[Senate Report 116-156]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 277

116th Congress }                                            { Report
                                 SENATE
 1st Session   }                                            { 116-156

======================================================================



 
     WATER SUPPLY INFRASTRUCTURE REHABILITATION AND UTILIZATION ACT

                                _______
                                

                October 29, 2019.--Ordered to be printed

                                _______
                                

        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 2044]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2044) to amend the Omnibus Public Land 
Management Act of 2009 to establish an Aging Infrastructure 
Account, to amend the Reclamation Safety of Dams Act of 1978 to 
provide additional funds under that Act, to establish a review 
of flood control rule curves pilot project within the Bureau of 
Reclamation, and for other purposes, having considered the 
same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill, as 
amended, do pass.

                               Amendment

    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 ``Water Supply Infrastructure 
Rehabilitation and Utilization Act''.

SEC. 2. AGING INFRASTRUCTURE ACCOUNT.

    Section 9603 of the Omnibus Public Land Management Act of 2009 (43 
U.S.C. 510b) is amended by adding at the end the following:
    ``(d) Aging Infrastructure Account.--
          ``(1) Establishment.--There is established in the general 
        fund of the Treasury a special account, to be known as the 
        `Aging Infrastructure Account' (referred to in this subsection 
        as the `Account'), to provide funds to, and provide for the 
        extended repayment of the funds by, a transferred works 
        operating entity or project beneficiary responsible for 
        repayment of reimbursable costs for the conduct of 
        extraordinary operation and maintenance work at a project 
        facility, which shall consist of--
                  ``(A) any amounts that are specifically appropriated 
                to the Account under section 9605; and
                  ``(B) any amounts deposited in the Account under 
                paragraph (3)(B).
          ``(2) Expenditures.--Subject to appropriations and paragraph 
        (3), the Secretary may expend amounts in the Account to fund 
        and provide for extended repayment of the funds for eligible 
        projects identified in a report submitted under paragraph 
        (5)(A).
          ``(3) Repayment contract.--
                  ``(A) In general.--The Secretary may not expend 
                amounts under paragraph (2) with respect to an eligible 
                project described in that paragraph unless the 
                transferred works operating entity or project 
                beneficiary responsible for repayment of reimbursable 
                costs has entered into a contract to repay the amounts 
                under subsection (b)(2).
                  ``(B) Deposit of repaid funds.--Amounts repaid by a 
                transferred works operating entity or project 
                beneficiary responsible for repayment of reimbursable 
                costs receiving funds under a repayment contract 
                entered into under this subsection shall be deposited 
                in the Account and shall be available to the Secretary 
                for expenditure in accordance with this subsection 
                without further appropriation.
          ``(4) Application for funding.--
                  ``(A) In general.--Not less than once per fiscal 
                year, the Secretary shall accept, during an application 
                period established by the Secretary, applications from 
                transferred works operating entities or project 
                beneficiaries responsible for payment of reimbursable 
                costs for funds and extended repayment for eligible 
                projects.
                  ``(B) Eligible project.--A project eligible for 
                funding and extended repayment under this subsection is 
                a project that--
                          ``(i) qualifies as an extraordinary operation 
                        and maintenance work under this section;
                          ``(ii) is for the major, non-recurring 
                        maintenance of a mission-critical asset; and
                          ``(iii) is not eligible to be carried out or 
                        funded under the repayment provisions of 
                        section 4(c) of the Reclamation Safety of Dams 
                        Act of 1978 (43 U.S.C. 508(c)).
                  ``(C) Guidelines for applications.--Not later than 60 
                days after the date of enactment of this subsection, 
                the Secretary shall issue guidelines describing the 
                information required to be provided in an application 
                for funds and extended repayment under this subsection 
                that require, at a minimum--
                          ``(i) a description of the project for which 
                        the funds are requested;
                          ``(ii) the amount of funds requested;
                          ``(iii) the repayment period requested by the 
                        transferred works operating entity or project 
                        beneficiary responsible for repayment of 
                        reimbursable costs;
                          ``(iv) alternative non-Federal funding 
                        options that have been evaluated;
                          ``(v) the financial justification for 
                        requesting an extended repayment period; and
                          ``(vi) the financial records of the 
                        transferred works operating entity or project 
                        beneficiary responsible for repayment of 
                        reimbursable costs.
                  ``(D) Review by the Secretary.--The Secretary shall 
                review each application submitted under subparagraph 
                (A)--
                          ``(i) to determine whether the project is 
                        eligible for funds and an extended repayment 
                        period under this subsection;
                          ``(ii) to determine if the project has been 
                        identified by the Bureau of Reclamation as part 
                        of the major rehabilitation and replacement of 
                        a project facility; and
                          ``(iii) to conduct a financial analysis of--
                                  ``(I) the project; and
                                  ``(II) the transferred works 
                                operating entity or project beneficiary 
                                responsible for repayment of 
                                reimbursable costs.
          ``(5) Report.--Not later than 90 days after the date on which 
        an application period closes under paragraph (4)(A), the 
        Secretary shall submit to the Committees on Energy and Natural 
        Resources and Appropriations of the Senate and the Committees 
        on Natural Resources and Appropriations of the House of 
        Representatives a report that--
                  ``(A) identifies each project eligible for funds and 
                extended repayment under this subsection;
                  ``(B) with respect to each eligible project 
                identified under subparagraph (A), includes--
                          ``(i) a description of--
                                  ``(I) the eligible project;
                                  ``(II) the anticipated cost and 
                                duration of the eligible project; and
                                  ``(III) any remaining engineering or 
                                environmental compliance that is 
                                required before the eligible project 
                                commences;
                          ``(ii) an analysis of--
                                  ``(I) the repayment period proposed 
                                in the application; and
                                  ``(II) if the Secretary recommends a 
                                minimum necessary repayment period that 
                                is different than the repayment period 
                                proposed in the application, the 
                                minimum necessary repayment period 
                                recommended by the Secretary; and
                          ``(iii) an analysis of alternative non-
                        Federal funding options; and
                  ``(C) describes the balance of funds in the Account 
                as of the date of the report.
          ``(6) Effect of subsection.--Nothing in this subsection 
        affects--
                  ``(A) any funding provided, or contracts entered 
                into, under subsection (a) before the date of enactment 
                of this subsection; or
                  ``(B) the use of funds otherwise made available to 
                the Secretary to carry out subsection (a).''.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS FOR THE RECLAMATION SAFETY OF 
                    DAMS ACT OF 1978.

    Section 5 of the Reclamation Safety of Dams Act of 1978 (43 U.S.C. 
509) is amended, in the first sentence, by inserting ``, and, effective 
October 1, 2019, not to exceed an additional $550,000,000 (October 1, 
2019, price levels)'' before ``, plus or minus''.

SEC. 4. REVIEW OF FLOOD CONTROL RULE CURVES PILOT PROJECT.

    (a) Definitions.--In this section:
          (1) Bureau.--The term ``Bureau'' means the Bureau of 
        Reclamation.
          (2) Eligible works.--
                  (A) In general.--The term ``eligible works''' means a 
                reserved works, or a transferred works for which--
                          (i) the flood control rule curve has not been 
                        substantially adjusted during the 10-year 
                        period ending on the date of enactment of this 
                        Act; and
                          (ii) the Secretary receives a request in 
                        accordance with subsection (c)(1)(A).
                  (B) Exclusions.--The term ``eligible works''' does 
                not include--
                          (i) any project authorized by the Boulder 
                        Canyon Project Act (43 U.S.C. 617 et seq.);
                          (ii) any project authorized by the Act of 
                        April 11, 1956 (commonly known as the 
                        ``Colorado River Storage Project Act'') (43 
                        U.S.C. 620 et seq.); or
                          (iii) any project of the Pick-Sloan Missouri 
                        River Basin Program (authorized by section 9 of 
                        the Act of December 22, 1944 (commonly known as 
                        the ``Flood Control Act of 1944'') (58 Stat. 
                        891, chapter 665)).
          (3) Pilot Project.--The term ``pilot project'' means the 
        pilot project established under subsection (b).
          (4) Responsible party.--The term ``responsible party'' 
        means--
                  (A) with respect to a reserved works--
                          (i) a non-Federal water user or power 
                        contractor that has an active repayment, water 
                        service, or power service contract with the 
                        Bureau;
                          (ii) a power contractor that has an active 
                        contract with a Federal power marketing 
                        administration for energy, capacity, or energy 
                        and capacity, from a hydropower facility owned 
                        by the Bureau; or
                          (iii) a non-Federal operating entity, 
                        including a joint powers authority or board of 
                        control, that has assumed responsibility on 
                        behalf of multiple water users, through a 
                        contract with the Bureau, for the operation and 
                        maintenance of the reserved works; and
                  (B) with respect to a transferred works, the 
                operating entity of the transferred works.
          (5) Secretary.--The term ``Secretary'' means Secretary of the 
        Interior.
    (b) Establishment of Pilot Project.--The Secretary, in consultation 
with the Secretary of the Army, shall establish within the Bureau a 
pilot project to adjust flood control rule curves in accordance with 
subsection (d).
    (c) Selection of Eligible Works.--
          (1) Request.--
                  (A) In general.--In order for an eligible works to be 
                selected for inclusion in the pilot project, a 
                responsible party shall submit a written request to the 
                Secretary seeking a flood control rule curve 
                adjustment.
                  (B) Notice.--Not later than 30 days after the date on 
                which the Secretary receives a request under 
                subparagraph (A), the Secretary shall notify--
                          (i) each responsible party of that request, 
                        using lists maintained by the Bureau; and
                          (ii) if applicable, the appropriate Federal 
                        power marketing administration.
          (2) Selection.--Each year, the Secretary shall--
                  (A) select 1 or more eligible works for inclusion in 
                the pilot project; and
                  (B) submit a list of those eligible works to--
                          (i) the Secretary of the Army;
                          (ii) the Committee on Natural Resources of 
                        the House of Representatives; and
                          (iii) the Committee on Energy and Natural 
                        Resources of the Senate.
          (3) Exclusion.--The Secretary shall not select an eligible 
        works for inclusion in the pilot project under paragraph (2)(A) 
        if, not later than 60 days after the date on which the notice 
        is provided to each responsible party under paragraph 
        (1)(B)(i), a majority of the responsible parties submit to the 
        Secretary an objection to the inclusion of the eligible works 
        in the pilot project.
    (d) Adjustment of a Flood Control Rule.--
          (1) In general.--The flood control rule curve of an eligible 
        works shall be adjusted pursuant to section 7 of the Act of 
        December 22, 1944 (33 U.S.C. 709), if the Secretary of the Army 
        determines that the adjustment would enhance the authorized 
        purposes of the eligible works.
          (2) Considerations.--In the adjustment of a flood control 
        rule curve under paragraph (1), the following factors shall be 
        considered:
                  (A) Forecast-informed reservoir operations.
                  (B) Improved hydrologic forecasting for--
                          (i) precipitation;
                          (ii) snowpack;
                          (iii) runoff; and
                          (iv) soil moisture conditions.
                  (C) Any new watershed data, including data provided 
                by a responsible party for the eligible works.
          (3) Consultation.--In the adjustment of a flood control rule 
        curve under paragraph (1), the following entities shall be 
        consulted:
                  (A) Each responsible party for the eligible works.
                  (B) In the case of an eligible works that produces 
                power marketed by the Federal Government, the Federal 
                power marketing administration that markets the power.
                  (C) The Secretary.
    (e) Consultation.--The Secretary shall consult with the Secretary 
of the Army with respect to any action taken by the Secretary of the 
Army--
          (1) pursuant to section 7 of the Act of December 22, 1944 (33 
        U.S.C. 709); and
          (2) that relates to the pilot project.
    (f) Funding.--The Secretary or the Secretary of the Army, as 
appropriate, may accept amounts from responsible parties for eligible 
works to fund all or a portion of the cost of carrying out an 
adjustment of a flood control rule under subsection (d), including a 
review or revision of operational documents (including water control 
plans, water control manuals, water control diagrams, release 
schedules, rule curves, operational agreements with non-Federal 
entities, and any associated environmental documentation).
    (g) Effect.--Nothing in this section--
          (1) affects or modifies any existing authority to review or 
        modify--
                  (A) reservoir operations, including any existing 
                forecast-informed reservoir operations at a facility of 
                the Corps of Engineers, such as Coyote Dam; and
                  (B) flood control operations; or
          (2) affects or modifies any authorized purpose of any project 
        carried out by the Secretary.
    (h) Termination.--
          (1) In general.--The pilot project shall terminate on the 
        date that is 15 years after the date of enactment of this Act.
          (2) Effect.--Termination of the pilot project under paragraph 
        (1) shall not affect any flood control rule curve developed as 
        part of the pilot project.

                                Purpose

    The purpose of S. 2044 is to amend the Omnibus Public Land 
Management Act of 2009 to establish an Aging Infrastructure 
Account, to amend the Reclamation Safety of Dams Act of 1978 to 
provide additional funds under that Act, and to establish a 
review of flood control rule curves pilot project within the 
Bureau of Reclamation (BOR).

                          Background and Need

    The BOR owns 480 dams and dikes, nearly 40,000 miles of 
water conveyance facilities, and 58 power plants, along with 
various buildings, lands, and other facilities. The majority of 
this infrastructure is over 50 years old, and a growing number 
have been in operation for over a century. Roughly two-thirds 
of these assets--referred to as ``transferred works''--are 
maintained and operated by non-federal entities, such as water 
or irrigation districts, through contracts with the BOR while 
title of the property remains with the federal government. So 
called ``reserved works''--those projects that are owned, 
operated, and maintained by the BOR--make up the remaining one-
third of the assets and are often the larger, multipurpose 
facilities.
    Traditionally, the BOR has funded 100 percent of the 
upfront capital for projects through appropriated dollars, and 
water and power beneficiaries would repay the federal capital 
investment and annual operations and maintenance (O&M) costs. 
The specific terms of O&M payments for individual projects 
often vary depending on a variety of factors, but typically 
these costs are required to be paid in the year that they are 
incurred.
    As BOR facilities age, O&M costs at many projects are 
significantly increasing and becoming more capital intensive in 
nature. For major rehabilitation, repair, or replacement 
projects, it can be difficult for some BOR contractors to cover 
the total cost in a single year. In some cases, water districts 
seek debt financing to allow payment of capital O&M over time, 
but private capital is often difficult or expensive to access 
because the underlying asset is owned by the federal 
government.
    In response to these challenges, Congress provides the BOR 
with authority to fund ``extraordinary maintenance'' projects 
and have the cost repaid over up to 50 years in the Omnibus 
Public Land Management Act of 2009 (Public Law 111-11). 
However, the often lengthy and opaque process for getting a 
project designated as extraordinary maintenance and limited 
opportunities for Congress to direct appropriated dollars 
specifically for this purpose within the BOR budget has made 
the program less useful as a tool to address aging 
infrastructure.
    The BOR Safety of Dams program was authorized in 1978 in 
the Reclamation Safety of Dams Act (Public Law 95-578) and is 
another important tool for protecting the structural integrity 
of facilities based on up-to-date standards and data. There is 
currently roughly $1.4 billion in authorized funding levels 
remaining in the program. Due to large variability in potential 
expenditures, the BOR indicates that this cap could be reached 
anywhere between 2022 and 2030 based on the current inventory. 
Additionally, BOR's safety evaluation of existing dams (SEED) 
program conducts ongoing inspections and analysis and 
significant fluctuations to the anticipated inventory can 
occur.
    In addition to rehabilitation of aging infrastructure, 
there are efforts to more fully use existing surface storage 
facilities by using improved atmospheric and watershed data to 
manage flood control risk more precisely. By temporarily 
storing water that would have been released downstream under 
the guise of flood protection based on older data, water 
managers are able to move and store water across a system to 
increase the amount of water that is left in storage to be 
carried over for delivery during drought and low-water years. 
In most cases, changing reservoir operations in this way 
requires changes to Army Corps of Engineers Water Control 
Manuals.

                          Legislative History

    S. 2044 was introduced by Senators McSally and Sinema on 
June 27, 2019. The Subcommittee on Water and Power held a 
hearing on the measure on July 18, 2019.
    The Senate Committee on Energy and Natural Resources met in 
open business session on September 25, 2019, and ordered S. 
2044 favorably reported, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on September 25, 2019, by a majority 
voice vote of a quorum present, recommends that the Senate pass 
S. 2044, if amended as described herein. Senator Lee asked to 
be recorded as voting no.

                          Committee Amendment

    During its consideration of S. 2044, the Committee adopted 
an amendment in the nature of a substitute and an amendment to 
the substitute. The substitute, as amended, replaces the term 
``transferred works'' with ``a project facility'' and makes 
other conforming changes in section 2 to allow both transferred 
and reserved works owned by BOR to qualify for funding from the 
Aging Infrastructure Account. In addition, the substitute adds 
in section 2 a requirement that information on alternative non-
Federal funding options that have been evaluated be included in 
an application, strikes the requirement that BOR include an 
analysis of the effect on the affordability in the required 
report, and adds a provision clarifying that the section does 
not affect funds or contracts entered into pursuant to section 
9603 of the Omnibus Public Land Management Act of 2009 prior to 
enactment of this subsection or the use of funds otherwise 
available to the secretary to carry out that section.
    The substitute adds a definition of ``responsible party'' 
in section 4.
    The amendment also makes technical and clarifying changes 
to language throughout the bill.

                      Section-by-Section Analysis


Section. 1. Short title

    Section 1 sets forth the short title.

Sec. 2. Aging infrastructure account

    Section 2 amends section 9603 of the Omnibus Public Lands 
Management Act of 2009 to add a new subsection (d). The new 
subsection (d)(1) establishes an aging infrastructure account 
to provide funds to transferred works operating entities or 
project beneficiaries responsible for repayment of reimbursable 
costs for the conduct of extraordinary operation and 
maintenance work at BOR facilities. The new subsection (d)(2) 
authorizes the Secretary of the Interior to provide for the 
extended repayment of the funds by eligible projects. The new 
subsection (d)(3) requires a repayment contract to be in place 
before funds can be expended, and authorizes funds repaid under 
such contract to be deposited in the Aging Infrastructure 
Account without further appropriation. The new subsection 
(d)(4) requires the Secretary to accept applications for 
funding and extended repayment for eligible projects, outlines 
project eligibility, and requires guidelines for the 
application to be developed. The new subsection (d)(5) requires 
the Secretary to analyze the applications and submit a report 
to Congress.

Sec. 3. Authorization of appropriations for the Reclamation Safety of 
        Dams Act of 1978

    Section 3 amends the Safety of Dams Act of 1978 to add an 
additional $550 million to the authorization ceiling.

Sec. 4. Review of flood control rule curves pilot project

    Subsection (a) defines terms specific to this section.
    Subsection (b) directs the Secretary of the Interior, in 
consultation with the Secretary of the Army, to establish a 
pilot program within the BOR to adjust flood control rule 
curves for eligible BOR projects. Flood control rule curves are 
set by the Army Corps of Engineers and are used to determine 
how much of a project storage space should remain available for 
flood control purposes, along with the rate of release from 
reservoirs and other operational parameters.
    Subsection (c) sets a process and criteria for the 
selection of eligible works by the Secretary and submission of 
the selected works to the Secretary of the Army.
    Subsection (d) requires the Secretary of the Army to adjust 
flood control rule curves of an eligible work if the Secretary 
of the Army determines that the adjustment would enhance the 
authorized purposes of the work, and outlines specific 
considerations that should be taken into account.
    Subsection (e) requires the Secretary of the Interior and 
Secretary of the Army to consult on actions taken by the pilot 
program.
    Subsection (f) authorizes the Secretary of the Army or 
Interior, as appropriate, to accept funds from a responsible 
party to adjustment a flood control rule curve.
    Subsection (g) states that nothing in this section affects 
existing authority to review or modify reservoir operations at 
an Army Corps of Engineers facility or flood control 
operations. It also states that nothing affects or modifies any 
authorized purpose of any project carried out by the Secretary 
of the Interior.
    Subsection (h) terminates the pilot program after 15 years 
and states that flood control rule curves modified under the 
pilot program are not affected by its termination.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      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. 2044. 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. 2044, as ordered reported.

                   Congressionally Directed Spending

    S. 2044, 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 Department of the Interior at 
the July 18, 2019, hearing on S. 2044 follows:

 Statement of Brenda Burman, Commissioner, Bureau of Reclamation, U.S. 
                       Department of the Interior

    Chairman McSally, Ranking Member Cortez Masto, and members 
of the Subcommittee, I am Brenda Burman, Commissioner for the 
Bureau of Reclamation within the Department of the Interior 
(Interior). Thank you for the opportunity to provide Interior's 
views on S. 1932, the Drought Resiliency and Water Supply 
Infrastructure Act, S. 2044, the Water Supply Infrastructure 
Rehabilitation and Utilization Act, and S. 1570, the Aquifer 
Recharge Flexibility Act.
    Reclamation's dams and reservoirs, water conveyance 
systems, and power generating facilities are integral 
components of the Nation's infrastructure. This infrastructure 
is key to Reclamation's continued success. Approximately 50 
percent of Reclamation's dams were built between 1900 and 1950, 
and approximately 90 percent of the dams were built before 
adoption of currently used, state-of-the-art design and 
construction practices. Effectively managing the modernization 
of this infrastructure and the benefits that these structures 
provide is among the significant challenges facing Reclamation 
in the next several years. The reliability, safety, efficiency, 
and cost effectiveness of Reclamation's infrastructure to 
ensure water deliveries and power generation is a high 
priority. Our FY 2020 budget proposed increases in funding for 
extraordinary maintenance, including dam safety, to modernize 
infrastructure. We appreciate that the bill sponsors are 
working to improve western water reliability.
S. 2044--Water Supply Infrastructure Rehabilitation and Utilization Act
    The Department supports the intent of S. 2044 to address 
Reclamation's aging infrastructure. We applaud this bipartisan 
effort to assist the Bureau in making major updates and 
replacements. We have stated on the record that it is our 
priority to make investments in modernizing our infrastructure, 
and this bill would advance our mutual goal. We would 
appreciate the opportunity to continue working with the 
Committee on improvements to the bill that we believe would 
clarify and improve implementation.


                      aging infrastructure account


    Section 2 of S.2044 amends Section 9603 of Public Law 111-
11 (43 U.S.C. 510b) to create a new extraordinary maintenance 
(XM) account (account) to fund eligible XM projects at 
transferred works. The account would be funded with 
appropriations under Section 9605 of P.L. 111-11 and through 
project beneficiaries' repayment of Federal expenditures from 
it. It would fund non-emergency XM only, leaving emergency XM 
projects to be funded as they are currently funded under P.L. 
111-11, through continuing Section 9605 appropriations outside 
the account. The bill sets forth various conditions and 
processes for using the account, including an annual 
application process and annual reports to specified 
Congressional Committees on the eligible projects, some key 
details of their evaluations, and the Secretary's 
recommendations regarding repayment periods. Based on our 
analysis of Section of S. 2044, expenditures out the newly 
created account would still be subject to appropriations, and 
project beneficiaries' repayments of XM would incur interest, 
consistent with existing Reclamation law and policy.


         appropriations for the reclamation safety of dams act


    This section would provide an increase to the 
appropriations ceiling for the Reclamation Safety of Dams 
Program. Raising the dam safety authorization ceiling would 
assure that Reclamation can continue to meet crucial dam safety 
needs across the West. Dam safety projects are vital to 
sustaining the benefits Reclamation projects provide and enable 
Reclamation to incorporate new information as relevant 
knowledge and technology change.


                    flood control rule curves pilot


    Section 4 of the Water Supply Infrastructure Rehabilitation 
and Utilization Act would authorize Interior to establish a 
pilot project within the Bureau of Reclamation to review flood 
control rule curves. In general, Reclamation could implement 
the pilot project as proposed in the legislation. However, 
clarifying the role of the Secretary of the Army and the Army 
Corps of Engineers (USACE) in approving changes to flood 
control rule curves may help ensure effective implementation.
    The considerations described in section 4 for assessing 
potential changes to flood rule curves are consistent with 
approaches currently being implemented by Reclamation. For 
example, Reclamation recently completed five reservoir 
operations pilot studies using improved forecasting and 
hydrologic information to assess opportunities to better meet 
water demands. Reclamation also is implementing the October 
2018 ``Presidential Memorandum on Promoting the Reliable Supply 
and Delivery of Water in the West'', specifically Section 3: 
Improve Forecasts of Water Availability, and is engaged with 
Federal and non-Federal partners on several forecasting 
applications in California.


                               conclusion


    Thank you for the opportunity to provide the Department's 
views on these pieces of legislation. We look forward to 
continuing our work with the sponsors and the Committee on 
these bills.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the changes in existing law made 
by S. 2044, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

             THE OMNIBUS PUBLIC LAND MANAGEMENT ACT of 2009

                           PUBLIC LAW 111-11


  To designate certain land as components of the National Wilderness 
 Preservation System, to authorize certain programs and activities in 
 the Department of the Interior and the Department of Agriculture, and 
for other purposes.

           *       *       *       *       *       *       *


TITLE IX--BUREAU OF RECLAMATION AUTHORIZATIONS

           *       *       *       *       *       *       *


Subtitle G--Aging Infrastructure

           *       *       *       *       *       *       *


SEC. 9603. EXTRAORDINARY OPERATION AND MAINTENANCE WORK PERFORMED BY 
                    THE SECRETARY.

    (a) In General.--The Secretary or the transferred works 
operating entity may carry out, in accordance with subsection 
(b) and consistent with existing transfer contracts, any 
extraordinary operation and maintenance work on a project 
facility that the Secretary determines to be reasonably 
required to preserve the structural safety of the project 
facility.
    (b) Reimbursement of Costs Arising From Extraordinary 
Operation and Maintenance Work.--
          (1) Treatment of costs.--For reserved works, costs 
        incurred by the Secretary in conducting extraordinary 
        operation and maintenance work will be allocated to the 
        authorized reimbursable purposes of the project and 
        shall be repaid within 50 years, with interest, from 
        the year in which work undertaken pursuant to this 
        subtitle is substantially complete.
          (2) Authority of secretary.--For transferred works, 
        the Secretary is authorized to advance the costs 
        incurred by the transferred works operating entity in 
        conducting extraordinary operation and maintenance work 
        and negotiate appropriate 50-year repayment contracts 
        with project beneficiaries providing for the return of 
        reimbursable costs, with interest, under this 
        subsection: Provided, however, That no contract entered 
        into pursuant to this subtitle shall be deemed to be a 
        new or amended contract for the purposes of section 
        203(a) of the Reclamation Reform Act of 1982 (43 U.S.C. 
        390cc(a)).
          (3) Determination of interest rate.--The interest 
        rate used for computing interest on work in progress 
        and interest on the unpaid balance of the reimbursable 
        costs of extraordinary operation and maintenance work 
        authorized by this subtitle shall be determined by the 
        Secretary of the Treasury, as of the beginning of the 
        fiscal year in which extraordinary operation and 
        maintenance work is commenced, on the basis of average 
        market yields on outstanding marketable obligations of 
        the United States with the remaining periods of 
        maturity comparable to the applicable reimbursement 
        period of the project, adjusted to the nearest 1/8 of 1 
        percent on the unamortized balance of any portion of 
        the loan.
    (c) Emergency Extraordinary Operation and Maintenance 
Work.--
          (1) In general.--The Secretary or the transferred 
        works operating entity shall carry out any emergency 
        extraordinary operation and maintenance work on a 
        project facility that the Secretary determines to be 
        necessary to minimize the risk of imminent harm to 
        public health or safety, or property.
          (2) Reimbursement.--The Secretary may advance funds 
        for emergency extraordinary operation and maintenance 
        work and shall seek reimbursement from the transferred 
        works operating entity or benefitting entity upon 
        receiving a written assurance from the governing body 
        of such entity that it will negotiate a contract 
        pursuant to section 9603 for repayment of costs 
        incurred by the Secretary in undertaking such work.
          (3) Funding.--If the Secretary determines that a 
        project facility inspected and maintained pursuant to 
        the guidelines and criteria set forth in section 
        9602(a) requires extraordinary operation and 
        maintenance pursuant to paragraph (1), the Secretary 
        may provide Federal funds on a nonreimbursable basis 
        sufficient to cover 35 percent of the cost of the 
        extraordinary operation and maintenance allocable to 
        the transferred works operating entity, which is needed 
        to minimize the risk of imminent harm. The remaining 
        share of the Federal funds advanced by the Secretary 
        for such work shall be repaid under subsection (b).
    (d) Aging Infrastructure Account.--
          (1) Establishment.--There is established in the 
        general fund of the Treasury a special account, to be 
        known as the `Aging Infrastructure Account' (referred 
        to in this subsection as the `Account'), to provide 
        funds to, and provide for the extended repayment of the 
        funds by, a transferred works operating entity or 
        project beneficiary responsible for repayment of 
        reimbursable costs for the conduct of extraordinary 
        operation and maintenance work at a project facility, 
        which shall consist of--
                  (A) any amounts that are specifically 
                appropriated to the Account under section 9605; 
                and
                  (B) any amounts deposited in the Account 
                under paragraph (3)(B).
          (2) Expenditures.--Subject to appropriations and 
        paragraph (3), the Secretary may expend amounts in the 
        Account to fund and provide for extended repayment of 
        the funds for eligible projects identified in a report 
        submitted under paragraph (5)(A).
          (3) Repayment contract.--
                  (A) In general.--The Secretary may not expend 
                amounts under paragraph (2) with respect to an 
                eligible project described in that paragraph 
                unless the transferred works operating entity 
                or project beneficiary responsible for 
                repayment of reimbursable costs has entered 
                into a contract to repay the amounts under 
                subsection (b)(2).
                  (B) Deposit of repaid funds.--Amounts repaid 
                by a transferred works operating entity or 
                project beneficiary responsible for repayment 
                of reimbursable costs receiving funds under a 
                repayment contract entered into under this 
                subsection shall be deposited in the Account 
                and shall be available to the Secretary for 
                expenditure in accordance with this subsection 
                without further appropriation.
          (4) Application for funding.--
                  (A) In general.--Not less than once per 
                fiscal year, the Secretary shall accept, during 
                an application period established by the 
                Secretary, applications from transferred works 
                operating entities or project beneficiaries 
                responsible for payment of reimbursable costs 
                for funds and extended repayment for eligible 
                projects.
                  (B) Eligible project.--A project eligible for 
                funding and extended repayment under this 
                subsection is a project that--
                          (i) qualifies as an extraordinary 
                        operation and maintenance work under 
                        this section;
                          (ii) is for the major, non-recurring 
                        maintenance of a mission-critical 
                        asset; and
                          (iii) is not eligible to be carried 
                        out or funded under the repayment 
                        provisions of section 4(c) of the 
                        Reclamation Safety of Dams Act of 1978 
                        (43 U.S.C. 508(c)).
                  (C) Guidelines for Applications.--Not later 
                than 60 days after the date of enactment of 
                this subsection, the Secretary shall issue 
                guidelines describing the information required 
                to be provided in an application for funds and 
                extended repayment under this subsection that 
                require, at a minimum--
                          (i) a description of the project for 
                        which the funds are requested;
                          (ii) the amount of funds requested;
                          (iii) the repayment period requested 
                        by the transferred works operating 
                        entity or project beneficiary 
                        responsible for repayment of 
                        reimbursable costs;
                          (iv) alternative non-Federal funding 
                        options that have been evaluated;
                          (v) the financial justification for 
                        requesting an extended repayment 
                        period; and (vi) the financial records 
                        of the transferred works operating 
                        entity or project beneficiary 
                        responsible for repayment of 
                        reimbursable costs.
                  (D) Review by the secretary.--The Secretary 
                shall review each application submitted under 
                subparagraph (A)--
                          (i) to determine whether the project 
                        is eligible for funds and an extended 
                        repayment period under this subsection;
                          (ii) to determine if the project has 
                        been identified by the Bureau of 
                        Reclamation as part of the major 
                        rehabilitation and replacement of a 
                        project facility; and
                          (iii) to conduct a financial analysis 
                        of--
                                  (I) the project; and
                                  (II) the transferred works 
                                operating entity or project 
                                beneficiary responsible for 
                                repayment of reimbursable 
                                costs.
          (5) Report.--Not later than 90 days after the date on 
        which an application period closes under paragraph 
        (4)(A), the Secretary shall submit to the Committees on 
        Energy and Natural Resources and Appropriations of the 
        Senate and the Committees on Natural Resources and 
        Appropriations of the House of Representatives a report 
        that--
                  (A) identifies each project eligible for 
                funds and extended repayment under this 
                subsection;
                  (B) with respect to each eligible project 
                identified under subparagraph (A), includes--
                          (i) a description of--
                                  (I) the eligible project;
                                  (II) the anticipated cost and 
                                duration of the eligible 
                                project; and
                                  (III) any remaining 
                                engineering or environmental 
                                compliance that is required 
                                before the eligible project 
                                commences;
                          (ii) an analysis of--
                                  (I) the repayment period 
                                proposed in the application; 
                                and
                                  (II) if the Secretary 
                                recommends a minimum necessary 
                                repayment period that is 
                                different than the repayment 
                                period proposed in the 
                                application, the minimum 
                                necessary repayment period 
                                recommended by the Secretary; 
                                and
                          (iii) an analysis of alternative non-
                        Federal funding options; and
                  (C) describes the balance of funds in the 
                Account as of the date of the report.
          (6) Effect of subsection.--Nothing in this subsection 
        affects--
                  (A) any funding provided, or contracts 
                entered into, under subsection (a) before the 
                date of enactment of this subsection; or
                  (B) the use of funds otherwise made available 
                to the Secretary to carry out subsection (a).

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         THE RECLAMATION SAFETY OF DAMS ACT OF 1978, AS AMENDED

                     PUBLIC LAW 95-518, AS AMENDED


   To authorize the Secretary of the Interior to construct, restore, 
  operate, and maintain new or modified features at existing Federal 
reclamation dams for safety of dams purposes.

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    Sec. 5. There are hereby authorized to be appropriated for 
fiscal year 1979 and ensuing fiscal years such sums as may be 
necessary and, effective October 1, 1983, not to exceed an 
additional $650,000,000 (October 1, 1983, price levels), and, 
effective October 1, 2000, not to exceed an additional 
$95,000,000 (October 1, 2000, price levels), and, effective 
October 1, 2001, not to exceed an additional $32,000,000 
(October 1, 2001, price levels), and, effective October 1, 
2003, not to exceed an additional $540,000,000 (October 1, 
2003, price levels), and effective October 1, 2015, not to 
exceed an additional $1,100,000,000 (October 1, 2003, price 
levels), and, effective October 1, 2019, not to exceed an 
additional $550,000,000 (October 1, 2019, price levels), plus 
or minus such amounts, if any, as may be justified by reason of 
ordinary fluctuations in construction costs as indicated by 
engineering cost indexes applicable to the types of 
construction involved herein, to carry out the provisions of 
this subchapter to remain available until expended if so 
provided by the appropriations Act: Provided, That no funds 
exceeding $20,000,000 (October 1, 2003, price levels), as 
adjusted to reflect any ordinary fluctuations in construction 
costs indicated by applicable engineering cost indexes, shall 
be obligated for carrying out actual construction to modify an 
existing dam under authority of this subchapter prior to 30 
calendar days from the date that the Secretary has transmitted 
a report on such existing dam to the Committee on Natural 
Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate. The report required 
to be submitted by this section will consist of a finding by 
the Secretary of the Interior to the effect that modifications 
are required to be made to insure the safety of an existing 
dam. Such finding shall be accompanied by a technical report 
containing information on the need for structural modification, 
the corrective action deemed to be required, alternative 
solutions to structural modification that were considered, the 
estimated cost of needed modifications, and environmental 
impacts if any resulting from the implementation of the 
recommended plan of modification. For modification expenditures 
between $1,800,000 and $20,000,000 (October 1, 2015, price 
levels), the Secretary of the Interior shall, at least 30 days 
before the date on which the funds are expended, submit written 
notice of the expenditures to the Committee on Natural 
Resources of the House of Representatives and Committee on 
Energy and Natural Resources of the Senate that provides a 
summary of the project, the cost of the project, and any 
alternatives that were considered.

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