Boebert Western Water Accelerated Revenue Repayment Act Gets Hearing

Congresswoman Lauren Boebert’s Western Water Accelerated Revenue Repayment Act, received a legislative hearing.

Washington – RealEstateRama – Congresswoman Lauren Boebert (CO-03) stated, “My Western Water Accelerated Revenue Repayment Act had an important legislative hearing today and received resounding praise from the witnesses. This common-sense bill follows bipartisan precedent by allowing agriculture and municipal water users to prepay what they owe to the federal government for water delivery and water storage costs. This bill is good for taxpayers and generates early revenue for the Treasury while still ensuring obligations are repaid in full. H.R. 3675 also reduces extensive paperwork requirements and removes overly restrictive acreage limits for water users that have repaid their obligations. I look forward to this important bill continuing to move forward in the legislative process.”

Chairman Cannon Michael of the San Luis & Delta-Mendota Water Authority testified, “From the Federal perspective, authorizing early repayment will accelerate Treasury receipts and raise revenue for the federal government. H.R. 3675 would ensure that all contractual repayment obligations are repaid in full at present value, including some that currently do not carry interest, ensuring that no additional costs are shouldered by U.S. taxpayers…The Water Authority and the Alliance fully support enactment of this bill, which will extend important, win-win authorities that allow water users to accelerate repayment of capital construction costs for Reclamation facilities. We appreciate Congresswoman Boebert for introducing this bill and want to thank all of the cosponsors…We urge the Committee to pass H.R. 3675 which will extend the benefits of early repayment for additional Reclamation contractors and the federal government.”

Deputy Commissioner for the Bureau of ReclamationMichael Brain testified, “H.R. 3675 would allow for contracts repayment to be expedited, allowing for funding to more quickly be returned to the Treasury and provide additional flexibility for Reclamation’s water users and contract holders. The Department looks forward to working with the bill sponsor and Subcommittee to address technical edits.

The National Water Resources Association stated, “This added tool will assist water systems in managing their operations in the most effective and efficient way possible at a time of rising costs and higher interest rates…The immense water resource challenges in the Western United States require a strong partnership and regular collaboration between the water community and federal agencies.”

Background:

Today, Congresswoman Lauren Boebert’s H.R. 3675, the Western Water Accelerated Revenue Repayment Act, received a legislative hearing in the House Committee on Natural Resources Subcommittee on Water, Wildlife, and Fisheries.

Witnesses that testified at the hearing include:

Mr. Cannon Michael, Chairman, San Luis & Delta-Mendota Water Authority. Written Testimony HERE.

Mr. Michael Brain, Deputy Commissioner for the Bureau of Reclamation. Written Testimony HERE.

Ms. Leslie Meyers, Associate General Manager and Chief Water Resources Executive, Salt River Project. Written Testimony HERE.

Congresswoman Boebert’s bill permanently authorizes a provision that allows agriculture and municipal water users to prepay what they owe to the federal government. This prepayment adds early revenue to the U.S. Treasury while also decreasing federal paperwork requirements and operating costs for water users.

Specifically, H.R. 3675, the Western Water Accelerated Revenue Repayment Act, permanently authorizes Section 4011 of the Water Infrastructure Improvements for the Nation (WIIN) Act (P.L. 114-322), a provision that allows agriculture and municipal water users to voluntarily enter prepayment contracts with the Bureau of Reclamation (BOR) for water delivery and water storage costs they owe the federal government.

Under federal law, BOR water storage and delivery project costs are allocated to the beneficiaries of such projects. Water users must repay those costs allocated to them under the federal “beneficiaries pay” principal. Those costs are repaid through what are called multi-year “repayment contracts” that are analogous to homeowner mortgage payments. As long as a repayment obligation exists, federal strings are attached (such as onerous paperwork requirements and limitations on how much acreage a farmer can plant).

Prior to 2016, if some water users wanted to repay what they owed early and/or in a lump sum, Congress would have to enact a federal law authorizing the repayment. This usually took years despite the fact the federal government would have been receiving early revenue. As a result, many water users simply decided it wasn’t worth the effort. To help remedy this situation, Section 4011 of the Water Infrastructure Improvements for the Nation (WIIN) Act (P.L. 114-322) authorized these agricultural and municipal water users to prepay outstanding construction costs through a single lump sum payment or over a period of three years. This policy was similar to allowing a borrower to pay his/her mortgage off earlier to the lender. This prepayment authority expired in 2020.

This program was successful, with 86 contractors deciding to prepay what they owed the federal government, generating $344 million for the water storage account. The Florida Water Conservancy District in Durango, Colorado, utilized the prepayment option back in 2019 for the Lemon Dam, which is a Reclamation Project on the Florida River. They support this legislation, called this process “smooth as silk,” and highly recommend other contractors take advantage of this authority when Rep. Boebert’s bill becomes law.

Supporters of Congresswoman Boebert’s Western Water Accelerated Revenue Repayment Act include: Colorado Water Congress, National Water Resources Association, Family Farm Alliance, Friant Water Authority, Florida Water Conservancy District in Durango, Mesa County Farm Bureau, Mesa County Commissioners, San Luis & Delta-Mendota Water Authority, and the California Agricultural Irrigation Association and Delta County Commissioner Wendell A. Koontz.

Cosponsors of Congresswoman Boebert’s Western Water Accelerated Revenue Repayment Act include: Western Caucus Chairman Dan Newhouse (WA-04), Rep. Harriet Hageman (WY-AL), Rep. Paul Gosar (AZ-09), Rep. Michael Lawler (NY-17), Doug Lamborn (CO-05), Rep. Ryan Zinke (MT-01), Rep. Matt Rosendale (MT-02), Tom McClintock (CA-05) and Rep. Troy Nehls (TX-22).

The full text of Congresswoman Boebert’s Western Water Accelerated Revenue Repayment Act is available here.