I

107TH CONGRESS

1ST SESSION H. R. 1714

To authorize the Secretary of the Interior to enter into contracts for the

use of excess storage and conveyance capacity in certain east slope

facilities of the Fryingpan-Arkansas Project, Colorado, and to conduct

studies for the enlargement of Pueblo Dam and Reservoir and Sugar

Loaf Dam and Turquoise Lake, Fryingpan-Arkansas Project, Colorado,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 3, 2001

Mr. HEFLEY (for himself, Mr. MCINNIS, and Mr. SCHAFFER) introduced the

following bill; which was referred to the Committee on Resources

A BILL

To authorize the Secretary of the Interior to enter into

contracts for the use of excess storage and conveyance

capacity in certain east slope facilities of the FryingpanArkansas Project, Colorado, and to conduct studies for

the enlargement of Pueblo Dam and Reservoir and Sugar

Loaf Dam and Turquoise Lake, Fryingpan-Arkansas

Project, Colorado, 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. PURPOSES.

4 (a) The purposes of this Act are the following:
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1 (1) To authorize the Secretary of the Interior

2 to engage in studies relating to enlarging Pueblo

3 Dam and Reservoir and Sugar Loaf Dam and Tur4 quoise Lake, Fryingpan-Arkansas Project, Colorado,

5 as described in the Preferred Storage Options Plan

6 Report published September 21, 2000, by the South7 eastern Colorado Water and Storage Needs Assess8 ment Enterprise and the Final PSOP Implementa9 tion Committee Report dated April 19, 2001.

10 (2) To authorize the Secretary to enter into

11 contracts for the use of excess storage and convey12 ance capacity of certain east slope facilities of the

13 Fryingpan-Arkansas Project, Colorado, for munic14 ipal, water banking, and other purposes, as de15 scribed in the Preferred Storage Options Plan Re16 port published September 21, 2000, by the South17 eastern Colorado Water and Storage Needs Assess18 ment Enterprise and Final PSOP Implementation

19 Committee Report dated April 19, 2001, by amend20 ing the Act of August 16, 1962 (76 Stat. 389 et

21 seq.).

22 (b) Nothing in this Act is intended to—

23 (1) impair or otherwise interfere with the

24 project’s authorized purposes or existing contractual
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1 obligations of the Secretary or project beneficiaries,

2 including the renewal of any such contracts;

3 (2) increase diversions of project water from

4 the natural basin of the Colorado River;

5 (3) increase diversions of nonproject water from

6 the natural basin of the Colorado River within Colo7 rado into another river basin for delivery or storage,

8 except as provided in this Act;

9 (4) impair or otherwise interfere with Contract

10 Nos. 00XX6C0049 and 0009D6C0048 between the

11 Board of Water Works of Pueblo, Colorado, and the

12 United States, or the renewal of Contract Nos.

13 00XX6C0049 and 0009D6C0048 pursuant to the

14 authority that provides the legal basis therefor; or

15 (5) affect the interpretation or implementation

16 of existing law or legislation for any other congres17 sionally authorized water project.

18 SEC. 2. SECRETARY AUTHORIZED TO CONDUCT STUDIES

19 FOR THE ENLARGEMENT OF PUEBLO DAM

20 AND SUGAR LOAF DAM.

21 (a) The Secretary of the Interior is hereby authorized

22 to engage in storage space studies, up to and including

23 a feasibility study pursuant to section 8 of the Federal

24 Water Project Recreation Act (16 U.S.C. 4601–19) and

25 section 9(a) of the Act of August 4, 1939 (Chapter 418;
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1 43 U.S.C. 485h(a)), as may be appropriate, relating to

2 enlarging Pueblo Dam and Reservoir and Sugar Loaf

3 Dam and Turquoise Lake, Fryingpan-Arkansas Project,

4 Colorado, including studies for the purpose of determining

5 the potential costs, benefits, and environmental and rec6 reational impacts of such enlargements and the use and

7 operation thereof, as described in the Preferred Storage

8 Options Plan Report published September 21, 2000, by

9 the Southeastern Colorado Water and Storage Needs As10 sessment Enterprise and Final PSOP Implementation

11 Committee Report dated April 19, 2001. Any report or

12 reports submitted to the President and Congress prepared

13 pursuant to this provision shall be considered to fulfill the

14 requirements of section 9(a) of the Act of August 4, 1939

15 (Chapter 418; 43 U.S.C. 485h(a)), to the extent that sec16 tion may be applicable.

17 (b) Before funds are expended for the studies author18 ized by this section, the Southeastern Colorado Water Ac19 tivity Enterprise shall agree to participate in the studies

20 and to fund the costs of the studies. The Southeastern

21 Colorado Water Activity Enterprise’s funding of the costs

22 may be provided partly or wholly in the form of services

23 directly related to the conduct of the studies.
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1 SEC. 3. SECRETARY AUTHORIZED TO ENTER INTO CON2 TRACTS FOR THE USE OF EXCESS STORAGE

3 AND CONVEYANCE CAPACITY OF CERTAIN

4 EAST SLOPE FACILITIES OF THE FRYINGPAN5 ARKANSAS PROJECT, COLORADO.

6 The Act of August 16, 1962 (76 Stat. 389), is

7 amended by adding at the end the following:

8 ‘‘SEC. 8. (a) The Secretary is authorized to enter into

9 contracts with any agency or entity, private or public, sup10 plying water for municipal and other purposes within the

11 project boundaries, for the use of excess water storage and

12 conveyance capacity for nonproject water in certain east

13 slope facilities, as described in the Preferred Storage Op14 tions Plan Report published September 21, 2000, by the

15 Southeastern Colorado Water and Storage Needs Assess16 ment Enterprise and Final PSOP Implementation Com17 mittee Report dated April 19, 2001, after consultation

18 with the Board of Directors of the Southeastern Colorado

19 Water Activity Enterprise: Provided, however, That such

20 contracts shall not impair or otherwise interfere with—

21 ‘‘(1) the project’s authorized purposes,

22 ‘‘(2) the ability of the project contractors to

23 meet existing Federal repayment obligations,

24 ‘‘(3) the storage allocations and limitations pur25 suant to Contract No. 5–07–70–W0086, as amend26 ed, between the Southeastern Colorado Water Con-
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1 servancy District and the United States, and the al2 location principles adopted by the Southeastern Col3 orado Water Conservancy District on November 29,

4 1979, and confirmed by the District Court of Pueblo

5 County in Civil Action No. 40487 by decree dated

6 December 18, 1979, including any subsequent modi7 fications made by the District that are confirmed by

8 the District Court,

9 ‘‘(4) the yield of the project from its West Slope

10 and East Slope water rights, or

11 ‘‘(5) the capacity in Reclamation project facili12 ties which is needed to satisfy project purposes and

13 contractual obligations with a term exceeding one

14 year existing at the time of the execution of a con15 tract under the authority of this subsection.

16 ‘‘(b) The term of any contract executed pursuant to

17 this section shall not exceed the remaining term of Con18 tract No. 5–07–70–W0086, as amended, between the

19 Southeastern Colorado Water Conservancy District and

20 the United States. The Secretary shall renew any contract

21 executed pursuant to this section at the end of the con22 tract term on such conditions as the Secretary finds to

23 be just and equitable. The term of such contract renewal

24 shall be for a duration no less than the term granted the

25 Southeastern Colorado Water Conservancy District under
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1 the contractual arrangement negotiated upon the expira2 tion of Contract No. 5–07–70–W0086.

3 ‘‘(c) To the extent water stored under the Project’s

4 Winter Water Storage Program spills from Pueblo Res5 ervoir due to execution of a contract executed pursuant

6 to this section, it will not be considered impairment or in7 terference under subsection (a)(5) if the holders of such

8 stored water are compensated by a credit for purchase of

9 project water to replace such spilled water, such credit to

10 be financed by a surcharge as described in subsection

11 (d)(4) imposed on contracts executed pursuant to this sec12 tion.

13 ‘‘(d) The Secretary shall not execute a contract pur14 suant to this section with any entity that has not signed

15 an agreement with the Southeastern Colorado Water Ac16 tivity Enterprise—

17 ‘‘(1) agreeing to reimburse an appropriate

18 amount of the Southeastern Colorado Water Activity

19 Enterprise’s implementation and development costs,

20 including such costs reimbursed to the United

21 States, incurred in determining and making excess

22 storage or conveyance capacity available for such

23 storage of nonproject water by municipal water pro24 viders within the project boundaries,
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1 ‘‘(2) agreeing to cooperate in a flow manage2 ment program designed to maintain target minimum

3 flows of 100 c.f.s. on the Arkansas River just below

4 Pueblo Dam, as provided in the Implementation

5 Committee report dated April 19, 2001,

6 ‘‘(3) agreeing to participate in a long-term

7 water quality monitoring program as outlined in the

8 Implementation Committee report dated April 19,

9 2001, and

10 ‘‘(4) agreeing to pay any surcharges determined

11 appropriate and necessary by the Southeastern Colo12 rado Water Activity Enterprise Board of Directors,

13 as described in the Preferred Storage Options Plan

14 Report published September 21, 2000, by the South15 eastern Colorado Water and Storage Needs Assess16 ment Enterprise and the Final PSOP Implementa17 tion Committee reported dated April 19, 2001.

18 All such charges established by the Southeastern Colorado

19 Water Activity Enterprise shall be paid by the person or

20 by the agency or entity, private or public, which contracts

21 for the use of excess capacity, directly to the Southeastern

22 Colorado Water Activity Enterprise, not to the Secretary,

23 at such times and in such manner as the Southeastern

24 Colorado Water Activity Enterprise may direct.
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1 ‘‘SEC. 9. (a) The Secretary is authorized to enter into

2 temporary contracts with any agency or entity, private or

3 public, operating a water bank established pursuant to

4 Colorado law, for use of facilities for the impounding, stor5 age, and carriage of nonproject water for irrigation, do6 mestic municipal, industrial, and other beneficial pur7 poses.

8 ‘‘(b) No contract executed under the authority of sub9 section (a) shall impair or otherwise interfere with—

10 ‘‘(1) the project’s authorized purposes,

11 ‘‘(2) the ability of the project contractors to

12 meet existing Federal repayment obligations,

13 ‘‘(3) the storage allocations and limitations pur14 suant to contract No. 5–07–70–W0086, as amended,

15 between the Southeastern Colorado Water Conser16 vancy District and the United States, and the alloca17 tion principles adopted by the Southeastern Colorado

18 Water Conservancy District on November 29, 1979,

19 and confirmed by the District Court of Pueblo Coun20 ty in Civil Action No. 40487 by decree dated Decem21 ber 18, 1979, including any subsequent modifica22 tions made by the District that are confirmed by the

23 District Court,

24 ‘‘(4) the yield of the project from its West Slope

25 and East Slope water rights, or
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1 ‘‘(5) the capacity in Reclamation project facili2 ties which is needed to satisfy project purposes and

3 contractual obligations existing at the time of the

4 execution of a contract under the authority of this

5 subsection.

6 ‘‘(c) The Secretary shall not execute a contract pur7 suant to this section with any entity that has not signed

8 an agreement with the Southeastern Colorado Water Ac9 tivity Enterprise agreeing to pay any surcharges deter10 mined appropriate and necessary by the Southeastern Col11 orado Water Activity Enterprise Board of Directors to fi12 nance an appropriate portion of an operations and mainte13 nance reserve fund and any other terms determined appro14 priate and necessary by the Southeastern Colorado Water

15 Activity Enterprise Board of Directors, which may include

16 conditions requiring water available in the bank to be

17 made available for use within the basin of the Arkansas

18 River prior to making such water available for use in other

19 river basins within Colorado and any necessary or desir20 able limitations upon the time, place, or type of use of

21 waters made available through the water bank and the ap22 propriate duration of water use resulting from water bank

23 transactions.

24 ‘‘SEC. 10. All revenue generated pursuant to con25 tracts executed under sections 8 and 9, except for those
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1 revenues generated pursuant to the surcharges described

2 in section 8(d)(4) and 9(c), shall be credited first to a

3 proportionate share of annual operations and maintenance

4 costs and then to repayment of the project in the year

5 the contract revenue is generated until such time as the

6 costs of the project have been repaid: Provided, however,

7 That the revenues so credited shall not be applied so as

8 to reduce the amount of the current annual payments due

9 to the Secretary from the project contractors or any other

10 parties that are responsible for paying outstanding reim11 bursable construction costs. Once the costs of the project

12 have been repaid, all revenue generated pursuant to con13 tracts executed under sections 8 and 9, except for those

14 revenues generated pursuant to the surcharges described

15 in sections 8(d)(4) and 9(c), shall be credited first to an16 nual operations and maintenance costs and then to the

17 Reclamation fund, to be used exclusively for the purpose

18 of financing extraordinary operations and maintenance,

19 rehabilitation, and replacements of project facilities.

20 ‘‘SEC. 11. Nonproject water diverted, stored, im21 pounded, pumped, or conveyed under a contract entered

22 into pursuant to sections 8 and 9 shall be exempt from

23 any acreage limitation provisions of the Act of June 17,

24 1902 (32 Stat. 388), and Acts amendatory thereof and

25 supplementary thereto including, but not limited to, the
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1 Reclamation Reform Act of 1982 (96 Stat. 1263; 43

2 U.S.C. 390aa–390zz–1) and from any farm unit size limi3 tations established pursuant to section 4(c)(5) of the Act

4 of August 11, 1939 (Chapter 717; 16 U.S.C. 590z–

5 2(c)(5)): Provided, however, That in the event such non6 project water is commingled with project water in Rec7 lamation project facilities, and the resulting commingled

8 supply is used to irrigate lands in a project contractor’s

9 service area, then such commingled water shall bear the

10 same acreage limitations or farm unit size limitations as

11 the project water unless—

12 ‘‘(1) contract provisions are in effect which pro13 vide that project or nonproject water, or both, will

14 be accounted for on a quantitative basis, that project

15 water will not be delivered to ineligible land, and

16 that appropriate charges, as determined by the Sec17 retary, will be paid for the project water, and

18 ‘‘(2) the charges for the use of the excess ca19 pacity include an appropriate interest component, as

20 determined by the Secretary.

21 ‘‘SEC. 12. Excess water storage capacity in certain

22 east slope facilities to divert, store, impound, pump, or

23 convey nonproject water made available under contracts

24 executed pursuant to the provisions of section 8 shall not

25 be utilized so as to increase diversion of nonproject water
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1 from the natural basins of the Colorado or Arkansas Riv2 ers within Colorado into another river basin for delivery

3 or storage unless—

4 ‘‘(1) the diversion is the subject of a decree en5 tered prior to the effective date of this section for

6 which no new infrastructure is necessary to divert

7 the water out of the natural basin, or

8 ‘‘(2) the diversion is the subject of an existing

9 agreement, contemplating additional diversions di10 verted through or stored in the facilities authorized

11 by this Act, between the beneficiary of such

12 transbasin diversion and either the water conserva13 tion district, as defined under Colorado law, from

14 within whose boundaries the waters are proposed for

15 diversion or, in the absence thereof, a water conser16 vancy district, as defined under Colorado law, that

17 is a project contractor and from within whose

18 boundaries the waters are proposed for diversion,

19 ‘‘(3) the diversion is the subject of a future

20 intergovernmental agreement or other contractual

21 arrangement between the beneficiary of such

22 transbasin diversion and either the water conserva23 tion district, as defined under Colorado law, from

24 within whose boundaries the waters are proposed for

25 diversion or, in the absence thereof, a water conser-
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1 vancy district, as defined under Colorado law, that

2 is a project contractor and from within whose

3 boundaries the waters are proposed for diversion, or

4 ‘‘(4) the beneficiary of such transbasin diver5 sion provides compensatory storage or alternate

6 water supply in an amount equal to the quantity di7 verted out of the basin for the benefit of either the

8 water conservation district, as defined under Colo9 rado law, from within whose boundaries the waters

10 are proposed for diversion or, in the absence thereof,

11 a water conservancy district, as defined under Colo12 rado law, that is a project contractor and from with13 in whose boundaries the waters are proposed for di14 version.’’.

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