Accelerated Revenue, Repayment, and Surface Water Storage Enhancement Act - Directs the Secretary of the Interior to convert certain existing water service contracts between the United States and water users' associations to repayment contracts to allow for prepayment of such contracts, upon the request of the contractor. Specifies the manner of conversion and the terms and conditions of prepayment.
Requires the receipts generated from prepayment of contracts under this Act, beyond amounts necessary to cover the amount of receipts forgone from scheduled payments under current law for the 10-year period following the enactment of this Act, to be directed to the Reclamation Surface Water Storage Account. Requires the Secretary to allocate amounts in such Account to fund or provide loans for the construction of surface water storage for:
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3981 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 3981
To direct the Secretary of the Interior to allow for prepayment of
repayment contracts between the United States and water users, to
provide surface water storage enhancement, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 31, 2014
Mr. Hastings of Washington introduced the following bill; which was
referred to the Committee on Natural Resources
_______________________________________________________________________
A BILL
To direct the Secretary of the Interior to allow for prepayment of
repayment contracts between the United States and water users, to
provide surface water storage enhancement, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accelerated Revenue, Repayment, and
Surface Water Storage Enhancement Act''.
SEC. 2. PREPAYMENT OF CERTAIN REPAYMENT CONTRACTS BETWEEN THE UNITED
STATES AND CONTRACTORS OF FEDERALLY DEVELOPED WATER
SUPPLIES.
(a) Conversion and Prepayment of Contracts.--
(1) Conversion.--Upon request of the contractor, the
Secretary of the Interior shall convert any water service
contract in effect on the date of enactment of this Act and
between the United States and a water users' association to
allow for prepayment of the repayment contract pursuant to
paragraph (2) under mutually agreeable terms and conditions.
The manner of conversion under this paragraph shall be as
follows:
(A) Water service contracts that were entered into
under section 9(e) of the Act of August 4, 1939 (53
Stat. 1196), to be converted under this section shall
be converted to repayment contracts under section 9(d)
of that Act (53 Stat. 1195).
(B) Water service contracts that were entered under
subsection (c)(2) of section 9 of the Act of August 4,
1939 (53 Stat. 1194), to be converted under this
section shall be converted to a contract under
subsection (c)(1) of section 9 of that Act (53 Stat.
1195).
(2) Prepayment.--All contracts converted pursuant to
paragraph (1)(A) shall--
(A) upon request of the contractor, provide for the
repayment, either in lump sum or by accelerated
prepayment, of the remaining net present value of the
construction costs identified in water project specific
irrigation rate repayment schedules, as adjusted to
reflect payment not reflected in such schedule, and
properly assignable for ultimate return by the
contractor, or if made in approximately equal
installments, no later than 3 years after the effective
date of the repayment contract; such amount to be
discounted by \1/2\ the Treasury rate. An estimate of
the remaining net present value of construction costs,
as adjusted, shall be provided by the Secretary to the
contractor no later than 30 days following receipt of
request of the contractor;
(B) require that construction costs or other
capitalized costs incurred after the effective date of
the contract or not reflected in the rate schedule
referenced in subparagraph (A), and properly assignable
to such contractor shall be repaid in not more than 5
years after notification of the allocation if such
amount is a result of a collective annual allocation of
capital costs to the contractors exercising contract
conversation under this subsection of less than
$5,000,000. If such amount is $5,000,000 or greater,
such cost shall be repaid as provided by applicable
reclamation law;
(C) provide that power revenues will not be
available to aid in repayment of construction costs
allocated to irrigation under the contract; and
(D) continue so long as the contractor pays
applicable charges, consistent with section 9(c)(1) of
the Act of August 4, 1939 (53 Stat. 1195), and
applicable law.
(3) Contract requirements.--The following shall apply with
regard to all contracts converted pursuant to paragraph (1)(B):
(A) Upon request of the contractor, provide for the
repayment in lump sum of the remaining net present
value of construction costs identified in water project
specific municipal and industrial rate repayment
schedules, as adjusted to reflect payments not
reflected in such schedule, and properly assignable for
ultimate return by the contractor. An estimate of the
remaining net present value of construction costs, as
adjusted, shall be provided by the Secretary to the
contractor no later than 30 days after receipt of
request of contractor.
(B) The contract shall require that construction
costs or other capitalized costs incurred after the
effective date of the contract or not reflected in the
rate schedule referenced in subparagraph (A), and
properly assignable to such contractor, shall be repaid
in not more than 5 years after notification of the
allocation if such amount is a result of a collective
annual allocation of capital costs to the contractors
exercising contract conversation under this subsection
of less than $5,000,000. If such amount is $5,000,000
or greater, such cost shall be repaid as provided by
applicable reclamation law; and
(C) Continue so long as the contractor pays
applicable charges, consistent with section 9(c)(1) of
the Act of August 4, 1939 (53 Stat. 1195), and
applicable law.
(4) Conditions.--All contracts entered into pursuant to
paragraphs (1), (2), and (3) shall--
(A) not be adjusted on the basis of the type of
prepayment financing used by the water users'
association;
(B) conform to any other agreements, such as
applicable settlement agreements and new constructed
appurtenant facilities; and
(C) not modify other water service, repayment,
exchange and transfer contractual rights between the
water users' association, and the Bureau of
Reclamation, or any rights, obligations, or
relationships of the water users' association and their
landowners as provided under State law.
(b) Accounting.--The amounts paid pursuant to subsection (a) shall
be subject to adjustment following a final cost allocation by the
Secretary of the Interior. In the event that the final cost allocation
indicates that the costs properly assignable to the contractor are
greater than what has been paid by the contractor, the contractor shall
be obligated to pay the remaining allocated costs. The term of such
additional repayment contract shall be not less than one year and not
more than 10 years, however, mutually agreeable provisions regarding
the rate of repayment of such amount may be developed by the parties.
In the event that the final cost allocation indicates that the costs
properly assignable to the contractor are less than what the contractor
has paid, the Secretary shall credit such overpayment as an offset
against any outstanding or future obligation of the contractor.
(c) Applicability of Certain Provisions.--
(1) Effect of existing law.--Upon a contractor's compliance
with and discharge of the obligation of repayment of the
construction costs pursuant to a contract entered into pursuant
to subsection (a)(2)(A), sections 213 (a) and (b) of the
Reclamation Reform Act of 1982 (96 Stat. 1269) shall apply to
affected lands.
(2) Effect of other obligations.--The obligation of a
contractor to repay construction costs or other capitalized
costs described in subsections (a)(2)(B), (a)(3)(B) or (b)
shall not affect a contractor's status as having repaid all of
the construction costs assignable to the contractor or the
applicability of sections 213 (a) and (b) of the Reclamation
Reform Act of 1982 (96 Stat. 1269) once the amount required to
be paid by the contractor under the repayment contract entered
into pursuant to subsection (a)(2)(A) have been paid.
(d) Effect on Existing Law Not Altered.--Implementation of the
provisions of this Act shall not alter the repayment obligation of any
water service or repayment contractor receiving water from the same
water project, or shift any costs that would otherwise have been
properly assignable to the water users' association identified in
subsections (a)(1), (a)(2), and (a)(3) absent this section, including
operation and maintenance costs, construction costs, or other
capitalized costs incurred after the date of the enactment of this Act,
or to other contractors.
(e) Surface Water Storage Enhancement Program.--
(1) In general.--Three years following the date of
enactment of this Act, all receipts generated from prepayment
of contracts under this section beyond amounts necessary to
cover the amount of receipts forgone from scheduled payments
under current law for the 10-year period following the date of
enactment of this Act shall be directed to the Reclamation
Surface Water Storage Account under paragraph (2).
(2) Surface storage account.--The Secretary shall allocate
amounts collected under paragraph (1) into the ``Reclamation
Surface Storage Account'' to fund or provide loans for the
construction of surface water storage. The Secretary may also
enter into cooperative agreements with water users'
associations for the construction of surface water storage and
amounts within the Surface Storage Account may be used to fund
such construction. Surface water storage projects that are
otherwise not federally authorized shall not be considered
Federal facilities as a result of any amounts allocated from
the Surface Storage Account for part or all of such facilities.
(3) Repayment.--Amounts used for surface water storage
construction from the Account shall be fully reimbursed to the
Account consistent with the requirements under Federal
reclamation law (the law (the Act of June 17, 1902 (32 Stat.
388, chapter 1093))), and Acts supplemental to and amendatory
of that Act (43 U.S.C. 371 et seq.) except that all funds
reimbursed shall be deposited in the Account established under
paragraph (1).
(4) Availability of amounts.--Amounts deposited in the
Account under this subsection shall--
(A) be made available in accordance with this
section, without further appropriation; and
(B) be in addition to amounts appropriated for such
purposes under any other provision of law.
(5) Purposes of surface water storage.--Construction of
surface water storage under this section shall be made for the
following purposes:
(A) Increased municipal and industrial water
supply.
(B) Agricultural floodwater, erosion, and
sedimentation reduction.
(C) Agricultural drainage improvements.
(D) Agricultural irrigation.
(E) Increased recreation opportunities.
(F) Reduced adverse impacts to fish and wildlife
from water storage or diversion projects within
watersheds associated with water storage projects
funded under this section.
(G) Any other purposes consistent with reclamation
laws or other Federal law.
(f) Definitions.--For the purposes of this Act, the following
definitions apply:
(1) Account.--The term ``Account'' means the Reclamation
Surface Water Storage Account established under subsection
(e)(2).
(2) Construction.--The term ``construction'' means the
designing, materials engineering and testing, surveying, and
building of surface water storage including additions to
existing surface water storage and construction of new surface
water storage facilities, exclusive of any Federal statutory or
regulatory obligations relating to any permit, review,
approval, or other such requirement.
(3) Surface water storage.--The term ``surface water
storage'' means any federally owned facility under the
jurisdiction of the Bureau of Reclamation or any non-Federal
facility used for the surface storage and supply of water
resources.
(4) Treasury rate.--The term ``Treasury rate'' means the
20-year Constant Maturity Treasury (CMT) rate published by the
United States Department of the Treasury existing on the
effective date of the contract.
(5) Water users' association.--The term ``water users'
association'' means--
(A) an entity organized and recognized under State
laws that is eligible to enter into contracts with
reclamation to receive contract water for delivery to
and users of the water and to pay applicable charges;
and
(B) includes a variety of entities with different
names and differing functions, such as associations,
conservatory district, irrigation district,
municipality, and water project contract unit.
<all>
Introduced in House
Introduced in House
Referred to the Subcommittee on Water and Power.
Referred to the House Committee on Natural Resources.
Subcommittee Hearings Held.
Subcommittee on Water and Power Discharged.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 16.
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