[House Report 110-714]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-714
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EASTERN NEW MEXICO RURAL WATER SYSTEM AUTHORIZATION ACT
_______
June 17, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
[To accompany H.R. 5710]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 5710) to authorize the Secretary of the Interior
to provide financial assistance to the Eastern New Mexico Rural
Water Authority for the planning, design, and construction of
the Eastern New Mexico Rural Water System, and for other
purposes, 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. 5710 is to authorize the Secretary of
the Interior to provide financial assistance to the Eastern New
Mexico Rural Water Authority for the planning, design, and
construction of the Eastern New Mexico Rural Water System, and
for other purposes.
BACKGROUND AND NEED FOR LEGISLATION
The proposed Eastern New Mexico Rural Water System Project
would deliver potable water for municipal and industrial use to
the cities of Clovis, Portales, Texico, Melrose, Elida, and
Grady, and the Counties of Curry, Roosevelt and Quay. Water is
also proposed to be delivered to Cannon Air Force Base in
Eastern New Mexico.
Currently, most of these communities in Eastern New Mexico
rely on groundwater from the Entrada aquifer, part of the
larger Ogallala Aquifer to the south, as the main source of
water. Water levels in the vicinity of Clovis have declined in
excess of 100 feet, with an estimated recharge of only \1/2\
inch per year. At current pumping rates, the aquifers near the
cities of Clovis and Portales will not be able to sustain
existing water demand from the aquifers after 40 years.
In 1959, the New Mexico State Legislature enacted
legislation instructing the State Engineer to create a
reservoir on the Canadian River that could be used for future
water demands in the region. The Interstate Stream Commission
(ISC) completed the construction of the Ute Dam and Reservoir
in 1962, and the State is allowed to store up to 200,000 acre
feet of water for use in New Mexico.
The Ute Dam and Reservoir stores approximately 200,000 acre
feet of water. The Ute Water Commission (UWC) was first
organized in 1987 for the purposes of contracting with the
Interstate Stream Commission for purchase, acquisition, and
distribution of water from the Ute Reservoir. In 1997, UWC and
ISC entered into the agreement for sale and purchase of 24,000
acre feet annually from the Ute Reservoir.
The proposed Eastern New Mexico Rural Water System Project
would use Ute Reservoir water to deliver 16,500 acre feet of
water annually via 94.8 miles of lateral pipelines. The water
would be centrally treated and delivered to the communities
through a ``take or pay'' program, where participating member
agencies use or pay for their reserved allocation of Ute water
annually. The Eastern New Mexico Rural Water Authority was
formed in November 2001 by members from the three participating
counties and will be responsible for the operation, maintenance
and replacement costs associated with the proposed Eastern New
Mexico Rural Water System Project.
COMMITTEE ACTION
H.R. 5710 was introduced on April 3, 2008, by Rep. Tom
Udall (D-NM). The bill was referred to the Committee on Natural
Resources, and within the Committee to the Subcommittee on
Water and Power. On May 8, 2008, the Subcommittee held a
hearing on the bill.
On May 22, 2008, the Subcommittee met to mark up the bill.
H.R. 5710 was forwarded to the Full Committee with no
amendments. On June 11, 2008, the Full Natural Resources
Committee met to consider the bill. H.R. 5710 was ordered
favorably reported to the House of Representatives by unanimous
consent.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 provides that this Act may be cited as the
``Eastern New Mexico Rural Water System Authorization Act.''
Section 2. Definitions
Section 2 provides definitions for the terms used in the
bill.
Section 3. Eastern New Mexico Rural Water System
Section 3 specifies the federal cost share, the purposes
for which the financial and technical assistance for the
project can be used, and ownership of the project
infrastructure. The Secretary of the Interior may provide
technical and financial assistance to the Eastern New Mexico
Rural Water Authority (Authority), limited to the Eastern New
Mexico Rural Water System Project (System). The federal cost
share under this Act is limited to 75 percent of the total
System costs. The total system costs include funds incurred by
the State and the Authority on or after October 1, 2003. No
funds can be used until an operation, maintenance and
replacement plan is developed by the Authority in consultation
with the Secretary of the Interior. Environmental compliance
must also be completed before funds can be used. The title of
the infrastructure will be held by the Authority.
The Committee expects the Bureau of Reclamation and other
relevant planning authorities to obtain landowner permission
before entering private property that could be affected by the
pipeline route.
Section 4. Operation, maintenance and replacement costs
Section 4 specifies the Authority's responsibility for all
operation, maintenance and replacement costs associated with
the System. The Authority must also develop an operation,
maintenance and replacement plan.
Section 5. Administrative provisions
Section 5 outlines the details and provisions of the
cooperative agreement for financial and technical assistance.
The Secretary shall also consult with the Authority in
preparing any biological assessment under the Endangered
Species Act.
Section 6. Authorization of appropriations
Section 6 authorizes $327,000,000 to carry out this Act,
adjusted to reflect changes in construction costs after January
1, 2007. The funds made available to the Authority are non-
reimbursable and nonreturnable to the United States and any
funds not used at the end of the fiscal year is retained for
use on this project.
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.
CONSTITUTIONAL AUTHORITY STATEMENT
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) 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)(3)(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.
2. 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.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to authorize the Secretary of the
Interior to provide financial assistance to the Eastern New
Mexico Rural Water Authority for the planning, design, and
construction of the Eastern New Mexico Rural Water System, and
for other purposes.
4. Congressional Budget Office Cost Estimate. 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. 5710--Eastern New Mexico Rural Water System Authorization Act
Summary: H.R. 5710 would authorize the Secretary of the
Interior to provide financial and technical assistance to the
Eastern New Mexico Rural Water Authority to help plan, design,
and construct a water delivery project.
Based on information from the Bureau of Reclamation and
assuming appropriation of the necessary amounts, CBO estimates
that implementing H.R. 5710 would cost $348 million over the
2009-2013 period. Enacting the legislation would not affect
direct spending or revenues.
H.R. 5710 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 H.R. 5710 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--
-------------------------------------------------------
2009 2010 2011 2012 2013 2009-2013
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 80 100 100 80 0 360
Estimated Outlays....................................... 48 80 97 88 35 348
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Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the start of fiscal year 2009
and that the necessary amounts will be appropriated for each
year.
H.R. 5710 would authorize the appropriation of $327
million, plus additional amounts to reflect changes in
construction costs after January 1, 2007. Under the bill, the
Secretary would not be able to provide federal funds for
operation and maintenance costs of the project. The maximum
federal share of any activity related to the project would be
limited to 75 percent. Any federal funds contributed to
construct the project would be non-reimbursable.
Based on information from the Bureau of Reclamation and
assuming appropriation of the necessary amounts, CBO estimates
that implementing the legislation would cost $348 million over
the 2009-2013 period, and an additional $12 million thereafter.
Intergovernmental and private-sector impact: H.R. 5710
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Funds authorized in the bill to design,
plan, and construct a system for delivering water would benefit
the Eastern New Mexico Rural Water Authority. Any costs the
authority might incur would result from complying with
conditions for receiving federal assistance.
Previous estimate: On June 11, 2008, CBO transmitted a cost
estimate for S. 2814, the Eastern New Mexico Rural Water System
Authorization Act as ordered reported by the Senate Committee
on Energy and Natural Resources on May 7, 2008. The bills are
similar, and the estimated costs of implementing them are
identical.
Estimate prepared by: Federal Costs: Tyler Kruzich; Impact
on State, Local, and Tribal Governments: Melissa Merrell;
Impact on the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
EARMARK STATEMENT
H.R. 5710 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e) or 9(f) of rule XXI.
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.