89–010 

Calendar No. 646 

115TH CONGRESS REPORT " ! SENATE 2d Session 115–359 

CONTRA COSTA CANAL TRANSFER ACT 

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. 3001] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 3001) to authorize the Secretary of the Interior 

to convey certain land and facilities of the Central Valley Project, 

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. 

This Act may be cited as the ‘‘Contra Costa Canal Transfer Act’’. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) ACQUIRED LAND.—The term ‘‘acquired land’’ means land in Federal ownership and land over which the Federal Government holds an interest for the purpose of the construction and operation of the Contra Costa Canal, including 

land under the jurisdiction of— 

(A) the Bureau of Reclamation; 

(B) the Western Area Power Administration; and 

(C) the Department of Defense in the case of the Clayton Canal diversion 

traversing the Concord Naval Weapons Station. 

(2) CONTRA COSTA CANAL AGREEMENT.—The term ‘‘Contra Costa Canal Agreement’’ means an agreement between the District and the Bureau of Reclamation 

to determine the legal, institutional, and financial terms surrounding the transfer of the Contra Costa Canal, including but not limited to compensation to the 

reclamation fund established by the first section of the Act of June 17, 1902 (32 

Stat. 388, chapter 1093), equal to the net present value of miscellaneous revenues that the United States would otherwise derive over the 10 years following 

enactment of this Act from the eligible lands and facilities to be transferred, as 

governed by reclamation law and policy and the contracts. 

(3) CONTRA COSTA CANAL.— 

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(A) IN GENERAL.—The term ‘‘Contra Costa Canal’’ means the Contra 

Costa Canal Unit of the Central Valley Project, which exclusively serves the 

Contra Costa Water District in an urban area of Contra Costa County, California. 

(B) INCLUSIONS.—The term ‘‘Contra Costa Canal’’ includes pipelines, conduits, pumping plants, aqueducts, laterals, water storage and regulatory facilities, electric substations, related works and improvements, and all interests in land associated with the Contra Costa Canal Unit of the Central 

Valley Project in existence on the date of enactment of this Act. 

(C) EXCLUSION.—The term ‘‘Contra Costa Canal’’ does not include the 

Rock Slough fish screen facility. 

(4) CONTRACTS.—The term ‘‘contracts’’’ means the existing water service contract between the District and the United States, Contract No. 175r–3401A– 

LTR1 (2005), Contract No. 14–06–200–6072A (1972, as amended), and any 

other contract or land permit involving the United States, the District, and 

Contra Costa Canal. 

(5) DISTRICT.—The term ‘‘District’’ means the Contra Costa Water District, a 

political subdivision of the State of California. 

(6) ROCK SLOUGH FISH SCREEN FACILITY.— 

(A) IN GENERAL.—The term ‘‘Rock Slough fish screen facility’’ means the 

fish screen facility at the Rock Slough intake to the Contra Costa Canal. 

(B) INCLUSIONS.—The term ‘‘Rock Slough fish screen facility’’ includes the 

screen structure, rake cleaning system, and accessory structures integral to 

the screen function of the Rock Slough fish screen facility, as required 

under the Central Valley Project Improvement Act (Public Law 102–575; 

106 Stat. 4706). 

(7) ROCK SLOUGH FISH SCREEN FACILITY TITLE TRANSFER AGREEMENT.—The 

term ‘‘Rock Slough fish screen facility title transfer agreement’’ means an agreement between the District and the Bureau of Reclamation to— 

(A) determine the legal, institutional, and financial terms surrounding 

the transfer of the Rock Slough fish screen facility; and 

(B) ensure the continued safe and reliable operations of the Rock Slough 

fish screen facility. 

(8) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. 

SEC. 3. CONVEYANCE OF LAND AND FACILITIES. 

(a) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, 

in consideration for the District assuming from the United States all liability for the 

administration, operation, maintenance, and replacement of the Contra Costa 

Canal, consistent with the terms and conditions set forth in the Contra Costa Canal 

Agreement and subject to valid existing rights and existing recreation agreements 

between the Bureau of Reclamation and the East Bay Regional Park District for 

Contra Loma Regional Park and other local agencies within the Contra Costa Canal, 

the Secretary shall offer to convey and assign to the District— 

(1) all right, title, and interest of the United States in and to— 

(A) the Contra Costa Canal; and 

(B) the acquired land; and 

(2) all interests reserved and developed as of the date of enactment of this 

Act for the Contra Costa Canal in the acquired land, including existing recreation agreements between the Bureau of Reclamation and the East Bay Regional Park District for Contra Loma Regional Park and other local agencies 

within the Contra Costa Canal. 

(b) ROCK SLOUGH FISH SCREEN FACILITY.— 

(1) IN GENERAL.—The Secretary shall convey and assign to the District all 

right, title, and interest of the United States in and to the Rock Slough fish 

screen facility pursuant to the Rock Slough fish screen facility title transfer 

agreement. 

(2) COOPERATION.—No later than 180 days after the conveyance of the Contra 

Costa Canal, the Secretary and the District shall enter into good faith negotiations to accomplish the conveyance and assignment under paragraph (1). 

(c) PAYMENT OF COSTS.—The District shall pay to the Secretary any administrative and real estate transfer costs incurred by the Secretary in carrying out the conveyances and assignments under subsections (a) and (b), including the cost of any 

boundary survey, title search, cadastral survey, appraisal, and other real estate 

transaction required for the conveyances and assignments. 

(d) COMPLIANCE WITH ENVIRONMENTAL LAWS.— 

(1) IN GENERAL.—Before carrying out the conveyances and assignments under 

subsections (a) and (b), the Secretary shall comply with all applicable requirements under— 

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(A) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.); 

(B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); and 

(C) any other law applicable to the Contra Costa Canal or the acquired 

land. 

(2) EFFECT.—Nothing in this Act modifies or alters any obligations under— 

(A) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.); or 

(B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). 

SEC. 4. RELATIONSHIP TO EXISTING CENTRAL VALLEY PROJECT CONTRACTS. 

(a) IN GENERAL.—Nothing in this Act affects— 

(1) the application of the reclamation laws to water delivered to the District 

pursuant to any contract with the Secretary; or 

(2) subject to subsection (b), the contracts. 

(b) AMENDMENTS TO CONTRACTS.—The Secretary and the District may modify the 

contracts as necessary to comply with this Act. 

(c) LIABILITY.— (1) IN GENERAL.—Except as provided in paragraph (2), the United States shall 

not be liable for damages arising out of any act, omission, or occurrence relating 

to the Contra Costa Canal or the acquired land. 

(2) EXCEPTION.—The United States shall continue to be liable for damages 

caused by acts of negligence committed by the United States or by any employee 

or agent of the United States before the date of the conveyance and assignment 

under section 3(a), consistent with chapter 171 of title 28, United States Code 

(commonly known as the ‘‘Federal Tort Claims Act’’). 

(3) LIMITATION.—Nothing in this Act increases the liability of the United 

States beyond the liability provided under chapter 171 of title 28, United States 

Code. 

SEC. 5. REPORT. 

If the conveyance and assignment authorized by section 3(a) is not completed by 

the date that is 1 year after the date of enactment of this Act, the Secretary shall 

submit to Congress a report that— 

(1) describes the status of the conveyance and assignment; 

(2) describes any obstacles to completing the conveyance and assignment; and 

(3) specifies an anticipated date for completion of the conveyance and assignment. 

PURPOSE

The purpose of S. 3001 is to authorize the Secretary of the Interior (Secretary) to convey certain lands and facilities of the Central 

Valley Project. 

BACKGROUND AND NEED

The Contra Costa Canal System in California, which includes the 

Rock Slough intake channel, Main Canal, Loop Canal, Shortcut 

Pipeline, the Clayton and Ygnacio Re-lift Canals and pumping 

plants, and the Martinez Reservoir and pumping plants, was authorized in 1937 through the Rivers and Harbors Act of 1937 (Public Law 75–392). Construction was completed in 1948, and additional features were finished in 1967. 

The Contra Costa Water District (CCWD) has operated and 

maintained these facilities since 1972 under agreement with the 

Bureau of Reclamation (BOR), and in 2010 repaid its contract for 

the cost of construction in full. The repayment contract states that 

at completion of repayment, title to the facilities is to be transferred to CCWD, following authorization by Congress. 

With repayment for these facilities complete, CCWD has asked 

for authorization to receive title of the Contra Costa Canal System 

as provided in its contract with BOR. Conveying title to CCWD will 

facilitate a planned $650 million project to convert the open main 

canal to closed pipe in order to increase public safety and water 

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conservation, and to provide needed upgrades to the main canal 

and other system components. 

LEGISLATIVE HISTORY

Senator Feinstein introduced S. 3001 on June 6, 2018. The Subcommittee on Water and Power held a hearing on S. 3001 on June 

13, 2018. 

Representative DeSaulnier introduced H.R. 6040, companion legislation, in the House of Representatives on June 7, 2018. The Natural Resources Committee’s Subcommittee on Water, Power and 

Oceans held a hearing on H.R. 6040 on July 11, 2018, and it was 

favorably reported, as amended, by the Natural Resources Committee on August 31, 2018. H.R. 6040 passed the House of Representatives by voice vote on September 12, 2018. 

The Senate Committee on Energy and Natural Resources met in 

an open business session on October 2, 2018, and ordered S. 3001 

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. 3001, if 

amended as described herein. 

COMMITTEE AMENDMENT

During its consideration of S. 3001, the Committee adopted an 

amendment in the nature of a substitute. The substitute amendment modified the definition of ‘‘Contra Costa Canal Agreement’’ to 

require the CCWD to provide compensation for miscellaneous revenues BOR will no longer receive. The substitute amendment also 

made a number of technical and conforming changes and is further 

described in the section-by-section analysis. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title 

This section states the short title. 

Sec. 2. Definitions 

Section 2 defines key terms. 

Sec. 3. Conveyance of land and facilities 

Subsection (a) directs BOR to convey all right, title and interest 

of the United States in the Contra Costa Canal and the acquired 

land, as well as all interest in the acquired land to date, to CCWD 

within 180 days of the Act’s enactment. As consideration for the 

conveyance, CCWD must assume all liability for the administration, operation, maintenance, and replacement of the Contra Costa 

Canal, in accordance with applicable agreements and valid existing 

rights. 

Subsection (b) directs the Secretary to convey the Rock Slough 

fish screen facility to the CCWD pursuant to that facility’s title 

transfer agreement. This subsection also directs the Secretary and 

CCWD to enter into negotiations to accomplish the fish screen faVerDate Sep 11 2014 05:11 Nov 18, 2018 Jkt 089010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR359.XXX SR359
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cility conveyance within 180 days of the Contra Costa Canal conveyance. 

Subsection (c) requires the CCWD to pay any conveyance-related 

administrative and real estate transfer costs to the Secretary. 

Subsection (d) requires the Secretary to comply with applicable 

environmental laws prior to conveyance. 

Sec. 4. Relationship to existing central valley project contracts 

Section 4 states that nothing in the Act affects the application 

of reclamation laws to water delivered to CCWD and authorizes the 

modification of existing contracts to comply with the Act. This section further shields the United States from liability related to the 

conveyed property after the date of conveyance. 

Sec. 5. Report 

Section 5 requires the Secretary to submit an explanatory report 

to Congress if the conveyance and assignment of the Contra Costa 

Canal is not completed within one year after the Act’s enactment. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of the costs of this measure has been provided by the Congressional Budget Office: S. 3001 would authorize 

the Bureau of Reclamation (BOR), the Western Area Power Administration, and the Department of Defense to transfer the Contra 

Costa Canal, the Rock Slough Fish Screen, and the associated federal land and facilities to the Contra Costa County Water District 

located in California. 

Under the bill, BOR would modify the Rock Slough Fish Screen 

to ensure the screen is operating safely before transferring it. 

Using information from BOR, CBO estimates that the federal share 

of the costs to complete that work would be $2 million, subject to 

the availability of appropriated funds. 

Under current law, the federal government collects leasing and 

grazing fees of about $80,000 per year from the property that 

would be transferred under S. 3001. Those amounts are recorded 

in the federal budget as offsetting receipts, or reductions in direct 

spending. Under the bill, to compensate the federal government for 

those lost receipts, the district would pay the federal government 

an amount equal to the net present value of 10 years of receipts 

(discounted using the 10-year Treasury rate). CBO estimates that 

the district would pay the federal government $750,000 in the next 

few years and that the net effect on direct spending over the 2019– 

2028 period would be negligible. 

Because enacting S. 3001 would affect direct spending, pay-asyou-go procedures apply. Enacting S. 3001 would not affect revenues. 

CBO estimates that enacting S. 3001 would not significantly increase net direct spending or on-budget deficits in any of the four 

consecutive 10-year periods beginning in 2029. 

S. 3001 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

On August 29, 2018, CBO transmitted a cost estimate for H.R. 

6040, the Contra Costa Canal Transfer Act, as ordered reported by 

the House Committee on Natural Resources on July 18, 2018. The 

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two pieces of legislation are similar and CBO’s estimates of their 

budgetary effects are the same. 

The CBO staff contact for this estimate is Aurora Swanson. The 

estimate was reviewed by 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. 3001. 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. 3001, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 3001, 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 

July 13, 2018, hearing on S. 3001 follows: 

STATEMENT OF TIMOTHY R. PETTY, PH.D., ASSISTANT SECRETARY FOR WATER AND SCIENCE, U.S. DEPARTMENT OF

THE INTERIOR

Chairman Flake, Ranking Member Cortez Masto and 

members of the Subcommittee, I am Dr. Tim Petty, the Assistant Secretary for Water and Science at the Department 

of the Interior (Department). Thank you for the opportunity to provide the views of the Department on S. 3001, 

the Contra Costa Canal Title Transfer Act. 

S. 3001 directs the Department to offer to transfer and 

convey to the Contra Costa County Water District (District) all right, title, and interest of the United States in 

and to the Contra Costa Canal (Canal) within 180 days of 

enactment of this Act. The Canal, as defined in S. 3001, 

includes the entirety of the Contra Costa Canal Unit of the 

Central Valley Project (CVP), including pipelines, conduits, 

pumping plants, aqueducts, laterals, water storage and 

regulatory facilities, electric substations, related works, 

and improvements and all interests in land associated 

within the unit, not including the Rock Slough fish screen 

facility. The lands under consideration to be transferred 

are currently under the jurisdiction of the Bureau of Reclamation, the Western Area Power Administration, and 

the Department of Defense. The District has been effectively operating and maintain these facilities. The title 

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transfer of the Canal will maintain this arrangement into 

the future. 

The Department recognizes that the District is a longtime CVP contractor, and that even with enactment of S. 

3001, the District would continue to pay their share of 

CVP operations and maintenance and repayment through 

their water service rates. 

If the conveyance has not been completed within 12 

months, Interior is required to submit Congress an explanation and the date by which the conveyance will be completed. 

The Department has an active title transfer program 

and supports transferring certain Reclamation project facilities to non-Federal entities, particularly in cases where 

transfers could create opportunities, not just for those who 

receive title, but for other stakeholders and the public as 

well. Specifically, a streamlined title transfer process for 

uncomplicated transfers creates incentives for non-Federal 

entities to closely engage with Reclamation to complete the 

process and allow for appropriate transfers to take place 

without legislation. This approach is reflected in the Administration’s Title Transfer legislative proposal, transmitted to Congress in February of this year. 

Mr. Chairman, it is important to note that in most cases, 

Reclamation and the entity interested in taking title must 

complete environmental compliance activities and negotiate the terms and conditions of the transfer before pursuing legislation. Reclamation has been working with the 

District closely on this effort and will continue to do so. 

However, this legislation, as currently drafted would authorize the transfer before those steps are completed. 

Instead, we recommend that the conveyance be completed pursuant to a title transfer agreement developed between the Department and the District, in consultation 

with other stakeholders, including the East Bay Regional 

Park District, the City of Antioch and the City of Walnut 

Creek. This will enable Reclamation, the District and the 

other stakeholders to work through the upfront activities 

necessary to complete a title transfer. We have had situations in previous transfers where additional legislation 

was required because the terms and conditions were dictated exclusively in the legislation and there was no flexibility to address unanticipated problems on this matter. 

Further, it is important that the legislation protect the 

financial interests of the taxpayers. While the District has 

completed its repayment obligation for its share of construction costs of the Canal, we need to account for revenues from other contracts, leases and agreements that currently come to the United States, but would transfer to the 

District under this Act. We recommend that the legislation 

acknowledge this requirement. 

We would be pleased to work with the Committee, the 

sponsors and the District on legislative language to reflect 

these necessary modifications. In the meantime, we recommend that Reclamation and the District complete a 

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valuation analysis to ensure that the financial interests of 

the United States are protected and that the results be reflected in the title transfer agreement that is referenced in 

the legislation. 

Mr. Chairman, Reclamation has been working closely 

with the District on this issue and we look forward to continuing that progress. We believe that if structured properly, the transfer of these facilities will improve the efficiency and effectiveness of the Canal’s operations by getting control of the lands and facilities into the hands of 

those who best understand the needs of the community. 

With these modifications, the Department is pleased to 

support this legislation. This completes my statement, I 

am happy 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, the Committee notes that no changes in existing law are made by the bill as ordered reported. 

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