69–010 

Calendar No. 1090 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–506 

A BILL TO ENHANCE AND PROVIDE TO THE OGLALA SIOUX TRIBE AND 

ANGOSTURA IRRIGATION PROJECT CERTAIN BENEFITS TO THE PICKSLOAN MISSOURI RIVER BASIN PROGRAM 

SEPTEMBER 25 (legislative day, SEPTEMBER 17), 2008.—Ordered to be printed 

Mr. DORGAN, from the Committee on Indian Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 2489] 

The Committee on Indian Affairs to which was referred the bill 

(S. 2489) to enhance and provide to the Oglala Sioux Tribe and Angostura Irrigation Project certain benefits to the Pick-Sloan Missouri River basin program, having considered the same, reports favorably thereon without amendment and recommends that the bill 

do pass. 

PURPOSE

The purpose of S. 2489, the Oglala Sioux Tribe Angostura Irrigation Project Modernization and Development Act, is to provide 

funds for the modernization and development of the Angostura 

Unit of the Pick-Sloan Missouri River basin program in the State 

of South Dakota and to establish a trust fund benefitting the Oglala Sioux Tribe of the Pine Ridge Indian Reservation. 

BACKGROUND

The Angostura Unit is an irrigation project operated by the Department of the Interior’s Bureau of Reclamation and is located on 

the Cheyenne River in southwestern South Dakota. Part of the 

Pick-Sloan Missouri River Basin Project authorized under the 

Flood Control Act of 1944, 33 U.S.C. Sec. 701–1 et seq., the Unit 

includes the 193-foot Angostura Dam, which impounds up to 

130,000 acre-feet (AF) of water in the Angostura Reservoir, and associated irrigation works. This reservoir, with a surface area of 

4,612 acres, provides water for irrigation of up to 12,218 acres of 

farmland in the Angostura Irrigation District through a 30-mile 

main canal, 39 miles of lateral canals, and 21 miles of drains serving individual farms. Up to 48,000 AF of water are diverted annuVerDate Aug 31 2005 13:25 Sep 29, 2008 Jkt 069010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR506.XXX SR506

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1Testimony of Oglala Sioux Tribal Councilwoman Valerie Janis, Senate Committee on Indian 

Affairs, June 16, 2004, p. 22. 2Testimony of Oglala Sioux Tribal President John Yellowbird Steele, Senate Committee on 

Indian Affairs, June 16, 2004, p. 20. 3 Id. at p. 23. 

ally for irrigation purposes. Alfalfa and corn are the principal 

crops, along with wheat, barley, oats, pasture, and forage. Construction of the Angostura Dam began in 1946 and was completed 

in 1949. The first delivery of irrigation water was made in 1953. 

The Bureau of Reclamation estimates that its operation provides 

$7.1 million of national economic development benefits annually in 

recreation on the reservoir and an additional $3.41 million in agriculture. 

The Angostura Unit is located about twenty miles upstream of 

the Pine Ridge Indian Reservation, home of the Oglala Sioux Tribe. 

Notwithstanding the economic benefits provided by the Angostura 

Unit to the people of southwestern South Dakota, the operation of 

the Unit provides no economic development benefit to the Oglala 

Sioux Tribe, which experiences extremely high rates of unemployment and poverty.1 Additionally, the operation of the Angostura 

Unit has an adverse impact on water quality and on fish and wildlife resources within the Oglala Sioux Tribe’s Reservation.2

A 40-year water service contract between the Bureau of Reclamation and the Angostura Irrigation District expired in 1996. The 

Final Environmental Impact Statement, Angostura Unit Contract 

Negotiation and Water Management (August 2002) (Final EIS) prepared by the Bureau of Reclamation in connection with the proposed renewal of that water service contract identified four alternatives: (1) The No Action Alternative, continuing essentially unchanged the expiring water service contract and the management 

regime of water in the reservoir; (2) the Reestablishment of Natural Flows Below the Dam Alternative, reestablishing natural 

flows in the Cheyenne River downstream of the dam to the extent 

possible; (3) the Improved Efficiencies Alternative, instituting 

measures to save irrigation water and a public process to determine the use of the saved water, and (4) the Reservoir Recreation 

and Fisheries Alternative, giving priority to recreational use and 

fisheries at the reservoir. The Final EIS identified the Improved 

Efficiencies Alternative as the Preferred Alternative. 

The Improved Efficiencies Alternative would increase both efficiency of the Angostura Irrigation District’s water delivery system 

and on-farm efficiencies.3 The measures proposed in the Improved 

Efficiencies Alternative would include the lining of canals and 

laterals, putting laterals into pipes, improving water measuring 

systems, leveling fields, irrigating by gated pipe or sprinkler, installing automated turnouts, providing education on irrigation 

practices, and instituting Best Management Practices. The water 

saved by these proposed increases in efficiency could be used for 

recreation, fisheries, downstream flows, or other uses. The Improved Efficiencies Alternative would save an estimated 1,870– 

3,200 AF of water by improving delivery system efficiencies by approximately 5% and another 4,320–6,160 AF by increasing on-farm 

efficiencies by approximately 10%. 

Section 4 of S. 2489 authorizes the appropriation of $4,660,000 

to carry out the modernization and improvement of the Angostura 


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Unit and associated facilities as set forth in the Improved Efficiencies Alternative in the Final EIS, with the funding to remain 

available until expended. It also provides that these activities are 

to be carried out on a non-reimbursable basis. Finally, section 4 directs the Secretary of the Interior to provide for the delivery of the 

water saved as a result of the proposed increased efficiencies to be 

used for fish and wildlife purposes and environmental restoration 

on the Pine Ridge Indian Reservation. 

Section 5 of S. 2489 establishes the Oglala Sioux Tribal Development Trust Fund in the Treasury of the United States and provides that income from the Fund shall be transferred to the Oglala 

Sioux Tribe and expended pursuant to a Development Plan to be 

developed by the Tribe in consultation with the Secretary of the Interior and the Secretary of Health and Human Services for the purposes of economic development, infrastructure development, the 

educational, health, recreational, and social welfare objectives of 

the Tribe and its members, or any combination of these activities. 

Section 5 provides that, not later than the first day of the 11th fiscal year that begins after the date of its enactment, the Secretary 

of the Treasury shall deposit the sum of $92,500,000 from the General Fund of the Treasury into the Fund. Section 5 also provides 

that nothing in S. 2489 shall be interpreted or construed to affect 

any right or claim of the Oglala Sioux Tribe, under the Treaty of 

Fort Laramie of September 17, 1851, the Treaty of Fort Laramie 

of April 29, 1868, or under the principles of the Winters Doctrine. 

Finally, section 5 provides that no funds distributed to the Tribe 

pursuant to this act may be distributed to any individual member 

of the tribe on a per capita basis. 

LEGISLATIVE HISTORY

S. 2489 was introduced by Senator Johnson on December 14, 

2007, with Senator Thune as an original cosponsor, and was referred to the Committee on Indian Affairs. The Committee heard 

testimony on the issues addressed by S. 2489 in an oversight hearing on November 1, 2007. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title 

Section 1 states that this Act may be cited as the ‘‘Oglala Sioux 

Tribe Angostura Irrigation Project Modernization and Development 

Act.’’ 

Sec. 2. Findings 

Section 2 states the findings of Congress that: (1) Congress approved the Pick-Sloan Missouri River Basin Program with the December 22, 1944, enactment of the Flood Control Act of 1944, codified at 33 U.S.C. Sec. 701–1 et seq., to promote the economic development of the United States, to provide for irrigation in regions 

north of Sioux City, Iowa, to protect urban and rural areas from 

floods of the Missouri River, and for other purposes; (2) the Angostura Unit is a component of the Pick-Sloan Program and provides 

for irrigation of 12,218 acres of productive farm land in South Dakota, as well as substantial recreation and fish and wildlife benefits; (3) the Commissioner of the Bureau of Reclamation has deterVerDate Aug 31 2005 13:25 Sep 29, 2008 Jkt 069010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR506.XXX SR506

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mined that the national economic development benefits of irrigation at the Angostura Unit total approximately $3,410,000 annually and the national economic development benefits of recreation 

at Angostura Reservoir total approximately $7,100,000 annually; 

(4) the Angostura Unit impounds the Cheyenne River twenty miles 

upstream of the Pine Ridge Indian Reservation in South Dakota; 

(5) the Reservation experiences extremely high rates of unemployment and poverty; (6) there is a need for economic development on 

the Reservation; (7) the national economic development benefits of 

the Angostura Unit do not extend to the Reservation; (8) the Angostura Unit may negatively affect water quality and riparian 

vegetation in the Cheyenne River on the Reservation; (9) modernization of the irrigation facilities at the Angostura Unit would 

enhance the national economic development benefits of the Angostura Unit and would result in improved water efficiency and environmental restoration benefits on the Reservation; and (10) the establishment of a trust fund for the Oglala Sioux Tribe would 

produce economic development benefits for the Reservation comparable to the benefits produced at the Angostura Unit and would 

provide resources necessary for the restoration of the Cheyenne 

River corridor on the Reservation. 

Sec. 3. Definitions 

Section 3 provides definitions for the terms ‘‘Angostura Unit,’’ 

‘‘Fund,’’ ‘‘Pick-Sloan Program,’’ ‘‘Plan,’’ ‘‘Reservation,’’ ‘‘Secretary,’’ 

‘‘Tribal Council,’’ and ‘‘Tribe.’’ 

Sec. 4. Modernizations 

Section 4(a)—Modernization of facilities at Angostura Unit 

Section 4(a) directs the Secretary to conduct modernization and 

improvement of the facilities of the Angostura Unit as described in 

the report entitled ‘‘Final Environmental Impact Statement, Angostura Unit Contract Negotiation and Water Management (August 

2002).’’ The cost of this modernization and improvement is to be 

carried out on a non-reimbursable basis. 

Section 4(b)—Delivery of water to Pine Ridge Indian Reservation 

Section 4(b) states that the Secretary shall provide for the delivery of the water saved through the modernization and improvement of the facilities of the Angostura Unit as an instream flow of 

the Cheyenne River to be used for fish and wildlife purposes and 

environmental restoration on the Reservation. 

Section 4(c)—Authorization of appropriations 

Section 4(c) authorizes the appropriation of $4,660,000 to carry 

out the modernization and improvement of facilities as provided for 

in section 4(a), and provides that these funds are to remain available until expended. 

Sec. 5. Development 

Section 5(a)—Oglala Sioux Tribal Development Trust Fund 

Subsection 5(a)(1) provides for the establishment in the United 

States Treasury of a fund to be known as the ‘‘Oglala Sioux Tribal 


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Development Trust Fund’’ that shall consist of any amounts deposited into the Fund pursuant to this Title. 

Subsection 5(a)(2) provides that, on the first day of the 11th fiscal year that begins after the date of enactment of this Act, the 

Secretary of the Treasury shall, from the General Fund of the 

Treasury, deposit into the Fund established under subsection (1) 

the sum of $92,500,000. 

Subsection 5(a)(3) requires the Secretary of the Treasury to invest that portion of the Fund that in his judgment is not required 

to meet current withdrawals, and provides that the investments 

are to be made only in interest-bearing obligations of the United 

States. The section further directs that the Secretary of the Treasury shall deposit interest resulting from the investments into the 

Fund. 

Subsection 5(a)(4) provides that, not later than the first day of 

the 11th fiscal year after the date of enactment of this Act, and on 

the first day of each fiscal year thereafter, the Secretary of the 

Treasury shall withdraw the aggregate amount of interest deposited into the Fund for that fiscal year and shall transfer that 

amount to the Secretary of the Interior for use, without fiscal year 

limitation, in accordance with paragraph (a)(4)(C). The section provides that the Secretary of the Interior is to use the amounts transferred under subsection (a)(4)(A) only for the purpose of making 

payments to the Oglala Sioux Tribe as such payments are requested by the Tribe by tribal resolution, but only after the Tribe 

has adopted a tribal development plan (‘‘Plan’’) under subsection 

(a)(6). The section provides that the funds so transferred may be 

expended only to carry out projects and programs under that Plan. 

Subsection 5(a)(5) bars the Secretary of the Treasury from transferring or withdrawing any amount deposited under subsection 

(a)(2) of this section except as provided in subsections (a)(3) and 

(a)(4)(1) of this section. 

Subsection 5(a)(6) sets forth the requirements for the tribal development plan and provides that, not later than 18 months after 

the date of enactment of this Act, the governing body of the Tribe 

shall prepare a Plan for the use of the payments made to the Tribe 

under this section. The Plan shall provide for the manner in which 

the Tribe shall expend payments made to it under this section to 

promote economic development, infrastructure development, and 

the educational, health, recreational, and social welfare objectives 

of the Tribe and its members, or any combination of these activities. The Tribal Council shall make copies of the proposed Plan 

available to tribal members for review and comment before the 

Plan becomes final, in accordance with procedures established by 

the Tribal Council, and may, on an annual basis, revise the Plan. 

In revising the Plan, the Tribal Council shall provide the members 

of the Tribe opportunity to review and comment on any proposed 

revision. The Tribal Council shall consult with the Secretary of the 

Interior and the Secretary of Health and Human Services in preparing the Plan and on any revisions to update the Plan. The activities of the Tribe in carrying out the Plan shall be audited as 

part of the annual single-agency audit that the Tribe is required 

to prepare pursuant to the Office of Management and Budget circular numbered A–133. The auditors that conduct this audit shall 

determine whether funds received by the Tribe for the period covVerDate Aug 31 2005 13:25 Sep 29, 2008 Jkt 069010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR506.XXX SR506

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ered by the audit were expended to carry out the Plan in a manner 

consistent with this section, and shall include this determination in 

the written findings of the audit. A copy of the written findings of 

the audit shall be inserted in the published minutes of the Tribal 

Council’s proceedings for the session at which the audit is presented to the Tribal Council. 

Subsection 5(a)(7) prohibits any portion of any payment made 

under this Act from being distributed to any member of the Tribe 

on a per capita basis. 

Section 5(b)—Eligibility of Tribe for certain programs and 

services 

Section 5(b) provides that no payment made to the Tribe pursuant to this Act shall result in the reduction or denial of any service 

or program to which, pursuant to Federal law, the Tribe is otherwise entitled because of its status as a Federally recognized Indian 

tribe, or to which any individual tribal member is otherwise entitled because of that individual’s status as a tribal member. 

Section 5(c)—Authorization of appropriations 

Section 5(c) authorizes the appropriation of such sums as are 

necessary to pay the administrative expenses of the Fund. 

Section 5(d)—Water rights 

Section 5(d) states that nothing in this Act shall be interpreted 

or construed to affect any rights or claim of the Oglala Sioux Tribe 

under the Treaty of Fort Laramie of September 17, 1851, the Treaty of Fort Laramie of April 29, 1868, or under the principles of the 

Winters Doctrine. 

COMMITTEE RECOMMENDATION AND TABULATION OF VOTE

On June 19, 2008, the Committee on Indian Affairs convened a 

business meeting to consider S. 2489, and other measures. During 

the business meeting, the Committee voted, by a voice vote, to report S. 2489 favorably, with an amendment, to the full Senate with 

a recommendation that it do pass. 

COST AND BUDGETARY CONSIDERATIONS

The cost estimate for S. 2489, as provided by the Congressional 

Budget Office, is set forth below: 

S. 2489—Oglala Sioux Tribe Angostura Irrigation Project Modernization and Development Act 

Summary: S. 2489 would authorize the Secretary of the Interior, 

acting through the Bureau of Reclamation, to modernize the irrigation facilities of the Angostura Unit in South Dakota. In addition, 

the bill would allow the Oglala Sioux Tribe to use any water saved 

through the modernization effort for environmental restoration 

purposes on the tribe’s reservation. CBO estimates that modernizing the irrigation facilities would cost about $5 million over the 

2009–2011 period, assuming appropriation of the authorized 

amounts. 

S. 2489 also would compensate the Oglala Sioux Tribe for the 

damage caused by the Angostura Dam operated by the Bureau of 

Reclamation on the Cheyenne River. CBO estimates that enacting 


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this provision would have no impact on the federal budget over the 

2009–2018 period; however, it would increase direct spending by 

$92.5 million in 2020. Enacting the bill would not affect revenues. 

S. 2489 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 S. 2489 is shown in the following table. The costs 

of this legislation fall within budget functions 450 (community and 

regional development) and 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 1

Authorization Level ................................................................................... 5 0 0 0 0 5 

Estimated Outlays .................................................................................... 1 2 2 0 0 5 

1 Enactment of S. 2489 also would increase direct spending by $92.5 million in 2020. 

Basis of estimate: For this estimate, CBO assumes that S. 2489 

will be enacted at the beginning of 2009 and that the authorized 

amount will be appropriated near the beginning of 2009. 

This bill would authorize the appropriation of $4.66 million to 

modernize the irrigation facilities of the Angostura Unit in South 

Dakota. In addition, the bill would allow the Oglala Sioux Tribe to 

use any water saved through the modernization effort for environmental restoration on the tribe’s reservation. Based on historical 

spending rates for similar projects, CBO estimates that implementing the modernization project would cost about $5 million over 

the 2009–2011 period, assuming appropriation of the authorized 

funds. 

S. 2489 also would create the Oglala Sioux Tribe Development 

Trust Fund to provide compensation to the Oglala Sioux Tribe for 

the damage caused by the Angostura Dam on the Cheyenne River, 

20 miles upstream from the tribe’s reservation. The bill would direct the Secretary of the Treasury to deposit a total of $92.5 million 

into an interest-bearing account to benefit the tribes on the first 

day of the 11th fiscal year that begins after the date of enactment. 

Additional deposits equaling the interest earnings on the amounts 

in the fund would be made on October 1st of each year. Depending 

on when the bill is enacted, the initial amount of $92.5 million 

would not be deposited until 2019 or 2020, and deposits of interest 

would not begin until 2020 or 2021. The bill would allow the tribes 

to spend the interest earnings on amounts in the fund pursuant to 

a tribal spending plan. 

Trust funds that are held and managed in a fiduciary capacity 

by the federal government on behalf of Indian tribes are treated as 

nonfederal funds. CBO expects that the entire amount deposited to 

the fund in 2019 or 2020 would be recorded as budget authority 

and outlays in that year. Accordingly, CBO estimates that enacting 

S. 2489 would increase direct spending by $92.5 million in 2019 or 

2020. Subsequently, the fund would be considered nonbudgetary, 

and any future interest earnings and payments would not be considered part of the federal budget. 


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Intergovernmental and private-sector impact: S. 2489 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

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

The Oglala Sioux tribe would benefit from access to additional 

water and from the trust fund authorized in this bill. Any costs to 

that tribe would be incurred voluntarily. 

Estimate prepared by: Federal Costs: Leigh Angres and Tyler 

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

Merrell; Impact on the Private Sector: Corey T. Ponder. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

EXECUTIVE COMMUNICATIONS

The views of the Administration on S. 2489 as introduced are set 

forth in the Statement of George Skibine, Deputy Assistant Secretary for Policy and Economic Development—Indian Affairs, 

United States Department of the Interior, dated June 18, 2008, and 

are set forth below: 


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REGULATORY AND PAPERWORK IMPACT STATEMENT

Paragraph 11(b) of rule XXVI of the Standing Rules of the Senate requires that each report accompanying a bill evaluate the regulatory and paperwork impact that would be incurred in carrying 

out the bill. The Committee believes that the regulatory and paperwork impact of S. 2489 will be minimal. 

CHANGES IN EXISTING LAW

In compliance with subsection 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee finds that the enactment of S. 

2489 will not affect any changes in existing law. 

Æ 


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