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[Senate Report 106-403]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 793
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-403

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

 
             UPPER COLORADO RIVER AND SAN JUAN RIVER BASINS

                                _______
                                

               September 7, 2000.--Ordered to be printed

                                _______
                                

  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2239]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2239) to authorize the Bureau of 
Reclamation to provide cost sharing for the endangered fish 
recovery implementation programs for the Upper Colorado River 
and San Juan River basins, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill, as amended, do pass.
    The amendment is as follows:
    On page 15, strike lines 10 through 15, and insert the 
following: ``No provision of this Act nor any action taken 
pursuant thereto or in furtherance thereof shall constitute a 
new or supplemental benefit under the Act of June 17, 1902, (32 
Stat. 388, chapter 1093), and Acts supplemental to and 
amendatory thereof (43 U.S.C. 371 et seq.)''.

                         purpose of the measure

    The purpose of S. 2239 is to authorize funding for the 
Bureau of Reclamation to continue the implementation of the 
endangered fish recovery implementation programs for the Upper 
Colorado River and San Juan River basins in order to accomplish 
the objectives of the programs within an established timeframe.

                          background and need

Upper Colorado River Basin

    The Upper Colorado River basin, which is composed of the 
Colorado River and its tributaries upstream of Lake Powell, is 
home to 14 native fish species, four of which are now 
endangered. These four fish--the Colorado pikeminnow, razorback 
sucker, bonytail and humpback chub--evolved in the Colorado 
River basin and exist nowhere else on earth.
    In 1988, a coalition of agencies and organizations came 
together to recover endangered Colorado River basin fish and 
provide for future water development for agricultural, 
hydroelectric, and municipal uses. Called the Upper Colorado 
River Endangered Fish Recovery Program, this effort involves 
federal, state, and private organizations and agencies in 
Colorado, Utah, and Wyoming. The program complies with all 
applicable laws, including the Federal Endangered Species Act, 
State water law, river law and interstate water compacts. 
Recovery strategies include conducting research, improving 
river habitat, providing adequate stream flows, managing non-
native fish, and raising endangered fish in hatcheries for 
stocking.
    Endangered Colorado pikeminnow, razorback suckers, bonytail 
and humpback chub will be considered recovered when there are 
self-sustaining populations of each fish species and when there 
is natural habitat to support them.
    The following organizations and agencies are represented on 
the Upper Colorado River Endangered Fish Recovery Program: U.S. 
Fish and Wildlife Service, U.S. Bureau of Reclamation, Western 
Area Power Administration, State of Colorado, State of Utah, 
State of Wyoming, The Nature Conservancy, Environmental Defense 
Fund, Colorado Water Congress, Utah Water Users Association, 
Wyoming Water Development Association, and Colorado River 
Energy Distributors Association.
    Annual program expenditures have ranged from about $2 
million to $13 million. On an average basis, Recovery Program 
participants have contributed the following amounts each year:

------------------------------------------------------------------------
                                                              Percent of
             Where the money goes                   Cost      total cost
------------------------------------------------------------------------
Upper Basin Water Users.......................      $91,400           .9
State of Wyoming..............................       30,200           .3
Bureau of Reclamation (Capital Funds).........    5,914,200         58.7
Bureau of Reclamation (Regular Funds).........    1,956,300         19.4
U.S. Fish and Wildlife Services...............    1,124,000         11.2
State of Colorado.............................      858,200          8.5
State of Utah.................................       95,200            1
------------------------------------------------------------------------

    Costs include habitat development, habitat management, in-
stream flow acquisition, non-native fish management, hatchery 
construction and operation, endangered fish stocking, research, 
public information and education and program management. On an 
average basis, Recovery Program funds have been distributed as 
follows:

------------------------------------------------------------------------
                                                              Percent of
             Where the money goes                   Cost      total cost
------------------------------------------------------------------------
Non-native fish management....................     $204,300          2.0
Information and Education.....................      189,600          1.9
In-stream flow identification and protection..    3,345,700         33.2
Habitat restoration (wetlands, fish passage)..    2,605,800         25.9
Endangered fish stocking......................    2,071,800         20.6
Program management............................    1,266,300         12.6
Research, monitoring and data management......      386,000          3.8
------------------------------------------------------------------------

Recovery efforts include:
    Research--Researchers from various universities and State 
and Federal agencies independently began gathering information 
on these fish in the 1960's. In 1979, the U.S. Fish and 
Wildlife Service's Colorado River Fisheries Project began 
coordinating research on endangered fish. These early research 
projects provided background information necessary to guide 
current research studies. Since 1988, all research and capital 
construction projects in the Upper Colorado River Basin have 
been coordinated by the Upper Colorado River Endangered Fish 
Recovery Program.
    Through a coordinated, multi-State effort, biologists now 
collect data used to monitor sizes of populations of endangered 
and non-native fish and recommended stream flows that are best 
for endangered fish, their food supply and riverside habitat. 
Data from all studies are being compiled in a centralized 
database.
    Providing adequate stream flows--This aspect of endangered 
fish recovery involves acquiring adequate stream flows and 
altering operations of Federal dams to re-create more natural 
flow patterns. This strategy mimics natural stream flows, 
providing high flows during natural spring runoff, and lower, 
more stable flows the rest of the year. Large volumes of water 
carve out the riverside nooks and crannies, or ``backwaters and 
side channels,'' that endangered fish need to feed, grow and 
survive.
    Managing non-native fish species--The Upper Colorado River 
Endangered Fish Recovery program is working to recover 
endangered fish while also working to minimize the impact on 
non-native sport fishing. In general, stocking non-native fish 
species in the upper Colorado River basin has been confined to 
areas where there is little potential conflict with endangered 
fish. But trout tend to live in different parts of the river, 
and are not considered competitors with endangered fish. Trout 
are cold-water fish that prefer temperatures 10 to 15 degrees 
cooler than those in downstream sections of the river where 
endangered fish are found.
    In the fall of 1996, Federal and State wildlife agencies in 
Colorado, Utah and Wyoming finalized an agreement on stocking 
of non-native sort fish. The agreement specified the 
circumstances under which certain species of non-native fish 
can be stocked without harming endangered fish, specifying when 
non-native fish species can be routinely stocked, when stocking 
is prohibited, and when case-by-case reviews are required. 
These guidelines allow widespread stocking of trout and 
stocking of a variety of warm-weather fish species in seven 
Western Slope reservoirs totaling more than 10,000 surface 
acres.
    Hatcheries and stocking--Hatchery facilities and ponds for 
raising endangered fish now are available in five different 
sites in Utah and Colorado. Each of the facilities was 
established to meet specific objectives necessary to recover 
endangered Colorado River fish.
    Before this Recovery Program existed, thousands of 
endangered Colorado River fish were stocked in the upper and 
lower Colorado River basins, but most did not survive. 
Biologists believe that the lack of sufficient wetland areas 
and slow-moving ``backwaters'' decreased the fishes' ability to 
survive and reproduce. Also, many of the hatchery fish were 
offspring of a small number of adult parents and, as such, had 
very limited genetic diversity. In addition, young endangered 
fish may become ``imprinted'' to a specific site in the river 
and may spawn in that site only. Unless properly imprinted, the 
hatchery-raised fish may not have known where to go to spawn in 
the wild.
    Improving the river habitat--One strategy being used to 
improve river habitat is to make river-side flood plain 
property accessible to endangered fish. In some cases, this 
involves breaking down or removing dikes along the river to 
allow the fish to swim into the wetland. In situations where no 
dikes exist, the approach may be to protect the property from 
development, ensuring it will continue to be available to the 
fish.
    River habitat also is being improved by building fish 
passageways and ladders around dams and other in-stream 
barriers, enabling endangered fish to migrate upstream and 
down. Fish ladders are being used successfully in several areas 
of the United States, including for salmon in the Pacific 
Northwest's Columbia River.

San Juan River Basin

    The San Juan River is a major tributary of the Colorado 
River Basin. In 1922, the seven basin States of Utah, Colorado, 
Wyoming, New Mexico, Arizona, Nevada, and California signed a 
compact dividing the Colorado River between the Upper and Lower 
Colorado River basins. In 1948, the Upper Basin States 
(Wyoming, Colorado, Utah, and New Mexico), together with 
Arizona, signed an agreement apportioning the upper basin share 
between the States. Arizona was apportioned 50,000 acre-feet in 
that agreement. Each of the States and the Bureau of 
Reclamation under the authority of the Colorado River Storage 
Project Act (CRSP), initiated the development of the waters of 
the Upper Colorado River basin. The passage of the CRSP Act 
allowed for the construction of many large mainstem 
impoundments on the Colorado River and various tributaries 
including Navajo Dam on the San Juan, Flaming Gorge on the 
Green River, and the Aspinall Unit on the Gunnison River.
    While the construction of these impoundments was essential 
for the development of water storage and flood control and to 
allow the Upper Basin states to develop their water resources, 
their construction and operation altered natural river 
ecosystems and, thereby, the native floral and faunal 
communities of the Colorado River. As a result, natural 
riverine habitats were altered and migration routes were 
blocked.
    The purpose of the San Juan River Basin Recovery 
Implementation Program is to protect and recover endangered 
fishes in the San Juan River basins while water development 
proceeds in compliance with all applicable Federal and State 
laws. Endangered species include the pikeminnow and razorback 
sucker. It is anticipated that actions taken under this Program 
will also provide benefits to other native fishes in the Basin 
and prevent them from becoming endangered in the future.
    The specific goals of the Program are: (1) To conserve 
populations of the pikeminnow and razorback sucker in the Basin 
consistent with the recovery goals established under the 
Endangered Species Act; and (2) to proceed with water 
development in the Basin in compliance with Federal and State 
laws, interstate compacts, Supreme Court decrees, and Federal 
trust responsibilities to the Southern Utes, Ute Mountain Utes, 
Jicarillas, and the Navajos.
    Specific species recovery goals will be developed for the 
San Juan River basin using information developed as part of 
this Program. Established goals will reflect the need to 
protect endangered fishes in the San Juan River and will 
recognize the value, contribution, and roles of these 
populations in recovery of the species throughout their ranges.
    The Program was developed as a cooperative effort among 
agencies of the Department of the Interior, tribes, states and 
water development interests and includes the following: U.S. 
Bureau of Reclamation, U.S. Bureau of Indian Affairs, U.S. Fish 
and Wildlife Service, U.S. Bureau of Land Management, Ute 
Mountain Ute Indian Tribe, Southern Ute Indian Tribe, Jicarilla 
Apache Indian Tribe, Navajo Nation, State of New Mexico, State 
of Colorado, and State of Utah.

                          legislative history

    S. 2339 was introduced by Senators Allard, Bennett, 
Bingaman, Campbell, and Hatch on March 9, 2000. The 
Subcommittee on Water and Power held a hearing on the bill on 
April 25, 2000. At the business meeting on June 7, 2000, the 
Committee on Energy and Natural Resources ordered S. 2239, as 
amended, favorably reported.

            committee recommendation and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on June 7, 2000 by a unanimous voice vote with 
a quorum present, recommends that the Senate pass S. 2239, if 
amended as described herein.

                          committee amendment

    During the consideration of S. 2239, the Committee adopted 
an amendment to section 4 that ensures that any actions taken 
in furtherance of this program do not result in the application 
of Reclamation law if characterized as a ``new or 
supplemental'' benefit. In particular, this provision will 
ensure that exempt districts shall not become subject to the 
provisions of the Reclamation Reform Act based on their 
participation in the recovery program or due to the overall 
improvements in the conditions of the Basin.

                           section-by-section

    Section 1 describes the purposes of the Act.
    Section 2 defines key terms used in the Act.
    Section 3(a) provides authorization of $46 million in 
appropriated funds to the Secretary of the Interior (acting 
through the Commissioner of Reclamation) to be utilized for 
capital projects as defined in the Act. Further, the subsection 
provides that such funds are a nonreimbursable Federal 
expenditure. This authorization, as well as any other authority 
for the implementation of capital projects terminates for the 
Upper Colorado River Basin projects on September 30, 2005, and 
on September 30, 2007 for the capital projects in the San Juan 
River Basin.
    Subsection 3(b) limits the total costs (Federal and non-
Federal) of the capital projects to $100 million; $82 million 
for the Colorado projects and $18 million for the San Juan 
projects. Beginning in the fiscal year following enactment, the 
capital project costs shall be adjusted for inflation by the 
Secretary based on an appropriate economic index.
    Subsection 3(c) authorizes the Secretary to accept 
contributed funds not to exceed $17 million from the States of 
Colorado, Wyoming, Utah and New Mexico as outlined in separate 
agreements, and authorizes the Secretary to expend such 
contributed funds as if appropriated for that purpose.
    The Secretary of Energy, acting through the Western Area 
Power Administration (WAPA), is authorized to use power 
revenues not to exceed $17 million for capital projects. The 
power revenues are treated as a non-Federal contribution, are 
collected by WAPA pursuant to the Colorado River Storage 
Project (CRSP) Act of April 11, 1956, and are treated as 
reimbursable costs assigned to power for repayment under 
section 5 of the CRSP Act. Subsection (c)(2)(D) provides that 
the power revenue funding and State funding shall match on a 
rolling two-year basis. Power revenue funding may come from a 
loan provided to WAPA from the Colorado Water Conservation 
Board (CWCB) Construction Fund established pursuant to Colorado 
law.
    Subsection 3(d) details the source of ``base funding'', or 
non-capital funding which is utilized for the operation and 
maintenance of the capital projects, implementation of recovery 
actions other than capital projects (such as land, water or 
facility lease, reintroduction of endangered fish stocks, or 
the removal or translation of non-native fishes). Base funding 
also is provided pursuant to the Cooperative Agreements (as 
described in section 2 of the bill). The Secretary is 
authorized to utilize power revenues pursuant to the CRSP Act 
of 1956, which power revenues are non-reimbursable and returned 
to the general fund of the Treasury as costs assigned to power 
for repayment under section 5 the CRSP Act. Base funding shall 
not exceed $4 million per year for the Upper Colorado River 
Basin program and $2 million per year for the San Juan River 
Basin program, each amount having been adjusted for inflation 
annually. Authorization for the use of power revenues 
terminates on September 30, 2011, except that ongoing funding 
shall be provided for the limited purpose of operation and 
maintenance of the capital projects and monitoring. WAPA and 
Reclamation are to maintain sufficient revenues in the Upper 
Colorado River Basin Fund to meet the base funding obligations 
contained in this Act. If the agencies determine that there are 
insufficient revenues in that Fund to meet such obligations for 
a three-year period, then the agencies are required to seek 
Federal appropriations to meet the base funding obligations.
    In relation to the intended termination date for base 
funding, there is also required a report to Congress not later 
than September 30, 2008, on the use of power revenues for base 
funding, as well as a recommendation regarding ongoing use of 
power revenues after fiscal year 2011.
    Nothing in this Act affects any agreement regarding base 
funding and depletion charges for the Recovery Implementation 
Program.
    Subsection (e) authorizes the Secretary of the Interior to 
enter into agreements with Federal and non-Federal entities, to 
acquire and transfer interests in land, water and facilities, 
and to accept or give grants to carry out the provisions of 
this Act.
    Subsection (f) requires that nothing in this Act restricts 
the Interior agencies (Reclamation and the Bureau of Indian 
Affairs) from meeting their Indian trust responsibilities.
    Subsection (g) terminates all spending authorities on the 
expiration dates of the 1988 and 1992 Cooperative Agreements 
among the states and federal agencies, unless at least one year 
prior to such expiration dates, those Cooperative Agreements 
are extended to conform with the Act.
    Section 4 provides that any facilities, land or water 
rights acquired or constructed pursuant to the Act as part of 
the Recovery Implementation Project are not subject to the 
provisions of the Reclamation Act or any associated acts 
thereto, such as the Reclamation Reform Act.

                   cost and budgetary considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 28, 2000.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2239, a bill to 
authorize the Bureau of Reclamation to provide cost sharing for 
the endangered fish recovery implementation programs for the 
Upper Colorado River and San Juan River basins.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Applebaum.
            Sincerely,
                                        Steven M. Lieberman
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 2239--A bill to authorize the Bureau of Reclamation to provide cost 
        sharing for the endangered fish recovery implementation 
        programs for the Upper Colorado River and San Juan River basins

    Summary: S. 2239 would authorize the Secretary of the 
Interior to participate in fish recovery programs in the Upper 
Colorado River and the San Juan River basins. For planning, 
construction, and other capital projects, the bill would 
authorize the appropriation of $46 million to the Bureau of 
Reclamation. The bill also would allow the use of up to $17 
million from states participating in these programs. It would 
authorize the Western Area Power Administration (WAPA) to 
borrow an additional $17 million from the state of Colorado to 
help fund these projects, and it would authorize the use of 
about $6 million annually from certain proceeds from WAPA's 
electricity sales to fund specified operations and maintenance 
activities. Finally, the bill would authorize WAPA to repay the 
loan from Colorado by increasing electricity sales rates over 
the 2012-2057 period.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing S. 2239 would cost $40 million over 
the 2001-2005 period. In addition, CBO estimates that enacting 
S. 2239 would increase direct spending by $44 million over the 
2001-2005 period and $78 million over the 2001-2010 period. 
(Some of those costs would be offset over the 2012-2057 period 
by increases in the rates WAPA charges to electricity 
customers.) Because enacting S. 2239 would affect direct 
spending, pay-as-you-go procedures would apply.
    S. 2239 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Bill 
(UMRA). State and local governments would probably incur some 
costs as a result of the bill's enactment, but these costs 
would be voluntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2239 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
------------------------------------------------------------------------

              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level...      10      10      10      10       6
Estimated outlays...............       8       8       8       8       8

                       CHANGES IN DIRECT SPENDING

Estimated budget authority......      23       6       6       6       7
Estimated outlays...............       8       8      10       9       9
------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes S. 2239 
would be enacted by early in fiscal year 2001. Outlay estimates 
are based on information from the Bureau of Reclamation and 
historical spending patterns for similar programs. In addition 
to the $46 million that the bill would authorize to be 
appropriated, the legislation would authorize three other 
sources of funds for fish recovery programs: up to $17 million 
in contributions from states that are participating in this 
fish recovery program, up to $17 million in a loan from the 
state of Colorado (that is subject to repayment), and about $6 
million annually from certain receipts from WAPA's electricity 
sales.
    CBO estimates that the receipt and spending of funds 
contributed by participating states would have no significant 
net effect on the budget. But over the 2001-2005 period, CBO 
estimates that funding from the loan and spending some of the 
receipts from WAPA's electricity sales would increase direct 
spending by $44 million. Direct spending would increase by $78 
million over the 2001-2010 period. Over the 2012-2057 period, 
some of these costs would be offset as WAPA would increase its 
electricity rates to repay the loan from Colorado.

Contributions from States

    CBO expects that the participating states (Colorado, 
Wyoming, Utah, and New Mexico) will contribute the full $17 
million that would be authorized by the bill for the 
construction of capital projects for fish recovery. We expect 
that states would contribute funds at approximately the same 
rate that they are needed to complete capital projects, so that 
net spending and receipts from this provision would not be 
significant in any year.

Borrowing from Colorado

    S. 2239 would authorize WAPA to borrow and spend up to $17 
million form the Colorado Water Conservation Board Construction 
Fund (a fund of the state government). We expect these funds 
would be borrowed in 2001 and that outlays would total $13 
million over the 2001-2005 period, with the remaining $4 
million spent over fiscal years 2006 and 2007. Under the 
provisions of the bill, the $17-million loan would be repaid to 
the state of Colorado, with interest, starting in 2012. (The 
receipt of these funds and the subsequent loan principal 
repayment to Colorado would be treated in the budget as a means 
of financing, and would not affect spending.) The bill would 
direct WAPA to raise electricity rates for certain customers by 
a sufficient amount to repay this loan over the 2012-2057 
period. Therefore, this provision would cause a small net 
annual change in direct spending beginning in 2012 as funds are 
collected and interest payments are made to repay this loan 
over a 45-year period.

Spending certain WAPA electricity receipts

    S. 2239 would authorize the Secretary of the Interior to 
spend about $6 million a year from the proceeds of certain WAPA 
electricity sales to pay for the operations and maintenance 
costs, and other noncapital costs of endangered fish recovery 
programs in the Upper Colorado and San Juan River basins. The 
bill would authorize the Secretary to adjust such spending for 
increases in inflation, and to continue this spending until 
2011. After this date, spending would be authorized to 
continue, but only for operations and maintenance costs. CBO 
estimates this provision would increase direct spending by $31 
million over the 2001-2005 period and by $61 million over the 
2001-2010 period. Under the bill, this spending would not be 
offset by increases ion the price of electricity sold by WAPA.
    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 
changes 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       8       8      10       9       9       8       8       6       6       6
Changes in receipts.............................................   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)   (\1\)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Not applicable.

    Intergovernmental and private-sector impact: S. 2239 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Under the terms of this bill, part of the 
costs of the authorized capital projects would be paid by state 
governments and by water and power users, some of which are 
public entities. These costs would be voluntary.
    Previous cost estimate: On July 28, 2000, CBO transmitted a 
cost estimate for H.R. 2348, an act to authorize the Bureau of 
Reclamation to provide cost sharing for the endangered fish 
recovery implementation programs for the Upper Colorado River 
and San Juan River basins, as passed by the House of 
Representatives on July 25, 2000. The two versions of the 
legislation are very similar and the estimated costs are the 
same.
    Estimate prepared by: Federal Costs: Rachel Applebaum. 
Impact on State, Local, and Tribal Governments: Majorie Miller. 
Impact on the Private Sector: Natalie Tawil.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2239. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2239, as ordered reported.

                        executive communications

    On June 8, 2000, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 2239. These 
reports had not been received at the time the report on S. 2239 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the 
Commissioner of the Bureau of Reclamation at the Subcommittee 
hearing follows:

 Testimony of Eluid L. Martinez, Commissioner, Bureau of Reclamation, 
                    U.S. Department of the Interior

                              introduction

    Mr. Chairman and members of the Subcommittee, thank you for 
the opportunity to appear today to discuss the Administration's 
views on S. 2239, a bill to authorize the Bureau of Reclamation 
to provide cost sharing for the Upper Colorado River and San 
Juan River Basins Endangered Fish Recovery Implementation 
Programs. The Administration supports this legislation, with 
amendments to address concerns discussed below, and would like 
to thank Senator Allard for introducing the bill.

                               background

    The States administer the development and use of water 
resources within their boundaries in accordance with State law, 
interstate compacts and international treaty, and are 
responsible for management of fish and wildlife resources 
within their boundaries. The Bureau of Reclamation operates 
Federal reservoirs on the Upper Colorado River and San Juan 
River Basins which regulate water deliveries under interstate 
compacts and ensure a reliable supply of water for beneficial 
use, incidental to which is the production of hydropower. The 
U.S. Fish and Wildlife Service is responsible for administering 
the Endangered Species Act (ESA). The involved Tribes have 
jurisdiction over water, land and wildlife on their respective 
tribal properties. The complexities of managing water and 
meeting the needs of endangered species led the parties to 
develop recovery programs for each river basin.
    The Upper Colorado River Endangered Fish Recovery 
Implementation Program, established in 1988, is a cooperative 
effort involving the states of Colorado, Utah and Wyoming, 
environmental representatives, water and power user 
organizations, the Colorado River Energy Distributor 
Association, the Western Area Power Administration, the Bureau 
of Reclamation and the U.S. Fish and Wildlife Service. The 
Recovery Implementation Program's goal is to recover four 
species of fish, listed as endangered under the ESA, while 
enabling the states to continue to develop water in accordance 
with their Colorado River compact entitlements. The four 
species are Colorado pikeminnow, razorback sucker, humpback 
chub and bonytail.
    A similar program was initiated in 1991 in the San Juan 
River Basin. Program participants are the States of Colorado 
and New Mexico, the Bureau of Reclamation, the U.S. Fish and 
Wildlife Service, the Bureau of Land Management, the Bureau of 
Indian Affairs and the Southern Ute, Ute Mountain Ute, 
Jicarilla Apache, and Navajo tribes. In addition to recovering 
two species of endangered fish--the Colorado pikeminnow and 
razorback sucker--the San Juan program meets the need to 
proceed with water development in the Basin in compliance with 
Federal and State laws, interstate compacts, Supreme Court 
decrees and Federal trust responsibilities to the Tribes.

                                s. 2239

    The legislation would authorize funding for capital 
construction, operations and maintenance, and additional 
funding to implement other aspects of the Recovery Programs, 
which include building fish ladders, acquiring water, 
constructing hatchery facilities, and acquiring and restoring 
floodplain habitats used by endangered fish. It sets out the 
cost sharing relationships among the program participants for 
the completion of the recovery actions. The partners recognize 
that needed capital construction funds for the Programs through 
fiscal year 2007 may be as much as $100 million. S. 2239 would 
apportion responsibility for the funding of capital projects 
between the Federal and non-federal partners. It would 
authorize $46 million of Federal funds to the Bureau of 
Reclamation. The Department's ability to provide funding is 
subject to existing budget constraints. The remaining $54 
million would be generated from the following non-federal 
sources: State contributions of cash, land, and water 
interests, or in-kind services not to exceed $17 million; 
contributions from power revenues up to $17 million, which are 
defined as reimbursable by power customers; and an additional 
$20 million dedicated from the flows from Flaming Gorge Dam in 
Utah and the Colorado Water Conservation District's Wolford 
Mountain Reservoir. S. 2239 recognizes the agreement brokered 
between the Colorado Water Conservation Board, the Western Area 
Power Administration, the Bureau of Reclamation, and the State 
of Colorado to allow the Board to provide a low-interest loan 
to the power users to minimize any rate increase resulting from 
capital expenditures. The legislation would differ from current 
practice were 100 percent of the costs of capital projects for 
the Programs are being provided by Federal appropriations.
    The legislation would allow the Western Area Power 
Administration and the Bureau of Reclamation, through fiscal 
year 2011, to use power revenues up to $6 million per year for 
base funding to operate both programs including operation and 
maintenance of capital projects, research, monitoring, 
information and education and program management. After 2011, 
power revenues may only be used to operate and maintain the 
capital projects and for monitoring, unless Congress authorizes 
additional funding.
    The Administration has concerns regarding repayment of 
Federal debt and PAYGO impacts. The Administration has policy 
concerns with allowing non-Federal interests to write off debt 
to the Treasury so as to redirect repayment funds to new 
investments. Additionally, technical changes are needed to 
clarify that power revenues provided on a reimbursable basis to 
fund capital project activities will be offset through rate 
changes resulting in increases over existing power revenues as 
necessary to avoid PAYGO impacts. We would like to work with 
the Committee to address these concerns.

                          fish are recovering

    Both Recovery Implementation Programs have made significant 
progress toward recovering the endangered fishes. In the past 
12 years, the Upper Colorado River Recovery Implementation 
Program has recorded population increases for the Colorado 
pikeminnow in both the Green and Colorado rivers. The number of 
adults being caught in the Green River has tripled, while adult 
catches in the Colorado River have increased nearly eightfold. 
The humpback chub populations in the Blackrocks and Westwater 
Canyon areas of the Colorado River have gone from declining to 
stable populations.
    Since the beginning of the Programs, more than 207 
favorable biological opinions have been issued under section 7 
of the ESA, allowing more than 500 projects resulting in a 
total water depletion of nearly 600,000 acre-feet to go 
forward. Another biological opinion, nearing completion, will 
address more than one million acre-feet of water depletions. 
The unprecedented partnerships under the Programs have been 
instrumental in enabling water development to continue while 
providing for the long-term survival and recovery of the 
endangered fish. These partnerships have also enabled the 
Federal agencies to streamline the section 7 consultation 
process and provide timely responses to water users.
    Because of the success with Colorado pikeminnow and 
humpback chub, the Upper Colorado River Recovery Implementation 
Program is now emphasizing razorback sucker and bonytail 
recovery actions. This year, more than 60,000 razorback suckers 
were stocked. For the first time in the Green River, fish 
stocked from previous years are appearing in the spawning areas 
in reproductive condition. In addition, new young adult fish 
are being captured, indicating that successful reproduction in 
the wild is occurring.
    In 1999, 10,000 bonytails were stocked at each of two 
sites. Another 70,000 bonytails are being reared for release at 
a third site in the spring of 2000. Previously stocked fish are 
being captured in the wild and are demonstrating strong growth.
    Other Recovery Implementation Program accomplishments are 
being made in flow enhancement and habitat development. Both 
Bureau of Reclamation and private dams on the Colorado River 
are being operated to provide high spring releases for fish 
without impacting the ability to supply irrigation, municipal, 
and industrial water. The Program continues to successfully 
restore the floodplain in areas that do not negatively impact 
landowners. This floodplain habitat provides nursery areas for 
young fish during spring snowmelt runoff. To date, the Program 
has removed dikes and levees along the river to restore natural 
flooding of more than 2,000 acres. Acquisition of an additional 
1,600 acres of flood easements to restore habitat is in 
progress.
    The Upper Colorado River Recovery Program has identified 
several priorities for the immediate future. Topping the list 
is construction of two additional fish passages on the Colorado 
River which will open another 50 miles of historic habitat for 
the fish. Another priority is to improve efficiency of 
operations on the Government Highline Canal--a canal that 
provides water to farmers in Colorado. This project will enable 
water users to reduce diversions by more than 28,000 acre-feet 
per year, making water available to help recover the endangered 
fish.
    The San Juan River Recovery Implementation Program is also 
making significant progress toward recovering the razorback 
sucker and Colorado pikeminnow. Following nearly seven years of 
research and modeling, the Program adopted flow recommendations 
that provide water for other uses while also recovering the 
fish. This program has been a highly successful effort of the 
States, the Tribes, Federal agencies and water development 
interests. It has combined good scientific research with 
practical applications, resulting in successes for water 
development interests and endangered species.
    The program provides section 7 compliance for 700,000 acre-
feet per year of existing water depletions and for 121,000 
acre-feet per year of future depletions for the Navajo Indian 
Irrigation Project. It supports tribal water development in the 
San Juan Basin, including 57,000 acre-feet of depletions for 
the Animas-La Plata Project. It will also provide future ESA 
compliance for the Department of the Interior to meet its trust 
responsibilities to the tribes.
    We want to emphasize that much of the potential water 
development in the San Juan River Basin and in the Duchesne 
River Basin, a sub-basin of the Green River in the Upper 
Colorado River Basin, is for the benefit of Indian Tribes. Most 
of the Federally designated critical habitat for the endangered 
fish species in the San Juan River Basin is on Indian trust 
lands, and 2\1/2\ miles of critical habitat on the Duchesne 
River is on Indian Trust land. The Department of the Interior 
strongly supports the Recovery Implementation Programs' 
continued activities in accordance with the Federal 
Government's Indian trust responsibilities.

                         cost-share partnership

    S. 2239 affirms the Federal government's commitment to 
continued implementation of the Recovery Programs as possible 
under current budget constraints and acknowledges the critical 
role of the states and power users in accomplishing species 
conservation while meeting the future needs of water users. 
With the authorization of base funding, this legislation also 
affirms the commitment to provide for the operation and 
maintenance of capital improvements and conduct important 
monitoring to ensure that recovery accomplishments are achieved 
and sustained into the future.
    The States of Colorado, New Mexico, Utah and Wyoming 
support the cost share and have apportioned the costs among 
themselves. Colorado, Utah, and Wyoming have successfully 
secured the funding needed for their portion of the cost share 
through State budgeting processes. The Recovery Programs also 
receive significant benefit from local organizations, such as 
water from the Wolford Mountain Project in Colorado.
    The Department of the Interior believes that long-term 
funding support of the Upper Colorado River and San Juan 
Recovery Implementation Programs is in the best interest of all 
citizens. A significant financial investment of both public and 
private funds has been made to conduct research, construct and 
manage facilities, and implement other measures to recover the 
endangered fish, as required by the ESA. These model programs 
have demonstrated success in recovering the fish while enabling 
water and power development and recreational water use to 
continue. The Programs are fully supported by private water and 
power users, environmental organizations and Federal, State and 
local agencies.

                               conclusion

    It is critical to the continued recovery of the four 
species of endangered fish and to future successful water 
management for multiple uses, that funding of both Programs 
continue at this juncture. S. 2239 provides a unique 
opportunity to sustain partnership that combines Federal and 
non-federal funding in an effort to recover endangered species 
while recognizing and meeting the water needs of local 
communities. The Department of the Interior would like to thank 
Senator Allard for sponsoring this legislation, and with the 
addition of any needed amendments, we urge passage of S. 2239. 
We believe that the programs addressed in this legislation can 
serve as a model to other regions of the country for how 
partners can work collaboratively to achieve water development 
and species conservation goals.
    That concludes my remarks, and I would be happy to answer 
any questions.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes is existing law are made by the bill S. 2239, as 
ordered reported.

                                
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