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                                                       Calendar No. 884
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-439

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



 
                  LAKEHAVEN WATER RECLAMATION PROJECT

                                _______
                                

               September 29, 2000.--Ordered to be printed

   Filed under authority of the order of the Senate of September 28 
                 (legislative day, September 22), 2000.

                                _______
                                

  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2301]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2301) to amend the Reclamation Wastewater 
and Groundwater Study and Facilities Act to authorize the 
Secretary of the Interior to participate in the design, 
planning, and construction of the Lakehaven water reclamation 
project for the reclamation and reuse of water, having 
considered the same, reports favorably thereon with an 
amendment and an amendment to the title and recommends that the 
bill, as amended, do pass.
    The amendments are as follows:
    1. Strike out all after the enacting clause and insert in 
lieu thereof the following:

SECTION 1. LAKEHAVEN WATER RECLAMATION PROJECT.

    (a) Authorization.--The Secretary of the Interior, in cooperation 
with the Lakehaven Utility District, Washington, may participate in the 
design, planning, and construction of, and land acquisition for, the 
Lakehaven water reclamation project (``Project''), Washington, to 
reclaim and reuse wastewater (including degraded groundwater) within 
and outside the service area of the Lakehaven Utility District.
    (b) Cost Share.--The Federal share of the cost of the Project shall 
not exceed 25 percent of the total cost.
    (c) Limitation.--Funds provided by the Secretary shall not be used 
for the operation or maintenance of the Project.
    (d) Funding.--Funds appropriated pursuant to section 1615 of the 
Reclamation Wastewater and Groundwater Study and Facilities Act may be 
used for the Project (106 Stat. 4663-4669, 43 U.S.C. 290h et seq.), as 
amended.

SEC. 2. RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES 
                    ACT.

    Design, planning and construction of the Project shall be in 
accordance with, and subject to the limitations contained in, the 
Reclamation Wastewater and Groundwater Study and Facilities Act (106 
Stat. 4663-4669, 43 U.S.C. 390h et seq.), as amended.

    2. Amend the title so as to read: ``To authorize the 
Secretary of the Interior, pursuant to the provisions of the 
Reclamation Wastewater and Groundwater Study and Facilities Act 
to participate in the design, planning, and construction of the 
Lakehaven water reclamation project for the reclamation and 
reuse of water.''

                         purpose of the measure

    The purpose of S. 2301 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
design, planning, and construction of the Lakehaven water 
reclamation project for the reclamation and reuse of water.

                          background and need

    Title XVI of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (P.L. 102-575, 106 Stat. 4006) 
authorized a program of wastewater reclamation and reuse 
feasibility and demonstration projects within the Reclamation 
States. The Federal share of costs was limited to 50%. In 
addition, several individual studies were directed as well as 5 
projects (San Jose, Phoenix, San Diego, Los Angeles, and San 
Gabriel Basin) for which funding was limited to 25%. The 
legislation was directed at reuse of existing supplies and did 
not address desalination, although title XI did authorize a 
program to research and demonstrate methods for control of 
salinity at the Salton Sea in California with 50% Federal cost-
sharing. Partially in response to the number of requests for 
participation in the program and the costs, P.L. 104-266 
modified the program to limit Federal contributions to 25% of 
the total cost, with a maximum of $20 million, and required a 
feasibility analysis prior to the expenditure of any funds for 
construction. The new requirements were not made applicable to 
several very large projects, mainly in California, authorized 
under title XVI. The 1996 Act also included authorization for 
18 additional water reclamation and reuse projects in 
California, Utah, New Mexico, Nevada, and Texas. Title XVI was 
again amended in October 1998 by P.L. 105-321 to include 
authorization for the Willow Lake Natural Treatment System 
Project in Oregon.
    The use of reclaimed water in the arid West is significant, 
especially in areas experiencing groundwater overdraft or 
facing reduced freshwater supplies. While municipal uses are 
the primary benefits of the program, there can be significant 
indirect benefits for other consumptive uses, such as 
agriculture, and non-consumptive uses, such as augmenting in-
stream flows or reducing depletions.
    Lakehaven Utility District (District) is one of Washington 
State's largest water and sewer utilities providing 10 million 
gallons of water a day to over 100,000 residents. It is located 
in south King County and encompasses the city of Federal Way 
and portions of Des Moines, Kent, Auburn, Pacific, Algona, 
Milton, unincorporated King County and unincorporated Pierce 
County.
    The District uses groundwater sources that are recharged 
primarily from local precipitation. While development has 
reduced the ability for these aquifers to naturally recharge, 
the demand for water from these sources has increased to exceed 
their safe production limits and has resulted in reduction of 
water levels in all local aquifers with a corresponding 
reduction in well water production. The District has two 
secondary wastewater treatment plants currently discharging 
over 6 million gallons of water a day to Puget Sound. The 
ability to utilize reclaimed water to manage groundwater levels 
has been successful in other areas; however, it has not been 
applied in Washington State.

                          legislative history

    S. 2301 was introduced by Senator Gorton on March 28, 2000. 
The Subcommittee on Water and Power held a hearing on June 21, 
2000. At the business meeting on September 20, 2000 the 
Committee on Energy and Natural Resources ordered S. 2301, as 
amended, favorably reported.

            committee recommendation and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on September 20, 2000 by a unanimous voice 
vote with a quorum present, recommends that the Senate pass S. 
2301, if amended as described herein.

                          committee amendment

    During the consideration of S. 2301, the Committee adopted 
a technical amendment in the nature of a substitute that 
rewrites the legislation to make it a freestanding bill, rather 
than amending title 16 of Public Law 105-575, which established 
the wastewater reclamation project. The title of the bill was 
also amended to reflect that change.

                   cost and budgetary considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2301. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2301, as ordered reported.

                        executive communications

    On June 16, 2000, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 2301. These 
reports had not been received at the time the report on S. 2301 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the 
Commissioner of the Bureau of Reclamation at the Subcommittee 
hearing follows:

 Statement of Eluid L. Martinez, Commissioner, Bureau of Reclamation, 
                       Department of the Interior

    Thank you for the opportunity to appear today to provide 
the Administration's view on S. 2301, concerning the Lakehaven 
water reclamation and reuse project in the state of Washington. 
My name is Eluid Martinez. I am Commissioner of the U.S. Bureau 
of Reclamation (Reclamation).
    S. 2301 would amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act (43 U.S.C. 390 et seq.) 
[Title XVI of P.L. 102-575 (1992)] to authorize the Secretary 
of the Interior (Secretary) to participate in the design, 
planning, and construction of, and land acquisition for, the 
Lakehaven water reclamation project in the state of Washington 
to reclaim and reuse wastewater (including degraded 
groundwater) within and outside the service area of the 
Lakehaven Utility District. S. 2301 limits the Federal share of 
project costs to 25 percent of the total costs and restricts 
the Secretary from providing funding for the operation and 
maintenance of this project. While Reclamation strongly 
encourages local water recycling efforts, we must oppose 
authorizing this additional Federal recycling project for the 
reasons described below.
    Mr. Chairman, in 1992, Congress adopted, and the President, 
signed the Reclamation Projects Authorization and Adjustment 
Act (Public Law 102-575). Title XVI of this Act, the Wastewater 
and Groundwater Study and Facilities Act, authorized the 
construction of five water reclamation and reuse projects. Four 
of these projects are in California and the fifth in Arizona. 
The Secretary was also authorized to undertake a program to 
identify other water recycling opportunities throughout the 17 
western United States, and to conduct appraisal level and 
feasibility level studies to determine if those opportunities 
are worthy of implementation. The Bureau of Reclamation has 
been administering a grant program to fund these Title XVI 
projects since FY 1994.
    In 1996, Public Law 104-266, the Reclamation Recycling and 
Water Conservation Act was enacted into law. This Act amended 
Title XVI and authorized the Secretary to participate in the 
planning, design, and construction of 18 additional projects, 
including two desalination research and development projects. 
These new projects are distributed within five states, 
including California, Nevada, Utah, Texas, and New Mexico. 
Title XVI of Public Law 102-575 was further amended in 1998 by 
Public Law 105-321, to authorize Reclamation to participate in 
the design, planning, and construction of the Willow Lake 
Natural Treatment System Project in Salem, Oregon. To date, 
Congress has provided funding to construct 14 of these 
projects, and to conduct feasibility studies on an additional 
three projects.
    Municipal, industrial, domestic, and agricultural 
wastewater reuse efforts can assist states and local 
communities in solving contemporary water supply problems. 
However, the Department opposes authorizing additional projects 
in the absence of feasibility studies to determine whether 
these particular projects warrant Federal funding. In general, 
Reclamation places priority on funding new projects that (1) 
are economically justified and environmentally acceptable in a 
watershed context; (2) are not eligible for funding under 
another Federal program; and (3) directly address 
Administration priorities for the Reclamation program, such as 
reducing the demand on existing Federal water supply 
facilities.
    The Department also opposes enactment of this legislation 
because authorizing new projects is likely to place an 
additional burden on Reclamation's already tight budget. To 
date, Reclamation has been unable to provide the full 
authorized funding amounts for any of the water reclamation and 
reuse projects presently authorized by Title XVI. At current 
funding levels, it will take Reclamation more than 10 years to 
complete funding of the 24 currently authorized projects.
    Finally, the Department opposes enactment of the provision 
in S. 2301 authorizing land acquisition prior to completion of 
a feasibility study. Federal contributions for land acquisition 
should await the outcome of the study.
    For all of the above reasons, the Department of the 
Interior cannot support authorizing this new construction 
request.
    This concludes my prepared testimony. I would be happy to 
answer any questions.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 2301, as 
ordered reported.