I

104TH CONGRESS

2D SESSION H. R. 3917

To require full cost pricing for irrigation water delivered by the Bureau

of Reclamation from new projects under new long-term contracts, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 30, 1996

Mr. MILLER of California (for himself, Mr. VENTO, Mr. HINCHEY, Mr.

GEJDENSON, Mr. STUDDS, and Mr. OLVER) introduced the following bill;

which was referred to the Committee on Resources

A BILL

To require full cost pricing for irrigation water delivered

by the Bureau of Reclamation from new projects under

new long-term contracts, 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. FINDINGS.

4 The Congress finds the following:

5 (1) Irrigation subsidies provided by the Federal

6 Reclamation program originally served purpose of

7 opening the American West to settlement and devel8 opment.
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1 (2) The subsidies provided by the Federal Rec2 lamation program have proved more generous than

3 originally intended by the Congress, and only a

4 small fraction of the taxpayers’ investment in irriga5 tion facilities has been or will ever be repaid.

6 (3) The purpose of settling the West has long

7 been accomplished, and no longer requires regional

8 taxpayer subsidization for irrigation projects.

9 (4) Current budget concerns make it impossible

10 for the Congress to justify continued subsidies for ir11 rigation water delivered from new Bureau of Rec12 lamation projects.

13 (5) The Federal Reclamation program requires

14 fundamental revision to reduce subsidies and ensure

15 that taxpayers invest only in fiscally sound projects.

16 SEC. 2. PRICING OF BUREAU OF RECLAMATION IRRIGA17 TION WATER.

18 (a) FULL COST PRICING FOR NEW CONTRACTS.—

19 Any contract with a district entered into by the Secretary

20 of the Interior after the enactment of this Act for the de21 livery of irrigation water for a period in excess of one year

22 from a new project or a new unit of an existing project

23 shall provide for the delivery of such water at full cost

24 as defined in section 202 of the Reclamation Reform Act

25 of 1982 (43 U.S.C. 390bb). This section shall not apply
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1 to the water delivery which has commenced prior to July

2 25, 1996.

3 (b) INTEREST RATE.—The interest rate used in com4 puting full cost under this Act shall be determined by the

5 Secretary of the Treasury on the basis of the arithmetic

6 average of—

7 (1) the computed average interest rate payable

8 by the Treasury upon its outstanding marketable

9 public obligations which are neither due nor callable

10 for redemption for 15 years from the date of issu11 ance; and

12 (2) the weighted average of market yields on all

13 interest-bearing, marketable issues sold by the

14 Treasury during the fiscal year preceding—

15 (A) the fiscal year in which the expendi16 tures are made, or

17 (B) the date of enactment of this Act, for

18 expenditures made after such date of enact19 ment.

20 (c) EXEMPTION OF CERTAIN PROJECT UNITS.—

21 Nothing in this Act shall be construed to affect the price

22 of water from any project unit if the Secretary of the Inte23 rior has entered into a repayment contract or a long-term

24 water service contract before the enactment of this Act

25 for delivery of water from such unit.
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1 (d) TERMS DEFINED.—

2 (1) NEW PROJECT.—The term ‘‘new project’’

3 means a project the construction of which is com4 pleted after the enactment of this Act.

5 (2) EXISTING PROJECT.—The term ‘‘existing

6 project’’ means a project the construction of which

7 was completed on or before the enactment of this

8 Act.

9 (3) NEW UNIT.—The term ‘‘new unit of an ex10 isting project’’ means a physically separate unit, the

11 construction of which is completed after the enact12 ment of this Act, of an existing project.

13 (4) OTHER TERMS.—Except as provided in

14 paragraphs (1) through (3), the terms used in this

15 Act shall have the same meaning as provided by sec16 tion 202 of the Reclamation Reform Act of 1982 (43

17 U.S.C. 390bb).

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