H.R. 278 would direct the Bureau of Reclamation (BOR) to negotiate an agreement within 2 years of enactment with the Kennewick Irrigation District located in the State of Washington to convey specific federal land and facilities to the district. Using information from BOR, CBO estimates that implementing H.R. 278 would cost about $75,000 for staff to carry out the title transfer, which includes coordinating surveys and the National Environmental Policy Act reviews. Any spending would be subject to the availability of appropriated funds.
Under current law, the district pays the federal government about $70,000 annually for the costs of constructing the project. The district will make its last payment in 2024. Under the bill, the district would pay the federal government an amount equal to the net present value of its payments remaining at the time of the conveyance instead of making annual payments. Those payments are recorded in the federal budget as offsetting receipts, or reductions in direct spending; however, CBO estimates that the net effect on direct spending would be insignificant.