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Calendar No. 309
116th Congress } { Report
SENATE
1st Session } { 116-160
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JACKSON GULCH REHABILITATION PROJECT MODIFICATION ACT
_______
November 21, 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. 860]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 860) to amend the Omnibus Public Land
Management Act of 2009 to modify the terms of the Jackson Gulch
rehabilitation project in Colorado, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill, as amended, do pass.
Amendment
The amendment is as follows:
Beginning on page 2, strike line 22 and all that follows
through page 3, line 4, and insert the following:
(C) in subparagraph (B), in the matter
preceding clause (i), by striking ``Secretary
shall recover reimbursable expenses'' and
inserting ``District shall pay the Project
costs for which the District is liable''; and
Purpose
The purpose of S. 860 is to amend the Omnibus Public Land
Management Act of 2009 to modify the terms of the Jackson Gulch
rehabilitation project in Colorado.
Background and Need
The Jackson Gulch Dam and Reservoir are the principal
features of the Mancos Project in the southwest corner of
Colorado. The dam and reservoir are located in Jackson Gulch,
east of the West Mancos River. Water is fed from the river by a
2.6-mile inlet canal and returned to the river by an 2.2-mile
outlet canal. The project provides domestic water to the Mesa
Verde National Park, the Mancos Rural Water Company, and the
town of Mancos, and it supplies irrigation water to 13,746
acres.
The Jackson Gulch Reservoir was constructed pursuant to the
Water Conservation and Utilization Act, which was enacted in
1939, during the Great Depression. The Act authorized the
President to use the Works Project Administration and the
Civilian Conservation Corps to construct water conservation and
utilization projects in the Great Plains and arid areas to
stabilize water supplies and enable farmers to remain on their
land. President Roosevelt approved the Mancos Project under
this authority in 1940. The first irrigation water was released
to farms in Montezuma County and Mesa Verde National Park
visitors in July of 1949. The Mancos Water Conservancy District
took over operation and maintenance of the project in 1963.
A hydroelectric power plant was added to the dam outlet by
the Mancos Water Conservancy District in 1995 to assist with
operation and maintenance costs during the irrigation season.
The rehabilitation of this aging infrastructure is primarly the
responsibility of the Mancos Water Conservancy District.
In 2009, Congress authorized the Secretary of the Interior
to provide up to $8.25 million for rehabilitation of the
Jackson Gulch Rehabilitation Project (Public Law 111-11,
section 9105) and required Mancos Water Conservancy District to
repay their share of the total project cost--the lesser of
either 35 percent of the project cost or $2.9 million--to the
Bureau of Reclamation over a period of 15 years, less any funds
the District had contributed to the project for engineering
work and improvements prior to the date of enactment of the
2009 Act. The project received an initial appropriation of
$1.75 million in 2010. An additional $850,000 in appropriated
dollars was obligated to the project in 2019. The Mancos Water
Conservancy District has, however, continued the rehabilitation
work using its own funds.
S. 860 provides flexibility for the Mancos Water
Conservancy District to continue its maintenance and operations
while more clearly defining its responsibilities and funding
share for the Project rehabilitation. The bill also allows for
funds to be spent directly on the Project rather than advanced
by the Bureau of Reclamation and then repaid.
Legislative History
S. 860 was introduced by Senator Gardner on March 25, 2019.
The Subcommittee on Water and Power held a legislative hearing
on S. 860 on June 26, 2019.
Companion legislation, H.R. 1936, was introduced by
Representative Tipton in the House of Representatives on April
17, 2019, and referred to the Committee on Natural Resources.
In the 115th Congress, Senator Gardner introduced similar
legislation, S. 3069, on June 14, 2018.
Companion legislation, H.R. 6083, was introduced by
Representative Tipton in the House of Representatives on June
19, 2018, and referred to the Committee on Natural Resources.
The Senate Committee on Energy and Natural Resources met in
open business session on September 25, 2019, and ordered S. 860
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. 860, if amended as described herein.
Committee Amendments
During its consideration of S. 860, the Committee adopted
an amendment that strikes section 2(2)(C)(ii), the provision
that would have extended the cost repayment term for the non-
federal share of the Jackson Gulch Rehabilitation Project from
15 to 40 years.
Section-by-Section Analysis
Sec. 1. Short title
Section 1 sets forth the short title.
Sec 2. Modification of Jackson Gulch Rehabiliation Project, Colorado
Section 2(1) amends section 9105(b)(1) of the Omnibus
Public Lands Management Act of 2009 to change the reimbursement
requirements to ``cost-sharing requirements'', and limit the
federal cost share to no more than 65 percent of the total
cost.
Section 2(2) amends section 9105(b)(3) to change the manner
in which the District share is paid from reimbursement to
direct payment and specifies that all amounts paid by the
District for engineering work and improvements directly
associated with the Project whether before, on, or after the
date of enactment of this Act is to be credited toward the
District's liability for the Project.
Section 2(3) amends section 9105(b)(7) to reduce the
federal authorization level from $8.25 million to be the lesser
of 65 percent of the total cost of carrying out the project or
$5.35 million.
Cost and Budgetary Considerations
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 860 would authorize the Bureau of Reclamation (BOR) to
credit the Mancos Water Conservancy District for some of the
work it performed on the Jackson Gulch Rehabilitation Project
in Colorado. Under current law, the conservancy district is
required to reimburse the federal government for its share (35
percent) of the project's total costs in 15 annual
installments, without interest. The district begins to make
those payments one year after it receives any funding for the
project from the BOR. The conservancy district received credit
toward its share of the project's costs for expenditures that
it incurred before the Congress authorized the project in March
2009.
After March 2009, the conservancy district continued to
work at its own expense to advance the project and the
conservancy district will not receive credit toward its share
of project costs for that work. S. 860 would require the BOR to
credit the district for expenditures made after March 2009.
That requirement would have the effect of reducing annual
payments from the district (which are recorded as reductions in
direct spending). Those reductions would total less than
$500,000 over the 2020-2029 period.
The CBO staff contact for this estimate is Aurora Swanson.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 860. 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. 860, as ordered reported.
Congressionally Directed Spending
S. 860, 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 June 26, 2019, Subcommittee on Water and Power hearing on
S. 860 follows:
Statement of Kiel Weaver, Principal Deputy Assistant Secretary for
Water and Science, U.S. Department of the Interior
Chairman McSally, Ranking Member Cortez Masto, and Members
of the Subcommittee, I am Kiel Weaver, Principal Deputy
Assistant Secretary for Water and Science with the U.S.
Department of the Interior (``Department''). Thank you for the
opportunity to provide the views of the Department on several
water related pieces of legislation. I will address each of
these individually.
S. 860, the Jackson Gulch Rehabilitation Project Modification Act
The Jackson Gulch Rehabilitation Project Modification Act,
introduced by Senator Cory Gardner (R-CO), amends Section 9105
of the Omnibus Public Land Management Act of 2009 (P.L. 111-11)
to allow the Mancos Water Conservancy District (District) the
ability to credit their share of engineering work and
improvements directly associated with the Jackson Gulch
Rehabilitation Project in Colorado as part of the local cost
share. The bill also adjusts the District's Project cost
repayment period from 15 to not more than 40 years and reduces
the authorization for Federal appropriations to cost share this
project from $8,250,000 to not more than $5,350,000.
Jackson Gulch Reservoir provides water to the town of
Mancos, the Mancos Water Conservancy District, and the Mancos
Rural Water Company. Since 1963, the District has performed
operation and maintenance of the project, which includes the
inlet and outlet canal systems and Jackson Gulch Dam and
reservoir. The canal systems convey water to and from Jackson
Gulch Reservoir, an off-stream storage facility.
Pursuant to Section 9105 of P.L. 111-11, Reclamation is
authorized to receive appropriations to pay a specified Federal
share of the total cost of carrying out the Jackson Gulch
Rehabilitation Project (Project) of up to, but not to exceed
$8,250,000. Under current law, the District is to reimburse the
United States the amount equal to 35 percent of the total cost
of the Project, or $2,900,000, whichever is less; under S. 860,
this amount can change subject to the amount credited for work
the District performed to date. Reclamation and the District
entered into a repayment contract in July 2010 to carry out
these and other provisions of the Act.
In August 2010, the District received $1,750,000 in Federal
funds through Reclamation; since 2010, Reclamation has received
only $850,000 in additional appropriations for the Project in
the Reclamation Fiscal Year 2019 Spend Plan. The District has
continued to expend funds on the rehabilitation. Subject to the
availability of appropriations, Reclamation supports this
proposal which provides additional flexibility to the District
to rehabilitate the canal system.
Conclusion
Again, thank you for the opportunity to testify. The
Department looks forward to working closely with this Committee
on these bills. I would be happy to answer any questions.
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 the original bill, 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
AN ACT 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 B--Project Authorizations
* * * * * * *
SEC. 9105. JACKSON GULCH REHABILITATION PROJECT, COLORADO.
(a) Definitions.--In this section:
(1) Assessment.--The term ``assessment'' means the
engineering document that is--
(A) entitled ``Jackson Gulch Inlet Canal
Project, Jackson Gulch Outlet Canal Project,
Jackson Gulch Operations Facilities Project:
Condition Assessment and Recommendations for
Rehabilitation'';
(B) dated February 2004; and
(C) on file with the Bureau of Reclamation.
(2) District.--The term ``District'' means the Mancos
Water Conservancy District established under the Water
Conservancy Act (Colo. Rev. Stat. 37-45-101 et seq.).
(3) Project.--The term ``Project'' means the Jackson
Gulch rehabilitation project, a program for the
rehabilitation of the Jackson Gulch Canal system and
other infrastructure in the State, as described in the
assessment.
(4) Secretary.--The term ``Secretary'' means the
Secretary of the Interior, acting through the
Commissioner of Reclamation.
(5) State.--The term ``State'' means the State of
Colorado.
(b) Authorization of Jackson Gulch Rehabilitation
Project.--
(1) In general.--Subject to the reimbursement
[requirement] and cost-sharing requirements described
in paragraph (3), the Secretary shall pay the Federal
share of the total cost of carrying out the Project,
which shall be not more than 65 percent of that total
cost.
(2) Use of existing information.--In preparing any
studies relating to the Project, the Secretary shall,
to the maximum extent practicable, use existing
studies, including engineering and resource information
provided by, or at the direction of--
(A) Federal, State, or local agencies; and
(B) the District.
(3) Reimbursement [Requirement] and cost-sharing
requirements.
(A) Amount.--[The Secretary shall recover
from the District as reimbursable expenses]
Subject to subparagraph (C), the District shall
be liable under this subsection for an amount
equal to the lesser of--
(i) the amount equal to 35 percent of
the cost of the Project; or
(ii) $2,900,000.
(B) Manner.--The [Secretary shall recover
reimbursable expenses] District shall pay the
Project costs for which the District is liable
under subparagraph (A)--
(i) in a manner agreed to by the
Secretary and the District;
(ii) over a period of 15 years; and
(iii) with no interest.
[(C) Credit.--In determining the exact amount
of reimbursable expenses to be recovered from
the District, the Secretary shall credit the
District for any amounts it paid before the
date of enactment of this Act for engineering
work and improvements directly associated with
the Project.]
(C) Credit.--In determining the exact amount
for the the District is liable under this
paragraph, the Secretary shall--
(i) review and approve all final
costs associated with the completion of
the project; and
(ii) credit the District for all
amounts paid by the District for
engineering work and improvements
directly associated with the Project,
whether before, on, or after the date
of enactement of this Act.
(4) Prohibition on operation and maintenance costs.--
The District shall be responsible for the operation and
maintenance of any facility constructed or
rehabilitated under this section.
(5) Liability.--The United States shall not be liable
for damages of any kind arising out of any act,
omission, or occurrence relating to a facility
rehabilitated or constructed under this section.
(6) Effect.--An activity provided Federal funding
under this section shall not be considered a
supplemental or additional benefit under--
(A) the reclamation laws; or
(B) the Act of August 11, 1939 (16 U.S.C.
590y et seq.).
(7) Authorization of appropriations--There is
authorized to be appropriated to the Secretary to pay
the Federal share of the total cost of carrying out the
Project [$8,250,000] the lesser of--
(A) not more than 65 percent of the total
cost of carrying out the Project; and
(B) $5,350,000.
* * * * * * *
[all]
