

Ms. NORTON introduced the following bill; which was referred to the

Committee on Transportation and Infrastructure

A BILL

To authorize the Chief of Engineers of the Army Corps

of Engineers to make capital improvements for the

Washington Aqueduct, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CAPITAL IMPROVEMENTS FOR THE WASHING4 TON AQUEDUCT.

5 (a) AUTHORIZATIONS.—

6 (1) AUTHORIZATION OF MODERNIZATION.—

7 Subject to approval in, and in such amounts as may

8 be provided in appropriations Acts, the Chief of En-
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1 gineers of the Army Corps of Engineers is author2 ized to modernize the Washington Aqueduct.

3 (2) AUTHORIZATION OF APPROPRIATIONS.—

4 There is authorized to be appropriated to the Army

5 Corps of Engineers borrowing authority in amounts

6 sufficient to cover the full costs of modernizing the

7 Washington Aqueduct. The borrowing authority

8 shall be provided by the Secretary of the Treasury,

9 under such terms and conditions as are established

10 by the Secretary of the Treasury, after a series of

11 contracts with each public water supply customer

12 has been entered into under subsection (b).

13 (b) CONTRACTS WITH PUBLIC WATER SUPPLY CUS14 TOMERS.—

15 (1) CONTRACTS TO REPAY CORPS DEBT.—To

16 the extent provided in appropriations Acts, and in

17 accordance with paragraphs (2) and (3), the Chief

18 of Engineers of the Army Corps of Engineers is au19 thorized to enter into a series of contracts with each

20 public water supply customer under which the cus21 tomer commits to repay a pro-rata share of the prin22 cipal and interest owed by the Army Corps of Engi23 neers to the Secretary of the Treasury under sub24 section (a). Under each of the contracts, the cus25 tomer that enters into the contract shall commit to
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1 pay any additional amount necessary to fully offset

2 the risk of default on the contract.

3 (2) OFFSETTING OF RISK OF DEFAULT.—Each

4 contract under paragraph (1) shall include such ad5 ditional terms and conditions as the Secretary of the

6 Treasury may require so that the value to the Gov7 ernment of the contracts is estimated to be equal to

8 the obligational authority used by the Army Corps

9 of Engineers for modernizing the Washington Aque10 duct at the time that each series of contracts is en11 tered into.

12 (3) OTHER CONDITIONS.—Each contract en13 tered into under paragraph (1) shall—

14 (A) provide that the public water supply

15 customer pledges future income from fees as16 sessed to operate and maintain the Washington

17 Aqueduct;

18 (B) provide the United States priority over

19 all other creditors; and

20 (C) include other conditions that the Sec21 retary of the Treasury determines to be appro22 priate.

23 (c) BORROWING AUTHORITY.—Subject to an appro24 priation under subsection (a)(2) and after entering into

25 a series of contracts under subsection (b), the Secretary,
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1 acting through the Chief of Engineers of the Army Corps

2 of Engineers, shall seek borrowing authority from the Sec3 retary of the Treasury under subsection (a)(2).

4 (d) DEFINITIONS.—In this section:

5 (1) PUBLIC WATER SUPPLY CUSTOMER.—The

6 term ‘‘public water supply customer’’ means the Dis7 trict of Columbia, the county of Arlington, Virginia,

8 and the city of Falls Church, Virginia.

9 (2) VALUE TO THE GOVERNMENT.—The term

10 ‘‘value to the Government’’ means the net present

11 value of a contract under subsection (b) calculated

12 under the rules set forth in subparagraphs (A) and

13 (B) of section 502(5) of the Congressional Budget

14 Act of 1974 (2 U.S.C. 661a(5)), excluding section

15 502(5)(B)(i) of the Act, as though the contracts pro16 vided for the repayment of direct loans to the public

17 water supply customers.

18 (3) WASHINGTON AQUEDUCT.—The term

19 ‘‘Washington Aqueduct’’ means the water supply

20 system of treatment plans, raw water intakes, con21 duits, reservoirs, transmission mains, and pumping

22 stations owned by the Federal Government located

23 in the metropolitan Washington, District of Colum24 bia, area.

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