[Senate Report 107-325]
[From the U.S. Government Printing Office]



                                                       Calendar No. 742
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-325

======================================================================



 
    A BILL TO AUTHORIZE THE PROJECT FOR HURRICANE AND STORM DAMAGE 
REDUCTION, MORGANZA, LOUISIANA TO THE GULF OF MEXICO, MISSISSIPPI RIVER 
                            AND TRIBUTARIES

                                _______
                                

                November 4, 2002.--Ordered to be printed

 Filed, under the authority of the order of the Senate of October 17, 
                                  2002

                                _______
                                

   Mr. Jeffords, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 2975]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 2975) to authorize the project for 
hurricane and storm damage reduction, Morganza, Louisiana, to 
the Gulf of Mexico, Mississippi River and Tributaries, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                    General Statement and Background

    Projects and project modifications are ready for 
authorization by Congress after they have completed a 
reconnaissance and a feasibility study and received a positive 
recommendation from the Chief of Engineers in the form of a 
completed, signed Chief's Report. The project authorized by S. 
2975 has met these requirements. This bill authorizes a project 
for hurricane and storm damage reduction, Morganza, Louisiana, 
to the Gulf of Mexico, Mississippi River and Tributaries.
    The project area is located in south Louisiana between the 
Mississippi and Atchafalaya rivers. This project will authorize 
construction of hurricane protection in an area where 
hurricanes and tropical storms cause widespread flooding of 
residential and commercial property in the study area. It 
involves construction of levees, water control structures, and 
other features. The Chief's Report was completed in August 
2002, and the project received a favorable recommendation.

                     Objectives of the Legislation

    S. 2975 authorizes the project.

                      Section-by-Section Analysis

Section 1. Morganza, Louisiana, to the Gulf of Mexico, Mississippi 
        River and Tributaries
    S. 2975 authorizes the project for hurricane and storm 
damage reduction at a total cost of $680,000,000 with an 
estimated Federal cost of $442,000,000 and an estimated non-
Federal cost of $238,000,000.

                          Legislative History

    Senators Breaux and Landrieu introduced S. 2975 on 
September 19, 2002. The bill was referred to the Committee on 
Environment and Public Works. No hearing was held on the bill. 
The committee considered the bill in a business meeting on 
September 26, 2002 and ordered the bill reported to the Senate.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider S. 2975 on September 26, 2002. The committee favorably 
reported the bill by voice vote. Senators Smith and Voinovich 
recorded a ``no'' vote.

                      Regulatory Impact Statement

    The bill does not create any additional regulatory burdens, 
nor will it cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee finds that S. 2975 would 
impose no unfunded mandates on State, local, or tribal 
governments.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:
                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 7, 2002.

Hon. James M. Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2975, A bill to 
authorize the project for hurricane and storm damage reduction, 
Morganza, Louisiana, to the Gulf of Mexico, Mississippi River 
and Tributaries..
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton, who can be reached at 226-2860.
            Sincerely,
                                            Dan L. Crippen.
                              ----------                              

S. 2975, A bill to authorize the project for hurricane and storm damage 
        reduction, Morganza, Louisiana, to the Gulf of Mexico, 
        Mississippi River and Tributaries, as ordered reported by the 
        Senate Committee on Environment and Public Works on September 
        26, 2002
Summary
    S. 2975 would authorize the Secretary of the Army through 
the U.S. Army Corps of Engineers to construct a system of 
levees, locks and floodgates designed to protect coastal 
Louisiana from storm damage. This project also would include 
the creation and protection of tidal wetlands. The bill would 
authorize a total project cost of $680 million (in 2001 
dollars) that could be adjusted for inflation. Under this bill, 
the Federal share of the cost would be $442 million and the 
nonFederal share of the cost would be $238 million.
    Assuming appropriation of the necessary amounts, including 
adjustments for anticipated inflation, CBO estimates that the 
Federal costs for implementing S. 2975 would total about $48 
million over the 2003-2007 period, and an additional $523 
million after that period. Enacting S. 2975 would not affect 
direct spending or revenues.
    S. 2975 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, or tribal 
governments. The Federal assistance authorized by this bill 
would benefit any State and local governments choosing to 
participate in this project. Any costs they would incur to 
comply with the conditions of this assistance, including 
matching requirements, would be voluntary.
Estimated Cost to the Federal Government
    The estimated budgetary impact of S. 2975 is shown in the 
following table. The costs of this legislation fall within 
budget function 300 (natural resources and environment).


                 By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
                                   2003    2004    2005    2006    2007
------------------------------------------------------------------------
 CHANGES IN SPENDING SUBJECT TO
        APPROPRIATION\1\
Estimated Authorization Level...       5      12      12      13      13
Estimated Outlays...............       3       8      11      13      13
------------------------------------------------------------------------
\1\ Most of the Federal Government's $571 million in costs for this
  storm damage project would occur after 2007.

Basis of Estimate
    For this estimate, CBO assumes that S. 2975 will be enacted 
near the beginning of fiscal year 2003 and that amounts will be 
appropriated to meet the anticipated construction schedule for 
the project. Based on information from the Army Corps of 
Engineers, CBO estimates that constructing this storm damage 
reduction project would cost about $48 million over the 2003-
2007 period, including adjustments for anticipated inflation, 
and an additional $523 million after that period. (Those 
amounts represent the Federal share of the project's cost.)
Intergovernmental and Private-Sector Impact
    S. 2975 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on State, 
local, or tribal governments. The Federal assistance authorized 
by this bill would benefit any State and local governments 
choosing to participate in this project. Any costs they would 
incur to comply with the conditions of this assistance, 
including matching requirements, would be voluntary.

Estimate Prepared By: Federal Costs: Julie Middleton; Impact on 
State, Local, and Tribal Governments: Marjorie Miller; Impact 
on the Private Sector: Lauren Marks.

Estimate Approved By: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    Section 12 of rule XXVI of the Standing Rules of the Senate 
requires the committee to publish changes in existing law made 
by the bill as reported. Passage of this bill will make no 
changes to existing law.