,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #ciha  ,,in ,,the ,,house ,,of  
,,representatives  ,january #ca1        
#bjad,mr4 ,hastings of ,washington      
introduced the following bill2 which was
 referred to the ,committee on ,natural 
,resources  ,a ,,bill  ,to direct the   
,secretary of the ,interior to allow for
 prepayment of repayment contracts      
between the ,united ,states and water   
users1 to provide surface water storage 
enhancement1 and for other purposes4    
#a4 ,short title ,this ,act may be cited
 as the ,accelerated ,revenue1          
,repayment1 and ,surface ,water ,storage
 ,enhancement ,act4  #b4 ,prepayment of 
certain repayment contracts between the 
,united ,states and contractors of      
federally developed water supplies  7a7 
,conversion and prepayment of contracts 
7#a7 ,conversion ,upon request of the   
contractor1 the ,secretary of the       
,interior shall convert any water       
service contract in effect on the date  
of enactment of this ,act and between   

the ,united ,states and a water users'  
association to allow for prepayment of  
the repayment contract pursuant to      
paragraph 7#b7 under mutually agreeable 
terms and conditions4 ,the manner of    
conversion under this paragraph shall be
 as follows3 7,a7 ,water service        
contracts that were entered into under  
section #i7;e7 of the ,act of ,august   
#d1 #aici 7#ec ,stat4 #aaif71 to be     
converted under this section shall be   
converted to repayment contracts under  
section #i7;d7 of that ,act 7#ec ,stat4 
#aaie74  7,b7 ,water service contracts  
that were entered under subsection      
7c77#b7 of section #i of the ,act of    
,august #d1 #aici 7#ec ,stat4 #aaid71 to
 be converted under this section shall  
be converted to a contract under        
subsection 7c77#a7 of section #i of that
 ,act 7#ec ,stat4 #aaie74  7#b7         
,prepayment ,all contracts converted    
pursuant to paragraph 7#a77;,a7 shall-- 
7,a7 upon request of the contractor1    
provide for the repayment1 either in    

lump sum or by accelerated prepayment1  
of the remaining net present value of   
the construction costs identified in    
water project specific irrigation rate  
repayment schedules1 as adjusted to     
reflect payment not reflected in such   
schedule1 and properly assignable for   
ultimate return by the contractor1 or if
 made in approximately equal            
installments1 no later than #c years    
after the effective date of the         
repayment contract2 such amount to be   
discounted by #a_/b the ,treasury rate4 
,an estimate of the remaining net       
present value of construction costs1 as 
adjusted1 shall be provided by the      
,secretary to the contractor no later   
than #cj days following receipt of      
request of the contractor2  7,b7 require
 that construction costs or other       
capitalized costs incurred after the    
effective date of the contract or not   
reflected in the rate schedule          
referenced in subparagraph 7,a71 and    
properly assignable to such contractor  

shall be repaid in not more than #e     
years after notification of the         
allocation if such amount is a result of
 a collective annual allocation of      
capital costs to the contractors        
exercising contract conversation under  
this subsection of less than #e1jjj1jjj4
 ,if such amount is #e1jjj1jjj or       
greater1 such cost shall be repaid as   
provided by applicable reclamation law2 
7,c7 provide that power revenues will   
not be available to aid in repayment of 
construction costs allocated to         
irrigation under the contract2 and  7,d7
 continue so long as the contractor pays
 applicable charges1 consistent with    
section #i7;c77#a7 of the ,act of       
,august #d1 #aici 7#ec ,stat4 #aaie71   
and applicable law4  7#c7 ,contract     
requirements ,the following shall apply 
with regard to all contracts converted  
pursuant to paragraph 7#a77;,b73 7,a7   
,upon request of the contractor1 provide
 for the repayment in lump sum of the   
remaining net present value of          

construction costs identified in water  
project specific municipal and          
industrial rate repayment schedules1 as 
adjusted to reflect payments not        
reflected in such schedule1 and properly
 assignable for ultimate return by the  
contractor4 ,an estimate of the         
remaining net present value of          
construction costs1 as adjusted1 shall  
be provided by the ,secretary to the    
contractor no later than #cj days after 
receipt of request of contractor4  7,b7 
,the contract shall require that        
construction costs or other capitalized 
costs incurred after the effective date 
of the contract or not reflected in the 
rate schedule referenced in subparagraph
 7,a71 and properly assignable to such  
contractor1 shall be repaid in not more 
than #e years after notification of the 
allocation if such amount is a result of
 a collective annual allocation of      
capital costs to the contractors        
exercising contract conversation under  
this subsection of less than #e1jjj1jjj4

 ,if such amount is #e1jjj1jjj or       
greater1 such cost shall be repaid as   
provided by applicable reclamation law2 
and  7,c7 ,continue so long as the      
contractor pays applicable charges1     
consistent with section #i7;c77#a7 of   
the ,act of ,august #d1 #aici 7#ec      
,stat4 #aaie71 and applicable law4  7#d7
 ,conditions ,all contracts entered into
 pursuant to paragraphs 7#a71 7#b71 and 
7#c7 shall-- 7,a7 not be adjusted on the
 basis of the type of prepayment        
financing used by the water users'      
association2  7,b7 conform to any other 
agreements1 such as applicable          
settlement agreements and new           
constructed appurtenant facilities2 and 
7,c7 not modify other water service1    
repayment1 exchange and transfer        
contractual rights between the water    
users' association1 and the ,bureau of  
,reclamation1 or any rights1            
obligations1 or relationships of the    
water users' association and their      
landowners as provided under ,state law4

  7b7 ,accounting ,the amounts paid     
pursuant to subsection 7a7 shall be     
subject to adjustment following a final 
cost allocation by the ,secretary of the
 ,interior4 ,in the event that the final
 cost allocation indicates that the     
costs properly assignable to the        
contractor are greater than what has    
been paid by the contractor1 the        
contractor shall be obligated to pay the
 remaining allocated costs4 ,the term of
 such additional repayment contract     
shall be not less than one year and not 
more than #aj years1 however1 mutually  
agreeable provisions regarding the rate 
of repayment of such amount may be      
developed by the parties4 ,in the event 
that the final cost allocation indicates
 that the costs properly assignable to  
the contractor are less than what the   
contractor has paid1 the ,secretary     
shall credit such overpayment as an     
offset against any outstanding or future
 obligation of the contractor4  7c7     
,applicability of certain provisions    

7#a7 ,effect of existing law ,upon a    
contractor's compliance with and        
discharge of the obligation of repayment
 of the construction costs pursuant to a
 contract entered into pursuant to      
subsection 7a77#b77;,a71 sections #bac  
7a7 and 7b7 of the ,reclamation ,reform 
,act of #aihb 7#if ,stat4 #abfi7 shall  
apply to affected lands4  7#b7 ,effect  
of other obligations ,the obligation of 
a contractor to repay construction costs
 or other capitalized costs described in
 subsections 7a77#b77;,b71 7a77#c77;,b7 
or 7b7 shall not affect a contractor's  
status as having repaid all of the      
construction costs assignable to the    
contractor or the applicability of      
sections #bac 7a7 and 7b7 of the        
,reclamation ,reform ,act of #aihb 7#if 
,stat4 #abfi7 once the amount required  
to be paid by the contractor under the  
repayment contract entered into pursuant
 to subsection 7a77#b77;,a7 have been   
paid4  7d7 ,effect on existing law not  
altered ,implementation of the          

provisions of this ,act shall not alter 
the repayment obligation of any water   
service or repayment contractor         
receiving water from the same water     
project1 or shift any costs that would  
otherwise have been properly assignable 
to the water users' association         
identified in subsections 7a77#a71      
7a77#b71 and 7a77#c7 absent this        
section1 including operation and        
maintenance costs1 construction costs1  
or other capitalized costs incurred     
after the date of the enactment of this 
,act1 or to other contractors4  7e7     
,surface water storage enhancement      
program  7#a7 ,in general ,three years  
following the date of enactment of this 
,act1 all receipts generated from       
prepayment of contracts under this      
section beyond amounts necessary to     
cover the amount of receipts forgone    
from scheduled payments under current   
law for the #aj-year period following   
the date of enactment of this ,act shall
 be directed to the ,reclamation        

,surface ,water ,storage ,account under 
paragraph 7#b74  7#b7 ,surface storage  
account ,the ,secretary shall allocate  
amounts collected under paragraph 7#a7  
into the ,reclamation ,surface ,storage 
,account to fund or provide loans for   
the construction of surface water       
storage4 ,the ,secretary may also enter 
into cooperative agreements with water  
users' associations for the construction
 of surface water storage and amounts   
within the ,surface ,storage ,account   
may be used to fund such construction4  
,surface water storage projects that are
 otherwise not federally authorized     
shall not be considered ,federal        
facilities as a result of any amounts   
allocated from the ,surface ,storage    
,account for part or all of such        
facilities4  7#c7 ,repayment ,amounts   
used for surface water storage          
construction from the ,account shall be 
fully reimbursed to the ,account        
consistent with the requirements under  
,federal reclamation law 7the law 7the  

,act of ,june #ag1 #aijb 7#cb ,stat4    
#chh1 chapter #ajic7771 and ,acts       
supplemental to and amendatory of that  
,act 7#dc ,u4,s4,c4 #cga et seq47 except
 that all funds reimbursed shall be     
deposited in the ,account established   
under paragraph 7#a74  7#d7             
,availability of amounts ,amounts       
deposited in the ,account under this    
subsection shall-- 7,a7 be made         
available in accordance with this       
section1 without further appropriation2 
and  7,b7 be in addition to amounts     
appropriated for such purposes under any
 other provision of law4  7#e7 ,purposes
 of surface water storage ,construction 
of surface water storage under this     
section shall be made for the following 
purposes3 7,a7 ,increased municipal and 
industrial water supply4  7,b7          
,agricultural floodwater1 erosion1 and  
sedimentation reduction4  7,c7          
,agricultural drainage improvements4    
7,d7 ,agricultural irrigation4  7,e7    
,increased recreation opportunities4    

7,f7 ,reduced adverse impacts to fish   
and wildlife from water storage or      
diversion projects within watersheds    
associated with water storage projects  
funded under this section4  7,g7 ,any   
other purposes consistent with          
reclamation laws or other ,federal law4 
7f7 ,definitions ,for the purposes of   
this ,act1 the following definitions    
apply3 7#a7 ,account ,the term ,account 
means the ,reclamation ,surface ,water  
,storage ,account established under     
subsection 7e77#b74  7#b7 ,construction 
,the term construction means the        
designing1 materials engineering and    
testing1 surveying1 and building of     
surface water storage including         
additions to existing surface water     
storage and construction of new surface 
water storage facilities1 exclusive of  
any ,federal statutory or regulatory    
obligations relating to any permit1     
review1 approval1 or other such         
requirement4  7#c7 ,surface water       
storage ,the term surface water storage 

means any federally owned facility under
 the jurisdiction of the ,bureau of     
,reclamation or any non-,federal        
facility used for the surface storage   
and supply of water resources4  7#d7    
,treasury rate ,the term ,treasury rate 
means the #bj-year ,constant ,maturity  
,treasury 7,,cmt7 rate published by the 
,united ,states ,department of the      
,treasury existing on the effective date
 of the contract4  7#e7 ,water users'   
association ,the term water users'      
association means-- 7,a7 an entity      
organized and recognized under ,state   
laws that is eligible to enter into     
contracts with reclamation to receive   
contract water for delivery to and users
 of the water and to pay applicable     
charges2 and  7,b7 includes a variety of
 entities with different names and      
differing functions1 such as            
associations1 conservatory district1    
irrigation district1 municipality1 and  
water project contract unit4