I
105TH CONGRESS
1ST SESSION
H. R. 2398
To amend the Small Reclamation Projects Act of 1956 to provide for Federal
cooperation in non-Federal reclamation projects and for participation
by non-Federal agencies in Federal projects.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 4, 1997
Mr. CALVERT introduced the following bill; which was referred to the
Committee on Resources
A BILL
To amend the Small Reclamation Projects Act of 1956 to
provide for Federal cooperation in non-Federal reclama-
tion projects and for participation by non-Federal agen-
cies in Federal projects.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Small Reclamation
Water Resources Project Act of 1997’’.
SEC. 2. AMENDMENT OF SMALL RECLAMATION PROJECTS
ACT OF 1956.
(a) PURPOSE.—The first section of the Small Rec-
lamation Projects Act of 1956 (70 Stat. 1044; 43 U.S.C.
422a) is amended by striking ‘‘under the’’ and inserting
‘‘under this Act and other’’ and by adding the following
at the end thereof: ‘‘Such projects may include, but shall
not be limited to, irrigation projects. Irrigation shall not
be a required purpose for projects receiving assistance
under this Act.’’.
(b) DEFINITIONS.—Section 2 of the Small Reclama-
tion Projects Act of 1956 (70 Stat. 1044; 43 U.S.C. 422b)
is amended as follows:
(1) By amending subsection (d) to read as fol-
lows:
‘‘(d) The term ‘project’ means a project carried out
by a non-Federal organization under the Federal reclama-
tion laws in 1 or more of the 17 western reclamation
States that is one of the following:
‘‘(1) A single or multipurpose water resource
development project carried out by a non-Federal or-
ganization involving water conservation, energy con-
servation, fish and wildlife conservation, protection,
or enhancement, public safety, public outdoor recre-
ation, environmental education, archaeological sur-
veys, integrated resource planning, watershed man-
agement, water quality improvements, rural water
supply, augmentation and management of local
water supplies, supplemental water for existing sup-
plies, technology transfer, groundwater management
or research, nonstructural flood control activities, or
total water resources management.
‘‘(2) A project for the rehabilitation, better-
ment, or retrofit of any existing Federal or non-Fed-
eral water infrastructure for purposes of—
‘‘(A) significant preservation, protection,
enhancement, or extension of water or energy
resources, or
‘‘(B) those operational measures, habitat,
or physical features associated with the protec-
tion, preservation, enhancement, or recovery of
those fish and wildlife resources that are con-
sidered of importance and interest and which
shall include, but not be limited to, migratory
species, threatened or endangered species as
listed, or proposed for listing, under the Endan-
gered Species Act, or other species, as deter-
mined by the Secretary, to be worthy of consid-
eration under these terms.’’.
(2) By adding the following at the end thereof:
‘‘(g) The term ‘water quality improvements’ shall
mean and involve those operational measures and physical
features associated with—
‘‘(1) the reclamation and reuse of irrigation
drainage or municipal and industrial return flows,
including wastewater flows;
‘‘(2) the reclamation, dilution, or control, of
brackish, toxic, or hazardous waters for beneficial
reuse or protection of other related water, land, or
environmental resources; or
‘‘(3) flow augmentation from storage to achieve
national or State water quality goals.’’.
(c) MODIFICATION
OF LOAN AND GRANT PRO-
GRAMS.—Sections 3 through 8 of such Act are amended
to read as follows:
‘‘TITLE 
I—STATE 
AND 
LOCAL
PARTICIPATION IN RECLAMA-
TION PROJECTS
‘‘SEC. 101. ESTABLISHMENT OF GRANT AND LOAN PRO-
GRAM
‘‘There is hereby established under this title a pro-
gram within the Bureau of Reclamation of the Depart-
ment of the Interior pursuant to which the Secretary of
the Interior may make grants and loans to organizations
to carry out projects as defined in section 2(d).
‘‘SEC. 102. CONTENTS OF PROPOSALS.
‘‘(a) IN GENERAL.—Any organization seeking assist-
ance under this title shall submit a proposal to the Sec-
retary in such form and manner as the Secretary may pre-
scribe. Any proposal for a project submitted under this
title shall set forth a plan and estimated cost in detail
comparable to those included in preauthorization reports
required for a Federal reclamation project.
‘‘(b) LANDS AND WATERS.—Each proposal submit-
ted under this title shall include a showing that the project
sponsor holds or can acquire all lands and interests in land
(except public and other lands and interest in land owned
by the United States which are within the administrative
jurisdiction of the Secretary and subject to disposition by
the Secretary) and rights, pursuant to applicable State
law, to the use of water necessary for the successful con-
struction, operation, and maintenance of the project and
that it is ready, able, and willing to finance otherwise than
by loan and grant of Federal funds the non-Federal por-
tion of the costs of the project (which portion shall include
all costs of acquiring lands, interests in land, and rights
to the use of water except as provided in section 103(b)(2).
‘‘(c) FEDERAL
SHARE
AND
PROJECT
SPONSOR
SHARE OF COSTS.—The Secretary shall require each or-
ganization to contribute toward the cost of the project
(other than by loan or grant of Federal funds) not less
than 25 percent nor more than 40 percent of the allowable
estimated costs of the project. In determining the amount
of such non-Federal contribution for the proposed project,
the Secretary shall credit toward that amount—
‘‘(1) the cost of investigations, surveys, engi-
neering, and other services necessary to the prepara-
tion of proposals and plans for the proposed project
as required by the Secretary;
‘‘(2) the costs of lands and rights-of-way acqui-
sition required for the proposed project;
‘‘(3) amounts spent by the organization for con-
struction or acquisition of facilities for the proposed
project prior to project approval; and
‘‘(4) the filing fee required by this Act. Such
proposal shall also include an investigation of soil
characteristics which might result in toxic or hazard-
ous return flows. The costs of measures to prevent
loss of and damage to existing fish and wildlife re-
sources shall be considered as non-Federal project
costs and allocated as may be appropriate among
project functions. The maximum allowable Federal
share per project shall be $30,000,000 plus or minus
an adjustment of such amount as may be deter-
mined by the Secretary using the Bureau of Rec-
lamation composite construction cost index for Janu-
ary of the year concerned.
‘‘(d) APPROVAL OR DISAPPROVAL.—Not later than
one year after the time the initial project proposal is sub-
mitted to the Secretary, the Secretary shall make a deter-
mination whether the proposal is financially feasible and
constitutes a reasonable risk under the provisions of this
title and either approve or disapprove the proposal. The
Secretary shall promptly transmit any approved proposals
to the Congress. Any National Environmental Policy Act
documentation for the project shall be completed prior to
Secretarial transmittal of the proposal to the Congress.
‘‘(e) INCREASE IN AMOUNT.—At any time prior to
the completion of construction of the project, the Sec-
retary may increase the amount of the requested loan or
grant, or both, subject to the limitations allowed by sub-
section (c), using the Bureau of Reclamation composite
construction cost index to compensate for increases in con-
struction costs due to price escalation.
‘‘SEC. 103. CONTRACT TERMS AND CONDITIONS.
‘‘(a) MAXIMUM AMOUNTS.—Upon approval of any
project proposal submitted under this title, the Secretary
shall negotiate a contract which shall set out—
‘‘(1) the maximum amount of any loan to be
made to the organization and the time and method
of making the same available to the organization; or
‘‘(2) the maximum amount of any grant to be
accorded the organization.
‘‘(b) GRANTS.—A grant under this title shall not ex-
ceed the sum of the following:
‘‘(1) The costs of investigations, surveys, and
engineering and other services necessary to the prep-
aration of proposals and plans for the project alloca-
ble to fish and wildlife enhancement or public recre-
ation.
‘‘(2) One-half the costs of acquiring lands or in-
terests therein to serve exclusively the purposes of
fish and wildlife enhancement or public recreation,
plus the costs of acquiring joint use lands and inter-
ests therein properly allocable to fish and wildlife en-
hancement and public recreation.
‘‘(3) One-half the costs of basic public outdoor
recreation facilities or facilities serving fish and wild-
life enhancement purposes exclusively.
‘‘(4) One-half the costs of construction of joint
use facilities properly allocable to fish and wildlife
enhancement or public recreation.
‘‘(5) That portion of the estimated cost of con-
structing the project which, if it were constructed as
a Federal reclamation project, would be properly al-
locable to functions, other than recreation and fish
and wildlife enhancement and flood control, which
are nonreimbursable under general provisions of law
applicable to such projects.
‘‘(6) That portion of the estimated cost of con-
structing the project which is allocable to flood con-
trol and which would be nonreimbursable under gen-
eral provisions of law applicable to projects con-
structed by the Secretary of the Army.
‘‘(c) LOANS.—(1) The contract for each loan under
this title shall contain such terms and conditions as the
Secretary deems necessary or proper to provide assurance
of and security for prompt repayment and to ensure
achievement of the purposes for which the loan was made.
The contract shall include a plan for repayment by the
organization within not less than 15 years nor more than
25 years, except that the organization shall have the right
to prepay the loan without penalty.
‘‘(2) The contract for each loan under this title shall
require repayment of the principal of each loan, together
with interest at a rate determined by the Secretary of the
Treasury as of the beginning of the fiscal year in which
the contract is executed on the basis of the average market
yields on outstanding marketable obligations of the United
States with remaining periods to maturity comparable to
the applicable repayment period of the project.
‘‘(3) The Secretary, at his discretion, may reduce the
interest on any loan under this title to not less than one-
half the average market rate as so determined, or to the
extent that he determines that the organization is unable
to secure financing from other sources under reasonable
terms and conditions, and shall include letters from lend-
ers or other written evidence in support of any finding
of an applicant’s inability to secure such financing in any
project proposal transmitted to the Congress.
‘‘(4) Loans under these terms may be made for all
costs allocated to commercial irrigation; however, the Sec-
retary shall reduce the interest to not less than 1⁄3 the
average based on the applicant’s average ability to pay cal-
culations, or further reduce the loan rate if he finds at
his discretion that there are sufficient benefits to approve
a reduced loan rate.
‘‘TITLE II—PARTNERSHIP
PROGRAM
‘‘SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.
‘‘There is hereby established within the Department
of the Interior’s Bureau of Reclamation the Small Rec-
lamation Water Resources Management Partnership Pro-
gram for a small grant and loan program to be carried
out under this title. Grants under this title shall not ex-
ceed $5,000,000 for any one project under such program
and shall be matched on a 50–50 basis. Loans under this
title shall not exceed $1,500,000 per project. The Sec-
retary is authorized to use up to $50,000,000 of the
amounts available under this Act for the purposes of this
title.
‘‘SEC. 202. REPAYMENT OF LOANS.
‘‘Once work is certified complete by the Secretary,
each loan made under this title shall be repaid within a
5-year period and deposited in a revolving loan fund that
shall be established in the Department of the Treasury.
Money from the repayment of the loans shall be available
from the revolving loan program fund without further ap-
propriation to carry out the purposes of this title.
‘‘SEC. 203. ACTIVITIES ELIGIBLE UNDER THE SMALL REC-
LAMATION WATER RESOURCES PARTNER-
SHIP.
‘‘(a) IN GENERAL.—The following types of activities
shall be eligible for grants or loans under this title:
‘‘(1) WATER CONSERVATION.—
‘‘(A) Rehabilitation of existing structures;
‘‘(B) wastewater reuse systems;
‘‘(C) groundwater recharge and develop-
ment systems;
‘‘(D) watershed management programs;
‘‘(E) water quality improvement projects;
‘‘(F) conjunctive use projects;
‘‘(G) metering of systems; and
‘‘(H) public environmental education.
‘‘(2) FISH AND WILDLIFE ENHANCEMENT.—
‘‘(A) Fish and wildlife habitat improve-
ment and protection programs;
‘‘(B) grassland/water/wetland areas;
‘‘(C) stabilization of instream flows; and
‘‘(D) Federal or State endangered species
habitat protection and enhancement where im-
provement or enhancement activities are within
normal operating criteria.
‘‘(3) PUBLIC SAFETY.—
‘‘(A) Downstream warning system projects;
‘‘(B) canal fencing or canal modification
for public safety; and
‘‘(C) public access facilities.
‘‘(4) PUBLIC OUTDOOR RECREATION.—
‘‘(A) Replacement, repair, or improvement
of boat ramps, hiking and biking trails, bench-