About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (January 28, 2021)

handle is hein.crs/govebsp0001 and id is 1 raw text is: o ressionol Ses~tan~h Service nitmirig th&. ~H 4t Pt t& ~w~e 1414 Updated January 28, 2021 Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation Act Congress created a new authority for the Bureau of Reclamation (Reclamation, part of the Department of the Interior) to build new water storageprojects in Section 4007 of the Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322). The authority provides federal support for the construction of new and augmented surface waters torageprojects in the 17 arid reclamation states. As of late 2020, Congress had appropriated $603 million for these projects, and Reclamation had allocated more thanhalfofthese funds to 12 projects in three states. Project allocations for the remaining appropriations would require further congressional action. Background Traditionally, Reclamation's role in water project development has been limited to geographically specific projects authorized in federalstatutes (federal law that applies to reclamation projects is generally referred to as reclamation law). Congress provided full, up-front funding for the construction costs of these facilities through discretionary appropriations to Reclamation. Project beneficiaries (i.e., irrigators, municipal water suppliers, and hydropower contractors) would then repay theirportion of reimburs able project construction or development costs over a 40-50 year term. The amount of the up-front investment recouped by the federal government typically depends on several factors, including theportionofproject benefits that are classified as fully or partially nonreimbursable (e.g., fish and wildlife enhancements, flood control, recreation) and adjustments for irrigators' ability to pay. Section 4007 of the WtN Act Congres s enacted a new authority for Reclamation to support water storage projects under Section 4007 of the WIIN Act. The act authorized a total of $335 million in discretionary appropriations for new and improved water storage projects, and it used a different approach than under traditional reclamation law. Funding for water storage projects under Section 4007 is available for two primary project types. Federally owned sto rage p rojects (surface water or groundwater storage projects to which the United States holds title and which were authorized to be constructed pursuant to reclamation law and regulations) may be no more than 50% federally funded. State-led storage p rojects (surface water or groundwater storage projects constructed, operated, and maintained by s tates orpolitical subdivisions) may be no more than 25% federally funded. Prior to the WIIN Act, Congres s had not authorized Reclamation to fund state-led water storage projects. Before projects can be constructed under the authority, several milestones must bemet. The Secretary of the Interior must find that the project is feasible andprovides benefits proportionate to the federal government's cost share, and project sponsors must agree to pay their portion of project costs up front. Appropriations under the Section 4007 authority are available only after the Secretary trans mits a lis t of recommended projects and funding levels to Congress. In turn, Congress designates those projects by name in an enacted appropriations act. Any project that meets the WIIN Act criteria is initially eligible for funding allocations. However, Congress also stipulated that in order to move forward, the Secretary must find projects feasible by January 1,2021, and projects must be under construction by December 17, 2021. Differences from Traditional Reclamation Water Storage Project Model In contrastto the traditionalmodel of full financing up- front, Section 4007 authorizes partial, up-front federal funding, with the nonfederal share of funding also required up front. Proponents ofthese changes argue they are advantageous compared to the traditional model, because they stretch scarce federalfunds andprovide increased incentive for local involvement in projects. At the s ame time, because the new authority requires a large up-front cost share fromnonfederalusers, it may not be a viable option for project sponsors who lack the means to finance their part ofa project's costs. Section 4007 also significantly altered the role of congressional authorizing and appropriations committees; it allowed Reclamation to move forward with construction without directlegislative approval fromcongressional authorizing committees (i.e., only the appropriators must approve). By requiring designationof Administration recommendations by name in appropriations acts, Section 4007 effectively shifted project approvaldecisions fromthe authorization committees to the appropriations committees. Recent Fu nd ing, Project Allocations From FY2017 to FY2021, Congress appropriated $603 million for Section 4007 projects (i.e., more than the $335 million originally authorized in the WIINAct), including funding in enacted Energy and Water Development appropriations acts for FY2017 ($67 million), FY2018 ($134 million), FY2019 ($134 million), FY2020 ($134 million), and FY2021 ($134 million). Reclamation has transmitted four lists of project recommendations for these funds that, after congressional approval, released funding to individualprojects. Table 1 shows approved funding to date for individual projects. https://crsrepc 9

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most