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Updated September 7, 2021
Reclamation Water Storage Projects: Section 4007 of the Water
Infrastructure Improvements for the Nation Act
Congress created a new authority for the Bureau of
Before projects can be constructed under the authority,
Reclamation (Reclamation, part of the Department of the
several milestones must be met. The Secretary of the
Interior) to build new water storage projects in Section
Interior must find that the project is feasible and provides
4007 of the Water Infrastructure Improvements for the
benefits proportionate to the federal government’s cost
Nation Act (WIIN Act; P.L. 114-322). The authority
share, and project sponsors must agree to pay their portion
provides federal support for the construction of new and
of project costs up front. Appropriations under the Section
augmented surface water storage projects in the 17 arid
4007 authority are available only after the Secretary
reclamation states. As of August 2021, Congress had
transmits a list of recommended projects and funding levels
appropriated $603 million for these projects, and
to Congress, and Congress designates those projects by
Reclamation had allocated (and Congress had approved)
name in an enacted appropriations act.
more than half of these funds to 12 projects in 3 states.
Allocation of remaining appropriations is subject to further
Any project that meets the WIIN Act criteria initially is
congressional action.
eligible for funding allocations. However, Congress also
stipulated that in order to move forward, the Secretary must
Background
find projects feasible by January 1, 2021, and projects must
Traditionally, Reclamation’s role in water project
initiate construction by December 17, 2021.
development had been limited to geographically specific
projects authorized in federal statutes (federal law that
Differences from Traditional Reclamation Water
applies to reclamation projects generally is referred to as
Storage Project Model
reclamation law). Congress provided full, up-front funding
In contrast to the traditional model of full federal financing
for the construction costs of these facilities through
up-front, Section 4007 authorizes partial, up front federal
discretionary appropriations to Reclamation. Project
funding. Proponents of this change assert that it stretches
beneficiaries (i.e., irrigators, municipal water suppliers, and
scarce federal funds and provides increased incentive for
hydropower contractors) would then repay their portion of
local involvement in projects. At the same time, because the
“reimbursable” project construction or development costs
new authority requires a large up-front cost share from
over a 40-50 year term. The amount of the up-front
nonfederal users, it may not be a viable option for project
investment recouped by the federal government typically
sponsors who lack the means to finance their part of a
depends on several factors, including the portion of project
project’s costs.
benefits that are classified as fully or partially
nonreimbursable (e.g., fish and wildlife enhancements,
Section 4007 also significantly altered the role of
flood control, recreation) and adjustments for irrigators’
congressional authorizing and appropriations committees.
ability to pay.
Since recommended projects require approval only from
appropriators, it allowed Reclamation to move forward with
Section 4007 of the WIIN Act
construction without legislative approval from
Congress enacted a new authority for Reclamation to
congressional authorizing committees. By requiring
support water storage projects under Section 4007 of the
designation of Administration recommendations by name in
WIIN Act. The act authorized a total of $335 million in
appropriations acts, Section 4007 essentially shifted project
discretionary appropriations for new and improved water
approval decisions from the authorization committees to the
storage projects, and it used a different approach than under
appropriations committees.
traditional reclamation law.
Recent Funding, Project Allocations
Funding for water storage projects under Section 4007 is
From FY2017 to FY2021, Congress appropriated a total of
available for two primary project types. Federally owned
$603 million for Section 4007 projects (compared with the
storage projects (surface water or groundwater storage
$335 million authorized in the WIIN Act), including
projects to which the United States holds title and which
funding in enacted Energy and Water Development
were authorized to be constructed pursuant to reclamation
appropriations acts for FY2017 ($67 million), FY2018
law and regulations) may be no more than 50% federally
($134 million), FY2019 ($134 million), FY2020 ($134
funded. State-led storage projects (surface water or
million), and FY2021 ($134 million). During the same
groundwater storage projects constructed, operated, and
period, Reclamation has transmitted four lists of project
maintained by states or political subdivisions) may be no
recommendations for these funds that, after congressional
more than 25% federally funded. Prior to the WIIN Act,
approval, released funding to individual projects. Table 1
Congress had not authorized Reclamation to fund state-led
shows approved funding to date for individual projects.
water storage projects.
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Table 1. Congressionally Approved Allocations for Section 4007 Water Storage Projects
($s in millions)
Jan. 2018
Feb. 2019
June 2020
Dec. 2020
July 2021
Project (State)
List
List
List
List
List
Shasta Dam and Reservoir Enlargement
$20.00
—a
—a
—a
—
Project (CA)
Sites Reservoir Storage Project (CA)
$4.35
$6.00
$4.00
$9.70
$80.00
Upper San Joaquin River Basin Storage
$1.50
—
—
—
—
Investigation (CA)
Friant-Kern Canal Subsidence Challenges
$2.20
$2.35
$71.00
$135.00
—
Project (CA)
Boise River Basin Feasibility Study (ID)
$0.75
$1.75
$2.88
$10.00
—
Yakima River Basin Water Enhancement
$2.00
$4.00
$1.00
$2.00
—
Project, Cle Elum Pool Raise (WA)
Upper Yakima System Storage Feasibility Study
$2.50
—
—
—
—
(WA)
Del Puerto Water District Feasibility
—
$1.50
$1.50
—
$15.00
Study (CA)
Los Vaqueros Reservoir Phase 2
—
$2.16
$7.85
$4.10
$50.00
Expansion (CA)
Delta Mendota Canal Subsidence Correction
—
—
$3.00
—
—
(CA)
San Luis Low Point Improvement Project (CA)
—
—
$1.70
—
—
Sacramento Regional Water Bank (CA)
—
—
$0.87
—
—
B.F. Sisk Dam Raise and Reservoir
—
—
—
—
$60.00
Expansion (CA)
Total
$33.30
$17.76
$93.80
$160.80
$205.00
Sources: Bureau of Reclamation Reports to House and Senate Committees on Appropriations in January 2018, February 2019, June 2020, and
December 2020; enacted appropriations legislation for FY2018 (P.L. 115-141), FY2020 (P.L. 116-94), and FY2021 (P.L. 116-260).
Note: Projects in bold were recommended for construction prior to the WIIN Act deadline of January 1, 2021.
a.
Reclamation proposed a total of $172 mil ion in project al ocations for 2019 and 2020. Congress did not agree to these al ocations.
As of August 2021, Congress had approved Reclamation’s
congressional approval in appropriations legislation.
allocations for 12 projects: 9 in California, 2 in
Significantly more future appropriations would be required
Washington, and 1 in Idaho. In FY2021 enacted
to complete ongoing WIIN Act projects under Section
appropriations (P.L. 116-260), Congress approved all of
4007.
Reclamation’s prior recommendations, with the exception
of $172 million in funding proposed for the Shasta Dam
Apart from funding, some support extension and/or other
and Reservoir Enlargement project.
changes to Section 4007. In the past, proposed changes
included waivers from the congressional approval
Projects Eligible for Ongoing Funding
requirement for smaller projects and a return to authorizing
Altogether, eight projects were found feasible prior to the
committee involvement in approval of some projects.
WIIN Act deadline of January 1, 2021, and thus are eligible
Supporters of the current Section 4007 authority contend
for ongoing funding. In July 2021, the Biden
the authority will provide crucial flexibility in the face of
Administration recommended an additional $205 million in
expected future water supply uncertainty in the West.
prior year funding for four of these projects, including one
Opponents prefer that federal support for more
project that would receive funding for the first time (B.F.
environmentally friendly water supply options take
Sisk Dam Raise and Reservoir Expansion).
precedent over surface water storage.
Issues for Congress
Charles V. Stern, Specialist in Natural Resources Policy
The Biden Administration may continue proposing project-
level allocations for remaining Section 4007 appropriations.
IF10626
Similar to prior lists, these allocations would require
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Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation Act


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https://crsreports.congress.gov | IF10626 · VERSION 12 · UPDATED

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