Reforming Interest Provisions in Federal Water Laws Could Save Millions

摘要

The Department of the Interior's Bureau of Reclamation and the Army's Corps of Engineers build and manage most of the Nation's costly water projects. Federal water laws generally require that when projects are completed and water is delivered, the beneficiaries (water users) who receive irrigation and municipal and industrial water must repay their share of project costs. However, reclamation law and water supply law do not require repayment of interest on irrigation costs or full repayment of interest costs on municipal and industrial water projects. In order to have municipal and industrial water users fully repay total interest costs, the Congress should reform pertinent provisions in the law. Also, because conditions have changed since Federal provisions for repayment of irrigation costs were established, the Congress may wish to consider including interest costs in the repayment provisions for irrigation projects.