BOARD01179

• Board Meeting Date: 7/25/2006
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

"

.,

Lease sale area 181 is located in the eastern Gulf of Mexico. When the area is opened for drilling,
oil and gas companies will pay the United States Treasury fees to drill there. This bill would
ensure that Treasury allocates $450 million from those revenues to the stateside L WCF.

.

Congress established the Land and Water Conservation Fund in 1964 to meet America's needs for
outdoor recreation opportunities, wildlife habitat conservation and open space. During its first 40
years, the L WCF provided more than 40,000 grants to state and local governments, and L WCF
sites can be found in 94 percent of America's counties.

FY06 Supplemental Appropriations Approved: On June 15 the Senate approved a conference
report on the FY2006 Emergency Supplemental Appropriations Bill (H.R. 4939) following House
approval two days earlier. While funding Iraq war spending and hurricane relief, the bill also
includes drought emergency assistance. Title IV includes a $5 million appropriation to remain
available until expended by the U.S. Army Corps of Engineers and $7.5 million for the Bureau of
Reclamation. Further, it extends authority under Title I of the Reclamation States Emergency
Drought Relief Act of 1991 through 2010 (Section 9011).

Under Title I, Reclamation may purchase water for threatened and endangered species, construct
ponds for wildlife and dikes for wetlands, and drill wells. The law limits construction activities to
temporary facilities, but allows wells drilled under this title to be permanent facilities. It also
authorizes the Secretary to make water available for protecting fish and wildlife resources outside
a project's authorized service area on a nonreimbursable basis.

It authorizes the Secretary to: (I) provide non-financial assistance to buyers for purchasing
available water supplies from willing sellers; (2) purchase water from willing sellers; and (3)
participate in water banks set up by States. It permits the Secretary to make water available on a
temporary basis and to use Federal Reclamation water project facilities to store and convey
project and non-project water for use outside an authorized project service area. It outlines
provisions governing repayment obligations for water provided on a temporary basis. It requires
the Secretary to charge recipients for the use of nonproject water for municipal, industrial, and
agricultural uses. It also requires the payment of capital costs attributable to the sale of water or
the use of Federal Reclamation project facilities to be deposited into the Reclamation Fund and
credited to the project from which the water or facility is supplied.

.

Title I also authorizes the Secretary to make loans to water users for undertaking conservation,
construction, or management activities or the acquisition and transportation of water to mitigate
drought losses. and sets forth repayment obligations.

FY07 Water Appropriations Update: The Senate Appropriations Subcommittee on Energy and
Water voted to include $65 million for the Animas-La Plata Project in FY 2007. When Congress
returns from recess on July 10 floor consideration will be set and, if passed as recommended, a
conference committee will be needed to resolve the difference with the House version which
adopted the figure in the President's proposed FY 2007 budget of$57.4 million.

Bureau Releases "Managing for Excellence - An Action Plan for tbe 21" Century" and
Holds Public Meeting: In mid-June, the Bureau of Reclamation published Managingfor
Excellence, an Action Planfor the 21" Century." This plan comes as a result ofa National
Research Council review entitled "Managing Construction and Infrastructure in the 21st Century
Bureau of Reclamation." The NRC report sets forth findings and recommendations for successful
Bureau operations in the future.

.

8