WSPC02031

• File Number: 8200.300.20
• Description: Colorado River-Colorado River Basin-Colorado River Basin Legislation-Law-Federal
• Date: 9/10/1985
• Title: CR Colorado River Floodway Protection Act-Corres Reports etc-May thru December 1985-File2of2-HR 1246-Establishing a Federally Declared Floodway for the Colorado River Below Davis Dam
• Water Supply Pro - Doc Type: Report/Study

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U.S. CoNGRESS,
CoNGRESSIONAL BUDGET OFFICE,
Washington, DC, August 16,1985.

Hon. MORRIS K UDALL,
Chairman, Commi~tee on Interior and Insular Affairs, u.s. House
of Representatives, Longworth House Office Building, Washing-
ton, DC.

. DEAR MR. CHAIRMAN: The Congressional Budget Office has re-
viewed H.R. 1246, the Colorado River .Floodway Protection Act, as
ordered reported by the House CommIttee on Interior and Insular
Affairs, July 31, 1985. We estimate that enactment of the bill
would result in costs to the federal government of approximately
$200,000 in 1986 and $400,000 in 1987.
H.R. 1246 would establish a federally-declared floodway for the
~lorado River below Davis Dam and would create a Colorado
~hver Floodway Task Force to prepare recommendations concern-
mg the management of the floodway. The bill would require the
Secreta:y of the Interior, within one year of enactment, to prepare
an offiCial '!lap and a report on the floodway. In addition, the bill
,,:ould res~rICt future federal expenditures and fmancial aid to spe-
CIfic public health and safety purposes and would restrict. the
lP:anting of new federal leases on public lands within the floodway.
Fmally, H.R. 1246 would amend the National Flood Insurance Act
?f 1968 to limit. flood insurance coverage on new construction or
Improve~ents of ~tructures within the floodway.
The bill author~zes the appropriation of $600,000 to the Depart-
n:'ent of th.e I~tenor to carry out the mapping and reporting provi-
sions of thiS bill. Based on the obligation rates of similar programs
CBO estimates that outlays would total $200000 in 1986 and
$400,000 in 1987, ~suming appropriation of the ~uthorized amount.
Enactment of thiS bill would have no significant impact on the
budgets of state or local governments.
If rou wish further details on this estimate, we will be pleased to
proVIde them.
With best wishes,
Sincerely,

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ERIC HANUSHEK
(For Rudolph G. Penner).
INFLATIONARY IMPACT STATEMENT
While it is difficult to estimate all of the economic implications
of ~he e.nactIl!ent .of H.R.. 1246, as recommended, it is apparent this
legislatIOn will likely dIScourage development in a high hazard
area, the Colorado River floodway. This should limit requirements
for flood control space within the Colorado River reservoir system
to levels rationally related to the needs of prudent development.
The result should be to limit claims against the Federal govern.
ment for flood damages, and to protect the available supply of
water without new Federal or private investment. For these rea-
sons, the legislation should reduce inflation in the long term.

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COMMITI'EE RECOMME~DATION AND VOTE

On July 31, 1985, the Committee on Interior and Insular Affairs
agreed to consider H.R. 1246, and entertain:d amend men ts b>:
members. The Committee agreed to the substitute for H.R. 1246
recommended herein by voice vote on July 31, .1985,

CHANGES IN EXISTING LAW

In compliance with clause 3 of Rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omIt-
ted is enclosed in black bracketa, new matter is printed in italics,
existing law in which no change is proposed is shown in roman):

ACT OF AUGUST 1, 1968 (82 STAT, 46, AS AMENDED, 42 U,S.C. 4028,
ET SEQ,)

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SEC. 1311. (a) Owners of existing National Flood Insurance Act
policies with respect to structures located within the Floodway es-
tablished under Section 5 of the Colorado River Floodway Protec-
tion Act shall have the right to renew and transfer such policies,
Owners of existing structures located within said Floodway on the
date of enactment of the Colorado River Floodway Protection Act
who have not acquired National Flood Insurance Act policies shall
have the right to acquire policies with respect to such structures for
six months after the Secretary of the Interior files the Floodway
maps required by section 5(bX2) of the Colorado River Floodway Pro.
tection Act and to renew and transfer such policies.
(b) No new flood insurance coverage may be provided under this
title on or after a date six months after the enactment of the Colora-
do River Floodway Protection Act for any new construction or sub.
stantial improvements of structures located within the Colorado
River Floodway established by Section 5 of the Colorado River
Floodway Protection Act. New construction includes all structures
that are not insurable prior to that date.
(c) The Secretary of the Interior may by rule after notice and com.
ment pursuant to 5 U.S,C. 553 establish temporary Floodway bound.
aries to be in effect until the maps required by Section 5(bX2) of the
Colorado River Floodway Protection Act are filed, for the purpose of
enforcing subsections (b) and (d) of this section.
(d) A federally supervised, approved, regulated or insured finan.
cial institution may make loans s,,-cured by structures which are not
eligible for flood insurance by reason of this section: Provided, that
prior to making such a loan, such institution determines that the
lands or structures securing the loan are within the Floodway,

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