II

104TH CONGRESS

2D SESSION S. 1719

To require the Secretary of the Interior to offer to sell to certain public

agencies the indebtedness representing the remaining repayment balance

of certain Bureau of Reclamation projects in Texas, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 1, 1996

Mrs. HUTCHISON introduced the following bill; which was read twice and

referred to the Committee on Energy and Natural Resources

A BILL

To require the Secretary of the Interior to offer to sell

to certain public agencies the indebtedness representing

the remaining repayment balance of certain Bureau of

Reclamation projects in Texas, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Texas Reclamation

5 Projects Indebtedness Purchase Act’’.

6 SEC. 2. DEFINITIONS.

7 In this Act:
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1 (1) FEDERAL RECLAMATION LAWS.—The term

2 ‘‘Federal reclamation laws’’ means the Act of June

3 17, 1902 (32 Stat. 388, chapter 1093), and Acts

4 amendatory or supplementary to that Act, (43

5 U.S.C. 371 et seq.).

6 (2) NON-FEDERAL MITIGATION COSTS.—The

7 term ‘‘non-Federal mitigation costs’’ means costs or

8 expenses incurred by a purchaser, whether paid di9 rectly or incurred as a reduction of anticipated

10 project benefits, not otherwise included as costs to

11 be repaid by the Federal Government, to mitigate

12 environmental impacts of a project pursuant to law.

13 (3) PRESENT VALUE.—The term ‘‘present

14 value’’ means the present value of the unpaid indebt15 edness of a project, as defined by the project repay16 ment schedule, discounted at the United States

17 Treasury rates on the date of execution of the pur18 chase contract.

19 (4) PROJECT.—The term ‘‘project’’ means all

20 or part of a project specified in section 4, including

21 all features, functions, and real and personal prop22 erty authorized by Congress for any such project.

23 (5) PUBLIC AGENCY.—The term ‘‘public agen24 cy’’ means—
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1 (A) a State agency or political subdivision

2 of the State of Texas created under the laws of

3 the State of Texas; or

4 (B) a home rule city created under the

5 laws of the State of Texas.

6 (6) PURCHASER.—The term ‘‘purchaser’’

7 means—

8 (A) the party that (as of the date of enact9 ment of this Act) has contracted with the Unit10 ed States for repayment of the indebtedness of

11 a project; or

12 (B) if the party referred to in subpara13 graph (A) declines to complete the contract in

14 accordance with this Act, the State of Texas, or

15 a public agency, that has contracted with the

16 United States for repayment of the indebted17 ness of a project in accordance with this Act.

18 (7) SECRETARY.—The term ‘‘Secretary’’ means

19 the Secretary of the Interior.

20 SEC. 3. AGREEMENT FOR SALE OF INDEBTEDNESS OF BU21 REAU OF RECLAMATION PROJECTS IN TEXAS.

22 (a) IN GENERAL.—Not later than 180 days after the

23 date of enactment of this Act, the Secretary shall offer

24 to enter into an agreement with a purchaser for the pur25 chase of projects in accordance with this section.
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1 (b) PURCHASE PRICE.—

2 (1) IN GENERAL.—Subject to the other provi3 sions of this subsection, the purchase price of a

4 project shall be equal to the present value of the

5 project.

6 (2) DISCOUNT FOR IDENTIFIED LIABILITIES

7 AND UNREALIZED BENEFITS.—In the case of a

8 project with an identified liability, or a project from

9 which actual benefits are less than the benefits that

10 are projected at the time of project authorization,

11 the purchase price of the project shall be discounted

12 to the extent of the identified liability or unrealized

13 benefits, as determined by the State of Texas.

14 (3) DISCOUNT FOR BUREAU PAYMENTS.—In

15 the case of a project with respect to which the Bu16 reau of Reclamation is obligated to pay a portion of

17 maintenance and operating expenses or payments in

18 lieu of taxes, the purchase price of the project shall

19 be discounted by an amount equal to the anticipated

20 payment by the Bureau of Reclamation for the next

21 50 years.

22 (4) DISCOUNT FOR NON-FEDERAL COSTS.—If a

23 purchaser assumes the responsibility for non-Federal

24 mitigation costs of a project, the purchase price of
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1 the project shall be discounted to reflect the addi2 tional obligations undertaken or costs incurred.

3 (c) CONVEYANCE OF LAND AND IMPROVEMENTS.—

4 When the purchase price is paid for a project, the Sec5 retary shall convey to the purchaser all right, title, and

6 interest of the United States to all land and all improve7 ments to the project. An interest may be retained by the

8 United States to the extent that the interest is retained

9 under subsection (g).

10 (d) OPERATION AND MAINTENANCE.—The purchaser

11 shall assume all responsibility and liability for operation

12 and maintenance of a purchased project.

13 (e) DELIVERY OF PROJECTS.—The United States

14 shall provide for the performance of work reasonably nec15 essary to provide for the delivery of a project, including

16 all facilities and property, in a reasonably safe and func17 tional condition and in accordance with good maintenance

18 standards.

19 (f) FEDERAL RECLAMATION LAW REQUIREMENTS

20 AND BENEFITS.—On full payment of the purchase price

21 required under this section and the transfer of a project—

22 (1) the purchaser shall be relieved from compli23 ance with the acreage limitation and other require24 ments of Federal reclamation laws with respect to

25 the project; and
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1 (2) a project beneficiary shall not be eligible to

2 receive benefits available under Federal reclamation

3 laws, unless otherwise authorized by law, with re4 spect to a project.

5 (g) RESPONSIBILITY AND LIABILITY FOR

6 PROJECT.—On completion of the purchase of a project,

7 the purchaser shall—

8 (1) assume sole responsibility and liability for

9 the project purchased as of the date of conveyance

10 of title; and

11 (2) hold the United States harmless and indem12 nify the United States against all claims of damage;

13 except to the extent any title or aspect of project oper14 ations has been retained by the United States.

15 (h) NONREIMBURSABLE COSTS.—On completion of

16 the purchase of a project, the purchaser shall assume re17 sponsibility for continued implementation of all non18 reimbursable costs of the project originally authorized by

19 law.

20 (i) EFFECT ON CERTAIN FEDERAL PROGRAMS.—A

21 program of the National Park Service or the Army Corps

22 of Engineers associated with a project shall not be affected

23 by the transfer of a project.
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1 SEC. 4. PROJECTS AND PURCHASE PRICE.

2 The Secretary shall offer to enter into an agreement

3 with a purchaser under section 3 for the purchase of—

4 (1) the Canadian River reclamation project,

5 Texas, authorized by the Act of December 29, 1950

6 (64 Stat. 1124, chapter 1183; 43 U.S.C. 600b et

7 seq.), for $21,187,881, except that title to portions

8 of the project owned by the National Park Service,

9 and portions required for flood control operation by

10 the Army Corp of Engineers, shall not be trans11 ferred;

12 (2) the Palmetto Bend Federal reclamation

13 project, Texas, authorized by Public Law 90–562

14 (43 U.S.C. 616gggg note), for $33,923,245; and

15 (3) the Nueces River project, Texas, authorized

16 by title X of Public Law 93–493 (43 U.S.C. 600g

17 note), for $30,715,367.

18 SEC. 5. RELATIONSHIP TO OTHER LAW.

19 (a) NEPA.—The assumption of Federal non20 reimbursable responsibility for a project by a purchaser

21 shall be considered to comply with the National Environ22 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Re23 view of the project purchase shall not be required pursuant

24 to the Act.
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1 (b) REPAYMENT OF CONSTRUCTION CHARGES.—Sec2 tion 213(c) of the Reclamation Reform Act of 1982 (43

3 U.S.C. 390mm(c)) shall not apply to a project.

Æ