Sec. 602. Accelerated revenue, repayment, and surface water storage enhancement
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This section may be cited as the . Accelerated Revenue, Repayment, and Surface Water Storage Enhancement Act In this section: The term Account means the Reclamation Surface Water Storage Account established under subsection (f)(1). The term construction means the designing, materials engineering and testing, surveying, and building of surface water storage. The term construction includes— any addition to existing surface water storage; and construction of a new surface water storage facility.
The term construction excludes any Federal statutory or regulatory obligation relating to any permit, review, approval, or other similar requirement. The term Secretary means the Secretary of the Interior. The term surface water storage means storage at— 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. The term Treasury rate means the 20-year constant maturity treasury rate published by the United States Treasury, as in existence on the effective date of the applicable contract.
The term water users association means an entity organized and recognized under State law that is eligible to enter into contracts with the Commissioner— to receive contract water for delivery to users of the water; and to pay any applicable charges. The term water users association includes— an association; a conservatory district; an irrigation district; a municipality; and a water project contract unit. On receipt of a request from a water users association, the Secretary shall convert any water service contract in effect on the date of enactment of this Act between the United States and the water users association to allow for prepayment of the repayment contract in accordance with this paragraph under mutually agreeable terms and conditions.
The manner of conversion under this paragraph shall be as follows: Water service contracts entered under section 9(c)(2) of the Act of August 4, 1939 (53 Stat. 1194, chapter 418), to be converted under this section shall be converted to a contract under section 9(c)(1) of that Act (53 Stat. 1194, chapter 418). Water service contracts entered into under section 9(e) of the Act of August 4, 1939 (53 Stat. 1196, chapter 418), to be converted under this section shall be converted to repayment contracts under section 9(d) of that Act (53 Stat. 1195, chapter 418). 9(c)(1) Except for a repayment contract under which the applicable water users association has previously negotiated for prepayment, each repayment contract under section 9(c)(1) of the Act of August 4, 1939 (53 Stat. 1194, chapter 418) (including any contract converted pursuant to paragraph (1)(B)(i)), in effect on the date of enactment of this Act shall, at the request of the water users association— provide for the repayment in lump sum of the remaining construction costs identified in an applicable water project-specific municipal or industrial rate repayment schedule (as adjusted to reflect payment not reflected in the schedule) and properly assignable for ultimate return by the water users association, subject to the condition that an estimate of the remaining construction costs, as adjusted, shall be provided by the Secretary to the water users association by not later than 90 days after the date of receipt of the request of the water users association; require that any construction costs or other capitalized costs that were incurred after the effective date of the contract, were not reflected in the rate schedule referred to in clause (i), or were not properly assignable to the water users association, and were incurred as a result of a collective annual allocation of capital costs to the water users association electing contract conversion under this subsection, shall be repaid— for costs equal to less than $5,000,000, by not later than the date that is 5 years after the date of notification of the allocation; or for costs equal to $5,000,000 or more, in accordance with applicable reclamation laws; and continue in effect for the period during which the water users association pays applicable charges in accordance with section 9(c)(1) of the Act of August 4, 1939 (53 Stat. 1194, chapter 418), and other applicable law. 9(d) Except for a repayment contract under which the applicable water users association has previously negotiated for prepayment, each repayment contract under section 9(d) of the Act of August 4, 1939 (53 Stat. 1195, chapter 418) (including any contract converted pursuant to paragraph (1)(B)(ii)), in effect on the date of enactment of this Act shall, at the request of the water users association— provide for repayment of the remaining construction costs identified in an applicable water project-specific irrigation rate repayment schedule (as adjusted to reflect payment not reflected in the schedule) and properly assignable for ultimate return by the water users association in lump sum, by accelerated prepayment, or if made in approximately equal installments, by not later than 3 years after the effective date of the repayment contract, subject to the conditions that— the amount shall be discounted by 1/2 the Treasury rate; and the estimate of the remaining construction costs, as adjusted, shall be provided by the Secretary to the water users association by not later than 90 days after the date of receipt of the request of the water users association; require that any construction costs or other capitalized costs that were incurred after the effective date of the contract, were not reflected in the rate schedule referred to in clause (i), or were not properly assignable to the water users association, and were incurred as a result of a collective annual allocation of capital costs to the water users association electing contract conversion under this subsection, shall be repaid— for costs equal to less than $5,000,000, by not later than the date that is 5 years after the date of notification of the allocation; or for costs equal to $5,000,000 or more, in accordance with applicable reclamation laws; provide that power revenues will not be available to aid in repayment of construction costs allocated to irrigation under the contract; and continue in effect for the period during which the water users association pays applicable charges in accordance with section 9(d) of the Act of August 4, 1939 (53 Stat. 1195, chapter 418), and other applicable law.
A contract entered into pursuant to this subsection— shall not be adjusted on the basis of the type of prepayment financing used by the applicable water users association; shall conform to any other applicable agreement, such as a settlement agreement or a new constructed appurtenant facility agreement; and shall not modify any other— water service, repayment, exchange, or transfer contractual right between the water users association, and the Bureau of Reclamation; or right, obligation, or relationship of the water users association and an applicable landowner in accordance with State law.
The amounts paid pursuant to subsection
(c)shall be subject to adjustment following a final cost allocation by the Secretary. If the final cost allocation under paragraph
(1)indicates that the costs properly assignable to a water users association are greater than the costs paid by the water users association, the water users association shall be obligated to pay to the Secretary the remaining allocated costs under an additional repayment contract under subparagraph (B). An additional repayment contract required by subparagraph
(A)shall— have a term of— not less than 1 year; and not more than 10 years; and include such mutually agreeable provisions regarding the rate of repayment of the deficient amount as may be developed by the parties. If the final cost allocation under paragraph
(1)indicates that the costs properly assignable to a water users association are less than the costs paid by the water users association, the Secretary shall credit the amount of the overpayment as an offset against any outstanding or future obligation of the water users association with the exception of Restoration Fund charges pursuant to section 3407(d) of Public Law 102–575 . On compliance by a water users association with, and discharge of the obligation of repayment of the construction costs pursuant to, a contract entered into under to subsection (c)(2)(B), subsections
(a)and
(b)of section 213 of the Reclamation Reform Act of 1982 ( 43 U.S.C. 390mm ) shall apply to any affected land. The obligation of a water users association to repay any construction costs or other capitalized cost described in subparagraph (A)(ii) or (B)(ii) of subsection (c)(2), or subsection (d), shall not, on repayment, affect— the status of the water users association as having repaid all of the construction costs assignable to the water users association; or the applicability of subsection
(a)or
(b)of section 213 of the Reclamation Reform Act of 1982 ( 43 U.S.C. 390mm ). The Secretary shall establish an account, to be known as the Reclamation Surface Storage Account , consisting of such amounts as are deposited in the Account under paragraph (2), to fund the construction of surface water storage. Not later than 3 years after the date of enactment of this Act, an amount equal to 50 percent of receipts generated from the prepayment of contracts under this section in excess of amounts necessary to cover the amount of receipts forgone from scheduled payments under applicable law in effect on that date of enactment during the 10-year period beginning on that date of enactment shall be deposited in the Account. The Secretary may— enter into cooperative agreements with water users associations for the construction of surface water storage; and use amounts in the Account to fund construction under such a cooperative agreement. A surface water storage project that is otherwise not federally authorized shall not be considered to be a Federal facility as a result of the allocation of any amount from the Account for any portion of the project. Any amount from the Account used for surface water storage construction shall be fully reimbursed to the Account in accordance with applicable requirements under the reclamation laws, except that all funds reimbursed shall be deposited in the Account. The amounts deposited in the Account under this subsection shall— be made available for the storage projects identified in section 402, subject to appropriation; and be in addition to amounts appropriated for those purposes under any other provision of law. The construction of surface water storage under this section shall be made available for the federally owned and State-led storage projects pursued under this Act, provided that funds are limited to the Federal cost-share (up to 25 percent for State-led projects and up to 50 percent for federally owned projects). Nothing in this section— alters the repayment obligation of any water service or repayment contractor receiving water from a water project, or shifts any costs that would otherwise have been properly assignable to a water users association described in subsection
(c)or another contractor, absent this section, including operation and maintenance costs, construction costs, or other capitalized costs incurred after the date of enactment of this Act; alters any specific requirement for the disposition of amounts received as repayments by the Secretary under the reclamation laws; or except as expressly provided in this section, alters any obligations under the reclamation law, including the continuation of Restoration Fund charges pursuant to section 3407(d) ( Public Law 102–575 ), of the water service and repayment contractors making prepayments pursuant to this section.
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- 53 Stat. 1194
- 53 Stat. 1196
- 53 Stat. 1195
- Pub. L. 102-575
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Sec. 602
Accelerated revenue, repayment, and surface water storage enhancement
Stat.53 Stat. 1194
Stat.53 Stat. 1196
Stat.53 Stat. 1195
Pub. L.Pub. L. 102-575
Cites 5Cited by 0 across 0 sources