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[House Report 106-836]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-836

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

 
REAUTHORIZATION AND AMENDMENT OF RECLAMATION SAFETY OF DAMS ACT OF 1978

                                _______
                                

 September 12, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3595]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 3595) to increase the authorization of appropriations for 
the Reclamation Safety of Dams Act of 1978, and for other 
purposes, 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 out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. INCREASED AUTHORIZATION OF APPROPRIATIONS FOR THE 
                    RECLAMATION SAFETY OF DAMS ACT OF 1978.

  The Reclamation Safety of Dams Act of 1978 is amended--
          (1) in section 4 (43 U.S.C. 508)--
                  (A) in subsection (a), by striking ``or from 
                nonperformance of reasonable and normal maintenance of 
                the structure by the operating entity'';
                  (B) in subsection (c), by--
                          (i) inserting after ``1984'' the following: 
                        ``and the additional $380,000,000 further 
                        authorized to be appropriated by amendments to 
                        that Act in 2000'';
                          (ii) striking paragraph (2) and redesignating 
                        paragraphs (3) and (4) as paragraphs (2) and 
                        (3), respectively; and
                          (iii) in the first sentence of paragraph (3), 
                        as so redesignated, inserting ``irrigation,'' 
                        after ``Costs allocated to the purpose of'', 
                        and inserting ``without regard to water users' 
                        ability to pay'' before the period at the end; 
                        and
                  (C) in subsection (d), by inserting before the period 
                at the end the following: ``: Provided further, That 
                the Secretary is authorized to expend payments of such 
                reimbursable costs made pursuant to a repayment 
                contract at any time prior to completion of 
                construction'';
          (2) in section 5 (43 U.S.C. 509), by--
                  (A) inserting after ``levels)'' the following: ``and, 
                effective October 1, 1997, not to exceed an additional 
                $380,000,000 (October 1, 2000, price levels)'';
                  (B) striking ``$750,000'' and inserting ``$1,200,000 
                (October 1, 2000, price levels), plus or minus such 
                amounts, if any, as may be justified by reason of 
                ordinary fluctuations in construction costs as 
                indicated by engineering cost indexes applicable to the 
                types of construction involved herein,''; and
                  (C) striking ``sixty days (which'' and all that 
                follows through ``day certain)'' and inserting ``30 
                calendar days''; and
          (3) in section 2 (43 U.S.C. 506), by inserting ``(a)'' before 
        ``In order to'', and by adding at the end the following:
  ``(b) Prior to selecting a Bureau of Reclamation facility for 
modification, the Secretary shall notify project beneficiaries in 
writing of such selection and solicit their interest in participating 
in evaluating the facility for modification. If requested by the 
project beneficiaries, the Secretary, acting through the Commissioner 
of the Bureau of Reclamation, is authorized to negotiate an agreement 
with project beneficiaries for the cooperative oversight of planning, 
design, cost containment, procurement, construction, and management of 
the modifications. Prior to submitting the modification reports 
required by section 5, the Secretary shall consider, and where 
appropriate implement, alternatives recommended by project 
beneficiaries. Within 30 days after receiving such recommendations, the 
Secretary shall provide to the project beneficiaries a written response 
detailing proposed actions to address the recommendations. The 
Secretary's response to the project beneficiaries shall be included in 
the modification reports required by section 5.
  ``(c) Following submission of the reports required by section 5, 
project beneficiaries who wish to receive regular information 
concerning the status and costs of modifications shall notify the 
Secretary in writing. During the construction phase of the 
modifications, the Secretary shall keep such beneficiaries informed of 
the costs and status of such modifications. The Secretary shall 
consider, and where appropriate implement, alternatives recommended by 
project beneficiaries concerning the cost containment measures and 
construction management techniques needed to carry out such 
modifications.''.

                          Purpose of the Bill

    The purpose of H.R. 3595 is to increase the authorization 
of appropriations for the Reclamation Safety of Dams Act of 
1978, and for other purposes.

                               Background

    The Bureau of Reclamation spends approximately $60 million 
per year for dam safety purposes and estimates that the 
existing $650 million ceiling contained in the Reclamation 
Safety of Dams Act of 1978 will be exceeded in fiscal year 
2001. Existing law requires the Bureau of Reclamation to send a 
dam modification report to Congress for dam safety work costing 
more than $750,000. The report must rest before Congress for 60 
legislative days prior to the Bureau of Reclamation obligating 
funds for dam safety construction. H.R. 3595 would raise the 
threshold for a Congressional report to $1.2 million and reduce 
to 30 calendar days the time required for a dam safety 
modification report rest before Congress prior to Reclamation 
commencing dam safety repair work.
    In addition to increasing the ceiling and shortening the 
review period, the legislation would make additional changes to 
the program. Under existing law, irrigators are required to pay 
a portion of the dam safety costs within 50 years without 
interest. The bill would amend the statute to charge interest 
on the dam safety costs allocated for irrigation purposes. This 
makes irrigation repayment terms for dam safety activities 
consistent with municipal and industrial water supply 
repayment. The criteria for allocating costs for irrigators 
under this bill would be equalized throughout the 17 western 
states. Although this legislation would also charge interest on 
the modification project costs allocated for irrigation 
purposes for the first time, the National Water Resources 
Association stated in a March 6, 2000, letter that its members 
in the 17 western states ``consider the added expense a worthy 
investment''.
    The bill requires the Secretary to provide written notice 
to project beneficiaries prior to selecting a Reclamation 
facility for modification. The intent of the language is to 
give project beneficiaries a ``place at the table'' when 
decisions concerning the need to modify a structure are under 
consideration. This will allow project beneficiaries an 
opportunity to submit their views and recommendations regarding 
the planning, design, and other details regarding modifications 
proposed for Reclamation facilities. Project beneficiaries are 
those entities that have existing contracts for repayment or 
water service and/or operation and maintenance with the Bureau 
of Reclamation.
    The Committee stresses that maintaining public safety is 
the Secretary's paramount concern in implementing the 
Reclamation Safety of Dams Act. The United States is liable for 
the facilities and the Secretary is the ultimate decision maker 
regarding dam safety. The bill provides project beneficiaries 
opportunities to voice their concerns to the Bureau of 
Reclamation and to make recommendations regarding modifications 
to project facilities, and gives the Secretary the authority to 
negotiate an agreement that sets forth the details of the 
``cooperative oversight'' the Secretary may receive from the 
project beneficiaries. The bill does not diminish the 
Secretary's authority to take corrective action the Secretary 
deems necessary to protect life and property, pursuant to the 
Secretary's responsibilities under the Reclamation Safety of 
Dams Act.
    Finally, the Secretary is required to keep project 
beneficiaries informed of the costs and status of dam safety 
modifications, if the project beneficiaries notify the 
Secretary in writing of their interest in this information. The 
Secretary shall consider recommendations provided by the 
project beneficiaries regarding cost containment and 
construction management techniques, and implement appropriate 
recommendations. The Committee believes that project 
beneficiaries should be informed of the plans and progress and 
be provided the opportunity to suggest ways to control dam 
safety modification costs. However, the Committee again 
stresses that the Secretary is the ultimate decision maker in 
all aspects of maintaining dam safety and performing 
modifications. A project beneficiary may suggest an alternative 
approach to a dam safety modification, but the Secretary is not 
required to implement such recommendation.

                            Committee Action

    H.R. 3595 was introduced on February 8, 2000, by 
Congressman George Miller (D-CA). The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On June 15, 2000, the 
Subcommittee met to consider the bill. Congressman John 
Doolittle (R-CA) offered an amendment to increase the project 
beneficiaries' ability to participate in the planning and cost 
containment of any proposed dam safety modification. The 
amendment was adopted by voice vote. The bill, as amended, was 
then ordered to be reported to the Full Committee by voice 
vote. On June 21, 2000, the Full Resources Committee met to 
consider the bill. Congressman Miller offered an amendment to 
further address the water users' ability to participate in the 
planning process. Congressman Doolittle offered an amendment to 
the Miller amendment that made additional technical 
clarifications to the language. The Doolittle amendment passed 
by unanimous consent and the Miller amendment, as amended, was 
adopted by voice vote. The bill, as amended, was then ordered 
favorably reported to the House of Representatives by voice 
vote.

                      Section-by-Section Analysis

Section 1. Increased authorization of appropriations for the 
        Reclamation Safety of Dams Act of 1978

    This section reauthorizes the dam safety program. It raises 
the authorized ceiling on expenditures of the dam safety 
program. It also requires interest to be placed on the 
irrigation component and eliminates the ability-to-pay 
provision in existing law.
    The section also requires the Secretary to solicit more 
participation from project beneficiaries prior to selecting a 
Bureau of Reclamation facility for modification.

            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 Houseof 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.

                    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. However, clause 3(d)(3)(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.
    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, credit 
authority, or an increase or decrease in tax expenditures. 
According to the Congressional Budget Office, enactment of this 
bill would result in an increase in direct spending of 
approximately $5 million over the 2001-2005 time period. In 
addition, the bill would result in increased offsetting 
receipts of $12 million over a ten year period.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the Committee has received no report of 
oversight findings and recommendations from the Committee on 
Government Reform on this bill.
    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 received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 8, 2000.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3595, a bill to 
increase the authorization of appropriations for the 
Reclamation Safety of Dams Act of 1978, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Applebaum.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3595--A bill to increase the authorization of appropriations for 
        the Reclamation Safety of Dams Act of 1978, and for other 
        purposes

    Summary: H.R. 3595 would authorize the appropriation of 
$380 million (plus additional amounts to account for 
inflation), and raise the total authorization level for the Dam 
Safety Program from its current ceiling of $650 million. H.R. 
3595 also would authorize the government to spend repayment 
receipts from beneficiaries of new dam safety projects while a 
project undergoes construction, require the Bureau of 
Reclamation to charge interest on new capital costs attributed 
to irrigation needs, and make other changes to the Dam Safety 
Program.
    Assuming appropriation of the authorized level, CBO 
estimates that implementing H.R. 3595 would cost $168 million 
over the 2001-2005 period, and an additional $257 million after 
2005. CBO expects that enacting H.R. 3595 would increase direct 
spending by about $5 million over the 2001-2005 period. Because 
H.R. 3595 would affect direct spending, pay-as-you-go 
procedures would apply.
    H.R. 3595 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Some state and local governments would probably incur 
additional costs as a result of the bill's enactment, but these 
costs would stem from voluntary contractual agreements with the 
federal government.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3595 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2001    2002    2003    2004    2005
------------------------------------------------------------------------
                    SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Estimated Authorization           63      65       6       0       0
     Level \1\..................
    Estimated Outlays...........      62      64      29       8       1
Proposed Changes:
    Estimated Authorization            0       0      62      70      72
     Level......................
    Estimated Outlays...........       0       0      37      61      70
Spending Under H.R. 3595:
    Estimated Authorization           63      65      68      70      72
     Level......................
    Estimated Outlays...........      62      64      66      69      71

                       CHANGES IN DIRECT SPENDING

Estimated Budget Authority......       0       0       1       2       2
Estimated Outlays...............       0       0       1       2       2
------------------------------------------------------------------------
\1\ The 2001-2003 levels are CBO's estimates of the bureau's use of its
  remaining authority under the Dam Safety Program.

    Basis of estimate: CBO expects that the current 
authorization ceiling for the Dam Safety Program of $650 
million will be met in fiscal year 2003, and that 
appropriations for additional amounts that would be authorized 
by the bill would begin in fiscal year 2003. Estimates of 
discretionary outlays are based on information from the Bureau 
of Reclamation and the historical spending pattern of this 
program.
    Because H.R. 3595 would authorize the bureau to spend all 
repayment receipts while new projects undergo construction. CBO 
estimates that enacting the bill would increase direct 
spending. Based on information from the bureau, CBO expects 
that about 25 percent of project beneficiaries would choose to 
prepay their obligations as a result of the bureau's new 
authority to spend repayments during construction. (This may 
allow construction of some projects to be completed faster.) 
These prepayments would change the timing of total repayment 
receipts to the federal government, increasing receipts in the 
short term and decreasing receipts in the long term. Including 
these prepayments along with regular scheduled repayments, CBO 
estimates that the authority to spend all new project 
repayments would cost $36 million over the next 10 years.
    H.R. 3595 would require the bureau to charge interest on 
capital costs attributed to irrigation needs, so we estimate 
that enacting the bill also would increase offsetting receipts 
by about $12 million over the same 10-year period. These 
estimates are based on information from the bureau, and assume 
that project beneficiaries repay their obligations over a 25-
year period. According to the bureau, about 15 percent of these 
projects' capital costs are repaid by project beneficiaries, 
and irrigation users contribute 59 percent of this repayment.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
change in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      0      0      1      2      2      3      3      4      4      5
Changes in receipts................                                 Not applicable
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 3595 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. As a result of this legislation, amounts paid 
by irrigators to reimburse the federal costs of dam safety 
projects would include interest. Some of these beneficiaries 
would be public entities. The additional costs, however, would 
stem from voluntary contractual agreements with the Bureau of 
Reclamation.
    Estimate prepared by: Federal Costs: Rachel Applebaum. 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller. Impact on the Private Sector: Sarah Sitarek and Patrice 
Gordon.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    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 Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                 RECLAMATION SAFETY OF DAMS ACT OF 1978

    AN ACT To authorize the Secretary of the Interior to construct, 
  restore, operate, and maintain new or modified features at existing 
Federal reclamation dams for safety of dams purposes

           *       *       *       *       *       *       *

  Sec. 2. (a) In order to preserve the structural safety of 
Bureau of Reclamation dams and related facilities the Secretary 
of the Interior is authorized to perform such modifications as 
he determines to be reasonably required. Said performance of 
work shall be in accordance with the Federal reclamation laws 
(Act of June 17, 1902, 32 Stat. 388, and Acts amendatory or 
supplementary thereto).
  (b) Prior to selecting a Bureau of Reclamation facility for 
modification, the Secretary shall notify project beneficiaries 
in writing of such selection and solicit their interest in 
participating in evaluating the facility for modification. If 
requested by the project beneficiaries, the Secretary, acting 
through the Commissioner of the Bureau of Reclamation, is 
authorized to negotiate an agreement with project beneficiaries 
for the cooperative oversight of planning, design, cost 
containment, procurement, construction, and management of the 
modifications. Prior to submitting the modification reports 
required by section 5, the Secretary shall consider, and where 
appropriate implement, alternatives recommended by project 
beneficiaries. Within 30 days after receiving such 
recommendations, the Secretary shall provide to the project 
beneficiaries a written response detailing proposed actions to 
address the recommendations. The Secretary's response to the 
project beneficiaries shall be included in the modification 
reports required by section 5.
  (c) Following submission of the reports required by section 
5, project beneficiaries who wish to receive regular 
information concerning the status and costs of modifications 
shall notify the Secretary in writing. During the construction 
phase of the modifications, the Secretary shall keep such 
beneficiaries informed of the costs and status of such 
modifications. The Secretary shall consider, and where 
appropriate implement, alternatives recommended by project 
beneficiaries concerning the cost containment measures and 
construction management techniques needed to carry out such 
modifications.

           *       *       *       *       *       *       *

  Sec. 4. (a) Costs heretofore or hereafter incurred in the 
modification of structures under this Act, the cause of which 
results from age and normal deterioration of the structure [or 
from nonperformance of reasonable and normal maintenance of the 
structure by the operating entity] shall be considered as 
project costs and will be allocated to the purposes for which 
the structure was authorized initially to be constructed and 
will be reimbursable as provided by existing law.

           *       *       *       *       *       *       *

  (c) With respect to the additional $650,000,000 authorized to 
be appropriated in The Reclamation Safety of Dams Act 
Amendments of 1984 and the additional $380,000,000 further 
authorized to be appropriated by amendments to that Act in 
2000, costs incurred in the modification of structures under 
this Act, the cause of which results from new hydrologic or 
seismic data or changes in state-of-the-art criteria deemed 
necessary for safety purposes, shall be reimbursed to the 
extent provided in this subsection.
          (1) * * *
          [(2) Costs allocated to irrigation water service and 
        capable of being repaid by the irrigation water users 
        shall be reimbursed within 50 years of the year in 
        which the work undertaken pursuant to this Act is 
        substantially complete. Costs allocated to irrigation 
        water service which are beyond the water users' ability 
        to pay shall be reimbursed in accordance with existing 
        law.]
          [(3)] (2) Costs allocated to recreation or fish and 
        wildlife enhancement shall be reimbursed in accordance 
        with the Federal Water Project Recreation Act (79 Stat. 
        213), as amended.
          [(4)] (3) Costs allocated to the purpose of 
        irrigation, municipal, industrial, and miscellaneous 
        water service, commercial power, and the portion of 
        recreation and fish and wildlife enhancement costs 
        reimbursable under the Federal Water Project Recreation 
        Act, shall be repaid within 50 years with interest. The 
        interest rate used shall be determined by the Secretary 
        of the Treasury, taking into consideration average 
        market yields on outstanding marketable obligations of 
        the United States with remaining periods to maturity 
        comparable to the applicable reimbursement period 
        during the month preceding the fiscal year in which the 
        costs are incurred. To the extent that more than one 
        interest rate is determined pursuant to the preceding 
        sentence, the Secretary of the Treasury shall establish 
        an interest rate at the weighted average of the rates 
        so determined without regard to water users' ability to 
        pay.
  (d) The Secretary is authorized to negotiate appropriate 
contracts with project beneficiaries providing for the return 
of reimbursable costs under this Act: Provided, however, That 
no contract entered into pursuant to this Act shall be deemed 
to be a new or amended contract for the purposes of section 
203(a) of Public Law 97-293: Provided further, That the 
Secretary is authorized to expend payments of such reimbursable 
costs made pursuant to a repayment contract at any time prior 
to completion of construction.
  Sec. 5. There are hereby authorized to be appropriated for 
fiscal year 1979 and ensuing fiscal years such sums as may be 
necessary and, effective October 1, 1983, not to exceed an 
additional $650,000,000 (October 1, 1983, price levels) and, 
effective October 1, 1997, not to exceed an additional 
$380,000,000 (October 1, 2000, price levels), plus or minus 
such amounts, if any, as may be justified by reason of ordinary 
fluctuations in construction costs as indicated by engineering 
cost indexes applicable to the types of construction involved 
herein, to carry out the provisions of this Act to remain 
available until expended if so provided by the appropriations 
Act: Provided, That no funds exceeding [$750,000] $1,200,000 
(October 1, 2000, price levels), plus or minus such amounts, if 
any, as may be justified by reason of ordinary fluctuations in 
construction costs as indicated by engineering cost indexes 
applicable to the types of construction involved herein, shall 
be obligated for carrying out actual construction to modify an 
existing dam under authority of this Act prior to [sixty days 
(which sixty days shall not include days on which either the 
House of Representatives or the Senate is not in session 
because of an adjournment of more than three calendar days to a 
day certain)] 30 calendar days from the date that the Secretary 
has transmitted a report on such existing dam to the Congress. 
The report required to be submitted by this section will 
consist of a finding by the Secretary of the Interior to the 
effect that modifications are required to be made to insure the 
safety of an existing dam. Such finding shall be accompanied by 
a technical report containing information on the need for 
structural modification, the corrective action deemed to be 
required, alternative solutions to structural modification that 
were considered, the estimated cost of needed modifications, 
and environmental impacts if any resulting from the 
implementation of the recommended plan of modification.

           *       *       *       *       *       *       *
                                  
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