99–006

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–554

AMENDMENTS TO THE CENTRAL UTAH PROJECT 

COMPLETION ACT

JULY 8, 2002.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. HANSEN, from the Committee on Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 4129] 

[Including cost estimate of the Congressional Budget Office]

The Committee on Resources, to whom was referred the bill 

(H.R. 4129) to amend the Central Utah Project Completion Act to 

clarify the responsibilities of the Secretary of the Interior with respect to the Central Utah Project, to redirect unexpended budget 

authority for the Central Utah Project for wastewater treatment 

and reuse and other purposes, to provide for prepayment of repayment contracts for municipal and industrial water delivery facilities, and to eliminate a deadline for such prepayment, 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 all after the enacting clause and insert the following:

SECTION 1. AMENDMENTS TO THE CENTRAL UTAH PROJECT COMPLETION ACT. 

(a) TREATMENT OF INVESTIGATION COSTS.—Section 201(b) of the Central Utah 

Project Completion Act (106 Stat. 4607) is amended following paragraph (2) by inserting the following: ‘‘All amounts previously expended in planning and developing 

the projects and features described in this subsection including amounts previously 

expended for investigation of power features in the Bonneville Unit shall be considered non-reimbursable and non-returnable.’’. 

(b) CLARIFICATION OF SECRETARIAL RESPONSIBILITIES.—Section 201(e) of the Central Utah Project Completion Act (106 Stat. 4608) is amended—

(1) in the first sentence—

(A) by striking ‘‘identified in this Act’’ and inserting ‘‘identified in this 

title and the Act of April 11, 1956 (chapter 203; 70 Stat. 110 et seq.), popularly known as the Colorado River Storage Project Act,’’

(B) by inserting ‘‘relating to the Bonneville Unit of the Central Utah 

Project including oversight for all phases of the Bonneville Unit, the administration of all prior and future contracts, operation and maintenance of 

previously constructed facilities’’ before ‘‘and may not delegate’’; 

2

(C) by striking ‘‘his responsibilities under this Act’’ and inserting ‘‘such 

responsibilities’’; 

(D) by striking the period after ‘‘Reclamation’’ and inserting: ‘‘, except 

through the pilot management program hereby authorized. The pilot management program will exist for a period not to exceed 5 years and shall provide a mechanism for the Secretary and the District to create a mutually 

acceptable organization within the Bureau of Reclamation to assist the Secretary in his responsibilities for the long-term management of the Bonneville Unit. Such pilot management program may be extended indefinitely by 

mutual agreement between the Secretary and the District.’’; 

(2) in the second sentence— (A) by inserting ‘‘technical’’ before ‘‘services’’; 

(B) by inserting ‘‘for engineering and construction work’’ before ‘‘on any 

project features’’; 

(3) by inserting at the end thereof the following new sentence: ‘‘These provisions shall not affect the responsibilities of the Bureau of Reclamation and the 

Western Area Power Administration regarding all matters relating to all Colorado River Storage Project power functions, including all matters affecting the 

use of power revenues, power rates and ratemaking.’’. (c) MUNICIPAL AND INDUSTRIAL WATER.—Section 202(a)(1)(B) of the Central Utah 

Project Completion Act (106 Stat. 4608) is amended in the last sentence by inserting 

‘‘and municipal and industrial water’’ after ‘‘basin’’. (d) USE OF UNEXPENDED BUDGET AUTHORITY.—Section 202(c) of the Central Utah 

Project Completion Act (106 Stat. 4611) is amended— (1) in the first sentence— (A) by striking ‘‘in this title up to $60,000,000’’ and inserting ‘‘for units 

of the Central Utah Project’’; and 

(B) by inserting ‘‘including use of reverse osmosis membrane technologies, 

water recycling, and conjunctive use, to stabilize high mountain lakes and 

appurtenant facilities, to develop power,’’ after ‘‘conservation measures,’’; 

and 

(2) in the last sentence strike ‘‘section 202(a)(1)’’ and insert ‘‘sections 

202(a)(1), 205(b), and Title VI’’. (e) PREPAYMENT OF REPAYMENT.—Section 210 of the Central Utah Project Completion Act (106 Stat. 4624) is amended— (1) in the second sentence— (A) by inserting ‘‘or any additional or supplemental repayment contract’’ after ‘‘1985,’’; and 

(B) by inserting ‘‘of the Central Utah Project’’ after ‘‘water delivery facilities’’; and 

(2) by striking ‘‘The District shall exercise’’ and all that follows through the 

end of that sentence. 

PURPOSE OF THE BILL

The purpose of H.R. 4129 is to amend the Central Utah Project 

Completion Act to clarify the responsibilities of the Secretary of the 

Interior with respect to the Central Utah Project, to redirect unexpended budget authority for the Central Utah Project for wastewater treatment and reuse and other purposes, to provide for prepayment of repayment contracts for municipal and industrial water 

delivery facilities, and to eliminate a deadline for such prepayment. 

BACKGROUND AND NEED FOR LEGISLATION

The Central Utah Project (CUP) was authorized in 1956 as part 

of the Colorado River Storage Project Act. Construction began by 

the Bureau of Reclamation (Reclamation) in 1964 and continues 

presently. CUP develops Utah’s share of Colorado river water for 

use in 10 counties in central Utah. 

In 1992 legislation known as the Central Utah Project Completion Act (CUPCA) was enacted. CUPCA reauthorized appropriations for CUP with over $900 million to complete the project over 

the next several decades. The 1992 legislation gave the planning 

and construction responsibilities for the project to the Central Utah 

3

Water Conservancy District rather than Reclamation. CUPCA also

established a federal commission charged with the responsibility of

providing environmental mitigation and enhancement for the

project.

This legislation amends section 201(e) of CUPCA to clarify that

the Secretary of the Interior continues to retain full responsibility

for CUP even after the construction phase is completed. The

amended legislation allows for the construction of facilities for municipal and industrial water uses within the Bonneville Unit of

CUP. The legislation also allows for the use of unexpended budget

authority for reverse osmosis membrane technologies, water recycling and conjunctive use. The legislation also provides the opportunity to prepay additional repayment obligations, which will be

associated with new municipal and industrial features being constructed. The legislation does not increase the total amount authorized to be expended to complete CUP.

COMMITTEE ACTION

H.R. 4129 was introduced on April 10, 2002, by Congressman

Chris Cannon (R–UT). The bill was referred to the Committee on

Resources, and within the Committee to the Subcommittee on

Water and Power. The Subcommittee held a hearing on the bill on

April 24, 2002. On May 22, 2002, the Full Resources Committee

met to consider the bill. The Subcommittee on Water and Power

was discharged from further consideration of the bill by unanimous

consent. Mr. Cannon offered an amendment to provide for the use

of water for municipal and industrial use. The amendment was

adopted by unanimous consent. No further amendments were offered and the bill as amended 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 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

4

contain any new budget authority, spending authority, credit authority, or an increase or decrease in tax expenditures. According 

to the Congressional Budget Office, enactment of this bill would result in a loss of offsetting receipts (a credit against direct spending) 

beginning in 2005. 

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. 

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, July 1, 2002. 

Hon. JAMES V. HANSEN, 

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. 4129, a bill to amend the 

Central Utah Project Completion Act to clarify the responsibilities 

of the Secretary of the Interior with respect to the Central Utah 

Project, to redirect unexpended budget authority for the Central 

Utah Project for wastewater treatment and reuse and other purposes, to provide for prepayment of repayment contracts for municipal and industrial water delivery facilities, and to eliminate a 

deadline for such prepayment. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Julie Middleton. 

Sincerely, 

BARRY B. ANDERSON

(For Dan L. Crippen, Director). 

Enclosure. 

H.R. 4129—A bill to amend the Central Utah Project Completion 

Act to clarify the responsibilities of the Secretary of the Interior 

with respect to the Central Utah Project, to redirect unexpended 

budget authority for the Central Utah Project for wastewater 

treatment and reuse and other purposes, to provide for prepayment of repayment contracts for municipal and industrial water 

delivery facilities, and to eliminate a deadline for such prepayment 

Summary: H.R. 4129 would make several amendments to the 

Central Utah Project Completion Act (CUPCA). These amendments 

include provisions that would make certain federal planning and 

development costs nonreimbursable and remove a deadline for the 

prepayment of water project construction costs under existing authority. 

Based on information from the Department of the Interior, CBO 

estimates that enacting this bill would result in a loss of offsetting 

receipts (a credit against direct spending) of nearly $1 million each 

year, totaling about $43 million over the 50-year period beginning 

5

in 2005. Enacting H.R. 4129 would affect direct spending; therefore, pay-as-you-go procedures would apply. 

H.R. 4129 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

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

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 4129 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—

2002 2003 2004 2005 2006 2007

CHANGES IN DIRECT SPENDING 1

Estimated budget authority ......................................................... 0 0 0 1 1 1 

Estimated outlays ......................................................................... 0 0 0 1 1 1 

1 The costs of enacting the bill would continue at about $1 million a year for 50 years. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

4129 will be enacted in fiscal year 2002. Two provisions of the bill 

could impact the federal budget. First, it would make certain federal planning and development costs for the Central Utah Project 

nonreimbursable. It also would remove the current 2020 deadline 

for the project beneficiaries to prepay certain construction costs for 

a portion of the Central Utah Project that is not yet completed. The 

other provisions of H.R. 4129 would have no significant impact on 

the federal budget. 

Based on information from the Department of the Interior, CBO 

estimates that about $26 million in previously expended investigative costs would become nonreimbursable by project beneficiaries 

under this bill. For this estimate, CBO assumes that the loss of 

these receipts would occur over a typical 50-year repayment period 

starting in 2005. Including both principal and interest payments, 

CBO estimates that this provision would result in the loss of $43 

million in receipts over that period. 

H.R. 4129 also would change the date that the federal government would receive the final payment for a water project contract 

under CUPCA. Under current law, the local water district is required to pay the final installment of the contract of about $270 

million by the end of fiscal year 2002. The construction of the water 

project, however, is only two-thirds complete. The Department of 

the Interior expects that the water project will be completed in 

2005, assuming adequate funds are appropriated each year to complete construction. Because construction of the water project is not 

complete, the district cannot generate operating income to make 

the final payment. CBO does not expect the final project payment 

will be made in 2002 under current law. Extending the deadline 

would not cause the payment to occur later because that payment 

is contingent upon completion of the project (which, in turn, depends on the availability of appropriated funds). 

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 

6

the following table. For the purposes of enforcing pay-as-you-go 

procedures, only the effects through 2006 are counted.

By fiscal year, in millions of dollars—

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Changes in outlays ........ 0 0 0 1 1 1 1 1 1 1 1 

Changes in receipts ....... Not applicable 

Intergovernmental and private-sector impact: H.R. 4129 contains 

no intergovernmental or private-sector mandates as defined in the 

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

Estimate prepared by: Federal costs: Julie Middleton; impact on 

state, local, and tribal governments: Majorie Miller; impact on the 

private sector: Cecil McPherson. 

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 

laws.

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): 

CENTRAL UTAH PROJECT COMPLETION ACT 

* * * * * * *

SEC. 201. AUTHORIZATION OF ADDITIONAL AMOUNTS FOR THE COLORADO RIVER STORAGE PROJECT. 

(a) * * *

(b) UTAH RECLAMATION PROJECTS AND FEATURES NOT TO BE

FUNDED.—Notwithstanding the Act of April 11, 1956 (70 Stat. 110; 

43 U.S.C. 105), the Act of August 10, 1972 (86 Stat. 525; 43 U.S.C. 

620k note), the Act of October 19, 1980 (94 Stat. 2239; 43 U.S.C. 

620), and the Act of October 31, 1988 (102 Stat. 2826), funds may 

not be made available, obligated, or expended for the following 

Utah reclamation projects and features: 

(1) * * *

(2) Water development projects and features: 

(A) * * *

* * * * * * *

Counties in which the projects and features described in this subsection were proposed to be located may participate in the local development projects provided for in section 206. All amounts previously expended in planning and developing the projects and features described in this subsection including amounts previously exVerDate May 23 2002 07:22 Jul 09, 2002 Jkt 099006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.XXX pfrm12 PsN: HR554
7

pended for investigation of power features in the Bonneville Unit 

shall be considered non-reimbursable and non-returnable.

* * * * * * *

(e) SECRETARIAL RESPONSIBILITY.—The Secretary is responsible 

for carrying out the responsibilities as specifically øidentified in 

this Act¿ identified in this title and the Act of April 11, 1956 (chapter 203; 70 Stat. 110 et seq.), popularly known as the Colorado 

River Storage Project Act, relating to the Bonneville Unit of the Central Utah Project including oversight for all phases of the Bonneville Unit, the administration of all prior and future contracts, operation and maintenance of previously constructed facilities and may 

not delegate øhis responsibilities under this Act¿ such responsibilities to the Bureau of Reclamationø.¿, except through the pilot management program hereby authorized. The pilot management program will exist for a period not to exceed 5 years and shall provide 

a mechanism for the Secretary and the District to create a mutually 

acceptable organization within the Bureau of Reclamation to assist 

the Secretary in his responsibilities for the long-term management 

of the Bonneville Unit. Such pilot management program may be extended indefinitely by mutual agreement between the Secretary and 

the District. The District at its sole option may use the technical

services of the Bureau of Reclamation for engineering and construction work on any project features. These provisions shall not affect 

the responsibilities of the Bureau of Reclamation and the Western 

Area Power Administration regarding all matters relating to all 

Colorado River Storage Project power functions, including all matters affecting the use of power revenues, power rates and ratemaking.

SEC. 202. BONNEVILLE UNIT WATER DEVELOPMENT. 

(a) Of the amounts authorized to be appropriated in section 201, 

the following amounts shall be available only for the following features of the Bonneville Unit of the Central Utah Project: 

(1) IRRIGATION AND DRAINAGE SYSTEM.—(A) * * *

(B) The authorization to construct the features provided for 

in subparagraph (A) shall expire if no federally appropriated 

funds to construct such features have been obligated or expended by the District in accordance with this Act, unless the 

Secretary determines the District has complied with sections 

202, 204, and 205, within five years from the date of its enactment, or such longer time as necessitated for— (i) * * *

* * * * * * *

Provided, however, That in the event that construction is not initiated on the features provided for in subparagraph (A), 

$125,000,000 shall remain authorized pursuant to the provisions of 

this Act applicable to subparagraph (A) for the construction of alternate features to deliver irrigation water to lands in the Utah 

Lake drainage basin and municipal and industrial water, exclusive 

of the features identified in section 201(b). 

* * * * * * *

(c) The Secretary is authorized to utilize any unexpended budget 

authority provided øin this title up to $60,000,000¿ for units of the 

Central Utah Project and such funds as may be provided by the 

8

Commission for fish and wildlife purposes, to provide 65 percent 

Federal share pursuant to section 204, to acquire water and water 

rights for project purposes including instream flows, to complete 

project facilities authorized in this title and title III, to implement 

water conservation measures, including use of reverse osmosis 

membrane technologies, water recycling, and conjunctive use, to stabilize high mountain lakes and appurtenant facilities, to develop 

power, and for the engineering, design, and construction of 

Hatchtown Dam in Garfield County and associated facilities to deliver supplemental project water from Hatchtown Dam. The District shall establish a viable minimum conservation pool in 

Hatchtown dam and shall ensure maintenance of viable instream 

flows in the Sevier River between Hatchtown dam and the Piute 

dam with the concurrence of the Commission and in consultation 

with the Division of Wildlife Resources of the State of Utah. The 

District shall comply with the provisions of øsection 202(a)(1)¿ sections 202(a)(1), 205(b), and Title VI with respect to the features to 

be provided for in this subsection. 

* * * * * * *

SEC. 210. JORDAN AQUEDUCT PREPAYMENT. 

Under such terms as the Secretary may prescribe, and within 

one year of the date of enactment of this Act, the Secretary shall 

allow for the prepayment, or shall otherwise dispose of, repayment 

contracts entered into among the United States, the District, the 

Metropolitan Water District of Salt Lake City, and the Salt Lake 

County Water Conservancy District, dated May 16, 1986, providing 

for repayment of the Jordan Aqueduct System. The Secretary shall 

allow for prepayment of the repayment contract between the 

United States and the Central Utah Water Conservancy District 

dated December 28, 1965, and supplemented on November 26, 

1985, or any additional or supplemental repayment contract providing for repayment of municipal and industrial water delivery facilities of the Central Utah Project for which repayment is provided 

pursuant to such contract, under terms and conditions similar to 

those contained in the supplemental contract that provided for the 

prepayment of the Jordan Aqueduct dated October 28, 1993. The 

prepayment may be provided in several installments to reflect substantial completion of the delivery facilities being prepaid and may 

not be adjusted on the basis of the type of prepayment financing 

utilized by the District. øThe District shall exercise its right to prepayment pursuant to this section by the end of fiscal year 2002. 

Nothing in this section authorizes or terminates the authority to 

use tax exempt bond financing for this prepayment.¿

* * * * * * *

Æ