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[House Report 112-527]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-527

======================================================================

 
      EAST BENCH IRRIGATION DISTRICT WATER CONTRACT EXTENSION ACT

                                _______
                                

 June 15, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 997]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (S. 997) to authorize the Secretary of the Interior to 
extend a water contract between the United States and the East 
Bench Irrigation District, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                          PURPOSE OF THE BILL

    The purpose of S. 997 is to authorize the Secretary of the 
Interior to extend a water contract between the United States 
and the East Bench Irrigation District.

                  BACKGROUND AND NEED FOR LEGISLATION

    Congress established what is now the Bureau of Reclamation 
(Reclamation) in 1902 to build water infrastructure throughout 
the West. To this day, Reclamation's water projects, including 
over 600 dams and reservoirs, play a significant role in 
providing a reliable source of water and power for irrigated 
agriculture and rural and urban communities across the 17 
western states.
    One of these projects is the Clark Canyon Dam and 
Reservoir, located in southwestern Montana. This federal 
project annually supplies irrigation water for 28,000 acres 
within the East Bench Irrigation District (EBID). These water 
deliveries are pursuant to a contract between the federal 
government and the EBID. This contract was executed in 1958 and 
expired on December 31, 2005. Subsequent federal appropriations 
acts have extended the 1958 contract for two year durations. 
Since Reclamation cannot extend the contract administratively, 
S. 997 extends the 1958 contract until December 31, 2013.
    Such Congressional contract extensions are not common, but 
have occurred when specific federal and state statutes and 
actions delay administrative contract renewals. In this case, 
Montana Code Section 85-7-1957 requires Montana's District 
Court to issue a decree before any new contract execution can 
take place.
    In 2006, the EBID filed a petition with the Montana court 
to confirm the execution of a new contract between EBID and 
Reclamation. A third party filed an objection to the new 
contract, complaining that it allowed for irrigation on more 
acres than was originally planned for and that the party's 
water rights may be at risk if the new contract is confirmed. 
The Montana court has yet to set a trial date to resolve the 
litigation. Since Montana state law requires a state district 
court judge to ``confirm'' these types of contracts and because 
confirmation has been delayed due to the legal challenge, the 
interim 2006 contract is not officially binding on Reclamation.
    For these reasons, S. 997 provides EBID water certainty 
through an extension of the 1958 contract until December 31, 
2013, or when the Montana court allows for new long-term 
contract execution. The legislation does not prejudice the 
state court's deliberations.

                            COMMITTEE ACTION

    S. 997 was introduced on May 12, 2011, by Senator Jon 
Tester (D-MT). On November 2, 2011, the bill passed the Senate 
by unanimous consent. The bill was then referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Water and Power. On June 6, 2012, the 
Subcommittee held a hearing on the bill. On June 7, 2012, the 
Full Resources Committee met to consider S. 997. The 
Subcommittee on Water and Power was discharged by unanimous 
consent. No amendments were offered to the bill and the bill 
was then adopted and ordered favorably reported to the House of 
Representatives by voice vote.

            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.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(1) 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)(2)(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 prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. 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:

S. 997--A bill to authorize the Secretary of the Interior to extend a 
        water contract between the United States and the East Bench 
        Irrigation District

    S. 997 would authorize the Secretary of the Interior, 
acting through the Bureau of Reclamation, to extend the water 
contract between the United States and the East Bench 
Irrigation District for four years or until a new long-term 
contract is executed, whichever is earlier. Based on 
information from the Bureau of Reclamation, CBO estimates that 
enacting the legislation would have no impact on the federal 
budget. Enacting S. 997 would not affect revenues or direct 
spending; therefore, pay-as-you-go procedures do not apply.
    The Bureau of Reclamation supplies irrigation water from 
the Clark Canyon Dam and Reservoir project to the East Bench 
Irrigation District under an interim contract negotiated in 
2006 after the original contract expired. When confirmed by a 
Montana district court, the 2006 contract will become the long-
term contract. Payments to the federal government under the 
2006 contract are about $115,000 annually, including 
reimbursement for operations and maintenance costs. Enacting S. 
997 would not affect those annual payments.
    S. 997 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 August 3, 2011, CBO transmitted a cost estimate for S. 
997, a bill to authorize the Secretary of the Interior to 
extend a water contract between the United States and the East 
Bench Irrigation District, as ordered reported by the Senate 
Committee on Energy and Natural Resources on July 14, 2011. The 
two pieces of legislation 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.
    2. Section 308(a) of 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. Based on 
information from the Bureau of Reclamation, CBO estimates that 
enacting the legislation would have no impact on the federal 
budget. Enacting S. 997 would not affect revenues or direct 
spending; therefore, pay-as-you-go procedures do not apply.
    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 extend a water contract between the United States 
and the East Bench Irrigation District.

                           EARMARK STATEMENT

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    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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