Description:
S. 2902 would direct the Bureau of Reclamation (BOR) to convert water service contracts with water districts in 17 western states to repayment contracts if a contractor requests it, which would allow contractors to repay their share of capital costs to the federal government earlier than would otherwise occur under current law. CBO estimates that accelerating those payments would, on net, increase offsetting receipts, which are treated as reductions in direct spending, by $635 million over the next 10 years. Additionally, the staff of the Joint Committee on Taxation (JCT) expects that some nonfederal water contractors would finance those accelerated payments to the government with bonds that are exempt from federal taxation. JCT estimates that enacting the legislation would decrease revenues by $77 million over the 2017-2026 period.
On net, CBO estimates that those changes in direct spending and revenues would decrease budget deficits over that 10-year period by $558 million. Because enacting the bill would affect direct spending and revenues, pay-as-you-go procedures apply.
S. 2902 also would authorize multiple water projects. Based on information from BOR and the Bureau of Indian Affairs (BIA), CBO estimates that implementing those provisions would cost $319 million over the next five years and $669 million over the 2017-2026 period, assuming appropriation of the authorized and estimated amounts.
CBO estimates that enacting the bill would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027.
S. 2902 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.
