OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 545
Date: 01/08/01

1. LAW NUMBER: P.L.106-541 (S. 2796)
2. BILL TITLE: Water Resources Development Act of 2000
3. BILL PURPOSE: (1) Authorizes the first phase of the 35-year Comprehensive Everglades Restoration Plan; (2) authorizes construction of 30 major and 123 small Army Corps of Engineers water resources projects for flood damage reduction, navigation, beach erosion control, and environmental restoration; (3) modifies over 50 previously authorized projects; and (4) contains numerous other water resources project-related provisions.
4. OMB ESTIMATE: P.L. 106-541 authorizes the Army Corps of Engineers (Corps) to enter into an agreement with the Tri-Cities Power Authority to build and operate hydroelectric power facilities. The Tri-Cities Power Authority will build the facilities, which will be owned and operated by the Corps. OMB estimates that the spending of the borrowed funds will increase direct spending by $67 million over 2001-2005. In addition, the law authorizes the Corps to spend certain funds that would not be spent under current law for the Raystown Lake project, prohibits the spending of certain sales proceeds for the Florida Everglades, and authorizes various land conveyances. These provisions will yield net savings of $5 million over the five years.

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs....................................	0	1	6	17	21	17

 

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Net costs....................................	0	2	6	18	25	18

 

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

OMB and CBO have slightly different estimate of the provisions that prohibit the spending of certain sales proceeds and authorize certain land conveyances.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect..............	34	1,400	2,477	7,131	7,866	8,056
Receipt effect............	-8	-1,082	-1,193	-1,278	-1,334	-1,354
Net costs....................	42	2,482	3,670	8,409	9,200	9,410

NOTE: Pursuant to the Omnibus Appropriations Act for FY 2001, the pay-as-you-go balances that would result in a sequester for FY 2001 will be set to zero in OMB's final sequestration report.