Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act

Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act

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Updated March 30, 2023
Reclamation Water Storage Projects: Section 4007 of the Water
Infrastructure Improvements for the Nation (WIIN) Act
Congress created a new authority for the Bureau of
for construction, the Secretary of the Interior must find that
Reclamation (Reclamation, part of the Department of the
the project is feasible and provides benefits proportionate to
Interior) to build new water storage projects in Section
the federal government’s cost share. In addition, project
4007 of the Water Infrastructure Improvements for the
sponsors must agree to pay their portion of project costs up
Nation Act (WIIN Act). The authority provides federal
front. Appropriations under Section 4007 are available only
support for the construction of new and augmented surface
after the Secretary transmits a list of recommended projects
water storage projects in the 17 arid reclamation states.
and funding levels to Congress, and Congress designates
those projects by name in an enacted appropriations act.
Background
The WIIN Act also stipulated that in order to move forward
Traditionally, Reclamation’s role in water project
with construction, the Secretary must find projects feasible
development had been limited to geographically specific
by January 1, 2021. As a result, only a subset of studies
projects authorized in federal statutes (federal law that
funded under this authority are eligible for construction.
applies to reclamation projects generally is referred to as
reclamation law). Congress provided full, up-front funding
Proponents of the Section 4007 approach assert that it
for the construction costs of these facilities through
stretches scarce federal funds and increases local and state
discretionary appropriations to Reclamation. Project
incentives to engage and invest in projects. At the same
beneficiaries (e.g., irrigators, municipal water suppliers, and
time, because the new authority requires a large, up-front
hydropower contractors) generally then repay their portion
cost share from nonfederal users, it may not be a viable
of “reimbursable” project construction or development
option for project sponsors who lack the means to finance
costs over a 40-50 year term. The amount of the up-front
their part of a project’s costs.
investment ultimately recouped by the federal government
typically depends on several factors, including the portion
The role of congressional authorizing and appropriations
of project benefits that are classified as fully or partially
committees is significantly different for Section 4007
nonreimbursable (e.g., fish and wildlife enhancements,
projects compared to traditional reclamation law. Since
flood control, recreation) and adjustments for irrigators’
only appropriators must act to advance Secretary-
ability to pay.
recommended projects, Section 4007 allows Reclamation to
move forward with construction without further formal
Section 4007 of the WIIN Act
legislative input from congressional authorizing
Congress enacted a new authority for Reclamation to
committees.
support water storage projects under Section 4007 of the
WIIN Act. The act authorized a total of $335 million in
Recent Funding, Project Allocations
discretionary appropriations for this purpose.
From FY2017 to FY2023, Congress appropriated a total of
$854 million for Section 4007 projects in annual Energy
Funding for water storage projects under Section 4007 is
and Water Development appropriations acts. To date,
available for two primary project types. Federally owned
Reclamation has transmitted five lists of project
storage projects are surface water or groundwater storage
recommendations for these funds that, after congressional
projects to which the United States holds title and which
approval, released $511 million in prior appropriations to
were authorized to be constructed pursuant to reclamation
13 projects: 10 in California, 2 in Washington, and 1 in
law and regulations. The federal government may fund up
Idaho. The Infrastructure Investment and Jobs Act (IIJA,
to 50% of the cost for these projects. State-led storage
P.L. 117-58) also appropriated to Reclamation $1.05 billion
projects are surface water or groundwater storage projects
for water storage projects (i.e., funding potentially available
to be constructed, operated, and maintained by states or
for Section 4007 projects). Reclamation allocated $137
political subdivisions. The federal government may fund up
million for selected Section 4007 projects using FY2022
to 25% of the costs of these projects. Prior to the WIIN Act,
IIJA funds. Altogether, eight projects (shown in bold in
Congress had not authorized Reclamation to fund state-led
Table 1) were found feasible prior to the WIIN Act
water storage projects.
deadline of January 1, 2021, and thus are eligible for
ongoing construction funding.
Before projects can begin construction under Section 4007,
several milestones must be met. To recommend a project
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Table 1. Congressionally Approved Allocations for Section 4007 Water Storage Projects
($ in millions)
Jan. 2018
Feb. 2019
June 2020
Dec. 2020
July 2021
Oct 2022
Project (State)
List
List
List
List
List
IIJA
Shasta Dam and Reservoir
$20.00
—a
—a
—a
—
—
Enlargement Project (CA)
Sites Reservoir Storage
$4.35
$6.00
$4.00
$9.70
$80.00
$30.00
Project (CA)
Upper San Joaquin River Basin
$1.50
—
—
—
—
—
Storage Investigation (CA)
Friant-Kern Canal
$2.20
$2.35
$71.00
$135.00
—
—
Subsidence Challenges
Project (CA)
Boise River Basin Feasibility
$0.75
$1.75
$2.88
$10.00
—
—
Study (ID)
Yakima River Basin Water
$2.00
$4.00
$1.00
$2.00
—
—
Enhancement Project, Cle
Elum Pool Raise (WA)
Upper Yakima System Storage
$2.50
—
—
—
—

Feasibility Study (WA)
Del Puerto Water District
—
$1.50
$1.50
—
$15.00
—
Feasibility Study (CA)
Los Vaqueros Reservoir
—
$2.16
$7.85
$4.10
$50.00
$82.00
Phase 2 Expansion (CA)
Delta Mendota Canal Subsidence
—
—
$3.00
—
—
—
Correction (CA)
San Luis Low Point Improvement
—
—
$1.70
—
—
—
Project (CA)
Sacramento Regional Water
—
—
$0.87
—
—
—
Bank (CA)
B.F. Sisk Dam Raise and
—
—
—
—
$60.00
$25.00
Reservoir Expansion (CA)
Total
$33.30
$17.76
$93.80
$160.80
$205.00
$137.00
Sources: Bureau of Reclamation Reports to Congress in January 2018, February 2019, June 2020, December 2020, and July 2021; enacted
appropriations legislation for FY2018 (P.L. 115-141), FY2020 (P.L. 116-94), FY2021 (P.L. 116-260), FY2022 (P.L. 117-43), and FY2022
Reclamation Work Plan for the Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58).
Notes: Projects in bold were recommended for construction prior to the WIIN Act deadline of January 1, 2021. Pursuant to congressional
direction in the IIJA, October 2022 IIJA al ocations were not required to be approved by name in enacted appropriations legislation.
a. Reclamation proposed $172 mil ion in al ocations for this project in 2019 and 2020. Congress did not agree to these recommendations.
Issues for Congress
term mechanism for the federal government to support
The Biden Administration may continue proposing project-
water storage in the West. Previously proposed changes
level funds for unallocated Section 4007 appropriations,
included alterations to cost-share requirements for projects
and these proposals would require congressional approval
with environmental benefits, waivers from the
in appropriations legislation to move forward with
congressional approval requirement for smaller projects,
construction. The Administration may also fund Section
and a return to involving authorizing committees in project
4007 projects with IIJA funding in FY2023-FY2026. It is
approval.
unclear whether this funding will be available for all
Section 4007 projects or only those that were approved for
Charles V. Stern, Specialist in Natural Resources Policy
construction prior to the January 1, 2021, deadline.
IF10626
Some stakeholders support extension and/or changes to
Section 4007 and argue that it should be a preferred long-
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Reclamation Water Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act

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https://crsreports.congress.gov | IF10626 · VERSION 17 · UPDATED