[Senate Report 112-65]
[From the U.S. Government Publishing Office]
Calendar No. 145
112th Congress Report
SENATE
1st Session 112-65
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EAST BENCH IRRIGATION DISTRICT WATER CONTRACT EXTENSION ACT
_______
August 30 (legislative day, August 2), 2011.--Ordered to be printed
Filed under authority of the order of the Senate of August 2, 2011
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 997]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 997) to authorize the Secretary of the
Interior to extend a water contract between the United States
and the East Bench Irrigation District, having considered the
same, reports favorably thereon without amendment and
recommends that the bill do pass.
PURPOSE
The purpose of S. 997 is to authorize the Secretary of the
Interior to extend a water contract between the United States
and the East Bench Irrigation District in Montana.
BACKGROUND AND NEED
The East Bench Unit of the Pick-Sloan Missouri Basin
Program is located in southwestern Montana, along the
Beaverhead River and was originally authorized in 1944. The
unit provides irrigation service to approximately 28,000 acres.
The water supply contract between the East Bench Irrigation
District and the Bureau of Reclamation expired on December 31,
2009. Reclamation is not able to extend the contract deadline
administratively; therefore Congressional approval is
necessary. Extensions were granted during the 108th and 109th
Congresses. The Montana Water Court is in the process of
adjudicating the water rights to the system, including the
water subject to the contract. National Environmental Policy
Act requirements relating to the contract extension have been
completed and the only outstanding requirement is for the
Montana courts to confirm the contract terms.
LEGISLATIVE HISTORY
Senator Tester introduced S. 997 on May 12, 2011. The
Subcommittee on Water and Power of the Committee on Energy and
Natural Resources held a hearing on S. 997 on June 23, 2011,
and considered the bill at its business meeting on July 14,
2011. The Committee ordered S. 997 favorably reported without
amendment at its business meeting on July 14, 2011.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on July 14, 2011, by voice vote of a
quorum present, recommends that the Senate pass S. 997.
SECTION-BY-SECTION ANALYSIS
Section 1 includes the short title for the bill.
Section 2 authorizes the Secretary of the Interior to
extend the contract for water services for the East Bench
Irrigation District, numbered 14-06-600-3593, until the earlier
of either the date that is four years after the date on which
the contract would have expired if this Act is not enacted, or
the date on which a new long-term contract is executed by the
parties to the contract.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 997--A bill to authorize the Secretary of the Interior to extend a
water contract between the United States and the East Bench
Irrigation District
S. 997 would authorize the Secretary of the Interior,
acting through the Bureau of Reclamation, to extend the water
contract between the United States and the East Bench
Irrigation District for four years or until a new long-term
contract is executed, whichever is earlier. Based on
information from the Bureau of Reclamation, CBO estimates that
enacting the bill would have no impact on the federal budget.
Enacting S. 997 would not affect revenues or direct spending;
therefore, pay-as-you-go procedures do not apply.
The Bureau of Reclamation supplies irrigation water from
the Clark Canyon Dam and Reservoir project to the East Bench
Irrigation District under an interim contract negotiated in
2006 after the original contract expired. When confirmed by a
Montana district court, the 2006 contract will become the long-
term contract. Payments to the federal government under the
2006 contract are about $115,000 annually, including
reimbursement for operations and maintenance costs. Enacting S.
997 would not affect those annual payments.
S. 997 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Aurora Swanson.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 997.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 997, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 997, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Bureau of Reclamation at the
June 23, 2011, Subcommittee hearing on S. 997 follows:
Statement of Grayford F. Payne, Deputy Commissioner for Policy,
Administration and Budget, Bureau of Reclamation, Department of the
Interior
Madam Chairman and Members of the Subcommittee, I am
Grayford Payne, Deputy Commissioner for Policy, Administration
and Budget at the Bureau of Reclamation (Reclamation). I am
pleased to provide the views of the Department of the Interior
(Department) on S. 997, the East Bench Irrigation District
Water Contract Extension Act. The Department supports S. 997.
Reclamation's Clark Canyon Dam and Reservoir are located in
southwest Montana and supply irrigation water under contract to
the East Bench Irrigation District (EBID). EBID's water service
contract with Reclamation was first executed in October 1958
and expired on December 31, 2005. Pursuant to Section 1 of the
Act of May 15, 1922 (42 Stat. 541), Section 46 of the Omnibus
Adjustment Act of 1926 (44 Stat. 649), and Section 85-7-1957,
Montana Code Annotated, execution of a new contract between the
United States and any irrigation district requires a Montana
5th District Court decree.
In 2006, EBID filed a petition with the court seeking court
confirmation of the execution of their new proposed renewed
contract with Reclamation. A hearing was convened on December
14, 2006, in Dillon, MT. One party appeared and filed an
objection to the confirmation proceedings. The parties involved
in this court confirmation case have filed various petitions
and motions with the court. The court issued an order on April
26, 2007, in response to EBID's petition to dismiss the
objection, dismissing some of the counterclaims filed by the
objectors, but continuing with other counterclaims. No trial
date has been set for this case and as a result, no court
decree confirming the 2006 contract has been issued.
Additionally, prior year appropriations bills have extended
the contracts for terms of up to two years. EBID remains
concerned about losing their right to renew their 1958 contract
if it is allowed to expire prior to securing a court decree of
the renewed 2006 Contract. For this reason they are pursuing
extension of the 1958 contract versus relying on a temporary
water service contract.
Under current law, the 2006 contract is not binding on the
United States until court confirmation is secured. A final
decree from the court confirming the 2006 contract has not
occurred. Therefore, EBID is seeking authority under S. 997 to
extend the 1958 contract. S. 997 would extend the contract for
four years (to December 31, 2013) or until a new contract is
executed, and still defer to the court to take up the issue
again at a time of its choosing. The Department supports this
legislation because it would allow water service to the EBID to
continue and protects the right for contract renewal while the
court confirmation process is given time to be completed.
This concludes my statement. I am pleased to answer any
questions the Subcommittee may have.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by S. 997, as ordered
reported.