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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-666
======================================================================
 
                       DENVER WATER REUSE PROJECT

                                _______
                                

 September 23, 2002.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                         [To accompany S. 491]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(S. 491) 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 Denver Water Reuse project, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of S. 491 is 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 
Denver Water Reuse project.

                  BACKGROUND AND NEED FOR LEGISLATION

    A continually growing population in conjunction with the 
natural scarcity of fresh water make the discovery of new and 
untapped sources of water important to provide for the future. 
Recycled water is desirable because there is a constant supply, 
and, although recycled water is mostly used in irrigation and 
industry, it relieves pressure on local streams and aquifers 
that currently provide water for municipal and industrial use. 
The importance of this resource was officially recognized in 
1992 by the passing of Public law 102-575. Title XVI of this 
law, also known as the Reclamation Wastewater and Groundwater 
Study and Facilities Act, authorized the Bureau of Reclamation 
to participate in the construction of five water recycling 
projects. Since 1992, the Act has been revised to include 
several other projects. S. 491 would authorize one more project 
under title XVI.
    Title XVI has three prerequisites that must be met before 
appropriation of funds can take place. First, either the Bureau 
of Reclamation or the non-federal project sponsor must complete 
a feasibility study. Second, the non-federal sponsor must 
demonstrate that it is financially capable of funding its 
share. Third, the Bureau must ensure completion of appropriate 
environmental compliance under the National Environmental 
Policy Act. S. 491 provides for cost-sharing to fund the costs 
of complying with these prerequisites and the design, planning, 
and construction of a wastewater reclamation facility in 
Denver, Colorado.
    Colorado is in the midst of the most severe drought the 
State has experienced in 100 years while at the same time 
facing unprecedented forest fires. S. 491 will provide 
assistance to the Denver Water Department of the city and 
county of Denver, Colorado, for planning, design, and 
construction of facilities to provide a reliable water supply 
and help mitigate future droughts.

                            COMMITTEE ACTION

    S. 491 was introduced on March 8, 2001, by Senator Ben 
Nighthorse Campbell (R-CO). On September 4, 2001, the Senate 
passed the bill with an amendment by unanimous consent. In the 
House of Representatives, the bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On September 12, 2002, the 
Full Resources Committee met to consider the bill. By unanimous 
consent, the Subcommittee on Water and Power was discharged 
from further consideration of S. 491. No amendments were 
offered and the bill was ordered favorably reported to the 
House of Representatives by unanimous consent.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill 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 Denver Water Reuse project.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 19, 2002.
Hon. James V. Hansen,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 491, an act 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 Denver Water Reuse project.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 491--An act 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 Denver Water Reuse project

    Summary: S. 491 would authorize the Secretary of the 
Interior to participate in the design, planning, and 
construction of the Denver Water Reuse Project. This project 
would recycle wastewater for the city and county of Denver, 
Colorado. Based on information from the Bureau of Reclamation, 
CBO estimates that implementing S. 491 would cost $23 million 
over the 2003-2005 period, assuming appropriation of the 
necessary amounts. S. 491 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply.
    S. 491 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
State and local governments might incur some costs to match the 
federal funds authorized by this act, but these costs would be 
voluntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 491 is shown in the following table. The 
costs of this legislation fall within budget function 300 
(nature resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                                -----------------------------------------------------
                                                   2002     2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------- -------------
Estimated authorization level..................        0       10       13        0        0        0
Estimated outlays..............................        0        5       10        8        0        0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
491 will be enacted near the start of fiscal year 2003 and that 
the necessary funds will be appropriated for each year. Based 
on information from the Bureau of Reclamation, CBO estimates 
that the total Denver Water Reuse project would cost $140 
million. S. 491 would allow any funds appropriated under 
section 1631 of the Reclamation Wastewater and Groundwater 
Study and Facilities Act to be used for the project. That act 
limits the federal contribution to 25 percent of a project's 
total cost, but no more than $20 million, as adjusted for 
inflation since October 1996. Because 25 percent of the Denver 
Water Reuse project's total cost would exceed this threshold, 
CBO estimates that implementing S. 491 would involve a federal 
contribution of $23 million over the 2003-2005 period. S. 491 
would not authorize the federal government to fund the 
operation and maintenance of the project.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 491 
contains no intergovernmental or private-sector mandates as 
defined in UMBA. State and local governments might incur some 
costs to match the federal funds authorized by this act, but 
these costs would be voluntary.
    Previous CBO estimate: On May 31, 2001, CBO prepared a cost 
estimate for S. 491 as ordered reported by the Senate Committee 
on Energy and Natural Resources on May 16, 2001. The two 
versions of the legislation are identical, and our estimates of 
cumulative costs are the same. The earlier estimate assumed an 
earlier enactment and implementation of S. 491 over the 2002-
2004 period, however, this estimate assumes implementation 
would occur over the 2003-2005 period.
    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.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.