[House Report 112-247]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 112-247
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TO DIRECT THE SECRETARY OF THE INTERIOR TO ALLOW FOR PREPAYMENT OF
REPAYMENT CONTRACTS BETWEEN THE UNITED STATES AND THE UINTAH WATER
CONSERVATORY DISTRICT
_______
October 14, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
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Mr. Hastings of Washington, from the Committee on Natural
Resources, submitted the following
R E P O R T
[To accompany H.R. 818]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 818) to direct the Secretary of the Interior to
allow for prepayment of repayment contracts between the United
States and the Uintah Water Conservatory District, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
PURPOSE OF THE BILL
The purpose of H.R. 818 is to direct the Secretary of the
Interior to allow for prepayment of repayment contracts between
the United States and the Uintah Water Conservancy District.
BACKGROUND AND NEED FOR LEGISLATION
Under current federal law, water districts which benefit
from Bureau of Reclamation projects can enter into a capital
repayment contract with the federal government to repay the
U.S. Treasury for their respective costs associated with the
federal project. Most local water districts are not allowed
under federal law to prepay these contractual obligations
unless specifically authorized by Congress and the President.
Prepayments can bring added revenue to the U.S. Treasury in the
short-term, although they can reduce overall federal revenue
over the long-term since compounded interest payments would be
reduced. From a local water utility perspective, these
prepayment authorizations can reduce local financial
obligations and, in some cases, reduce burdensome federal
regulatory requirements (such as irrigation acreage limitations
and reporting requirements set forth in the Reclamation Reform
Act of 1982, Public Law 97-293).
The Uintah Water Conservancy District could use the
authority in H.R. 818 to prepay its municipal and industrial
water contract. The District entered into a repayment contract
with the federal government in 1976 to repay all reimbursable
costs associated with the Jensen Unit of the Central Utah
Project.
COMMITTEE ACTION
H.R. 818 was introduced on February 18, 2011, by
Congressman Jim Matheson (D-UT). The bill was referred to the
Committee on Natural Resources, and within the Committee to the
Subcommittee on Water and Power. On May 12, 2011, the
Subcommittee on Water and Power held a hearing on the bill. On
July 20, 2011, the Full Resources Committee met to consider the
bill. The Subcommittee on Water and Power was discharged by
unanimous consent. No amendments were offered, and the bill was
ordered favorably reported to the House of Representatives by
unanimous consent.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(2)(B)
of that Rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for this bill from the
Director of the Congressional Budget Office:
H.R. 818--A bill to direct the Secretary of the Interior to allow for
prepayment of repayment contracts between the United States and
the Uintah Water Conservancy District
H.R. 818 would allow the Uintah Water Conservancy District
in Utah to prepay the present value of certain amounts the
district owes to the U.S. Treasury for its share of the cost to
build the Jensen Unit of the Central Utah Project. Based on
information from the Bureau of Reclamation and the Uintah Water
Conservancy District, CBO estimates that enacting the
legislation would have no impact on the federal budget. Because
the legislation would not affect direct spending or revenues,
pay-as-you-go procedures do not apply.
The Uintah Water Conservancy District is currently paying
the federal government about $227,000 a year on a balance of
$3.9 billion in project construction costs that have been
allocated to the district for repayment. However, if the
district chose to prepay its debt to the government under the
bill, it also would have to pay for additional construction
costs--totaling $7.4 million--that have not yet been assigned
to the district for repayment. Information from the district
indicates that it would be unable to prepay that additional
amount. Therefore, if the bill were enacted, CBO expects that
the district would continue to make the annual payments it does
under current law and the legislation would have no impact on
the federal budget.
H.R. 818 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.
On July 28, 2011, CBO transmitted a cost estimate for S.
808, a bill to direct the Secretary of the Interior to allow
for prepayment of repayment contracts between the United States
and the Uintah Water Conservancy District, as ordered reported
by the Senate Committee on Energy and Natural Resources on July
14, 2011. The two pieces of legislation and CBO's cost
estimates are the same.
The CBO staff contact for the estimate is Aurora Swanson.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
2. Section 308(a) of Congressional Budget Act. As required
by clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives and section 308(a) of the Congressional Budget
Act of 1974, this bill does not contain any new budget
authority, spending authority, credit authority, or an increase
or decrease in revenues or tax expenditures. CBO estimates that
enacting the legislation would have no impact on the federal
budget. Because the legislation would not affect direct
spending or revenues, pay-as-you-go procedures do not apply.
3. General Performance Goals and Objectives. This bill does
not authorize funding and therefore, clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives does not
apply.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.