II

103D CONGRESS

2D SESSION S. 1988

To authorize the transfer of a certain loan contract to the Upper Yampa

Water Conservancy Project, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 25 (legislative day, FEBRUARY 22), 1994

Mr. BROWN (for himself and Mr. CAMPBELL) introduced the following bill;

which was read twice and referred to the Committee on Energy and

Natural Resources

A BILL

To authorize the transfer of a certain loan contract to the

Upper Yampa Water Conservancy Project, 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 ‘‘Stagecoach Reservoir

5 Project Act of 1993’’.

6 SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT

7 LOAN.

8 (a) AGREEMENT.—
2

•S 1988 IS

1 (1) IN GENERAL.—As soon as practicable after

2 the date of enactment of this Act, the Secretary of

3 the Interior shall conduct appropriate investigations

4 regarding, and is authorized to sell, or accept pre5 payment on, the loan contract described in para6 graph (2) to the Upper Yampa Water Conservancy

7 District in Colorado (referred to in this Act as the

8 ‘‘District’’) for the Stagecoach Reservoir Project.

9 (2) LOAN CONTRACT.—The loan contract de10 scribed in paragraph (1) is numbered 7–07–40–

11 R0480 and was entered into pursuant to the Small

12 Reclamation Projects Act of 1956 (43 U.S.C. 422a

13 et seq.).

14 (b) PAYMENT.—Any agreement negotiated pursuant

15 to subsection (a) shall realize an amount to the Federal

16 Government calculated by discounting the remaining pay17 ments due on the loans by the interest rate determined

18 pursuant to subsection (c).

19 (c) INTEREST RATE.—

20 (1) IN GENERAL.—The Secretary shall deter21 mine the interest rate in accordance with the guide22 lines set forth in Circular A–129 issued by the Of23 fice of Management and Budget concerning loan

24 sales and prepayment of loans.
3

•S 1988 IS

1 (2) DETERMINATION.—In determining the in2 terest rate, the Secretary—

3 (A) shall not equate an appropriate

4 amount of prepayment with the price of the

5 loan if it were to be sold on the open market

6 to a third party; and

7 (B) shall, in following the guidelines set

8 forth in Circular A–129 regarding an allowance

9 for administrative expenses and possible losses,

10 make such an allowance from the perspective of

11 the Federal Government as lender and not from

12 the perspective of a third party purchasing the

13 loan on the open market.

14 (3) ADJUSTMENT.—If the borrower or pur15 chaser of the loan has access to tax-exempt financ16 ing, including tax-exempt bonds, tax-exempt cash re17 serves, and cash and loans of any kind from any tax18 exempt entity, to finance the transaction, and if the

19 Office of Management and Budget grants the Sec20 retary the right to conduct such a transaction, then

21 the interest rate by which the Secretary discounts

22 the remaining payments due on the loan shall be ad23 justed by an amount that compensates the Federal

24 Government for the direct or indirect loss of future

25 tax revenues.
4

•S 1988 IS

1 (4) LIMITATION.—Notwithstanding any other

2 provision of law, the interest rate shall not exceed a

3 composite interest rate consisting of the current

4 market yield on Treasury securities of comparable

5 maturities.

6 SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.

7 Upon receipt of the payment specified in section

8 2(b)—

9 (1) the obligation of the District under the loan

10 contract described in section 2(a)(2) shall terminate;

11 (2) the Secretary of the Interior shall convey all

12 right and interest of the United States in the Stage13 coach Reservoir Project to the District; and

14 (3) the District shall absolve the United States,

15 and its officers and agents, of any liability associ16 ated with the Stagecoach Reservoir Project.

17 SEC. 4. TERMINATION OF AUTHORITY.

18 (a) IN GENERAL.—Subject to subsection (b), the au19 thority granted by this Act to sell loans shall terminate

20 2 years after the date of enactment of this Act.

21 (b) TIME TO RESPOND TO OFFER.—The borrower

22 shall have not less than 60 days to respond to any prepay23 ment offer made by the Secretary.

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