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01'\" ""j ) ullhJ . I oIS1Sue o. 93 I SC : fASC' J-"J '!":i'~<'<' ...._-~_.. ilU TIIE WEEKLY NEWSLETTER OF 1HE WESTERN STATES WATER COUNCIL Creekview Plaza, Suite A-201/942 East 7145 So. 1 Midvale, Utah 84047 1 (801) 561-5300 1 FAX (801) 255-%42 editor - Tony Willardson typist - Carrie Curvin CONGRESSIONAL UPDATElWATER RESOURCES FY94 BudgelJWater Use Fees . The budget reconciliation package moving through Congress sets out spending guidelines for Congressional committees. To meet budget targets, each committee must cut programs or raise offsetting revenues. The House Natural Resources Committee was directed to reduce outlays by $131 M in FY94 and nearly $2B through FY98. The Committee plans to achieve the target by increasing hardrock mining fees ($41M), park and recreation user fees ($40M) , and communication and utility rights-of-way fees. Another $35M would be saved by deducting half of the administrative costs of collecting mineral receipts before distributing the states' share. This may reduce the amount of money earmarked for the Bureau of Reclamation, as 40% of federal mineral receipts are deposited in the Reclamation Fund. . The Committee also approved a $10M surcharge on the delivery of water from federal reclamation projects. Receipts will be deposited in a new Natural Resources Restoration Fund. Findings in the legislation approved by the Committee provide that: '(1) the construction and operation of federal reclamation projects have contributed to the depletion of streams, the alteration of riparian habitat, and the degradation of water quality; (2) such impacts have had adverse impacts on fish and wildlife resources; and (3) the restoration of fish and wildlife and related habitat affected by...federal reclamation projects is a continuing responsibility of the beneficiaries of such projects.' The intent of the proposed change is to incorporate the cost of fish and wildlife resources restoration into the annual operation and maintenance costs of reclamation projects, and to 'establish a fair and equitable mechanism' for beneficiaries to pay for chairman - Dave Kennedy executive director - craig Bell projects to 'accelerate the rate of restoration and recovery of depleted populations of indigenous fish and wildlife....' The new surcharge is also expected to 'encourage more efficient use of water resources by beneficiaries of federal reclamation projects.' The Interior Secretary is directed to prescribe such 'terms, conditions and procedures' as may be necessary to yield $10M annually through FY96, and $15M annually thereafter. The surcharge will be paid by individuals or non-federal entities 'that receive delivery of water (including by exchange) which is stored in or transported through federal reclamation projects or project facilities...constructedled by the Secretary of the Army,' that meet certain conditions specified in the Reclamation Reform Act of 1982. The required repayments are to be made 'Without reduction or deferral by the Secretary under any provision of reclamation law and without regard to whether an individual or entity has discharged its repayment obligation.... The payment shall be in addition to any other repayment owed or made to the United States and shall not be applied or credileCl to an individual's or entity's repayment of project construction costs...or reduction of any contractual obligation.." ' The Central Valley Project (CVP) in California is exempted from the new surcharge, because last year's omnibus reclamation paCkage created a $50M CVP restoration fund. It authorized a surcharge of up to $6 per acre-foot on agricultural water service, and $12 per acre-foot on municipal water use. Also, a $25 per acre-foot surcharge will be assessed anoually on any water transfers to non-CVP contractors. Details of the implementation of the new westwide irrigation surcharge will be determined by the Secretary. The Bureau delivers annually nearly 20M