[House Report 115-911]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-911
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CONTRA COSTA CANAL TRANSFER ACT
_______
August 31, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
[To accompany H.R. 6040]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 6040) to authorize the Secretary of the Interior
to convey certain land and facilities of the Central Valley
Project, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Contra Costa Canal Transfer Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Acquired land.--The term ``acquired land'' means land in
Federal ownership and land over which the Federal Government
holds an interest for the purpose of the construction and
operation of the Contra Costa Canal, including land under the
jurisdiction of--
(A) the Bureau of Reclamation;
(B) the Western Area Power Administration; and
(C) the Department of Defense in the case of the
Clayton Canal diversion traversing the Concord Naval
Weapons Station.
(2) Contra costa canal agreement.--The term ``Contra Costa
Canal Agreement'' means an agreement between the District and
the Bureau of Reclamation to determine the legal,
institutional, and financial terms surrounding the transfer of
the Contra Costa Canal, including but not limited to
compensation to the reclamation fund established by the first
section of the Act of June 17, 1902 (32 Stat. 388, chapter
1093), equal to the net present value of miscellaneous revenues
that the United States would otherwise derive over the 10 years
following enactment of this Act from the eligible lands and
facilities to be transferred, as governed by reclamation law
and policy and the contracts.
(3) Contra costa canal.--
(A) In general.--The term ``Contra Costa Canal''
means the Contra Costa Canal Unit of the Central Valley
Project, which exclusively serves the Contra Costa
Water District in an urban area of Contra Costa County,
California.
(B) Inclusions.--The term ``Contra Costa Canal''
includes pipelines, conduits, pumping plants,
aqueducts, laterals, water storage and regulatory
facilities, electric substations, related works and
improvements, and all interests in land associated with
the Contra Costa Canal Unit of the Central Valley
Project in existence on the date of enactment of this
Act.
(C) Exclusion.--The term ``Contra Costa Canal'' does
not include the Rock Slough fish screen facility.
(4) Contracts.--The term ``contracts'' means the existing
water service contract between the District and the United
States, Contract No. 175r-3401A-LTR1 (2005), Contract No. 14-
06-200-6072A (1972, as amended), and any other contract or land
permit involving the United States, the District, and Contra
Costa Canal.
(5) District.--The term ``District'' means the Contra Costa
Water District, a political subdivision of the State of
California.
(6) Rock slough fish screen facility.--
(A) In general.--The term ``Rock Slough fish screen
facility'' means the fish screen facility at the Rock
Slough intake to the Contra Costa Canal.
(B) Inclusions.--The term ``Rock Slough fish screen
facility'' includes the screen structure, rake cleaning
system, and accessory structures integral to the screen
function of the Rock Slough fish screen facility, as
required under the Central Valley Project Improvement
Act (Public Law 102-575; 106 Stat. 4706).
(7) Rock slough fish screen facility title transfer
agreement.--The term ``Rock Slough fish screen facility title
transfer agreement'' means an agreement between the District
and the Bureau of Reclamation to--
(A) determine the legal, institutional, and financial
terms surrounding the transfer of the Rock Slough fish
screen facility; and
(B) ensure the continued safe and reliable operations
of the Rock Slough fish screen facility.
(8) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
SEC. 3. CONVEYANCE OF LAND AND FACILITIES.
(a) In General.--Not later than 180 days after the date of enactment
of this Act, in consideration for the District assuming from the United
States all liability for the administration, operation, maintenance,
and replacement of the Contra Costa Canal, consistent with the terms
and conditions set forth in the Contra Costa Canal Agreement and
subject to valid existing rights and existing recreation agreements
between the Bureau of Reclamation and the East Bay Regional Park
District for Contra Loma Regional Park and other local agencies within
the Contra Costa Canal, the Secretary shall offer to convey and assign
to the District--
(1) all right, title, and interest of the United States in
and to--
(A) the Contra Costa Canal; and
(B) the acquired land; and
(2) all interests reserved and developed as of the date of
enactment of this Act for the Contra Costa Canal in the
acquired land, including existing recreation agreements between
the Bureau of Reclamation and the East Bay Regional Park
District for Contra Loma Regional Park and other local agencies
within the Contra Costa Canal.
(b) Rock Slough Fish Screen Facility.--
(1) In general.--The Secretary shall convey and assign to the
District all right, title, and interest of the United States in
and to the Rock Slough fish screen facility pursuant to the
Rock Slough fish screen facility title transfer agreement.
(2) Cooperation.--No later than 180 days after the conveyance
of the Contra Costa Canal, the Secretary and the District shall
enter into good faith negotiations to accomplish the conveyance
and assignment under paragraph (1).
(c) Payment of Costs.--The District shall pay to the Secretary any
administrative and real estate transfer costs incurred by the Secretary
in carrying out the conveyances and assignments under subsections (a)
and (b), including the cost of any boundary survey, title search,
cadastral survey, appraisal, and other real estate transaction required
for the conveyances and assignments.
(d) Compliance With Environmental Laws.--
(1) In general.--Before carrying out the conveyances and
assignments under subsections (a) and (b), the Secretary shall
comply with all applicable requirements under--
(A) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(B) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.); and
(C) any other law applicable to the Contra Costa
Canal or the acquired land.
(2) Effect.--Nothing in this Act modifies or alters any
obligations under--
(A) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); or
(B) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.).
SEC. 4. RELATIONSHIP TO EXISTING CENTRAL VALLEY PROJECT CONTRACTS.
(a) In General.--Nothing in this Act affects--
(1) the application of the reclamation laws to water
delivered to the District pursuant to any contract with the
Secretary; or
(2) subject to subsection (b), the contracts.
(b) Amendments to Contracts.--The Secretary and the District may
modify the contracts as necessary to comply with this Act.
(c) Liability.--
(1) In general.--Except as provided in paragraph (2), the
United States shall not be liable for damages arising out of
any act, omission, or occurrence relating to the Contra Costa
Canal or the acquired land.
(2) Exception.--The United States shall continue to be liable
for damages caused by acts of negligence committed by the
United States or by any employee or agent of the United States
before the date of the conveyance and assignment under section
3(a), consistent with chapter 171 of title 28, United States
Code (commonly known as the ``Federal Tort Claims Act'').
(3) Limitation.--Nothing in this Act increases the liability
of the United States beyond the liability provided under
chapter 171 of title 28, United States Code.
SEC. 5. REPORT.
If the conveyance and assignment authorized by section 3(a) is not
completed by the date that is 1 year after the date of enactment of
this Act, the Secretary shall submit to Congress a report that--
(1) describes the status of the conveyance and assignment;
(2) describes any obstacles to completing the conveyance and
assignment; and
(3) specifies an anticipated date for completion of the
conveyance and assignment.
PURPOSE OF THE BILL
The purpose of H.R. 6040 is to authorize the Secretary of
the Interior to convey certain land and facilities of the
Central Valley Project.
BACKGROUND AND NEED FOR LEGISLATION
The Contra Costa Water District is a public utility that
delivers water to approximately 500,000 people.\1\ The
District's service area comprises much of Contra Costa County,
located on the south side of the Sacramento-San Joaquin Delta
in California's Central Valley. Congress authorized key
components of the California Central Valley Project in 1937 (50
Stat. 844, 850) including the Contra Costa Canal that serves as
the backbone of the District's water conveyance system.
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\1\https://www.ccwater.com/27/About-Us.
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The Bureau of Reclamation holds title to the individual
water, power supply and delivery, and recreational facilities
it has constructed over the last century, including the Canal.
The federal government provided the initial capital
contribution to build the vast majority of these early
projects. However, the water, power, and recreational customers
who benefitted from the facilities entered into long-term
contracts with the federal government to repay their part of
the initial taxpayer investment. Under the Reclamation Act of
1902 (Public Law 57-161), Reclamation may transfer day-to-day
operational and maintenance responsibilities to project
beneficiaries; however, the title or ownership of any facility
must remain in federal ownership until Congress enacts
legislation specifically authorizing such a transfer. Since
1996, more than three dozen Reclamation projects have been
transferred or authorized to be transferred to local
entities.\2\
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\2\U.S. Bureau of Reclamation, Title Transfer of Projects and
Facilities, Title Transfer of Projects and Facilities of the Bureau of
Reclamation; available at: http://www.usbr.gov/title/.
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A title transfer can provide many benefits to end users. A
transfer can reduce regulatory paperwork and staff time at both
the federal and local levels, reduce the federal backlog on
repairing and upgrading infrastructure and help improve the
environment and public safety. Additionally, a title transfer
can reduce federal liability since the local entity assumes a
transferred facility's liability. At a 2008 Water and Power
Subcommittee hearing, Mr. Dan Keppen, Executive Director for
the Family Farm Alliance stated, ``Experience throughout the
West demonstrates that when control of projects is assumed by
local interests, the projects are run more cost effectively and
with far fewer items of deferred maintenance.''\3\ It is
because of these and other benefits, Reclamation included in
its Fiscal Year 2018 budget language reaffirming the agency's
commitment to facilitate title transfers when they are mutually
beneficial to all parties.\4\
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\3\Submitted Testimony of Mr. Dan Keppen, Executive Director, The
Family Farm Alliance, before the House Water and Power Subcommittee
legislative hearing, September 25, 2008, p. 2.
\4\Bureau of Reclamation Fiscal Year 2018 Budget in Brief, pg BH-
36.
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The Contra Costa Water District seeks a title transfer of
the Contra Costa Canal system which includes several pipelines,
conduits, pumping plants and other support facilities, along
with the Rock Slough Fish Screen Facility. The District
believes that taking title to the Canal system would improve
both water supply and public safety. The District has
documented 81 drownings in the Canal, or approximately one
every year.\5\ The District wants to enclose the Canal, and
title transfer removes duplicative federal approvals and allows
the District to leverage its ownership for additional
financing. According to the District, the Canal system is a
single-purpose facility well-suited to title transfer. The
District claims that it has completed Reclamation's
administrative process to prepare for title transfer
legislation.\6\
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\5\Borba, L. M. (2018, June 11). June 13, 2018 Hearing--Contra
Costa Canal Transfer Act (S. 3001) [Letter to Sen. Jeff Flake and Sen.
Catherine Cortez Masto], at 2.
\6\Id.
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The Senate Committee on Energy and Natural Resources'
Subcommittee on Water and Power held a legislative hearing on
identical legislation, S. 3001, introduced by Sen. Dianne
Feinstein (D-CA).\7\ The Department of the Interior (DOI)
stated concerns that environmental compliance activities still
need to be completed and that DOI and local stakeholders still
need to address some technical details and agreements.\8\
Despite those concerns, DOI acknowledged that ``the District
has completed its repayment obligation for its share of
construction costs of the Canal'' and that, when its concerns
are addressed, ``the Department is pleased to support this
legislation.''\9\
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\7\https://www.energy.senate.gov/public/index.cfm/hearings-and-
business-meetings?ID=6E245B 44-DA4F-428D-96F2-BC6AD3E9DF49.
\8\Legislative Hearing on S. 3001, H.R. 132, and H.R. 1967 Before
the S. Comm. on Energy Natural Resources, Subcomm. on Water and Power,
115th Cong., 2, (2018) (Statement of Timothy Petty, U.S. Department of
the Interior), available at https://www.energy.senate.gov/public/
index.cfm/files/serve?File_id=916FC45F-5A34-4515-B6F4-45741D357740, at
2.
\9\Id.
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This legislation is supported by the Contra Costa Water
District, the East Bay Regional Park District, and Defenders of
Wildlife.
COMMITTEE ACTION
H.R. 6040 was introduced on June 7, 2018, by Congressman
Mark DeSaulnier (D-CA). The bill was referred to the Committee
on Natural Resources, and within the Committee to the
Subcommittee on Water, Power and Oceans. On July 11, 2018, the
Subcommittee held a hearing on the bill. On July 18, 2018, the
Natural Resources Committee met to consider the bill. The
Subcommittee was discharged by unanimous consent. Congressman
Jared Huffman (D-CA) offered an amendment designated #1; it was
adopted by unanimous consent. No additional amendments were
offered, and the bill, as amended, 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 AND CONGRESSIONAL BUDGET ACT
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 29, 2018.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6040, the Contra
Costa Canal Transfer Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Aurora
Swanson.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 6040--Contra Costa Canal Transfer Act
H.R. 6040 would authorize the Bureau of Reclamation (BOR),
the Western Area Power Administration, and the Department of
Defense to transfer the Contra Costa Canal, the Rock Slough
Fish Screen, and the associated federal land and facilities to
the Contra Costa County Water District located in California.
Under the bill, BOR would modify the Rock Slough Fish
Screen to ensure the screen is operating safely before
transferring it. Using information from BOR, CBO estimates that
the federal share of the costs to complete that work would be
$2 million, subject to the availability of appropriated funds.
Under current law, the federal government collects leasing
and grazing fees of about $80,000 per year from the property
that would be transferred under H.R. 6040. Those amounts are
recorded in the federal budget as offsetting receipts, or
reductions in direct spending. Under the bill, to compensate
the federal government for those lost receipts, the district
would pay the federal government an amount equal to the net
present value of 10 years of receipts (discounted using the 10-
year Treasury rate). CBO estimates that the district would pay
the federal government $750,000 in the next few years and that
the net effect on direct spending over the 2019-2028 period
would be negligible.
Because enacting H.R. 6040 would affect direct spending,
pay-as-you-go procedures apply. Enacting H.R. 6040 would not
affect revenues.
CBO estimates that enacting H.R. 6040 would not
significantly increase net direct spending or on-budget
deficits in any of the four consecutive 10-year periods
beginning in 2029.
H.R. 6040 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Aurora Swanson.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
2. 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 convey certain land and facilities
of the Central Valley Project.
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.
COMPLIANCE WITH H. RES. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
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 to existing
law.
[all]