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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-459

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



 
         BUREAU OF RECLAMATION SITE SECURITY COSTS ACT OF 2007

                                _______
                                

December 4, 2007.--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. 1662]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 1662) to amend the Reclamation Safety of Dams Act of 
1978 to authorize improvements for the security of dams and 
other facilities, having considered the same, report favorably 
thereon with amendments and recommend that the bill as amended 
do pass.
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Bureau of Reclamation Site Security 
Costs Act of 2007''.

SEC. 2. TREATMENT OF CAPITAL COSTS.

  Costs incurred by the Secretary of the Interior for the physical 
fortification of Bureau of Reclamation facilities to satisfy increased 
post-September 11, 2001, security needs, including the construction, 
modification, upgrade, or replacement of such facility fortifications, 
shall be nonreimbursable.

SEC. 3. TREATMENT OF SECURITY-RELATED OPERATION AND MAINTENANCE COSTS.

  (a) Reimbursable Costs.--The Secretary of the Interior shall include 
no more than $18,900,000 per fiscal year, indexed each fiscal year 
after fiscal year 2008 according to the preceding year's Consumer Price 
Index, of those costs incurred for increased levels of guards and 
patrols, training, patrols by local and tribal law enforcement 
entities, operation, maintenance, and replacement of guard and response 
force equipment, and operation and maintenance of facility 
fortifications at Bureau of Reclamation facilities after the events of 
September 11, 2001, as reimbursable operation and maintenance costs 
under Reclamation law.
  (b) Costs Collected Through Water Rates.--In the case of the Central 
Valley Project of California, site security costs allocated to 
irrigation and municipal and industrial water service in accordance 
with this Act shall be collected by the Secretary exclusively through 
inclusion of these costs in the operation and maintenance water rates.

SEC. 4. TRANSPARENCY AND REPORT TO CONGRESS.

  (a) Policies and Procedures.--The Secretary is authorized to develop 
policies and procedures with project beneficiaries, consistent with the 
requirements of subsections (b) and (c), to provide for the payment of 
the reimbursable costs described in section 3.
  (b) Notice.--On identifying a Bureau of Reclamation facility for a 
site security measure, the Secretary shall provide to the project 
beneficiaries written notice--
          (1) describing the need for the site security measure and the 
        process for identifying and implementing the site security 
        measure; and
          (2) summarizing the administrative and legal requirements 
        relating to the site security measure.
  (c) Consultation.--The Secretary shall--
          (1) provide project beneficiaries an opportunity to consult 
        with the Bureau of Reclamation on the planning, design, and 
        construction of the site security measure; and
          (2) in consultation with project beneficiaries, develop and 
        provide timeframes for the consultation described in paragraph 
        (1).
  (d) Response; Notice.--Before incurring costs pursuant to activities 
described in section 3, the Secretary shall consider cost containment 
measures recommended by a project beneficiary that has elected to 
consult with the Bureau of Reclamation on such activities. The 
Secretary shall provide to the project beneficiary--
          (1) a timely written response describing proposed actions, if 
        any, to address the recommendation; and
          (2) notice regarding the costs and status of such activities 
        on a periodic basis.
  (e) Report.--The Secretary shall report annually to the Natural 
Resources Committee of the House of Representatives and the Energy and 
Natural Resources Committee of the Senate on site security actions and 
activities undertaken pursuant to this Act for each fiscal year. The 
report shall include a summary of Federal and non-Federal expenditures 
for the fiscal year and information relating to a 5-year planning 
horizon for the program, detailed to show pre-September 11, 2001, and 
post-September 11, 2001, costs for the site security activities.

SEC. 5. PRE-SEPTEMBER 11, 2001 SECURITY COST LEVELS.

   Reclamation project security costs at the levels of activity that 
existed prior to September 11, 2001, shall remain reimbursable.

  Amend the title so as to read:

      A bill to authorize the Secretary of the Interior to seek 
limited reimbursement for site security activities, and for 
other purposes.

                          PURPOSE OF THE BILL

    The primary purpose of H.R. 1662, as amended by the 
Committee on Natural Resources, is to provide Bureau of 
Reclamation project beneficiaries a statutory certainty 
regarding their obligations to pay for certain site security 
activities at Bureau of Reclamation facilities.

                  BACKGROUND AND NEED FOR LEGISLATION

    Since September 11, 2001, the Bureau of Reclamation has 
maintained heightened security at its facilities to protect the 
public, its employees and facilities. Additional patrols and 
guards have been stationed where appropriate, and many 
facilities have or will receive ``facility fortification.'' The 
Bureau of Reclamation's total projected program cost for site 
security activities in Fiscal Year 2008 is $47,100,000.
    Testimony submitted to the Subcommittee on Water and Power 
at an oversight hearing in the 109th Congress (June 22, 2006) 
demonstrated widespread dissatisfaction with the Bureau of 
Reclamation's methodology and procedures for seeking 
reimbursement from project water and power beneficiaries for 
site security activities. Project beneficiaries suggested that 
placing the Site Security Program within the Bureau of 
Reclamation's existing Safety of Dams Program would provide a 
more equitable framework for allocating the capital and 
operations and maintenance costs of site security work. As 
introduced in the 109th Congress (H.R. 6029) by Rep. George 
Radanovich (R-CA), and in the 110th Congress by Rep. Grace 
Napolitano (D-CA), H.R. 1662 would have amended the Reclamation 
Safety of Dams Act of 1978 to authorize the Secretary of the 
Interior to make modifications to preserve the site security of 
Bureau of Reclamation dams and related facilities, and to 
provide for the reimbursement of costs incurred for post-
September 11, 2001 site security activities.

                            COMMITTEE ACTION

    Congresswoman Grace Napolitano (D-CA) introduced H.R. 1662 
on March 23, 2007. H.R. 1662 was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power. As noted above, the Subcommittee on Water 
and Power held an oversight hearing on site security issues on 
June 22, 2006. No legislative hearing was held on H.R. 1662.
    As introduced, H.R. 1662 would have amended the Reclamation 
Safety of Dams Act of 1978 to: (1) authorize the Secretary of 
the Interior to make modifications to preserve the site 
security of Bureau of Reclamation dams and related facilities; 
and (2) provide for the reimbursement of all costs incurred for 
post-September 11, 2001 building and site security activities.
    On April 19, 2007, the Subcommittee on Water and Power met 
to consider H.R. 1662. The bill was forwarded to the Full 
Committee on Natural Resources without amendment.
    On November 7, 2007, the Full Natural Resources Committee 
met to consider H.R. 1662. Rep. Grace Napolitano (D-CA) offered 
an amendment in the nature of a substitute. The substitute does 
not include site security activities under the Bureau of 
Reclamation's Safety of Dams program. Instead, the amendment 
establishes an upper limit of $18,900,000 annually (indexed for 
inflation) on the reimbursable operation and maintenance costs 
of site security activities, and provides that the capital 
construction costs of such activities shall be nonreimbursable. 
As amended, H.R. 1662 requires the Secretary of the Interior to 
report annually to Congress on site security actions and 
activities. The Napolitano substitute amendment to H.R. 1662 
was adopted by unanimous consent, and the bill as amended was 
ordered favorably reported to the House of Representatives by 
unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 amends the short title of the bill as the 
``Bureau of Reclamation Site Security Costs Act of 2007''.

Section 2. Treatment of capital costs

    Section 2 provides that the capital construction costs 
incurred by the Bureau of Reclamation after September 11, 2001 
for the physical fortification of Bureau of Reclamation 
facilities shall be non-reimbursable.

Section 3. Treatment of security-related operations and maintenance 
        costs

    Section 3 sets a limit of $18,900,000 annually (indexed for 
inflation) on the reimbursable operation and maintenance costs 
related to site security at Bureau of Reclamation facilities. 
This section also requires that site security costs allocated 
to irrigation, municipal, and industrial water service in the 
Central Valley Project, California, be collected by the 
Secretary exclusively through inclusion of such costs in 
operation and maintenance water rates.

Section 4. Treatment of security-related operations and maintenance 
        costs

    Section 4 requires the Secretary to provide written notice 
of any proposed site security measure to project beneficiaries. 
The Secretary will also provide project beneficiaries with an 
opportunity to consult with the Bureau of Reclamation in the 
planning, design, and construction of site security measures 
and timeframes. Under this section, the Secretary must consider 
any cost containment recommendations offered by a project 
beneficiary, and provide a timely written response to such 
recommendations. This section also requires the Secretary to 
report annually to specified committees of the Congress on site 
security actions and activities.

Section 5. Pre-September 11, 2001 security costs

    Section 5 requires that Bureau of Reclamation project 
security costs at the levels of activity that existed prior to 
September 11, 2001, shall remain reimbursable.

            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 seek limited reimbursement for site security 
activities, 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. 1662--Bureau of Reclamation Site Security Costs Act of 2007

    Since the terrorist attacks of September 11,2001, the 
Bureau of Reclamation has enhanced security measures at its 
dams and associated facilities. The costs ofthese security 
measures fall into two general categories: capital costs such 
as making physical improvements to infrastructure, and 
operation and maintenance (O&M;) costs such as increasing the 
number of guards and patrols at the dams and facilities. Under 
current law, entities that purchase water and hydroelectric 
power associated with the operation of the dams and facilities 
must reimburse the bureau for a portion of O&M; costs.
    H.R. 1662 would limit the total amount of security-related 
O&M; costs that such entities would pay to the bureau to $18.9 
million a year, adjusted annually for inflation. The bureau 
expects to charge the entities no more than that amount, 
adjusted for inflation, over the next 10 years under current 
law. Thus, CBO estimates that enacting the legislation would 
have no significant impact on the budget.
    H.R. 1662 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Tyler Kruzich. 
This estimate was 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. 1662 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.