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BuRec Offers Title Transfer of Projects
- Certain U.S. Bureau of Reclamation properties
may be up for sale. The agency recently issued a document, "Framework
for the Transfer of Title," outlining the process of transferring
title of certain of its projects to interested bene ficiaries and
non-federal governmental entities.
- According to the document, BuRec's recent action is consistent
with a policy the agency has had for decades; i.e., "to transfer operation
and maintenance of projects to local entities where and when appropriate."
Interest presently is growing for su ch transfers, reflecting current
political thinking to limit the role of the federal government.
- BuRec, however, is not proposing a wholesale sell-off of major
federal properties. Instead the strategy, as described by a BuRec
official, is to "pick the low-hanging fruit first." BuRec's framework
document presents criteria determining which proj ects qualify as
"low-hanging fruit" and describes the terms of proposed transfers.
- For example, only "uncomplicated projects" will be considered for
transfer. BuRec defines such projects as "projects or facilities where
there are no competing interests, the facilities are not hydrologically
integrated with other projects, the fina ncial arrangements are relatively
simple and easily defined and the legal and institutional concerns
associated with a transfer can be readily addressed."
- These obviously are not terms for the marketing of Hoover Dam.
The BuRec rules are more applicable to transferring far less complex
projects; e.g, a small irrigation project in Wyoming that has operated
for 70 or 80 years, and is still committed to its original purpose.
Such a project would be limited in scope, not engaged in flood control,
nor providing Indian or municipal water supplies, nor involved in
any problems of endangered species within a watershed.
- The framework lists six major criteria to be met prior to project
transfer: the federal treasury must be protected; compliance with
applicable state and federal laws must be ensured; interstate compacts
and agreements must be protected; Native Americ an trust responsibilities
must be met; treaty obligations and international agreements must
be fulfilled; and the public aspects of the project must be protected.
- BuRec and an interested party would determine the property's base
value. A project's negotiated price, however, may vary from the base
value due to "factual circumstances and equitable treatment consideration."
In addition, when establishing a pric e, BuRec may consider future
uses on the transferred lands and waters.
- Further, the interested entity or buyer must pay appropriate costs
for preparing the transfer. Such costs would vary depending upon the
project, but could include paying to develop an environmental impact
statement or for research to define the scop e, extent, and federal
interest in the project.
- After terms have been agreed upon, congressional approval is needed
to finalize the transaction. Such approval is required because neither
BuRec officials nor the Secretary of the Interior has the authority
to dispose of federal property.
- Varied opinions exist within BuRec regarding the value of the framework.
"Some people in policy or in the political side believe the framework
has a lot of merit," says Tom Burbey, BuRec Chief of Water Resources
Management Division in Phoenix. He b elieves, however, that basic
changes are needed before the policy will attract widespread interest.
- BuRec officials surveyed Central Arizona water users to determine
interest in the "framework" or other possible transfer terms. In general,
respondents expressed interest in someday acquiring title to BuRec
properties, but not now, nor under the pre sent terms, Burbey says.
"People are interested in talking about it, but I don't think anyone
is interested in jumping on the bandwagon and pursuing it."
- Observers speculate about which Arizona entities might be interested
in acquiring BuRec facilities. The Salt River Project is often mentioned
as a possible interested party. But its interest is limited.
- "We are not seeking nor do we want transfer of BuRec facilities,"
says SRP spokesperson John Egan. "As the various BuRec proposals are
unveiled, we keep appraised of them to see how they would affect our
operations and shareholders."
- Central Arizona Water Conservation District has expressed interest
in gaining title to the CAP headquarters complex, a BuRec facility.
Discussions even have occurred about the value of the property. With
CAWCD presently involved in a dispute with t he federal government,
however, the district would be reluctant to approach Congress for
approval to acquire title to CAP headquarters.
- Several other efforts currently are underway for transferring BuRec
facilities to nongovernment entities. California's Central Valley
Project is developing a proposal to allow its members to purchase
interest and title to federal facilities. Also, Senator Craig of Idaho
has proposed HB 620, that arranges the transfer of federal properties
to nonfederal interests.
- BuRec took the initiative to develop its own procedure for transferring
Bureau property, rather than wait for Congress or individual water
users or projects to act. This strategy represents BuRec's contribution
to reducing the national debt by cutti ng back its work force and
budget. Further, by selling off its facilities, BuRec would be raising
money to further offset the federal deficit.
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