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Updated December 9, 2020
Reclamation Water Storage Projects: Section 4007 of the Water
Infrastructure Improvements for the Nation Act
In Section 4007 of the Water Infrastructure Improvements
find that the project is feas ible and provides federal benefits
for the Nation Act (WIIN Act; P.L. 114-322), Congress
proportionate to the federal government’s cost share (e.g., a
created a new authority for the Bureau of Reclamation
project providing 50% federal support requires that at least
(Reclamation, part of the Department of the Interior) to
50% of its benefits be federal in nature). Project sponsors
support water storage project construction in the western
also must agree to pay their portion of project costs up
United States. To date, Congress has appropriated $469
front. Finally, appropriations under this section become
million for these projects. Reclamation has allocated a
available only after the Secretary of the Interior transmits
portion of these funds on a number of water storage
recommended projects and funding levels to Congress and
projects, while project-specific allocations for a large
Congress designates those projects by name in an enacted
portion of funds would need further congressional action.
appropriations act.
Background
Differences from Traditional Reclamation Water
Traditionally, Reclamation’s role in water project
Storage Project Model
development has been limited to geographically specific
Instead of full, up-front federal financing, with
projects authorized in federal statute. Congress, through
reimbursable funding to be repaid by beneficiaries over
discretionary appropriations to Reclamation, has provided
time (i.e., the “traditional” model for Reclamation projects),
full, up-front funding for the construction costs of these
Section 4007 has been interpreted to authorize partial, up-
facilities. Project beneficiaries, which are irrigators,
front federal funding (i.e., funding for both reimbursable
municipal water suppliers, and hydropower contractors,
and nonreimbursable costs), with the corresponding
repay their portion of “reimbursable” project construction
nonfederal share of funding also required up-front.
or development costs over a 40-50 year term. The amount
Proponents of these changes argue that they stretch scarce
recouped by the federal government typically depends on
federal funds and provide increased incentive for local
several factors, including the portion of project benefits that
involvement in storage projects. At the same time, by
are classified as “nonreimbursable” under federal law
requiring a large up-front cost share from nonfederal users,
because they are considered federal in nature (e.g., fish and
the new authority may not be attractive for sponsors who
wildlife enhancements, flood control, recreation), as well as
cannot afford such large payments.
adjustments for irrigators’ ability to pay. As a result, the
total amount repaid to the federal government for these
Section 4007 also significantly altered the role of
projects is typically less than the full cost of construction.
congressional authorizing and appropriations committees in
project development. It allows Reclamation to move
Section 4007 of the WIIN Act
forward with construction without direct legislative
Congress enacted a new authority for Reclamation to
approval from congressional authorizing committees (i.e.,
support water storage projects under Section 4007 of the
only the appropriators must weigh in). By requiring
WIIN Act. The act authorized $335 million in discretionary
designation of Administration recommendations by name in
appropriations for new and improved federal and
appropriations acts, Section 4007 effectively shifted project
nonfederal water storage projects. The authority expires on
approval decisions (formerly the domain of the
January 1, 2021, except for projects found feasible prior to
authorization committees) to the appropriations process.
that date (which may continue to receive funding).
Recent Funding, Project Allocations
Funding for water storage projects under Section 4007 is
Congress has appropriated $469 million for Section 4007
available for two primary project types. Federally owned
projects, including funding in enacted Energy and Water
storage projects (surface or groundwater storage projects to
Development appropriations acts for FY2017 ($67 million),
which the United States holds title and which were
FY2018 ($134 million), FY2019 ($134 million), and
authorized to be constructed pursuant to reclamation law
FY2020 ($134 million). For its part, Reclamation has
and regulations) may be no more than 50% federally
transmitted four rounds of project recommendations for
funded. State-led storage projects (surface water or
these funds that, if approved by Congress, release funding
groundwater storage projects constructed, operated, and
to individual projects. Congress approved most of
maintained by states or political subdivisions) may be no
Reclamation’s January 2018 and February 2019 list of
more than 25% federally funded.
recommendations, and the latest recommendations (from
June 2020 and December 2020) are awaiting congressional
For federal participation in the construction of a project
action in FY2021. Table 1 shows approved and proposed
under either designation, the Secretary of the Interior must
funding to date for individual projects.
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link to page 2 Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation Act
Table 1. Approved and Proposed Allocations for Section 4007 Water Storage Projects
($s in millions)
Jan. 2018 List
Feb. 2019 List
June 2020 List
Dec. 2020 List
Project (State)
(approved)
(approved)
(proposed)
(proposed)
Shasta Dam and Reservoir Enlargement Project (CA)
$20.00
—a
$15.00
$100.00
Sites Reservoir Storage Project (CA)
$4.35
$4.00
$4.00
$9.70
Upper San Joaquin River Basin Storage Investigation
$1.50
—
—
—
(CA)
Friant-Kern Canal Subsidence Chal enges Project
$2.20
$2.35
$71.00
$135.00
(CA)
Boise River Basin Feasibility Study (ID)
$0.75
$1.75
$2.88
$10.00
Yakima River Basin Water Enhancement Project—
$2.00
$4.00
$1.00
$2.00
Cle Elum Pool Raise (WA)
Upper Yakima System Storage Feasibility Study (WA)
$2.50
—
—
—
Del Puerto Water District Feasibility Study (CA)
—
$1.50
$1.50
—
Los Vaqueros Reservoir Phase 2 Expansion (CA)
—
$2.16
$7.85
$4.10
Delta Mendota Canal Subsidence Correction (CA)
—
—
$3.00
—
San Luis Low Point Improvement Project (CA)
—
—
$1.70
—
Sacramento Regional Water Bank (CA)
—
—
$0.87
—
Total
$33.30
$15.76
$108.80
$260.80
Sources: Bureau of Reclamation Reports to House and Senate Committees on Appropriations, January 2018, February 2019, and June 2020;
and enacted appropriations legislation for FY2018 (P.L. 115-141) and FY2020 (P.L. 116-94).
a.
In 2019, Reclamation proposed $57 mil ion for the Shasta Dam and Reservoir Enlargement Project, but Congress did not agree to this
al ocation.
In the first two allocations (finalized in FY2018 and
Legislation and Issues for Congress
FY2020 appropriations, respectively), Congress approved
Future Administrations are likely to continue proposing
Reclamation recommendations for a total of nine projects in
funding allocations for Section 4007 projects for
three states. In June 2020, Reclamation recommended an
congressional approval. These decisions may have
additional $108.8 million for 10 projects , and in December
implications for water storage priorities throughout the
2020 Reclamation proposed another $260.8 million for 6
West. Demand for additional funds under this authority is
projects. If Congress approves the recommendations in their
likely to continue, and thus some groups have requested
entirety, approximately $419 million of the $469 million in
additional appropriations, as well as increases to and
appropriations will have been allocated at the project level.
extension of Section 4007. S. 1932 would extend the
authority for these projects through FY2025 and authorize
The project proposed for the most funding, the Shasta Dam
$670 million in additional funding. H.R. 2, as enacted by
and Reservoir Enlargement Project, is controversial.
the House, includes an authorization of $750 million for
California state law prohibits participation in expansion of
these projects through FY2026, as well as alterations to
storage at Lake Shasta that would inundate state-protected
Section 4007 eligibility and approval processes.
portions of the McCloud River, a tributary of the reservoir.
The Shasta project would raise Shasta Dam and expand the
Supporters advocate for continued funding for Section 4007
capacity of Lake Shasta, a linchpin for the federal Central
projects. They argue that these projects would increase
Valley Project (for more information, see CRS Report
water availability in the West and help address the effects
R45342, Central Valley Project: Issues and Legislation). It
of climate change on water availability. Opponents of this
would create an estimated additional 634,000 acre-feet of
authority argue there should be little or no federal role in
storage and 51,000 acre-feet of yield (i.e., additional water
projects that largely benefit nonfederal entities.
supplies) for CVP contractors. To date, this is the only
Section 4007 project that the Administration recommended
Charles V. Stern, Specialist in Natural Resources Policy
for funding (in the 2019 list) that was not approved by
Congress in enacted appropriations language.
IF10626
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Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation Act
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