The text of the bill below is as of Oct 27, 1986 (Passed Congress).
100 STAT. 3050 PUBLIC LAW 99-546—OCT. 27, 1986 Public Law 99-546 99th Congress An Act Oct. 27, 1986 To implement the Coordinated Operations Agreement, the Suisun Marsh Preserva- tion Agreement, and to amend the Small Reclamation Projects Act of 1956, as [H.R. 3113] amended, and for other purposes. Be it enacted by the Senate and House of Representatives of the Conservation. United States of America in Congress assembled, California. Water. TITLE I—COORDINATED OPERATIONS ci Y &;>--. PROJECT OPERATION POLICY SEC. 101. Section 2 of the Act of August 26, 1937 (50 Stat. 850) is amended by— (a) inserting at the beginning "(a)"; and (b) inserting the following new subsection: California. "(b)(1) Unless the Secretary of the Interior determines that oper- ation of the Central Valley project in conformity with State water quality standards for the San Francisco Bay/Sacramento-San Joa- quin Delta and Estuary is not consistent with the congressional directives applicable to the project, the Secretary is authorized and directed to operate the project, in conjunction with the State of California water project, in conformity with such standards. Should the Secretary of the Interior so determine, then the Secretary shall promptly request the Attorney General to bring an action in the court of proper jurisdiction for the purposes of determining the applicability of such standards to the project. "(2) The Secretary is further directed to operate the Central Valley project, in conjunction with the State water project, so that water supplied at the intake of the Contra Costa Canal is of a quality equal to the water quality standards contained in the Water Right Decision 1485 of the State of California Water Resources Control Board, dated August 16, 1978, except under drought emer- gency water conditions pursuant to a declaration by the Governor of California. Nothing in the previous sentence shall authorize or require the relocation of the Contra Costa Canal intake.". REIMBURSABLE COSTS SEC. 102. Section 2 of the Act of August 26, 1937 (50 Stat. 850) is amended by inserting the following new subsection: "(c)(1) The costs associated with providing Central Valley project water supplies for the purpose of salinity control and for complying with State water quality standards identified in exhibit A of the 'Agreement Between the United States of America and the Depart- ment of Water Resources of the State of California for Coordinated Operation of the Central Valley Project and the State Water Project' dated May 20, 1985, shall be allocated among the project purposes and shall be reimbursed in accordance with existing Rec- lamation law and policy. The costs of providing water for salinity
PUBLIC LAW 99-546—OCT. 27, 1986 100 STAT. 3051 control and for complying with State water quality standards above those standards identified in the previous sentence shall be nonreimbursable. "(2) The Secretary of the Interior is authorized and directed to undertake a cost allocation study of the Central Valley project, including the provisions of this Act, and to implement such alloca- tions no later than January 1,1988.". COORDINATED OPERATIONS AGREEMENT SEC. 103. Section 2 of the Act of August 26, 1937 (50 Stat. 850) is amended by inserting the following new subsection: "(d) The Secretary of the Interior is authorized and directed to execute and implement the 'Agreement Between the United States of America and the Department of Water Resources of the State of California for Coordinated Operation of the Central Valley Project and the State Water Project' dated May 20, 1985: Provided, T h a t - ' l l ) the contract with the State of California referred to in subarticle 10(h)(1) of the agreement referred to in this subsec- tion for the conveyance and purchase of Central Valley project water shall become final only after an Act of Congress approv- ing the execution of the contract by the Secretary of the Interior; and, "(2) the termination provisions of the agreement referred to Reports. in this subsection may only be exercised if the Secretary of the " :^ Interior or the State of California submits a report to Congress and sixty calendar days have elapsed (which sixty days, how- '' ever, shall not include days on which either the House of Representatives or the Senate is not in session because of an adjournment of more than three days to a day certain) from the date on which said report has been submitted to the Speaker of the House of Representatives and the President of the Senate ''* for reference to the Committee on Interior and Insular Affairs ^-'' of the House of Representatives and the Committee on Energy and Natural Resources of the Senate. The report must outline the reasons for terminating the agreement and, in the case of *' the report by the Secretary of the Interior, include the views of the Administrator of the Environmental Protection Agency ' and the Governor of the State of California on the Secretary's " u decision.". REFUGE WATER SUPPLY INVESTIGATION SEC. 104. The Secretary of the Interior shall not contract for the Reports. delivery of more than 75 percent of the firm annual yield of the Contracts. Central Valley project not currently committed under long-term contracts until one year after the Secretary has transmitted to the Congress a feasibility report, together with his recommendations, on the "Refuge Water Supply Investigations, Central Valley Basin, California. . ADJUSTMENT OF RATES AND ABIUTY TO PAY SEC. 105. The Secretary of the Interior shall include in all new or Contracts. amended contracts for the delivery of water from the Central Valley Securities. project a provision providing for the automatic adjustment of rates by the Secretary of the Interior if it is found that the rate in effect
100 STAT. 3052 PUBLIC LAW 99-546—OCT. 27, 1986 may not be adequate to recover the appropriate share of the existing Federal investment in the project by the year 2030. The contracts shall also include a provision authorizing the Secretary of the Interior to adjust determinations of ability to pay every five years. OPERATION AND MAINTENANCE DEFICITS Contracts. SEC. 106. The Secretary of the Interior shall include in each new or amended contract for the delivery of water from the Central Valley project provisions ensuring that any annual deficit (outstand- ing or hereafter arising) incurred by a Central Valley project water contractor in the payment of operation and maintenance costs of the Central Valley project is repaid by such contractor under the terms of such new or amended contract, together with interest on any such deficit which arises on or after October 1, 1985, at a rate equal to the average market yields on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the applicable reimbursement period of the project, adjusted to the nearest one-eighth of 1 percent. , TITLE II—SUISUN MARSH PRESERVATION AGREEMENT xJ AUTHORITY TO ENTER AGREEMENT SEC. 201. The Secretary of the Interior is authorized to execute and implement the agreement between the Department of the Interior, the State of California and the Suisun Resources Conserva- tion District (dated November 1, 1985). ;v C O S T - S H A R I N G PROVISIONS SEC. 202. The costs of implementing the agreement provided in section 201 of this title shall be shared by the Bureau of Reclama- tion and the California Department of Water Resources in strict accordance with article 12 of that agreement: Provided, That— (a) payments made by the Secretary of the Interior shall not exceed 40 percent of the construction costs incurred under articles 6, 7, and 8 of the agreement, or $50,000,000, whichever is less, plus or minus such amounts as are justified by reason of ordinary fluctuations in construction costs as indicated by engineering cost indices applicable to the types of construction involved therein; •'•' " - (b) the Federal share of continuing annual operation and ' ' ' maintenance costs, including monitoring, shall not exceed 40 • percent of the actual operation and maintenance costs; and, '3 (c) the costs incurred by the United States for construction "5 and for annual operation and maintenance in connection with t' the implementation of said agreement shall constitute an integral part of the cost of the Central Valley project. The Secretary shall allocate such costs to the reimbursable and nonreimbursable purposes served by the project. COSTS INCURRED SEC. 203. Costs incurred both before and after the date of execu- tion of the agreement herein authorized are to be included in the
PUBLIC LAW 99-546—OCT. 27, 1986 100 STAT. 3053 total for determining the Federal share of construction, operation, and maintenance costs. AUTHORIZATION OF APPROPRIATIONS SEC. 204. There are authorized to be appropriated for the im- plementation of the agreement referred to in Section 201 of this title $50,000,000 plus or minus such amounts, if any, as may be justified by reason of ordinary fluctuations in construction costs as indicated by engineering cost indices applicable to the types of construction involved therein and, in addition thereto, in accordance with subsec- tion 201(b) of this title, such sums as may be required for operation and maintenance: Provided, That no Federal funds may be expended pursuant to this title in advance of appropriations therefor: Pro- vided further, That appropriations pursuant to this title shall remain available until expended without any fiscal year limitation. TITLE III—SMALL RECLAMATION PROJECTS ACT REFERENCE TO SMALL PROJECTS ACT SEC. 301. As used in this title, the term "the Act" means the Small Reclamation Projects Act of 1956, as amended (43 U.S.C. 422a et seq.). REHABILITATION AND BETTERMENT SEC. 302. Section 1 of the Act is amended by inserting after the Energy. word "laws" ", with emphasis on rehabilitation and betterment of Environmental protection. existing projects for purposes of significant conservation of water, 43 u s e 422a. energy and the environment and for purpose of water quality control,". FILING F E E SEC. 303. The second sentence of section 3 of the Act is amended 43 u s e 422c. by striking "$1,000" and inserting in lieu thereof "$5,000". COST SHARING SEC. 304. (a) Section 4(b) of the Act is amended by inserting "(1)" Loans. after (h) and by striking "by loan and grant under this Act" and Grants. inserting in lieu thereof "by loan and grant of Federal funds". 43 u s e 422d. (b) Section 4(b) of the Act is amended by adding the following new Gifts and paragraph at the end thereof: property. "(2) The Secretary shall require each organization to contribute toward the cost of the project (other than by loan and/or grant of Federal funds) an amount equal to 25 percent or more of the allowable estimated cost of the project: Provided, That the Secretary, at his discretion, may reduce the amount of such contribution to the extent that he determines that the organization is unable to secure financing from other sources under reasonable terms and condi- tions, and shall include letters from lenders or other written evi- dence in support of any funding of an applicant's inability to secure such financing in any project proposal transmitted to the Congress: Provided further. That under no circumstances shall the Secretary reduce the amount of such contribution to less than 10 percent of the allowable estimated total project costs. In determining the amount of the contribution as required by this paragraph, the
100 STAT. 3054 PUBLIC LAW 99-546—OCT. 27, 1986 Secretary shall credit toward that amount the cost of investigations, surveys, engineering, and other services necessary to the prepara- tion of proposals and plans for the project as required by the Secretary, and the costs of lands and rights-of-way required for the Ante, p. 3053. project, and the $5,000 fee described in section 3 of this Act. In determining the allowable estimated cost of the project, the Sec- retary shall not include the amount of grants accorded to the Infra. organization under section SO?).". SOIL SURVEY = V. , V, Agriculture and SEC. 305. Section 4(c) of the Act is amended by inserting the agricultural following after the first sentence: "Each project proposal transmit- commodities. ted by the Secretary to the Congress shall include a certification by 43 u s e 422d. the Secretary that an adequate soil survey and land classification has been made, or that the successful irrigability of those lands and their susceptibility to sustained production of agricultural crops by means of irrigation has been demonstrated in practice. Such pro- posal shall also include an investigation of soil characteristics which might result in toxic or heizardous irrigation return flows.". COMPATIBILITY WITH CROPS PROJECTS Fish and fishing. SEC. 306. Section 50^) of the Act is amended by striking everything Wildlife. after the words "joint use facilities properly allocable to fish and Flood control. wildlife enhancement or public recreation;" and substituting the 43 u s e 422e. following in lieu thereof: "(5) that portion of the estimated cost of constructing the "^H'; ^'•• '••'_ project which, if it were constructed as a Federal reclamation >' project, would be properly allocable to functions, other than recreation and fish and wildlife enhancement and flood control, which are nonreimbursable under general provisions of law applicable to such projects; and (6) that portion of the estimated U- hyi cost of constructing the project which is allocable to flood control and which would be nonreimbursable under general provisions of law applicable to projects constructed by the Secretary of the Army.". REPAYMENT A N D INTEREST 43 u s e 422e. SEC. 307. (a) Section 5(cXl) of the Act is amended by striking "fifty" and inserting in lieu thereof "forty". Loans, (b) Section 5(c)(2) of the Act is amended to read as follows: eontracts. "interest, as determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which the contract is executed, on the bsisis of the average market yields on outstanding marketable obligations of the United States with remaining periods of maturity comparable to the applicable reimbursement period of the project, adjusted to the nearest one-eighth of 1 percent on the unamortized balance of any portion of the loan— -i> "(A) which is attributable to furnishing irrigation benefits in """' each particular year to land held in private ownership by a qualified recipient or by a limited recipient, as such terms are 43 u s e 390bb. defined in section 202 of the Reclamation Reform Act of 1982, in Energy. excess of three hundred and twenty irrigable acres; or, Fish and fishing. "(B) which is allocated to domestic, industrial, or municipal Wildlife. water supply, commercial power, fish and wildlife enhance-
PUBLIC LAW 9 9 - 5 4 6 - O C T . 27, 1986 100 STAT. 3055 ment, or public recreation except that portion of such allocation attributable to furnishing benefits to a facility operated by an agency of the United States, which portion shall bear no interest.", (c) The remainder of section 5(c) of the Act is stricken in its entirety. FISH AND WILDUFE FUNDING "SEC. 308. Section 8 of the Act is amended by adding at the end 43 u s e 422h. thereof the following sentence: "The Secretary shall transfer to the Fish and Wildlife Service or to the National Marine Fisheries Service, out of appropriations or other funds made available under this Act, such funds as may be necessary to conduct the investiga- tions required to carry out the purposes of this section.". ., , AUTHORIZATION AND UMITATION SEC. 309. (a) Section 10 of the Act is amended in the, first sentence Effective date. by inserting before ": Provided" "and, effective October 1, 1986, not 43 u s e 422j. to exceed an additional $600,000,000". (b) Section 10 of the Act is further amended by adding at the end Loans. thereof the following: "Not more than 20 percent of the total Grants. amount of additional funds authorized to be appropriated effective October 1, 1986, for loans and grants pursuant to this Act shall be for projects in any single State: Provided, That beginning five years after the date of enactment of this Act, the Secretary is authorized to waive the 20 percent limitation for loans and grants which meet the purposes set forth in section 1 of this Act: Provided further, That Ante, p. 3053. the decision of the Secretary to waive the limitation shall be submit- ted to the Congress together with the project proposal pursuant to section 4(c) of this Act and shall become effective only if the Ante, p. 3054. Congress has not, within 60 legislative days, passed a joint resolu- tion of disapproval for such a waiver.". ,, ,/ TRANSITION RULES SEC. 310, The provisions of Sections 303 and 308 of this title shall Effective date. take effect upon enactment of this title. The provisions of sections 43 u s e 422a note. 304(a) and 305 of this title shall be applicable to all proposals for which final applications are received by the Secretary after Janu- ary 1, 1986. The provisions of Sections 302, 304(b), 306, and 307 shall be applicable to all proposals for which draft applications are re- ceived by the Secretary after Auguest 15,1986. SURPLUS CROPS REPORT SEC. 311. The Secretary of the Interior and the Secretary of Agriculture shall review the effect of the Small Reclamation Projects Act of 1956, as amended, on the operation and objectives of 43 u s e 422a et the programs of the Department of Agriculture dealing with the seq. production of surplus commodities as determined by the Secretary of Agriculture pursuant to the Agriculture Act of 1949, as amended, 7 u s e 1421 note. and shall jointly submit a report of their findings to the Committee on Energy and Natural Resources and the Committee on Agri- culture, Nutrition and Forestry of the Senate and the Committee on Interior and Insular Affairs and the Committee on Agriculture of the House of Representatives no later than 120 days from the date of ifc'~'*'8s^ >.
100 STAT. 3056 PUBLIC LAW 99-546—OCT. 27, 1986 enactment of this Act together with their recommendations, if any, for any changes to either or both programs to better achieve the objectives of such programs. m TITLE IV—VALIDATION OF CONTRACTS ; . - Dams. SEC. 401. The Federal Power Act (Act of June 10, 1920, 41 Stat. 1063; 16 U.S.C. 791a et seq., and Acts amendatory thereof and supplementary thereto) is amended in section 10(e) (16 U.S.C. 803(e)) by deleting "Commission." and inserting in lieu thereof: "Commis- sion: Provided however, That no charge shall be assessed for the use of any Government dam or structure by any licensee if, before January 1, 1985, the Secretary of the Interior has entered into a contract with such licensee that meets each of the following require- ments: "(A) The contract covers one or more projects for which a license was issued by the Commission before January 1, 1985. Energy. "(B) The contract contains provisions specifically providing each of the following: 4 "(i) A powerplant may be built by the licensee utilizing * .' irrigation facilities constructed by the United States. "(ii) The powerplant shall remain in the exclusive con- i trol, possession, and ownership of the licensee concerned. •»!« "(iii) All revenue from the powerplant and from the use, sale, or disposal of electric energy from the powerplant shall be, and remain, the property of such licensee. ' ' "(C) The contract is an amendatory, supplemental and replacement contract between the United States and: (i) the Quincy-Columbia Basin Irrigation District (Contract No. 14-06- 100-6418); (ii) the East Columbia Basin Irrigation District (Con- tract No. 14-06-100-6419); or, (iii) the South Columbia Basin Irrigation District (Contract No. 14-06-100-6420). This paragraph shall apply to any project covered by a contract referred to in this paragraph only during the term of such contract , ,„ unless otherwise provided by subsequent Act of Congress.". , Approved October 27, 1986. LEGISLATIVE HISTORY—H.R. 3113: HOUSE REPORTS: No. 99-257 (Comm. on Interior and Insular Affairs) and No. 99-991 (Comm. of Conference). SENATE REPORTS: No. 99-265 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD: Vol. 131 (1985): Sept. 9, considered and passed House. Vol. 132 (1986): July 16, considered and passed Senate, amended. Oct. 14, House agreed to conference report. Oct. 15, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): Oct. 27, Presidential statement.