The Senate amendment strikes the House provision. HERMAN E. TALMADGE, DICK CLARK, ROBERT DOLE, HENRY BELLMON, Managers on the Part of the Senate. CARL D. PERKINS, WILLIAM D. FORD, ALBERT H. QUIE, ALPHONZO BELL, EDWIN D. ESHILEMAN, JOHN BUCHANAN, LARRY PRESSLER, WILLIAM F. GOODLING, JAMES M. JEFFORDS, Managers on the Part of the House. О 94TH CONGRESS 1st Session } SENATE { REPORT No. 94-380 EXPANDING COVERAGE OF THE REHABILITATION AND BETTERMENT ACT (ACT OF OCT. 7, 1949, 63 STAT. 724) SEPTEMBER 18 (legislative day, SEPTEMBER 12), 1975.-Ordered to be printed Mr. JACKSON, from the Committee on Interior and Insular Affairs, submitted the following REPORT [To accompany H.R. 543] The Committee on Interior and Insular Affairs, to which was referred the bill (H.R. 543) to expand coverage of the Rehabilitation and Betterment Act (Act of Oct. 7, 1949, 63 Stat. 724), having considered the same, reports favorably thereon without amendment and recommends that the bill do pass. PURPOSE OF THE MEASURE The purpose of the measure is to make available to projects developed pursuant to the Small Reclamation Projects Act (70 Stat. 1077) a source of loan funds for rehabilitation and betterment purposes as provided by the programs authorized by the Rehabilitation and Betterment Act of 1949 (63 Stat. 724) as amended. BACKGROUND AND NEED In 1949, the Congress recognized the need to provide a mechanism for funding rehabilitation and betterment activities association with irrigation projects constructed under Federal reclamation laws. With the signing into law of the Rehabilitation and Betterment Act of 1949, the Secretary of the Interior was authorized to make loans to operating entities of such projects for such purposes thereby assuring the continued effective, efficient, and economic operation of Federally constructed irrigation systems. By keeping the projects in good repair and in those instances where applicable, modernizing the irrigation works, the projects have continued to provide valuable food and fiber resources, stable incomes for participants, and the repayment of initial Federal investments. In the 26 years since the program was initiated. there have been no defaults or delinquencies and irrigators on 34 projects have benefitted from loans amounting to $55 million. In 1956, a program of assistance via loans to qualified entities for construction of multipurpose reclamation projects was initiated under the Small Reclamation Projects Act of 1956. During the almost 20 years since passage of the act, it has proven to be a valuable tool for the development and effective utilization of related land and water resources. As of January, 1975, under the Small Reclamation Projects Act, construction has been completed on 41 projects with loans totaling $95 million and 14 projects with loans totaling $66 million were under construction. It is evident that projects constructed under the authority of the Small Reclamation Projects Act will, in time, be in need of rehabilitation and betterment efforts if the projects are to continue or improve past performance. The Solicitor of the Interior has determined that projects constructed under the authority of the Small Reclamation Projects Act, as amended, are not eligible for rehabilitation and betterment loans under the Act of 1949. PROPOSED LEGISLATION H.R. 543 will amend the Rehabilitation and Betterment Act of 1949 to provide that organizations concerned with projects constructed under the terms of the Small Reclamation Projects Act, as amended, may be eligible and apply for loans in accordance with the Rehabilitation and Betterment Act of 1949; however, repayment would be subject to the terms of the Small Reclamation Projects Act. COSTS In accordance with Section 252 (a) of the Legislative Reorganization Act of 1970 the committee provides the following estimates of cost: Although H.R. 543 does not contain authorization for a specific monetary program, additional expenditures will be involved as qualified entities avail themselves of the benefits to be derived from loans under the terms of the Rehabilitation and Betterment Act, as amended. The Department of the Interior estimates that expenditures at current cost levels may reach $9 million over a period of 30 to 40 years. However, the committee, particularly in light of the enthusiastic extent to which the Small Reclaination Projects Act has been utilized, would estimate that rehabilitation and betterment loans available pursuant to this legislation may reach or exceed $20 million for the same period of time. However, it should be pointed out that these costs are for the most part. repayable. TABULATION OF VOTES CAST IN COMMITTEE Pursuant to Section 133 (b) of the Legislative Reorganization Act of 1946, as amended, the following is a tabulation of votes of the Committee during consideration of II.R. 543. H.R. 543 was ordered favorably reported to the Senate without amendments by unanimous voice vote taken in open public session on September 10. 1975, with a quorum of members present. S.R. 380 EXECUTIVE COMMUNICATIONS The executive communications regarding H.R. 543 are set forth in full as follows: U.S. DEPARTMENT OF THE INTERIOR, OFFICE OF THE SECRETARY, Hon. HENRY M. JACKSON, DEAR MR. CHAIRMAN: This responds to your request for this Department's views on H.R. 543, as it passed the House of Representatives, a bill "To expand coverage of the Rehabilitation and Betterment Act (Act of October 7, 1949, 63 Stat. 724)." As requested by your letter of May 18, 1975, we have reviewed the subject bill, and recommend against its enactment subject to the comments discussed below. The Rehabilitation and Betterment Act of 1949 provides authority for, and is restricted in its use to the rehabilitation and betterment of irrigation systems on projects governed by Federal Reclamation law. H.R. 543. as passed by the House of Representatives, would extend the Rehabilitation and Betterment Act to projects constructed under the authority of the Small Reclamation Projects Act which need remedial measures to protect their financial integrity. Both Acts are administered by the Secretary of the Interior. The Department supports the objective incorporated in H.R. 543 to provide authority for the rehabilitation and betterment of projects authorized by the Small Reclamation Projects Act, particularly those projects which need remedial measures to protect their financial integrity. However, we believe that this objective can best be accomplished by amending the Small Reclamation Projects Act instead of the Rehabilitation and Betterment Act. We have not identified the specific changes in the Act which would be necessary, but would be most willing to work with your committee in this regard. The Small Reclamation Projects Act already authorizes the Secretary to make certain loans for rehabilitation and betterment of projects. which would be extended under H.R. 543. However, the Department recognizes that in some cases the present Small Reclamation Projects Act could preclude certain projects from being approved and constructed. The currently authorized ceiling on total project costs and Federal loans for a project may in some cases preclude a future supplemental loan for project rehabilitation. We believe, however, that it would be more appropriate to amend the Small Reclamation Projects Act to provide authority for the rehabilitation and betterment of projects authorized by that Act. The Office of Management and Budget has advised that there is no objection to the presentation of this report from the standpoint of the Administration's program. Sincerely yours, JACK HORTON. Assistant Secretary of the Interior. S.R. 380 |