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[House Report 112-247]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-247

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

 
  TO DIRECT THE SECRETARY OF THE INTERIOR TO ALLOW FOR PREPAYMENT OF 
  REPAYMENT CONTRACTS BETWEEN THE UNITED STATES AND THE UINTAH WATER 
                         CONSERVATORY DISTRICT

                                _______
                                

October 14, 2011.--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 H.R. 818]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 818) to direct the Secretary of the Interior to 
allow for prepayment of repayment contracts between the United 
States and the Uintah Water Conservatory District, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of H.R. 818 is to direct the Secretary of the 
Interior to allow for prepayment of repayment contracts between 
the United States and the Uintah Water Conservancy District.

                  BACKGROUND AND NEED FOR LEGISLATION

    Under current federal law, water districts which benefit 
from Bureau of Reclamation projects can enter into a capital 
repayment contract with the federal government to repay the 
U.S. Treasury for their respective costs associated with the 
federal project. Most local water districts are not allowed 
under federal law to prepay these contractual obligations 
unless specifically authorized by Congress and the President. 
Prepayments can bring added revenue to the U.S. Treasury in the 
short-term, although they can reduce overall federal revenue 
over the long-term since compounded interest payments would be 
reduced. From a local water utility perspective, these 
prepayment authorizations can reduce local financial 
obligations and, in some cases, reduce burdensome federal 
regulatory requirements (such as irrigation acreage limitations 
and reporting requirements set forth in the Reclamation Reform 
Act of 1982, Public Law 97-293).
    The Uintah Water Conservancy District could use the 
authority in H.R. 818 to prepay its municipal and industrial 
water contract. The District entered into a repayment contract 
with the federal government in 1976 to repay all reimbursable 
costs associated with the Jensen Unit of the Central Utah 
Project.

                            COMMITTEE ACTION

    H.R. 818 was introduced on February 18, 2011, by 
Congressman Jim Matheson (D-UT). The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Water and Power. On May 12, 2011, the 
Subcommittee on Water and Power held a hearing on the bill. On 
July 20, 2011, the Full Resources Committee met to consider the 
bill. The Subcommittee on Water and Power was discharged by 
unanimous consent. No amendments were offered, and the bill was 
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 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:

H.R. 818--A bill to direct the Secretary of the Interior to allow for 
        prepayment of repayment contracts between the United States and 
        the Uintah Water Conservancy District

    H.R. 818 would allow the Uintah Water Conservancy District 
in Utah to prepay the present value of certain amounts the 
district owes to the U.S. Treasury for its share of the cost to 
build the Jensen Unit of the Central Utah Project. Based on 
information from the Bureau of Reclamation and the Uintah Water 
Conservancy District, CBO estimates that enacting the 
legislation would have no impact on the federal budget. Because 
the legislation would not affect direct spending or revenues, 
pay-as-you-go procedures do not apply.
    The Uintah Water Conservancy District is currently paying 
the federal government about $227,000 a year on a balance of 
$3.9 billion in project construction costs that have been 
allocated to the district for repayment. However, if the 
district chose to prepay its debt to the government under the 
bill, it also would have to pay for additional construction 
costs--totaling $7.4 million--that have not yet been assigned 
to the district for repayment. Information from the district 
indicates that it would be unable to prepay that additional 
amount. Therefore, if the bill were enacted, CBO expects that 
the district would continue to make the annual payments it does 
under current law and the legislation would have no impact on 
the federal budget.
    H.R. 818 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 July 28, 2011, CBO transmitted a cost estimate for S. 
808, a bill to direct the Secretary of the Interior to allow 
for prepayment of repayment contracts between the United States 
and the Uintah Water Conservancy 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 the 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. CBO estimates that 
enacting the legislation would have no impact on the federal 
budget. Because the legislation would not affect direct 
spending or revenues, pay-as-you-go procedures do not apply.
    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.

                           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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