```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3917 Introduced in House (IH)]

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.

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

SECTION 1. FINDINGS.

    The Congress finds the following:
            (1) Irrigation subsidies provided by the Federal 
        Reclamation program originally served purpose of opening the 
        American West to settlement and development.
            (2) The subsidies provided by the Federal Reclamation 
        program have proved more generous than originally intended by 
        the Congress, and only a small fraction of the taxpayers' 
        investment in irrigation facilities has been or will ever be 
        repaid.
            (3) The purpose of settling the West has long been 
        accomplished, and no longer requires regional taxpayer 
        subsidization for irrigation projects.
            (4) Current budget concerns make it impossible for the 
        Congress to justify continued subsidies for irrigation water 
        delivered from new Bureau of Reclamation projects.
            (5) The Federal Reclamation program requires fundamental 
        revision to reduce subsidies and ensure that taxpayers invest 
        only in fiscally sound projects.

SEC. 2. PRICING OF BUREAU OF RECLAMATION IRRIGATION WATER.

    (a) Full Cost Pricing for New Contracts.--Any contract with a 
district entered into by the Secretary of the Interior after the 
enactment of this Act for the delivery of irrigation water for a period 
in excess of one year from a new project or a new unit of an existing 
project shall provide for the delivery of such water at full cost as 
defined in section 202 of the Reclamation Reform Act of 1982 (43 U.S.C. 
390bb). This section shall not apply to the water delivery which has 
commenced prior to July 25, 1996.
    (b) Interest Rate.--The interest rate used in computing full cost 
under this Act shall be determined by the Secretary of the Treasury on 
the basis of the arithmetic average of--
            (1) the computed average interest rate payable by the 
        Treasury upon its outstanding marketable public obligations 
        which are neither due nor callable for redemption for 15 years 
        from the date of issuance; and
            (2) the weighted average of market yields on all interest-
        bearing, marketable issues sold by the Treasury during the 
        fiscal year preceding--
                    (A) the fiscal year in which the expenditures are 
                made, or
                    (B) the date of enactment of this Act, for 
                expenditures made after such date of enactment.
    (c) Exemption of Certain Project Units.--Nothing in this Act shall 
be construed to affect the price of water from any project unit if the 
Secretary of the Interior has entered into a repayment contract or a 
long-term water service contract before the enactment of this Act for 
delivery of water from such unit.
    (d) Terms Defined.--
            (1) New project.--The term ``new project'' means a project 
        the construction of which is completed after the enactment of 
        this Act.
            (2) Existing project.--The term ``existing project'' means 
        a project the construction of which was completed on or before 
        the enactment of this Act.
            (3) New unit.--The term ``new unit of an existing project'' 
        means a physically separate unit, the construction of which is 
        completed after the enactment of this Act, of an existing 
        project.
            (4) Other terms.--Except as provided in paragraphs (1) 
        through (3), the terms used in this Act shall have the same 
        meaning as provided by section 202 of the Reclamation Reform 
        Act of 1982 (43 U.S.C. 390bb).
                                 <all>
```