111 
$5,000,000. If such amount is $5,000,000 or 
greater, such cost shall be repaid as provided by 
applicable reclamation law; 
(C) provide that power revenues will not be 
available to aid in repayment of construction 
costs allocated to irrigation under the contract; 
and 
(D) continue so long as the contractor 
pays applicable charges, consistent with section 
9(d) of the Act of August 4, 1939 (53 Stat. 
1195), and applicable law. 
(3) CONTRACT
REQUIREMENTS.—Except for 
those repayment contracts under which the con-
tractor has previously negotiated for prepayment, 
the following shall apply with regard to all repay-
ment contracts under subsection (c)(1) of section 9 
of that Act (53 Stat. 1195) in effect on the date of 
enactment of this Act at the request of the con-
tractor, and all contracts converted pursuant to 
paragraph (1)(B): 
(A) Provide for the repayment in lump 
sum of the remaining construction costs identi-
fied in water project specific municipal and in-
dustrial rate repayment schedules, as adjusted 
to reflect payments not reflected in such sched-
VerDate Sep 11 2014 
22:07 Jan 05, 2017
Jkt 069200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H23.IH
H23
asabaliauskas on DSK3SPTVN1PROD with BILLS
112 
ule, and properly assignable for ultimate return 
by the contractor. An estimate of the remaining 
construction costs, as adjusted, shall be pro-
vided by the Secretary to the contractor no 
later than 90 days after receipt of request of 
contractor. 
(B) The contract shall require that con-
struction costs or other capitalized costs in-
curred after the effective date of the contract or 
not reflected in the rate schedule referenced in 
subparagraph (A), and properly assignable to 
such contractor, shall be repaid in not more 
than 5 years after notification of the allocation 
if such amount is a result of a collective annual 
allocation of capital costs to the contractors ex-
ercising contract conversation under this sub-
section of less than $5,000,000. If such amount 
is $5,000,000 or greater, such cost shall be re-
paid as provided by applicable reclamation law. 
(C) Continue so long as the contractor 
pays applicable charges, consistent with section 
9(c)(1) of the Act of August 4, 1939 (53 Stat. 
1195), and applicable law. 
(4) CONDITIONS.—All contracts entered into 
pursuant to paragraphs (1), (2), and (3) shall— 
VerDate Sep 11 2014 
22:07 Jan 05, 2017
Jkt 069200
PO 00000
Frm 00112
Fmt 6652
Sfmt 6201
E:\BILLS\H23.IH
H23
asabaliauskas on DSK3SPTVN1PROD with BILLS
113 
(A) not be adjusted on the basis of the 
type of prepayment financing used by the water 
users’ association; 
(B) conform to any other agreements, such 
as applicable settlement agreements and new 
constructed appurtenant facilities; and 
(C) not modify other water service, repay-
ment, exchange and transfer contractual rights 
between the water users’ association, and the 
Bureau of Reclamation, or any rights, obliga-
tions, or relationships of the water users’ asso-
ciation and their landowners as provided under 
State law. 
(b) ACCOUNTING.—The amounts paid pursuant to 
subsection (a) shall be subject to adjustment following a 
final cost allocation by the Secretary of the Interior. In 
the event that the final cost allocation indicates that the 
costs properly assignable to the contractor are greater 
than what has been paid by the contractor, the contractor 
shall be obligated to pay the remaining allocated costs. 
The term of such additional repayment contract shall be 
not less than one year and not more than 10 years, how-
ever, mutually agreeable provisions regarding the rate of 
repayment of such amount may be developed by the par-
ties. In the event that the final cost allocation indicates 
VerDate Sep 11 2014 
22:07 Jan 05, 2017
Jkt 069200
PO 00000
Frm 00113
Fmt 6652
Sfmt 6201
E:\BILLS\H23.IH
H23
asabaliauskas on DSK3SPTVN1PROD with BILLS
114 
that the costs properly assignable to the contractor are 
less than what the contractor has paid, the Secretary shall 
credit such overpayment as an offset against any out-
standing or future obligation of the contractor. 
(c) APPLICABILITY OF CERTAIN PROVISIONS.— 
(1) EFFECT OF EXISTING LAW.—Upon a con-
tractor’s compliance with and discharge of the obli-
gation of repayment of the construction costs pursu-
ant to a contract entered into pursuant to subsection 
(a)(2)(A), subsections (a) and (b) of section 213 of 
the Reclamation Reform Act of 1982 (96 Stat. 
1269) shall apply to affected lands. 
(2) EFFECT OF OTHER OBLIGATIONS.—The ob-
ligation of a contractor to repay construction costs 
or other capitalized costs described in subsection 
(a)(2)(B), (a)(3)(B), or (b) shall not affect a con-
tractor’s status as having repaid all of the construc-
tion costs assignable to the contractor or the appli-
cability of subsections (a) and (b) of section 213 of 
the Reclamation Reform Act of 1982 (96 Stat. 
1269) once the amount required to be paid by the 
contractor under the repayment contract entered 
into pursuant to subsection (a)(2)(A) have been 
paid. 
VerDate Sep 11 2014 
22:07 Jan 05, 2017
Jkt 069200
PO 00000
Frm 00114
Fmt 6652
Sfmt 6201
E:\BILLS\H23.IH
H23
asabaliauskas on DSK3SPTVN1PROD with BILLS
115 
(d) EFFECT ON EXISTING LAW NOT ALTERED.—Im-
plementation of the provisions of this title shall not alter— 
(1) the repayment obligation of any water serv-
ice or repayment contractor receiving water from the 
same water project, or shift any costs that would 
otherwise have been properly assignable to the water 
users’ association identified in subsections (a)(1), 
(a)(2), and (a)(3) absent this section, including op-
eration and maintenance costs, construction costs, or 
other capitalized costs incurred after the date of the 
enactment of this Act, or to other contractors; and 
(2) specific requirements for the disposition of 
amounts received as repayments by the Secretary 
under the Act of June 17, 1902 (32 Stat. 388, chap-
ter 1093), and Acts supplemental to and amend-
atory of that Act (43 U.S.C. 371 et seq.). 
(e) SURFACE WATER STORAGE ENHANCEMENT PRO-
GRAM.— 
(1) IN GENERAL.—Except as provided in sub-
section (d)(2), three years following the date of en-
actment of this Act, 50 percent of receipts generated 
from prepayment of contracts under this section be-
yond amounts necessary to cover the amount of re-
ceipts forgone from scheduled payments under cur-
rent law for the 10-year period following the date of 
VerDate Sep 11 2014 
22:07 Jan 05, 2017
Jkt 069200
PO 00000
Frm 00115
Fmt 6652
Sfmt 6201
E:\BILLS\H23.IH
H23
asabaliauskas on DSK3SPTVN1PROD with BILLS