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.
Be it enacted by the Senate and House of Representa-
tives 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 devel-
opment.
(2) The subsidies provided by the Federal Rec-
lamation program have proved more generous than
originally intended by the Congress, and only a
small fraction of the taxpayers’ investment in irriga-
tion 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 ir-
rigation water delivered from new Bureau of Rec-
lamation 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 IRRIGA-
TION 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 de-
livery 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 com-
puting 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 issu-
ance; 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 expendi-
tures are made, or
(B) the date of enactment of this Act, for
expenditures made after such date of enact-
ment.
(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 Inte-
rior 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 com-
pleted 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 ex-
isting project’’ means a physically separate unit, the
construction of which is completed after the enact-
ment 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 sec-
tion 202 of the Reclamation Reform Act of 1982 (43
U.S.C. 390bb).
Æ