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1 1 (March 30, 2023)

handle is hein.crs/goveldg0001 and id is 1 raw text is: Con gressionaI Research Service Informing th legisIlive I bAm e sin co 1914 Updated March 30, 2023 Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act Congress created a new authority for the Bureau of Reclamation (Reclamation, part of the Department of the Interior) to build new water storage projects in Section 4007 of the Water Infrastructure Improvements for the Nation Act (WIIN Act). The authority provides federal support for the construction of new and augmented surface water storage projects in the 17 arid reclamation states. Background Traditionally, Reclamation's role in water project development had been limited to geographically specific projects authorized in federal statutes (federal law that applies to reclamation projects generally is 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 (e.g., irrigators, municipal water suppliers, and hydropower contractors) generally then repay their portion of reimbursable project construction or development costs over a 40-50 year term. The amount of the up-front investment ultimately recouped by the federal government typically depends on several factors, including the portion of project 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 WRN Act Congress 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 this purpose. Funding for water storage projects under Section 4007 is available for two primary project types. Federally owned storage projects are 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. The federal government may fund up to 50% of the cost for these projects. State-led storage projects are surface water or groundwater storage projects to be constructed, operated, and maintained by states or political subdivisions. The federal government may fund up to 25% of the costs of these projects. Prior to the WIIN Act, Congress had not authorized Reclamation to fund state-led water storage projects. Before projects can begin construction under Section 4007, several milestones must be met. To recommend a project for construction, the Secretary of the Interior must find that the project is feasible and provides benefits proportionate to the federal government's cost share. In addition, project sponsors must agree to pay their portion of project costs up front. Appropriations under Section 4007 are available only after the Secretary transmits a list of recommended projects and funding levels to Congress, and Congress designates those projects by name in an enacted appropriations act. The WIIN Act also stipulated that in order to move forward with construction, the Secretary must find projects feasible by January 1, 2021. As a result, only a subset of studies funded under this authority are eligible for construction. Proponents of the Section 4007 approach assert that it stretches scarce federal funds and increases local and state incentives to engage and invest in projects. At the same time, because the new authority requires a large, up-front cost share from nonfederal users, it may not be a viable option for project sponsors who lack the means to finance their part of a project's costs. The role of congressional authorizing and appropriations committees is significantly different for Section 4007 projects compared to traditional reclamation law. Since only appropriators must act to advance Secretary- recommended projects, Section 4007 allows Reclamation to move forward with construction without further formal legislative input from congressional authorizing committees. Recent Funding, Project AVocations From FY2017 to FY2023, Congress appropriated a total of $854 million for Section 4007 projects in annual Energy and Water Development appropriations acts. To date, Reclamation has transmitted five lists of project recommendations for these funds that, after congressional approval, released $511 million in prior appropriations to 13 projects: 10 in California, 2 in Washington, and 1 in Idaho. The Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58) also appropriated to Reclamation $1.05 billion for water storage projects (i.e., funding potentially available for Section 4007 projects). Reclamation allocated $137 million for selected Section 4007 projects using FY2022 IIJA funds. Altogether, eight projects (shown in bold in Table 1) were found feasible prior to the WIIN Act deadline of January 1, 2021, and thus are eligible for ongoing construction funding.

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