HR 6107 — Urban Canal Modernization Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 OMNIBUS PUBLIC LAND MANAGEMENT ACT OF 2009

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 Subtitle G--Aging Infrastructure

SEC. 9601. DEFINITIONS

 In this subtitle:
 [(7)] (1) Extraordinary operation and maintenance 
 work.--The term ``extraordinary operation and 
 maintenance work'' means major, nonrecurring 
 maintenance to Reclamation-owned or operated 
 facilities, or facility components, that is--
 (A) intended to ensure the continued safe, 
 dependable, and reliable delivery of authorized 
 project benefits; and
 (B) greater than 10 percent of the 
 contractor's or the transferred works operating 
 entity's annual operation and maintenance 
 budget for the facility, or greater than 
 $100,000.
 [(1)] (2) Inspection.--The term ``inspection'' means 
 an inspection of a project facility carried out by the 
 Secretary--
 (A) to assess and determine the general 
 condition of the project facility; and
 (B) to estimate the value of property, and 
 the size of the population, that would be at 
 risk if the project facility fails, is 
 breached, or otherwise allows flooding to 
 occur.
 [(2)] (3) Project facility.--The term ``project 
 facility'' means any part or incidental feature of a 
 project, excluding high- and significant-hazard dams, 
 constructed under the Federal reclamation law (the Act 
 of June 17, 1902 (32 Stat. 388, chapter 1093), and Acts 
 supplemental to and amendatory of that Act (43 U.S.C. 
 371[et seq.)] et seq.)).
 [(3)] (4) Reserved works.--The term ``reserved 
 works'' [mean] means any project facility at which the 
 Secretary carries out the operation and maintenance of 
 the project facility.
 [(4)] (5) Secretary.--The term ``Secretary'' means 
 the Secretary of the Interior, acting through the 
 Commissioner of Reclamation.
 [(5)] (6) Transferred works.--The term ``transferred 
 works'' means a project facility, the operation and 
 maintenance of which is carried out by a non-Federal 
 entity, under the provisions of a formal operation and 
 maintenance transfer contract.
 [(6)] (7) Transferred works operating entity.--The 
 term ``transferred works operating entity'' means the 
 organization which is contractually responsible for 
 operation and maintenance of transferred works.
 (8) Urban canal of concern.--The term ``urban canal 
 of concern'' means a transferred works or segment of a 
 transferred works that is classified as an urban canal 
 reach, the failure of which the Secretary determines 
 would result in loss of life in the vicinity of the 
 failed transferred works or segment of transferred 
 works with an estimated at-risk population of more than 
 100 individuals.

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SEC. 9603. EXTRAORDINARY OPERATION AND MAINTENANCE WORK PERFORMED BY 
 THE SECRETARY

 (a) In general.--The Secretary or the transferred works 
operating entity may carry out, in accordance with subsection 
(b) and consistent with existing transfer contracts, any 
extraordinary operation and maintenance work on a project 
facility that the Secretary determines to be reasonably 
required to preserve the structural safety of the project 
facility.
 (b) Reimbursement of Costs Arising From Extraordinary 
Operation and Maintenance Work.--
 (1) Treatment of costs.--For reserved works, costs 
 incurred by the Secretary in conducting extraordinary 
 operation and maintenance work will be allocated to the 
 authorized reimbursable purposes of the project and 
 shall be repaid within 50 years, with interest, from 
 the year in which work undertaken pursuant to this 
 subtitle is substantially complete.
 (2) Authority of secretary.--For transferred works, 
 the Secretary is authorized to advance the costs 
 incurred by the transferred works operating entity in 
 conducting extraordinary operation and maintenance work 
 and negotiate appropriate 50-year repayment contracts 
 with project beneficiaries providing for the return of 
 reimbursable costs, with interest, under this 
 subsection: Provided, however, That no contract entered 
 into pursuant to this subtitle shall be deemed to be a 
 new or amended contract for the purposes of section 
 203(a) of the Reclamation Reform Act of 1982 (43 U.S.C. 
 390cc(a)).
 (3) Determination of interest rate.--The interest 
 rate used for computing interest on work in progress 
 and interest on the unpaid balance of the reimbursable 
 costs of extraordinary operation and maintenance work 
 authorized by this subtitle shall be determined by the 
 Secretary of the Treasury, as of the beginning of the 
 fiscal year in which extraordinary operation and 
 maintenance work is commenced, on the basis of average 
 market yields on outstanding marketable obligations of 
 the United States with the remaining periods of 
 maturity comparable to the applicable reimbursement 
 period of the project, adjusted to the nearest \1/8\ of 
 1 percent on the unamortized balance of any portion of 
 the loan.
 (c) Emergency Extraordinary Operation and Maintenance Work.--
 (1) In general.--The Secretary or the transferred 
 works operating entity shall carry out any emergency 
 extraordinary operation and maintenance work on a 
 project facility that the Secretary determines to be 
 necessary to minimize the risk of imminent harm to 
 public health or safety, or property.
 (2) Reimbursement.--The Secretary may advance funds 
 for emergency extraordinary operation and maintenance 
 work and shall seek reimbursement from the transferred 
 works operating entity or benefitting entity upon 
 receiving a written assurance from the governing body 
 of such entity that it will negotiate a contract 
 pursuant to section 9603 for repayment of costs 
 incurred by the Secretary in undertaking such work.
 (3) Funding.--If the Secretary determines that a 
 project facility inspected and maintained pursuant to 
 the guidelines and criteria set forth in section 
 9602(a) requires extraordinary operation and 
 maintenance pursuant to paragraph (1), the Secretary 
 may provide Federal funds on a nonreimbursable basis 
 sufficient to cover 35 percent of the cost of the 
 extraordinary operation and maintenance allocable to 
 the transferred works operating entity, which is needed 
 to minimize the risk of imminent harm. The remaining 
 share of the Federal funds advanced by the Secretary 
 for such work shall be repaid under subsection (b).
 (d) Aging Infrastructure Account.--
 (1) Establishment.--There is established in the 
 general fund of the Treasury a special account, to be 
 known as the ``Aging Infrastructure Account'' (referred 
 to in this subsection as the ``Account''), to provide 
 funds to, and provide for the extended repayment of the 
 funds by, a transferred works operating entity or 
 project beneficiary responsible for repayment of 
 reimbursable costs for the conduct of extraordinary 
 operation and maintenance work at a project facility, 
 which shall consist of--
 (A) any amounts that are specifically 
 appropriated to the Account under section 9605; 
 and
 (B) any amounts deposited in the Account 
 under paragraph (3)(B).
 (2) Expenditures.--Subject to paragraphs (3) and (6), 
 the Secretary may expend amounts in the Account to fund 
 and provide for extended repayment of the funds for 
 eligible projects identified in a report submitted 
 under paragraph (5)(B).
 (3) Repayment contract.--
 (A) In general.--The Secretary may not expend 
 amounts under paragraph (2) with respect to an 
 eligible project described in that paragraph 
 unless the transferred works operating entity 
 or project beneficiary responsible for 
 repayment of reimbursable costs has entered 
 into a contract to repay the amounts under 
 subsection (b)(2).
 (B) Deposit of repaid funds.--Amounts repaid 
 by a transferred works operating entity or 
 project beneficiary responsible for repayment 
 of reimbursable costs receiving funds under a 
 repayment contract entered into under this 
 subsection shall be deposited in the Account 
 and shall be available to the Secretary for 
 expenditure, subject to paragraph (6), in 
 accordance with this subsection, and without 
 further appropriation.
 (4) Application for funding.--
 (A) In general.--Beginning with fiscal year 
 2022, not less than once per fiscal year, the 
 Secretary shall accept, during an application 
 period established by the Secretary, 
 applications from transferred works operating 
 entities or project beneficiaries responsible 
 for payment of reimbursable costs for funds and 
 extended repayment for eligible projects.
 (B) Eligible project.--A project eligible for 
 funding and extended repayment under this 
 subsection is a project that--
 (i) qualifies as an extraordinary 
 operation and maintenance work under 
 this section;
 (ii) is for the major, non-recurring 
 maintenance of a mission-critical 
 asset; and
 (iii) is not eligible to be carried 
 out or funded under the repayment 
 provisions of section 4(c) of the 
 Reclamation Safety of Dams Act of 1978 
 (43 U.S.C. 508(c)).
 (C) Guidelines for applications.--Not later 
 than 60 days after the date of enactment of 
 this subsection, the Secretary shall issue 
 guidelines describing the information required 
 to be provided in an application for funds and 
 extended repayment under this subsection that 
 require, at a minimum--
 (i) a description of the project for 
 which the funds are requested;
 (ii) the amount of funds requested;
 (iii) the repayment period requested 
 by the transferred works operating 
 entity or project beneficiary 
 responsible for repayment of 
 reimbursable costs;
 (iv) alternative non-Federal funding 
 options that have been evaluated;
 (v) the financial justification for 
 requesting an extended repayment 
 period; and
 (vi) the financial records of the 
 transferred works operating entity or 
 project beneficiary responsible for 
 repayment of reimbursable costs.
 (D) Review by the secretary.--The Secretary 
 shall review each application submitted under 
 subparagraph (A)--
 (i) to determine whether the project 
 is eligible for funds and an extended 
 repayment period under this subsection;
 (ii) to determine if the project has 
 been identified by the Bureau of 
 Reclamation as part of the major 
 rehabilitation and replacement of a 
 project facility; and
 (iii) to conduct a financial analysis 
 of--
 (I) the project; and
 (II) repayment capability of 
 the transferred works operating 
 entity or project beneficiary 
 responsible for repayment of 
 reimbursable costs.
 (5) Report.--Not later than 90 days after the date on 
 which an application period closes under paragraph 
 (4)(A), the Secretary shall submit to the Committees on 
 Energy and Natural Resources and Appropriations of the 
 Senate and the Committees on Natural Resources and 
 Appropriations of the House of Representatives a report 
 that--
 (A) describes the results of the Secretary's 
 review of each application under paragraph 
 (4)(D), including a determination of whether 
 the project is eligible;
 (B) identifies each project eligible for 
 funds and extended repayment under this 
 subsection;
 (C) with respect to each eligible project 
 identified under subparagraph (B), includes--
 (i) a description of--
 (I) the eligible project;
 (II) the anticipated cost and 
 duration of the eligible 
 project;
 (III) any remaining 
 engineering or environmental 
 compliance that is required 
 before the eligible project 
 commences;
 (IV) any recommendations the 
 Secretary may have concerning 
 the plan or design of the 
 project; and
 (V) any conditions the 
 Secretary may require for 
 construction of the project;
 (ii) an analysis of--
 (I) the repayment period 
 proposed in the application; 
 and
 (II) if the Secretary 
 recommends a minimum necessary 
 repayment period that is 
 different than the repayment 
 period proposed in the 
 application, the minimum 
 necessary repayment period 
 recommended by the Secretary; 
 and
 (iii) an analysis of alternative non-
 Federal funding options;
 (D) describes the allocation of funds from 
 deposits into the Account under paragraph 
 (3)(B); and
 (E) describes the balance of funds in the 
 Account as of the date of the report.
 (6) Alternative allocation.--
 (A) In general.--Appropriations Acts may 
 provide for alternate allocation of amounts 
 reported pursuant to paragraph (5)(D) that are 
 made available under this subsection.
 (B) Allocation by secretary.--
 (i) No alternate allocations.--If 
 Congress has not enacted legislation 
 establishing alternate allocations by 
 the date on which the Act making full-
 year appropriations for energy and 
 water development and related agencies 
 for the applicable fiscal year is 
 enacted into law, amounts made 
 available under paragraph (1) shall be 
 allocated by the Secretary.
 (ii) Insufficient alternate 
 allocations.--If Congress enacts 
 legislation establishing alternate 
 allocations for amounts made available 
 under paragraph (1) that are less than 
 the full amount appropriated under that 
 paragraph, the difference between the 
 amount appropriated and the alternate 
 allocation shall be allocated by the 
 Secretary.
 (7) Effect of subsection.--Nothing in this subsection 
 affects--
 (A) any funding provided, or contracts 
 entered into, under subsection (a) before the 
 date of enactment of this subsection; or
 (B) the use of funds otherwise made available 
 to the Secretary to carry out subsection (a).
 (e) Extraordinary Operation and Maintenance Work on Urban 
Canals of Concern.--
 (1) In general.--The Secretary or the transferred 
 works operating entity shall carry out any 
 extraordinary operation and maintenance work on an 
 urban canal of concern that the transferred works 
 operating entity, with the concurrence of the 
 Secretary, determines to be necessary.
 (2) Funding.--In the case of extraordinary operation 
 and maintenance work on an urban canal of concern 
 authorized under paragraph (1), or if the Secretary 
 determines that a project facility inspected and 
 maintained pursuant to the guidelines and criteria set 
 forth in section 9602(a) requires extraordinary 
 operation and maintenance work pursuant to paragraph 
 (1), the Secretary shall provide Federal funds on a 
 nonreimbursable basis sufficient to cover 35 percent of 
 the portion of total cost of the extraordinary 
 operation and maintenance work allocable to the 
 transferred works operating entity that is needed to 
 carry out the extraordinary operation and maintenance 
 work on the urban canal of concern, with the remaining 
 share of any additional Federal funds advanced by the 
 Secretary for the extraordinary operation and 
 maintenance work to be repaid under subsection (b).

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