Sec. 9. Offsets

1,429 words·~6 min read·/bill/116/s/1932/is/section-9

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

In this section: The term water users' association means an entity that is— organized and recognized under applicable State law; and eligible to enter into contracts with the Bureau of Reclamation— to receive contract water for delivery to end users of the water; and to pay applicable charges relating to that water. The term water users' association includes— an association; a conservancy district; an irrigation district; a municipality; a water project contract unit; and any similar entity described in paragraph (1).

On receipt of a request from a party to the contract, the Secretary shall convert any water service contract in effect on the date of enactment of this Act between the United States and a water users' association to allow for prepayment of the contract pursuant to paragraph

(2)under mutually agreeable terms and conditions, subject to the conditions that— a water service contract entered into under subsection

(e)of section 9 of the Act of August 4, 1939 (53 Stat. 1193, chapter 418), proposed to be converted under this subsection shall be converted to a repayment contract under subsection

(d)of that section; and a water service contract entered into under subsection (c)(2) of section 9 of the Act of August 4, 1939 (53 Stat. 1193, chapter 418), proposed to be converted under this subsection shall be converted to a contract under subsection (c)(1) of that section. Except for a repayment contract under which the contractor has previously negotiated for prepayment, on request of a party to the contract, a repayment contract under section 9(d) of the Act of August 4, 1939 (53 Stat. 1195, chapter 418), in effect on the date of enactment of this Act, and all contracts converted pursuant to paragraph (1)(A), shall— provide for the repayment, in lump sum or by accelerated prepayment, of the remaining construction costs identified in water project-specific irrigation rate repayment schedules, as adjusted to reflect payments not reflected in those schedules, and properly assignable for ultimate return by the contractor, or if made in approximately equal installments, 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 an estimate of the remaining construction costs, as adjusted, shall be provided by the Secretary to the contractor by not later than 90 days after the date of receipt of a request from the contractor; require that construction costs or other capitalized costs incurred after the effective date of the contract or not reflected in the rate schedule referred to in subparagraph (A), and properly assignable to the contractor, shall be repaid— by not later than 5 years after the date of notification of the allocation if the amount is a result of a collective annual allocation of capital costs to the contractors exercising contract conversion under this subsection of less than $5,000,000; or if the amount is 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 contractor 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. In this paragraph: The term covered contract means— on request of the contractor, a repayment contract under subsection (c)(1) of section 9 of the Act of August 4, 1939 (53 Stat. 1193, chapter 418), that is in effect on the date of enactment of this Act; and a contract converted pursuant to paragraph (1)(B). The term covered contract does not include a repayment contract under which the contractor has previously negotiated for prepayment. Each covered contract shall— provide for the repayment, in lump sum, of the remaining construction costs identified in water project-specific irrigation rate repayment schedules, as adjusted to reflect payments not reflected in those schedules, and properly assignable for ultimate return by the contractor, subject to the condition that the contractor shall submit to the Secretary an estimate of any remaining construction costs, as adjusted, by not later than 90 days after the date of submission of the initial request of the contractor; require that construction costs or other capitalized costs incurred after the effective date of the contract or not reflected in the rate schedule referred to in clause (i), and properly assignable to the contractor, shall be repaid— by not later than 5 years after the date of notification of the allocation, if the amount is a result of a collective annual allocation of capital costs to the exercising contract conversion under this subsection of less than $5,000,000; or in accordance with applicable reclamation laws, if the amount is $5,000,000 or more; and continue in effect for the period during which the contractor 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. A contract entered into pursuant to paragraph (1), (2), or (3)— 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 agreements, such as applicable settlement agreements and newly constructed appurtenant facilities agreements; and shall not modify any other water service, repayment, exchange, or transfer contractual right between the applicable water users' association and the Bureau of Reclamation, or any right, obligation, or relationship of the water users' association and any affected landowner in accordance with applicable State law. Any amount paid pursuant to subsection

(b)shall be subject to adjustment after a final cost allocation by the Secretary. If a final cost allocation under paragraph

(1)indicates that a cost properly assignable to a contractor covered by this section is greater than the amount paid by the contractor, the contractor shall be obligated to pay the remaining allocated costs in accordance with an additional repayment contract under subparagraph (B). Subject to any other provision mutually agreed to by all affected parties, the term of an additional repayment contract under subparagraph

(A)shall be— not less than 1 year; and not more than 10 years. If a final cost allocation under paragraph

(1)indicates that a cost properly assignable to a contractor are less than the amount paid by the contractor, the Secretary shall credit the amount of the overpayment as an offset against any outstanding or future obligation of the contractor, with the exception of any Central Valley Project Restoration Fund charge assessed pursuant to section 3407(d) of Public Law 102–575 (106 Stat. 4727). On compliance by a contract or with, and discharge of, an obligation of repayment of construction costs pursuant to a contract under subsection (b)(2)(A), 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. On payment by a contractor of any amount required under a repayment contract under subsection (b)(2)(A), the obligation of a contractor to repay construction costs or other capitalized costs described in subsection (b)(2)(B), (b)(3)(B), or

(c)shall not affect— the status of the contractor as having repaid all construction costs assignable to the contractor; or the applicability of subsections

(a)and

(b)of section 213 of the Reclamation Reform Act of 1982 ( 43 U.S.C. 390mm ). Nothing in this section alters— any repayment obligation of a water service or repayment contractor receiving water from the same water project, or shifts any cost that would otherwise have been properly assignable to— a water users' association identified in paragraph (1), (2), or

(3)of subsection (b), including— operation and maintenance costs; construction costs; or any other capitalized cost incurred after the date of enactment of this Act; or another contractor; any specific requirement for the disposition of amounts received as repayment by the Secretary under Federal reclamation 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.)); the priority of a water service or repayment contractor to receive water; or except as expressly provided in this section, any obligation under the reclamation laws, including the continuation of any Central Valley Project Restoration Fund charge assessed pursuant to section 3407(d) of Public Law 102–575 (106 Stat. 4727), of a water service or repayment contractor making a prepayment pursuant to this section. Section 4011 of the Water Infrastructure Improvements for the Nation Act ( Public Law 114–322 ; 130 Stat. 1878) is repealed.

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