[Senate Report 107-284]
[From the U.S. Government Publishing Office]
Calendar No. 604
107th Congress Report
SENATE
2d Session 107-284
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WALLOWA LAKE DAM REHABILITATION AND WATER MANAGEMENT ACT OF 2001
_______
September 17, 2002.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1883]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1883) to authorize the Bureau of
Reclamation to participate in the rehabilitation of the Wallowa
Lake Dam in Oregon, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
PURPOSE OF THE MEASURE
The purpose of S. 1883 is to authorize the Secretary of the
Interior acting through the Commissioner of Reclamation to
participate in, and provide funding for: (1) the Wallowa Lake
Dam Rehabilitation Program; and (2) the Wallowa Valley Water
Management Plan.
BACKGROUND AND NEED
Wallowa Lake Dam is a privately-owned dam constructed in
1918 and raised in 1929. It is owned and operated by the
Associated Ditch Companies, Inc. (ADC). In 1996, the Oregon
Water Resources Department identified significant dam safety
deficiencies with Wallowa Lake Dam. Subsequently, ADC in
conjunction with the Grande Ronde Model Watershed Council,
Reclamation, and other local, State, and Federal agencies,
developed the Wallowa Lake Dam Rehabilitation and Water
Management Program to address dam safety deficiencies and to
tie correction of those deficiencies to the solution of larger
environmental issues in the Wallowa River and Lostine River
systems. Successful implementation of the program will address
State, local, tribal, and Federal objectives by promoting dam
safety and flood control; restoration of depleted fish
populations; and the protection of irrigation and municipal
water supplies.
LEGISLATIVE HISTORY
S. 1883 was introduced by Senators Smith and Wyden on
December 20, 2001. The Subcommittee on Water and Power held a
hearing on June 6, 2002. At the business meeting on July 31,
2002, the Committee on Energy and Natural Resources ordered S.
1883, favorably reported.
COMMITTEE RECOMMENDATION
The Committee on Energy and Natural Resources, in open
business session on July 31, 2002, by a voice vote of a quorum
present, recommends that the Senate pass S. 1883, as described
herein.
SECTION-BY-SECTION ANALYSIS
Section 1 provides the short title, the ``Wallowa Lake Dam
Rehabilitation and Water Management Act of 2001''.
Section 2 defines terms used in the Act.
Section 3, subsection (a) authorizes the Secretary of the
Interior to participate in the Wallowa Lake Dam Rehabilitation
Program; and to participate in the planning, design, and
construction of facilities needed to implement the Wallowa
Valley Water Management Plan in cooperation with the tribal,
State, and local governmental entities.
Subsection (b), paragraph (1) limits the Federal
contribution under this Act to an amount not to exceed 80
percent of the cost of the authorized activities.
Subsection (b), paragraph (2) excludes expenditures made by
the Bonneville Power Administration in the Wallowa River
watershed and individual farmers in any Federal farm or
conservation program, from being credited against the Federal
share.
Subsection (c) requires the Secretary to comply with
otherwise applicable State water law in carrying out this Act.
Subsection (d) prohibits the Federal Government from
holding title to any facility rehabilitated or constructed
under this Act.
Subsection (e) states that the Federal Government shall not
be responsible for the operation or maintenance of any
facilities constructed or rehabilitated under this Act.
Subsection (f) provides that any facility located at
Wallowa Lake Dam for trapping and transportation of migratory
adult salmon may only be owned and operated by the Nez Perce
Tribe.
Section 4 states that activities funded under this Act
shall not be considered a supplemental or additional benefit
under the Act of June 17, 1902 (82 Stat. 388), and all Acts
amendatory thereof or supplementary thereto.
Section 5 authorizes $32,000,000 to be appropriated to the
Secretary for the Federal share of the costs of activities
authorized under this Act.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the cost of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 10, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1883, the Wallowa
Lake Dam Rehabilitation and Water Management Act of 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
S. 1883--Wallowa Lake Dam Rehabilitation and Water Management Act of
2001
Summary: S. 1883 would authorize the Bureau of Reclamation
to participate in the rehabilitation of the Wallowa Lake Dam in
Oregon and the implementation of the Wallowa Valley Water
Management Plan. The bill would limit the federal share of the
rehabilitation costs to 80 percent, excluding any funding by
the Bonneville Power Administration (BPA). In addition, we
estimate that implementing S. 1883 would result in spending by
BPA of about $5 million over the 2003-2007 period for fish
mitigation activities. The federal government would not hold
title to any facility rehabilitated or constructed under this
act, nor would the federal government be responsible for the
operation and maintenance of those facilities.
Assuming appropriation of the authorized amount, CBO
estimates that implementing S. 1883 would cost about $27
million over the 2003-2007 period and $32 million over the
2003-2012 period. Because BPA's spending authority is not
subject to appropriation, implementing S. 1883 also would
result in direct spending of about $5 million over the 2003-
2007 period; therefore, pay-as-you-go procedures would apply.
S. 1883 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1883 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
------------------------------------------------------------------------
By fiscal year in millions of dollars--
---------------------------------------
2003 2004 2005 2006 2007
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Spending by the Bureau of
Reclamation:
Estimated Authorization 6 7 7 6 6
Level......................
Estimated Outlays........... 2 5 7 7 6
CHANGES IN DIRECT SPENDING
Net Spending by BPA:
Estimated Budget Authority.. 5 0 0 0 0
Estimated Outlays........... 2 2 1 (\1\) (\1\)
------------------------------------------------------------------------
\1\ Collections of less than $500,000.
Basis of estimate
Spending subject to appropriation
For this estimate, CBO assumes that S. 1883 will be enacted
near the start of fiscal year 2003 and that the authorized
amount will be appropriated in roughly equal increments over
the next five years.
Based on information from the Bureau of Reclamation, CBO
estimates the total cost of rehabilitating the Wallowa Lake Dam
in Oregon and implementing the Wallowa Valley Water Management
Plan would be about $39 million. S. 1883 would authorize the
appropriation of $32 million for the Bureau's share of the cost
of those projects. The remaining $7 million would be paid by
the BPA and the Bonneville Power Foundation, a nonprofit
organization, to complete the projects.
Based on information from the Bureau, we expect that
rehabilitation of the dam and implementation of the management
plan would take five years and that funds will be appropriated
in roughly equal installments over that period to complete the
projects. Thus, assuming appropriation of the authorized
amount, we expect that implementing the bill would cost about
$27 million over the 2003-2007 period and $32 million over the
2003-2012 period.
Direct spending
Implementing S. 1883 also would result in additional direct
spending by BPA of about $5 million over the 2003-2007 period
for fish mitigation activities related to the Wallowa Lake Dam
projects authorized in the bill. Such spending is authorized
under current law, but BPA would not make these investments
without the Bureau's involvement in the Wallowa Lake projects.
Because BPA must recover its costs through the sale of
electricity, any additional spending would be offset by
slightly higher proceeds from electricity sales over the next
15 to 20 years. Consequently, BPA's additional spending would
have a negligible net budgetary impact over that period.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. The net
changes in outlays that are subject to pay-as-you-go procedures
are shown in the following table. The changes in outlays after
2005 would be savings of less than $500,000 a year for 10 to 15
years. For the purpose of enforcing pay-as-you-go procedures,
only the effects through fiscal year 2006 are counted.
----------------------------------------------------------------------------------------------------------------
By fiscal year in millions of dollars--
----------------------------------------------------------------------------
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
Changes in Outlays................. 0 2 2 1 0 0 0 0 0 0 0
Changes in Receipts................ Not applicable
----------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: S. 1883
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Julie Middleton and
Lisa Cash Driskill; Impact on State, Local, and Tribal
Governments: Marjorie Miller; and Impact on the Private Sector:
Lauren Marks.
Estimate approved by: Peter H. Fontaine, 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. 1883. 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. 1883.
EXECUTIVE COMMUNICATIONS
The pertinent legislative report received by the Committee
from the Department of the Interior setting forth Executive
agency recommendation relating to S. 1883 is set forth below:
U.S. Department of the Interior,
Office of the Secretary,
Washington, DC, August 8, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: This letter responds to your request for
the views of the Department of the Interior on S. 1883, a bill
that would authorize Reclamation to participate in the Wallows
Lake Dam Rehabilitation and Water Management Program in Oregon.
This confirms testimony of Mark A. Limbaugh, Director, External
& Intergovernmental Affairs, Bureau of Reclamation, U.S.
Department of the Interior on S. 1883 before the Committee on
June 6, 2002.
While we believe there are merits to the proposed program,
the Department does not support S. 1883.
Wallowa Lake Dam is a privately-owned dam constructed in
1918 and raised in 1929, and is owned and operated by the
Associated Ditch Companies, Inc. (ADC). Dam safety deficiencies
have been identified by the US Army Corps of Engineers and
Oregon Water Resources Department. ADC, in conjunction with the
Grande Ronde Model Watershed Council, Reclamation, and other
local, state, and Federal agencies, developed the Wallowa Lake
Dam Rehabilitation and Water Management Program to address dam
safety deficiencies and to tie correction of those deficiencies
to larger environmental issues in the Wallowa River Basin.
The Wallowa Lake Dam Rehabilitation and Water Management
Program is proposed to begin in FY 2002 and continue through FY
2007, at an estimated total cost of $38,800,000. S. 1883 sets
out an 80/20 cost share for this Program, under which the
federal government would pay $32 million funded through the
Bureau of Reclamation (BOR).
Reclamation itself has an inventory of aging dams--and the
responsibility to ensure the safety and reliability of
Reclamation dams to protect the downstream public. Dam safety
is one of Reclamation's highest priorities. I would like to
give you a sense of the scope of our dam safety
responsibilities: the Bureau has reservoirs impounded by 457
dams and dikes. Of these structures, 362 dams and dikes,
located at 252 different project facilities, would likely cause
loss of life if they were to fail. Approximately 50 percent of
Reclamation's dams were built between 1900 and 1950, and about
90 percent of the dams were built before currently-used state
of the art design and construction practices. Aging
Reclamation-owned dams, which lack state-of-the-art structural
reliability features, require Reclamation to conduct extensive
ongoing risk management activities to assure safe dam
performance and protect the public from unreasonable risk.
While we fully understand the importance of ensuring the
safety of Wallowa Lake Dam, this dam is not a federal project.
It is privately owned and operated, and falls under a dam
safety program of the Oregon Department of Water Resources.
Reclamation believes the Wallowa Lake Dam Rehabilitation and
Water Management Program is worthwhile, with potentially
numerous benefits; however we are concerned about the proposed
federal role in this project. Despite the very high federal
cost share for the project, under S. 1883 there is currently no
federal interest in the dam, and none is provided by the bill;
moreover, there is no provision for repayment by project
beneficiaries in accordance with reclamation law.
We are also concerned that Reclamation's participation in
this program would adversely impact ongoing projects and
operations. S. 1883 would authorize the use of Reclamation
funds for a non-Federal purpose. Reclamation funds must be
targeted to perform essential functions at our federal
projects, such as security at BOR dams and reservoirs,
operations and maintenance (O&M), resource management, dam
safety, or construction. The Department cannot, therefore,
support S. 1883.
The Office of Management and Budget advises that there is
no objection to the presentation of this report from the
standpoint of the Administration's program.
Sincerely,
John W. Keys III,
Commissioner, Bureau of Reclamation.
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 the bill S. 1883, as
ordered report.