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[Senate Report 115-358]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 645
                                                       
115th Congress   }                                           {   Report
                                  SENATE
 2d Session      }                                           {   115-358

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

 
              NEW MEXICO DROUGHT PREPAREDNESS ACT OF 2018

                                _______
                                

               November 14, 2018.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1012]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1012) to provide for drought preparedness 
measures in the State of New Mexico, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment in the nature of a substitute, and recommends that 
the bill, as amended, do pass.
    The amendment is as follows:
    Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``New Mexico Drought 
Preparedness Act of 2018''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Water acquisition program.
Sec. 4. Water conservation.
Sec. 5. National Academy of Sciences study.
Sec. 6. Emergency funding.
Sec. 7. Secure Water Act grants and cooperative agreements.
Sec. 8. Rio Grande Pueblo irrigation infrastructure reauthorization.
Sec. 9. Effect on existing law.

SEC. 2. DEFINITIONS.

    Except as otherwise provided in this Act, in this Act:
          (1) Basin.--The term ``Basin''--
                  (A) is limited to areas within the State of New 
                Mexico; and
                  (B) means each of--
                          (i) the Upper Rio Grande Basin;
                          (ii) the Middle Rio Grande Basin;
                          (iii) the Lower Rio Grande Basin;
                          (iv) the Lower Pecos River Basin;
                          (v) the Gila River Basin;
                          (vi) the Canadian River Basin;
                          (vii) the San Francisco River Basin; and
                          (viii) the San Juan River Basin.
          (2) District.--The term ``District'' means the Middle Rio 
        Grande Conservancy District.
          (3) Pueblo.--The term ``Pueblo'' means each of the following 
        pueblos in the State:
                  (A) Cochiti.
                  (B) Santo Domingo.
                  (C) San Felipe.
                  (D) Santa Ana.
                  (E) Sandia.
                  (F) Isleta.
          (4) Rio grande compact.--The term ``Rio Grande Compact'' 
        means the compact approved by Congress under the Act of May 31, 
        1939 (53 Stat. 785, chapter 155).
          (5) Secretaries.--The term ``Secretaries''' means--
                  (A) the Administrator of the Environmental Protection 
                Agency;
                  (B) the Secretary of Commerce; and
                  (C) the Secretary of the Interior.
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.
          (7) State.--The term ``State'' means the State of New Mexico.

SEC. 3. WATER ACQUISITION PROGRAM.

    (a) In General.--The Secretary, acting through the Commissioner of 
Reclamation, shall carry out in the Basins a water acquisition program 
in coordination with the other appropriate Federal agencies, State 
agencies, and non-Federal stakeholders, under which the Secretary 
shall--
          (1) make acquisitions of water in the Basins by lease or 
        purchase of water rights or contractual entitlements from 
        willing lessors or sellers, consistent with section 8 of the 
        Act of June 17, 1902 (43 U.S.C. 383), the Rio Grande Compact, 
        and applicable State law relating to the acquisition and 
        administration of water rights; and
          (2) take any other actions, consistent with section 8 of the 
        Act of June 17, 1902 (43 U.S.C. 383), the Rio Grande Compact, 
        and applicable State law, that the Secretary determines would 
        achieve the purposes of the water acquisition program described 
        in subsection (b).
    (b) Purposes.--The purposes of the water acquisition program are--
          (1) to enhance stream flow to benefit fish and wildlife 
        (including endangered species), water quality, and river 
        ecosystem restoration in the Basins; and
          (2) to enhance stewardship and conservation of working land, 
        water, and watersheds in the Basins, consistent with the 
        purpose described in paragraph (1).
    (c) Coordination.--To assist in developing and administering the 
program, the Secretary may provide funds to a federally established 
nonprofit entity with particular expertise in western water 
transactions.
    (d) District Projects.--Subject to the Rio Grande Compact and 
applicable State law, the Secretary may develop programs to provide--
          (1) cost-share assistance to the District or agricultural 
        producers and irrigators in the District for making irrigation 
        system improvements and increase system efficiency;
          (2) incentives to the District for the establishment of a 
        water leasing program from willing lessors for agricultural 
        producers and irrigators in the District to temporarily lease 
        pre-1907 water rights (instead of permanent severance from 
        irrigable lands) for the purpose of providing benefits to 
        species listed under the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.) and other river ecosystem benefits; and
          (3) cost-share assistance to the District to implement 
        infrastructure or operational changes that will allow for 
        effective management of a leasing program, while maintaining 
        adequate water deliveries to other agricultural producers and 
        irrigators.

SEC. 4. WATER CONSERVATION.

    (a) In General.--The Secretary, in cooperation with the District 
and in consultation with the Pueblos, may provide funding and technical 
assistance for the installation of metering and measurement devices and 
the construction of check structures on irrigation diversions, canals, 
laterals, ditches, and drains--
          (1) to ensure the conservation and efficient use of water 
        within the District by--
                  (A) reducing actual consumptive use; or
                  (B) not increasing the use of water; and
          (2) to improve the measurement and allocation of water 
        acquired through the water acquisition program established 
        under section 3.
    (b) Rio Grande, San Acacia and Isleta Reaches.--
          (1) In general.--The Secretary shall provide for development 
        of a comprehensive plan for the San Acacia and Isleta reaches 
        to plan, design, construct and prioritize projects that balance 
        river maintenance, water availability, use, and delivery, and 
        ecosystem benefits, including--
                  (A) planning, permitting, and construction of a 
                pumping station at Bosque del Apache National Wildlife 
                Refuge for the purpose of more efficiently using water 
                to provide--
                          (i) a stable supply for the Refuge; and
                          (ii) an efficient and reliable supply of 
                        water to the Rio Grande for the benefit of the 
                        endangered silvery minnow and Southwestern 
                        willow flycatcher;
                  (B) planning, permitting, and construction of a river 
                channel realignment project near the Rio Grande mile-83 
                for the purpose addressing river channel aggradation 
                while maintaining floodplain connectivity;
                  (C) planning, permitting, and construction of a 
                controlled outlet for the low flow conveyance channel 
                to the Rio Grande between Fort Craig, New Mexico and 
                Rio Grande mile-60 for the purpose of water use and 
                delivery, enhancement and development of habitat areas, 
                and possible creation of a single-channel river 
                ecosystem; and
                  (D) development of a Lower Reach Plan--
                          (i) to identify additional projects and 
                        maintenance activities with water use, sediment 
                        management, and delivery and ecosystem 
                        benefits; and
                          (ii) to prioritize implementation of all 
                        projects and activities.
          (2) Public participation.--In carrying out this subsection, 
        the Secretary shall provide a process for public participation 
        and comment during plan development and alternative analysis.

SEC. 5. NATIONAL ACADEMY OF SCIENCES STUDY.

    (a) Definition of Basin.--
          (1) In general.--In this section, the term ``basin'' means 
        the Rio Grande and the tributaries of the Rio Grande between--
                  (A) the headwaters of the Rio Grande and the Rio 
                Chama in the State of Colorado; and
                  (B) Elephant Butte Reservoir in the State.
          (2) Exclusions.--In this section, the term ``basin'' does not 
        include Elephant Butte Reservoir, Caballo Dam, or any portion 
        of the Rio Grande or the tributaries of the Rio Grande 
        downstream of Elephant Butte Reservoir.
    (b) Study.--Not later than 60 days after the date of enactment of 
this Act, the Secretary of the Army and the Secretary shall enter into 
an arrangement with the National Academy of Sciences to carry out a 
study on water and reservoir management and operation issues in the 
basin (including the Heron, El Vado, Abiquiu, Cochiti, and Jemez Canyon 
Dams and Reservoirs), which shall include--
          (1) an evaluation of existing basin reservoir authorizations 
        and legal requirements;
          (2) a summary of--
                  (A) the physical-hydrologic understanding of existing 
                basin reservoir operations; and
                  (B) any potential constraints on basin reservoirs in 
                light of climate change projections;
          (3) an identification of opportunities to optimize water 
        storage and management to benefit the basin ecosystem, 
        irrigators and municipal users, and to promote water 
        conservation through reauthorization of, reoperation of, 
        regulation of, or physical improvements to the reservoirs;
          (4) an evaluation of the physical-hydrologic feasibility of 
        the identified future basin reservoir management scenarios;
          (5) an identification of water use, supply, and accounting 
        impacts to other stakeholders in the State;
          (6) consideration of operations such as--
                  (A) the storage of supplemental water acquired by and 
                under the control of the Bureau of Reclamation;
                  (B) the carryover storage of San Juan-Chama Project 
                contract water;
                  (C) the Pueblo Prior and Paramount operation water;
                  (D) changes in timing of water released to offset 
                municipal pumping;
                  (E) changes in the timing of storage and release of 
                floodwaters;
                  (F) the reduction of evaporative losses from basin 
                reservoirs;
                  (G) conservation of water resulting from irrigation 
                operation changes by non-Indian and Pueblo irrigators;
                  (H) the impacts of management and operations on 
                recreation and hydropower;
                  (I) the impacts of management and operations on the 
                basin ecosystem and the habitats that support species 
                listed under the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.); and
                  (J) any other factors the Academy determines to be 
                necessary for purposes of fully evaluating 
                opportunities to achieve greater water conservation, 
                drought resiliency, and ecological health in the basin; 
                and
          (7) recommendations for future management scenarios and 
        measures that Congress could take with respect to the basin, 
        consistent with all applicable law, including the Act of June 
        17, 1902 (43 U.S.C. 383), and the Rio Grande Compact to assist 
        the agencies in establishing more flexible operating procedures 
        to improve the performance of basin reservoir operations in 
        accommodating multiple purposes.
    (c) Coordination With Other Studies.--To the maximum extent 
practicable, the study carried out under subsection (b) shall be 
coordinated with, and use data collected and analyses conducted for, 
other studies of the basin, including the Bureau of Reclamation Rio 
Grande Basin Study initiated in 2017.
    (d) Cosponsors.--The Secretary of the Army and the Secretary shall 
solicit cosponsors to contribute not less than 50 percent of the costs 
of the study under subsection (b), as appropriate, including State or 
private organizations.
    (e) Public Availability of Study.--On the date on which the 
National Academy of Sciences completes the study under this section, 
the National Academy of Sciences shall make available to the public the 
results of the study.
    (f) Report.--Not later than 2 years after the date of enactment of 
this Act, the National Academy of Sciences shall submit to the 
Secretary of the Army and the Secretary a report that contains a 
summary of the results of the study conducted under this section.

SEC. 6. EMERGENCY FUNDING.

    (a) Financial Assistance.--
          (1) In general.--Financial assistance may be made available 
        under the Reclamation States Emergency Drought Relief Act of 
        1991 (43 U.S.C. 2201 et seq.) for eligible water projects to 
        assist Western States and Tribal governments to address 
        drought-related impacts to water supplies or any other 
        immediate water--related crisis or conflict.
          (2) Additional availability.--Financial assistance may be 
        made available under this section to organizations and entities 
        with water delivery authority that are engaged in collaborative 
        processes to restore the environment or are part of a basin-
        wide solution for restoration.
    (b) Types of Assistance.--Assistance under subsection (a) may 
include a range of projects, including--
          (1) the installation of pumps, temporary barriers, or 
        operable gates for water diversion and fish protection;
          (2) the installation of drought-relief groundwater wells for 
        Indian Tribes and in wildlife refuges and other areas;
          (3) the acquisition or assistance in the acquisition of water 
        from willing sellers to enhance stream flow for the benefit of 
        fish and wildlife (including endangered species), water 
        quality, river ecosystem restoration, and other beneficial 
        purposes, to be carried out in accordance with the water 
        acquisition program established under section 3;
          (4) agricultural and urban conservation and efficiency 
        projects;
          (5) exchanges with any water district willing to provide 
        water to meet the emergency water needs of other water 
        districts in return for the delivery of equivalent quantities 
        of water later that year or in future years;
          (6) maintenance of cover crops to prevent public health 
        impacts from severe dust storms;
          (7) emergency pumping projects for critical health and safety 
        purposes;
          (8) activities to reduce water demand consistent with a 
        comprehensive program for environmental restoration and 
        settlement of water rights claims;
          (9) the use of new or innovative on-farm water conservation 
        technologies or methods that may--
                  (A) assist in sustaining permanent crops in areas 
                with severe water shortages; and
                  (B) make water available for other beneficial uses;
          (10) activities that protect, restore, or enhance fish and 
        wildlife habitat or otherwise improve environmental conditions, 
        including water quantity or quality concerns and improved fish 
        passage;
          (11) activities reducing or preventing groundwater depletion 
        or promoting groundwater recharge;
          (12) technical assistance to improve existing irrigation 
        practices to provide water supply benefits;
          (13) the investigation of, and pilot projects for, brackish 
        water development and aquifer storage and recovery;
          (14) the lining of irrigation ditches and canals to reduce 
        water loss and improve efficiency;
          (15) assistance to municipal water management entities for 
        water supply planning in preparation for and in response to 
        dry, critically dry, and below normal water years, including--
                  (A) hydrological forecasting;
                  (B) identification of alternative water supply 
                sources; and
                  (C) guidance on potential water transfer partners; 
                and
          (16) any other assistance the Secretary determines to be 
        necessary to increase available water supplies, maintain the 
        health of river ecosystems, or mitigate drought impacts.

SEC. 7. SECURE WATER ACT GRANTS AND COOPERATIVE AGREEMENTS.

    Section 9504(a)(1)(H) of the Omnibus Public Land Management Act of 
2009 (42 U.S.C. 10364(a)(1)(H)) is amended--
          (1) in clause (i), by striking ``or'' at the end;
          (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
          (3) by adding at the end the following:
                  ``(iii) to plan for or address the impacts of 
                drought.''.

SEC. 8. RIO GRANDE PUEBLO IRRIGATION INFRASTRUCTURE REAUTHORIZATION.

    Section 9106 of the Omnibus Public Land Management Act of 2009 
(Public Law 111-11; 123 Stat. 1304) is amended--
          (1) in subsection (c)(4), by striking ``2 years after the 
        date of enactment of this Act'' and inserting ``December 31, 
        2019''; and
          (2) in subsection (g)(2), by striking ``2010 through 2019'' 
        and inserting ``2018 through 2026''.

SEC. 9. EFFECT ON EXISTING LAW.

    (a) In General.--An action taken by any of the Secretaries or 
another entity under this Act or an amendment made by this Act shall 
comply with applicable State laws in effect on the date of enactment of 
this Act, including a law described in subsection (b).
    (b) State Law.--Nothing in this Act or an amendment made by this 
Act affects, is intended to affect, or interferes with a law of the 
State relating to the control, appropriation, use, or distribution of 
water, or any vested right acquired under the law.
    (c) Rio Grande Compact.--Nothing in this Act or an amendment made 
by this Act affects or is intended to affect or interfere with any 
obligation of a State under the Rio Grande Compact or any litigation 
related to the Rio Grande Compact.

                                Purpose

    The purpose of S. 1012 is to provide for drought 
preparedness measures in the State of New Mexico.

                          Background and Need

    New Mexico has faced a number of droughts in recent years 
and several studies indicate that future water supplies will 
not meet the State's expected demands. In 2012, a variety of 
stakeholders from around New Mexico, including conservancy 
districts, farmers, ranchers, municipalities, and others, 
gathered for a water conference in Las Cruces, New Mexico, to 
develop proposals to help the State deal with future water 
supply challenges.
    The stakeholder conference produced a report containing 
roughly 50 policy recommendations covering a wide variety of 
water management issues, ranging from conservation and research 
priorities to infrastructure operation and maintenance, 
technology, and planning.
    S. 1012 authorizes the Secretary of the Interior 
(Secretary) to implement several of the conference report's 
recommendations, along with other recommendations developed 
through continued outreach with stakeholders, to address long-
term water solutions in the state.

                          Legislative History

    S. 1012 was introduced by Senators Udall and Heinrich on 
May 2, 2017. The Subcommittee on Water and Power held a hearing 
on the bill on June 14, 2017.
    In the 114th Congress, Senator Udall introduced a similar 
measure, S. 1936, on August 4, 2015. The Subcommittee on Water 
and Power held a hearing on S. 1936 on October 8, 2015.
    The Senate Committee on Energy and Natural Resources met in 
an open business session on October 2, 2018, and ordered S. 
1012 favorably reported, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on October 2, 2018, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
1012, if amended as described herein. Senators Lee and Risch 
asked to be recorded as voting no.

                          Committee Amendment

    During its consideration of S. 1012, the Committee adopted 
an amendment in the nature of a substitute. The substitute 
amendment deleted sections 5, 9, 11, and 12 and reformatted the 
bill accordingly. Several of these provisions were enacted as 
part of the America's Water Infrastructure Act (Public Law 115-
270), and are no longer necessary in S. 1012. In addition, the 
amendment added a requirement that the authorized National 
Academy of Sciences (NAS) study coordinate with other basin-
related studies and directed the Secretary and the Secretary of 
the Army (Secretaries) to solicit non-Federal contributions of 
at least 50 percent of the study's costs. Additionally, the 
substitute amendment removed a provision related to Title XII 
of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.), 
prohibited the Commissioner of the Bureau of Reclamation 
(Reclamation) from waiving the non-Federal cost share for 
Secure Water Act grants (42 U.S.C. 10364(a)(3)(E)), and made 
other minor changes. The substitute amendment is further 
described in the section-by-section analysis.

                      Section-by-Section Analysis

Sec.1. Short title; table of contents

    Section 1 sets forth the short title and table of contents.

Sec. 2. Definitions

    Section 2 defines key terms.

Sec. 3. Water acquisition program

    Subsection (a) directs the Secretary, acting through the 
Commission of Reclamation and in cooperation with Federal, 
State, and other stakeholders, to carry out a water acquisition 
program in specified basins in New Mexico, under which the 
Secretary is: (1) to make acquisitions of water by lease or 
sale from willing lessors or sellers; and (2) to take any other 
actions that the Secretary determines would enhance the 
program's purposes.
    Subsection (b) sets forth the following purposes of the 
program: (1) to enhance stream flow to benefit fish and 
wildlife, water quality, river ecosystem restoration; and (2) 
to enhance stewardship and conservation of working land, water, 
and watersheds.
    Subsection (c) authorizes the Secretary to provide funds to 
a Federally established nonprofit entity, with expertise in 
western water transactions, in order to assist in developing 
and administering the program.
    Subsection (d) authorizes the Secretary to develop programs 
to provide cost-share assistance to the Middle Rio Grande 
Conservancy District (District) or agriculture producers and 
irrigators, for irrigation system improvements and increased 
efficiency; incentives to the District for a water leasing 
program for the benefit of species listed under the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) and other river 
ecosystem benefits; and cost-share assistance to the District 
to implement infrastructure or operational changes.

Sec. 4. Water conservation

    Subsection (a) authorizes the Secretary, in cooperation 
with the District, and in consultation with the Pueblos, to 
provide funding and technical assistance for the installation 
of metering and measurement devices and the construction of 
check structures on irrigation diversions, canals, laterals, 
ditches, and drains: (1) to ensure the conservation and 
efficient use of water within the District, and (2) to improve 
the measurement and allocation of water acquired through the 
water acquisition program.
    Subsection (b) directs the Secretary to provide for 
development of a comprehensive plan to plan, design, construct, 
and prioritize projects that balance river maintenance, water 
availability, use, and delivery, and ecosystem benefits for the 
San Acacia and Isleta reaches of the Rio Grande. This 
subsection further requires the Secretary to provide for public 
participation and comments during the plan development and 
alternative analysis.

Sec. 5. National Academy of Sciences study

    Subsection (a) defines ``basin'' for section 5.
    Subsection (b) requires the Secretaries to enter into an 
arrangement with the NAS, within 60 days of enactment, to study 
water and reservoir management and operation issues in the 
basin. This subsection further specifies the issues the study 
must address.
    Subsection (c) requires the study to be coordinated with 
and use data and analysis from other basin-related studies, 
including Reclamation's 2017 Rio Grande Basin Study.
    Subsection (d) requires the Secretaries to solicit 
cosponsors, including State and private organizations, to 
contribute at least 50 percent of the study's costs.
    Subsection (e) directs the NAS to make the study results 
publicly available.
    Subsection (f) directs the NAS to submit the study to the 
Secretaries within two years of the Act's enactment.

Sec. 6. Emergency funding

    Subsection (a) authorizes financial assistance pursuant to 
the Reclamation States Emergency Drought Relief Act of 1991 (43 
U.S.C. 2201 et seq.) for eligible projects to assist Western 
States and Tribal governments with drought-related impacts to 
water supplies or any other immediate water-related crisis or 
conflict. This subsection further authorizes such financial 
assistance to organizations and entities with water delivery 
authority that are engaged in collaborative processes to 
restore the environment or are part of a basin-wide water 
solution.
    Subsection (b) authorizes a range of projects for which 
financial assistance may be provided, including 16 specified 
project types.

Sec. 7. Secure Water Act grants and cooperative agreements

    Section 7 amends section 9504(a)(1)(H) of the Omnibus 
Public Lands Management Act of 2009 (42 U.S.C. 10364(a)(1)(H) 
to add planning and addressing drought impacts as an eligible 
use of Bureau of Reclamation Secure Water Act grants and 
cooperative agreements.

Sec. 8. Rio Grande Pueblo irrigation infrastructure reauthorization

    Section 8 requires the Secretary to submit a report to the 
Senate Energy and Natural Resources Committee and the House 
Natural Resources Committee with a recommended list of projects 
recommended for implementation, along with findings, by 
December 31, 2019. This section further reauthorizes 
appropriations for Rio Grande Pueblo irrigation infrastructure 
grants through Fiscal Year 2026.

Sec. 9. Effect on Existing Law

    Section 9 requires any action taken under the Act to comply 
with applicable State laws. This section also makes clear that 
nothing in the Act affects or interferes with State control, 
appropriation, use or distribution of water, or any vested 
right. This section further specifies that nothing in the Act 
affects or interferes with any State obligation under the Rio 
Grande Compact 53 Stat. 785, chapter 155) or related 
litigation.

                   Cost and Budgetary Considerations

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:
    Summary: S. 1012 would extend the authority of the Bureau 
of Reclamation (BOR) to provide grants to Pueblo Indian Tribes 
to repair and replace irrigation infrastructure in New Mexico. 
The bill also would direct BOR to contract with the National 
Academy of Sciences (NAS) to study the management and 
consumption of water in the Rio Grande Basin. Finally, S. 1012 
would authorize BOR to assist irrigation districts and water 
utilities in the state with projects designed to conserve water 
and to coordinate the acquisition of water from willing 
sellers. Using information from BOR, CBO estimates that 
implementing the bill would cost $22 million over the 2019-2023 
period, assuming appropriation of the authorized and necessary 
amounts.
    Enacting S. 1012 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting S. 1012 would not increase 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 1012 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of S. 1012 is shown in the following table. 
The costs of the legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2019     2020     2021     2022     2023   2019-2023
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level...........................        1        6        6        6        6        25
Estimated Outlays.......................................        1        4        5        6        6        22
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
1012 will be enacted in 2019 and that the authorized and 
necessary amounts will be appropriated for each year. Estimated 
outlays are based on historical spending patterns for similar 
programs.
    Under current law, BOR's authority to provide grants to 
Pueblo Indian Tribes to repair and replace irrigation 
infrastructure expires in 2019. About $3 million has been 
expended for the program since 2013. S. 1012 would authorize 
the appropriation of $6 million annually through 2026 for the 
grants. CBO estimates that implementing this provision would 
cost $21 million over the 2019-2023 period and $21 million 
after 2023.
    S. 1012 would direct BOR to contract with NAS to study 
water management and consumption in the basin, identify 
potential effects of climate change, and recommend methods to 
enhance drought resiliency and protect the ecosystems and 
habitats of endangered species. CBO estimates that completing 
the study would cost $1 million in 2019.
    Finally, S. 1012 would authorize BOR to assist irrigation 
districts and water utilities in the state with projects aimed 
to conserve water, coordinate water acquisitions from willing 
sellers, and construct infrastructure to secure water supplies 
during periods of drought. Under current law, BOR is authorized 
to carry out those activities under existing programs and will 
continue to provide such assistance. Therefore, CBO estimates 
that implementing those provisions would not affect the federal 
budget.
    Pay-As-You-Go considerations: None.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting S. 1012 would not increase direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2029.
    Mandates: S. 1012 contains no intergovernmental or private-
sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Aurora Swanson; 
Mandates: Zachary Byrum.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
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. 1012. 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. 1012, as ordered reported.

                   Congressionally Directed Spending

    S. 1012, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the June 14, 2017, hearing on S. 1012 follows:

   Statement of Scott Cameron, Acting Assistant Secretary--Water and 
                Science, U.S. Department of the Interior

    Chairman Flake, Ranking Member King and members of the 
Subcommittee, I am Scott Cameron, Acting Assistant Secretary 
for Water and Science at the Department of the Interior. I am 
pleased to provide the views of the Department of the Interior 
(Department) on S. 1012, the New Mexico Drought Preparedness 
Act. This bill aims to enhance coordination for water 
acquisitions, authorize projects to assist with water 
conservation, authorize the study of the lower reaches of the 
Middle Rio Grande, support efforts to provide an annual spring 
peak flow for the Middle Rio Grande, and provide for a study of 
Rio Grande reservoirs. The Department supports many elements of 
the New Mexico Drought Preparedness Act of 2017, but has 
concerns with some of the new authorizations and with the 
language of Section 6 of the bill as detailed later in my 
statement.
    Although this bill mentions the Upper, Middle, and Lower 
Rio Grande basins, as well as the Lower Pecos, Gila, Canadian, 
San Francisco and San Juan River basins, the primary focus is 
on work in the Middle Rio Grande in New Mexico. The 2016 
biological opinion for water operations, river infrastructure 
restoration, maintenance, and conservation activities in the 
Middle Rio Grande defines the Middle Rio Grande as the entire 
width of the 100-year floodplain of the Rio Grande basin and 
its tributaries from the Colorado/New Mexico state line to 
Elephant Butte Dam. The Bureau of Reclamation's (Reclamation) 
Middle Rio Grande Project (Project) extends from the Velarde 
area of northern New Mexico south to the backwaters of Elephant 
Butte Reservoir. The irrigation features of the Project divert 
water from the river to irrigate between 50,000 and 70,000 
acres of irrigable land, including an approximate 20,000 acres 
of Pueblo Indian land.
    Reclamation has been leasing water on the Pecos River and 
from San Juan-Chama Project contractors for over a decade to 
supplement river flows for endangered species, consistent with 
the language of Section 3 of S. 1012. Taxpayers have spent tens 
of millions of dollars acquiring San Juan-Chama Project water 
and relinquished Rio Grande Compact credit water in recent 
years to augment flows in the Middle Rio Grande. However, other 
than the relinquished Rio Grande Compact credit water, 
Reclamation has yet to lease and make use of more-than-nominal 
volumes of native Rio Grande water in New Mexico due to the 
administrative, legal, and institutional complexities involved. 
In the explanatory statement printed December 11, 2014, for the 
Congressional Record, in reference to P.L. 113-235, the 
Consolidated and Further Continuing Appropriations Act, 2015, 
Congress encouraged Reclamation to pursue efforts to facilitate 
agricultural water leasing along the Middle Rio Grande and San 
Juan-Chama Projects. In response, Reclamation has started a 
pilot leasing program of pre-1907 water rights and is planning 
a grant opportunity to solicit the services of outside experts 
to build and begin testing the framework for a leasing program 
in collaboration with the Middle Rio Grande Conservancy 
District (District). This bill would provide Reclamation and 
the District with increased flexibility to implement and 
effectively manage such a program.
    For years, Reclamation has provided funding and technical 
assistance for irrigation districts and water utilities in New 
Mexico and west Texas to develop sustainable water supplies 
under various water conservation programs. Examples of such 
assistance include improving efficiency and conservation under 
the WaterSMART Program through Water and Energy Efficiency 
Grants to entities such as the Elephant Butte Irrigation 
District and funding for the Albuquerque Bernalillo County 
Water Utility Authority's water recycling and reuse (Title XVI) 
project, and through the Native American Affairs Program. 
Reclamation is also working with partners to carry out various 
landscape-scale efforts through the Basin Study Program. 
Reclamation, the District, and fifteen other non-Federal 
partners, including Tribal partners, have been working on a 
plan of study for a Rio Grande--New Mexico Basin Study. In 
addition, the six Middle Rio Grande Pueblos participate in the 
Rio Grande Pueblos Irrigation Infrastructure Improvement 
Project. Reclamation also provided funding under the 
Cooperative Watershed Management Program to expand the Rio 
Chama Watershed Group in 2014 to include the lower Rio Chama 
Basin, and provided funding to the Upper Rio Grande Watershed 
District in 2016 to establish a watershed group to bring 
together ranchers, environmental interests, and land management 
agencies in the Espanola Basin. Reclamation has provided 
Drought Response Program funding in 2016 to the Middle Rio 
Grande Conservancy District for both drought contingency 
planning and implementation of a drought resiliency project to 
install a pumping facility to increase the predictability of 
water supplies for District water users. Any water conservation 
actions by the District and Pueblos that would result in more 
efficient use of the available water supply is welcomed by 
Reclamation. However, as indicated previously, existing 
programs are available to provide the opportunity to cost-share 
conservation actions that will benefit the Rio Grande system.
    Section 5(a) of S. 1012 contains provisions granting five 
years of a temporary deviation in the operation of Cochiti 
Reservoir by the U.S. Army Corps of Engineers. Such deviations, 
if found to be hydrologically beneficial, allow for creation of 
a spike flow in the Middle Rio Grande through the impoundment 
and regulation of spring flows. However, in the past 67 years 
of record, conditions for deviation would only have occurred in 
five of those years. The Department supports a feasibility 
study in partnership with the Army Corps of Engineers and 
Cochiti Pueblo to assess maximized operational flexibilities if 
the concerns of Cochiti and Santa Ana Pueblos are addressed. 
The ability to stage water in the spring to augment the native 
flows in the Middle Rio Grande is an important cue to the 
endangered Rio Grande silvery minnow to reproduce.
    Section 5(b) of S. 1012 authorizes a comprehensive study 
and a series of projects in the Isleta and San Acacia reaches 
of the Middle Rio Grande aimed at giving Reclamation and other 
partnering agencies a better understanding of this area, which 
is designated as critical habitat for the Rio Grande silvery 
minnow. The Middle Rio Grande below Cochiti Dam is divided into 
four reaches defined by locations of mainstem irrigation 
diversion dams. The Cochiti Reach extends from Cochiti Dam to 
Angostura Diversion Dam. The reach from Angostura Diversion Dam 
to Isleta Diversion Dam is called the Albuquerque Reach. The 
Isleta Reach is bound upstream by Isleta Diversion Dam and 
downstream by San Acacia Diversion Dam. Finally, the reach 
below San Acacia Diversion Dam to the headwaters of Elephant 
Butte Reservoir is the San Acacia Reach. The study would also 
assist with development of a plan for moving forward with 
coordinated water conservation measures.
    Reclamation and Department policy require scientific 
information considered in our decision making to be robust and 
of the best available quality. Stakeholders must be able to 
trust the information. Section 6 of S. 1012 authorizes a 
National Academy of Sciences (NAS) Study of the water and 
reservoir management and operation from Heron and El Vado down 
to Abiquiu, Cochiti, and Jemez Canyon dams and reservoirs. A 
full evaluation of the legal authorities of each of these 
reservoirs weighed against the basin's hydrology would likely 
provide water managers all along the Rio Grande in New Mexico 
with useful information that could prove important as we 
struggle to meet growing needs with a decreasing water supply. 
A study of this magnitude, however, is not anticipated in 
Reclamation's budget, and would have to compete for funding 
against numerous existing priorities. Therefore, while we see 
the NAS study as the most comprehensive review of Reclamation 
operations, we recommend evaluation of ways that this project 
can build on the work of other studies, such as the proposed 
Rio Grande--New Mexico Basin Study, if it is selected for 
funding, and the Rio Chama Pilot Study, which is a review of 
river and reservoir operations on the Rio Chama. The Department 
would seek to secure cost-share partners for the review, 
consistent with the requirements for Basin Studies. This 
approach would achieve the study objectives outlined in S. 
1012, allow for independent scientific input, and limit 
duplication of efforts and resources.
    New Mexico has endured almost a decade of drought. An above 
average snowpack this spring will allow Reclamation and its 
stakeholders to start rebuilding storage in nearly empty 
reservoirs. Reclamation is currently in the process of leasing 
all of the water that is available at a reasonable price (i.e. 
excluding what would be covered under the pilot leasing program 
described above).
    The Department generally supports language in Sections 8 
and 9 of S. 1012 relating to the authorizations for the 
WaterSMART Program and under the Reclamation States Emergency 
Drought Relief Act. We note, however, that if the sponsor's 
aims is to reauthorize the Reclamation States Emergency Drought 
Relief Act, Title I of that Act (Section 104(c)) should also be 
reauthorized to mirror Title III. There are some technical 
changes we would suggest to ensure that the language can be 
implemented through Reclamation's existing programs (e.g., the 
Department supports retaining a required non-Federal cost share 
contribution which allows Reclamation to leverage Federal and 
non-Federal funding to construct projects with far more 
significant benefits than would otherwise be possible, in the 
WaterSMART Drought Response Program and other WaterSMART 
programs). We are willing to work with the sponsors and the 
Committee to refine those sections, and to ensure that the 
additional financial assistance authorities included in Section 
7 do not duplicate other existing authorities. In addition, the 
legislation should ensure that any drought relief wells funded 
should be in response to a critical need and prioritization 
process, and do not add to existing problems associated with 
groundwater depletion.
    Section 10 of S. 1012 provides additional time for 
completion of the study originally authorized under Section 
9106 of the Omnibus Public Land Management Act of 2009 (P.L. 
111-11). The purpose of the study is to assess the feasibility 
of projects to repair, rehabilitate, reconstruct, or replace 
Pueblo irrigation facilities recommended to be implemented from 
fiscal years 2010 through 2019. The study was to be submitted 
to Congress in March 2011; however, Reclamation was delayed in 
starting the study. Reclamation is currently scheduled to 
complete the study in 2017.
    All 18 New Mexico Rio Grande Pueblos have agreed to 
participate in the project. Reclamation supports the language 
in S. 1012 to extend the study period until December 31, 2018, 
and extend the ten-year construction period through 2024. 
Funding for construction will be dependent on availability. 
Because not all projects can be built, Reclamation will 
prioritize the projects based on the cost-effectiveness of the 
proposed investments.
    This concludes my statement. I am pleased to answer 
questions at the appropriate time.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 1012, 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):

               OMNIBUS PUBLIC LAND MANAGEMENT ACT OF 2009

Public Law 111-11

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TITLE IX--BUREAU OF RECLAMATION AUTHORIZATIONS

           *       *       *       *       *       *       *

Subtitle B--Project Authorizations

           *       *       *       *       *       *       *

SEC. 9106. RIO GRANDE PUEBLOS, NEW MEXICO.

           *       *       *       *       *       *       *

    (c) Irrigation Infrastructure Study.--
          (1) Study.--(A) In general.--On the date of enactment 
        of this Act, the Secretary, in accordance with 
        subparagraph (B), and in consultation with the Rio 
        Grande Pueblos, shall--
                  (i) conduct a study of Pueblo irrigation 
                infrastructure; and
                  (ii) based on the results of the study, 
                develop a list of projects (including a cost 
                estimate for each project), that are 
                recommended to be implemented over a 10-year 
                period to repair, rehabilitate, or reconstruct 
                Pueblo irrigation infrastructure.
          (B) Required consent.--In carrying out subparagraph 
        (A), the Secretary shall only include each individual 
        Rio Grande Pueblo that notifies the Secretary that the 
        Pueblo consents to participate in--
                  (i) the conduct of the study under 
                subparagraph (A)(i); and
                  (ii) the development of the list of projects 
                under subparagraph (A)(ii) with respect to the 
                Pueblo.
          (2) Priority.--
                  (A) Consideration of factors.--
                          (i) In general.--In developing the 
                        list of projects under paragraph 
                        (1)(A)(ii), the Secretary shall--
                                  (I) consider each of the 
                                factors described in 
                                subparagraph (B); and
                                  (II) prioritize the projects 
                                recommended for implementation 
                                based on--
                                          (aa) a review of each 
                                        of the factors; and
                                          (bb) a consideration 
                                        of the projected 
                                        benefits of the project 
                                        on completion of the 
                                        project.
                          (ii) Eligibility of projects.--A 
                        project is eligible to be considered 
                        and prioritized by the Secretary if the 
                        project addresses at least 1 factor 
                        described in subparagraph (B).
          (B) Factors.--The factors referred to in subparagraph 
        (A) are--
                  (i)(I) the extent of disrepair of the Pueblo 
                irrigation infrastructure; and
                  (II) the effect of the disrepair on the 
                ability of the applicable Rio Grande Pueblo to 
                irrigate agricultural land using Pueblo 
                irrigation infrastructure;
                  (ii) whether, and the extent that, the 
                repair, rehabilitation, or reconstruction of 
                the Pueblo irrigation infrastructure would 
                provide an opportunity to conserve water;
                  (iii)(I) the economic and cultural impacts 
                that the Pueblo irrigation infrastructure that 
                is in disrepair has on the applicable Rio 
                Grande Pueblo; and
                  (II) the economic and cultural benefits that 
                the repair, rehabilitation, or reconstruction 
                of the Pueblo irrigation infrastructure would 
                have on the applicable Rio Grande Pueblo;
                  (iv) the opportunity to address water supply 
                or environmental conflicts in the applicable 
                river basin if the Pueblo irrigation 
                infrastructure is repaired, rehabilitated, or 
                reconstructed; and
                  (v) the overall benefits of the project to 
                efficient water operations on the land of the 
                applicable Rio Grande Pueblo.
          (3) Consultation.--In developing the list of projects 
        under paragraph (1)(A)(ii), the Secretary shall consult 
        with the Director of the Bureau of Indian Affairs 
        (including the designated engineer with respect to each 
        proposed project that affects the Six Middle Rio Grande 
        Pueblos), the Chief of the Natural Resources 
        Conservation Service, and the Chief of Engineers to 
        evaluate the extent to which programs under the 
        jurisdiction of the respective agencies may be used--
                  (A) to assist in evaluating projects to 
                repair, rehabilitate, or reconstruct Pueblo 
                irrigation infrastructure; and
                  (B) to implement--
                          (i) a project recommended for 
                        implementation under paragraph 
                        (1)(A)(ii); or
                          (ii) any other related project 
                        (including on-farm improvements) that 
                        may be appropriately coordinated with 
                        the repair, rehabilitation, or 
                        reconstruction of Pueblo irrigation 
                        infrastructure to improve the efficient 
                        use of water in the Rio Grande Basin.
          (4) Report.--Not later than [2 years after the date 
        of enactment of this Act] December 31, 2019, the 
        Secretary shall submit to the Committee on Energy and 
        Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives a report that 
        includes--
                  (A) the list of projects recommended for 
                implementation under paragraph (1)(A)(ii); and
                  (B) any findings of the Secretary with 
                respect to--
                          (i) the study conducted under 
                        paragraph (1)(A)(i);
                          (ii) the consideration of the factors 
                        under paragraph (2)(B); and
                          (iii) the consultations under 
                        paragraph (3).
          (5) Periodic review.--Not later than 4 years after 
        the date on which the Secretary submits the report 
        under paragraph (4) and every 4 years thereafter, the 
        Secretary, in consultation with each Rio Grande Pueblo, 
        shall--
                  (A) review the report submitted under 
                paragraph (4); and
                  (B) update the list of projects described in 
                paragraph (4)(A) in accordance with each factor 
                described in paragraph (2)(B), as the Secretary 
                determines to be appropriate.

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    (g) Authorization of Appropriations.--
          (1) Study.--There is authorized to be appropriated to 
        carry out subsection (c) $4,000,000.
          (2) Projects.--There is authorized to be appropriated 
        to carry out subsection (d) $6,000,000 for each of 
        fiscal years [2010 through 2019] 2018 through 2026.

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Subtitle F--Secure Water

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SEC. 9504. WATER MANAGEMENT IMPROVEMENT.

    (a) Authorization of Grants and Cooperative Agreements.--
          (1) Authority of secretary.--The Secretary may 
        provide any grant to, or enter into an agreement with, 
        any eligible applicant to assist the eligible applicant 
        in planning, designing, or constructing any 
        improvement--
                  (A) to conserve water;
                  (B) to increase water use efficiency;
                  (C) to facilitate water markets;
                  (D) to enhance water management, including 
                increasing the use of renewable energy in the 
                management and delivery of water;
                  (E) to accelerate the adoption and use of 
                advanced water treatment technologies to 
                increase water supply;
                  (F) to prevent the decline of species that 
                the United States Fish and Wildlife Service and 
                National Marine Fisheries Service have proposed 
                for listing under the Endangered Species Act of 
                1973 (16 U.S.C. 1531 et seq.) (or candidate 
                species that are being considered by those 
                agencies for such listing but are not yet the 
                subject of a proposed rule);
                  (G) to accelerate the recovery of threatened 
                species, endangered species, and designated 
                critical habitats that are adversely affected 
                by Federal reclamation projects or are subject 
                to a recovery plan or conservation plan under 
                the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.) under which the Commissioner of 
                Reclamation has implementation 
                responsibilities; or
                  (H) to carry out any other activity--
                          (i) to address any climate-related 
                        impact to the water supply of the 
                        United States that increases ecological 
                        resiliency to the impacts of climate 
                        change; [or]
                          (ii) to prevent any water-related 
                        crisis or conflict at any watershed 
                        that has a nexus to a Federal 
                        reclamation project located in a 
                        service area; or[.]
                          (iii) to plan for or address the 
                        impacts of drought.
          (2) Application.--To be eligible to receive a grant, 
        or enter into an agreement with the Secretary under 
        paragraph (1), an eligible applicant shall--
                  (A) be located within the States and areas 
                referred to in the first section of the Act of 
                June 17, 1902 (43 U.S.C. 391); and
                  (B) submit to the Secretary an application 
                that includes a proposal of the improvement or 
                activity to be planned, designed, constructed, 
                or implemented by the eligible applicant.
          (3) Requirements of grants and cooperative 
        agreements.--
                  (A) Compliance with requirements.--Each grant 
                and agreement entered into by the Secretary 
                with any eligible applicant under paragraph (1) 
                shall be in compliance with each requirement 
                described in subparagraphs (B) through (F).
                  (B) Agricultural operations.--In carrying out 
                paragraph (1), the Secretary shall not provide 
                a grant, or enter into an agreement, for an 
                improvement to conserve irrigation water unless 
                the eligible applicant agrees not--
                          (i) to use any associated water 
                        savings to increase the total irrigated 
                        acreage of the eligible applicant; or
                          (ii) to otherwise increase the 
                        consumptive use of water in the 
                        operation of the eligible applicant, as 
                        determined pursuant to the law of the 
                        State in which the operation of the 
                        eligible applicant is located.
                  (C) Nonreimbursable funds.--Any funds 
                provided by the Secretary to an eligible 
                applicant through a grant or agreement under 
                paragraph (1) shall be nonreimbursable.
                  (D) Title to improvements.--If an 
                infrastructure improvement to a federally owned 
                facility is the subject of a grant or other 
                agreement entered into between the Secretary 
                and an eligible applicant under paragraph (1), 
                the Federal Government shall continue to hold 
                title to the facility and improvements to the 
                facility.
                  (E) Cost sharing.--
                          (i) Federal share.--The Federal share 
                        of the cost of any infrastructure 
                        improvement or activity that is the 
                        subject of a grant or other agreement 
                        entered into between the Secretary and 
                        an eligible applicant under paragraph 
                        (1) shall not exceed 50 percent of the 
                        cost of the infrastructure improvement 
                        or activity.
                          (ii) Calculation of non-federal 
                        share.--In calculating the non-Federal 
                        share of the cost of an infrastructure 
                        improvement or activity proposed by an 
                        eligible applicant through an 
                        application submitted by the eligible 
                        applicant under paragraph (2), the 
                        Secretary shall--
                                  (I) consider the value of any 
                                in-kind services that 
                                substantially contributes 
                                toward the completion of the 
                                improvement or activity, as 
                                determined by the Secretary; 
                                and
                                  (II) not consider any other 
                                amount that the eligible 
                                applicant receives from a 
                                Federal agency.
                          (iii) Maximum amount.--The amount 
                        provided to an eligible applicant 
                        through a grant or other agreement 
                        under paragraph (1) shall be not more 
                        than $5,000,000.
                          (iv) Operation and maintenance 
                        costs.--The non-Federal share of the 
                        cost of operating and maintaining any 
                        infrastructure improvement that is the 
                        subject of a grant or other agreement 
                        entered into between the Secretary and 
                        an eligible applicant under paragraph 
                        (1) shall be 100 percent.
                  (F) Liability.--
                          (i) In general.--Except as provided 
                        under chapter 171 of title 28, United 
                        States Code (commonly known as the 
                        `Federal Tort Claims Act'), the United 
                        States shall not be liable for monetary 
                        damages of any kind for any injury 
                        arising out of an act, omission, or 
                        occurrence that arises in relation to 
                        any facility created or improved under 
                        this section, the title of which is not 
                        held by the United States.
                          (ii) Tort claims act.--Nothing in 
                        this section increases the liability of 
                        the United States beyond that provided 
                        in chapter 171 of title 28, United 
                        States Code (commonly known as the 
                        ``Federal Tort Claims Act'').

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