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                                                        Calendar No. 60

107th Congress                                                   Report
                                 SENATE
 1st Session                                                     107-25

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



 
                       DENVER WATER REUSE PROJECT

                                _______
                                

                  June 5, 2001.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 491]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 491) 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, 
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 all after the enacting clause and insert the 
following:

SECTION 1. DENVER WATER REUSE PROJECT.

    (a) Authorization.--The Secretary of the Interior, in cooperation 
with the appropriation State and local authorities, may participate in 
the design, planning, and construction of the Denver Water Reuse 
Project (hereinafter referred to as the ``Project'') to reclaim and 
reuse water in the service area of the Denver Water Department of the 
city and county of Denver, Colorado.
    (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 1631 of the 
Reclamation Wastewater and Groundwater Study and Facilities Act (43 
U.S.C. 390h-13) may be used for the Project.

SEC. 2. RECLAMATION WASTEWATER AND GROUND WATER STUDY AND FACILITIES 
                    ACT.

    Design, planning, and construction of the Project authorized by 
this Act 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: ``A bill to authorize the 
Secretary of the Interior, pursuant to the provisions of the 
Reclamation Wastewater and Groundwater to participate in the 
design, planning, and construction of the Denver Water Reuse 
project.''

                         PURPOSE OF THE MEASURE

    The purpose of S. 491 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.

                          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 percent. 
In addition, several individuals 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 percent. 
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 percent 
Federal cost-sharing. Partially in response to the number of 
requests for participation in the program and the costs, Public 
Law 104-266 modified the program to limit Federal contributions 
to 25 percent 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 the 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 Public 
Law 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.
    The Denver Nonpotable Reuse Project will treat secondary 
wastewater for irrigation and industrial uses around the Denver 
International Airport and Rocky Mountain Wildlife Refuge. The 
project ultimately is designed to provide 15,000 acre feet, 
freeing up potable supplies for 30,000 homes. The reuse will 
also aid Denver in complying with the Blue River Decree, signed 
by the Secretary of the Interior, under which Denver conveys 
water from Colorado's western slope to its eastern slope 
customers. The total project cost for all three phases is about 
$100 million. Under the cost-share limitations of Public Law 
104-566, the Federal funding contribution will be limited to 
$20 million, notwithstanding the 25 percent limitation in the 
legislation.

                          LEGISLATIVE HISTORY

    S. 491 was introduced by Senator Campbell on March 8, 2001. 
At the business meeting on May 16, 2001, the Committee on 
Energy and Natural Resources ordered S. 491, as amended, 
favorably reported. S. 491 is similar to S. 1848, introduced by 
Senator Campbell in the 106th Congress. The Subcommittee on 
Water and Power held a hearing on S. 1848 and the bill was 
subsequently reported out of the Committee with a technical 
amendment and passed by Unanimous Consent on the Senate floor.

            COMMITTEE RECOMMENDATION AND TABULATION OF VOTES

    The Committee on Energy and Natural Resources, in open 
business session on May 16, 2001, by a unanimous voice vote 
with a quorum present, recommends that the Senate pass S. 491, 
if amended as described herein.

                          COMMITTEE AMENDMENT

    During the consideration of S. 491, the Committee adopted 
an 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 102-575, which established the 
wastewater reclamation program. The title of the bill was also 
amended to reflect that change.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 31, 2001.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 491, a bill 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 Rachel 
Milberg.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure,

S. 491--A bill 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 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 2002-2004 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 bill, 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 
(national resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2001      2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

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 enactment 
of S. 491 in fiscal year 2001 and that the necessary funds will 
be appropriated each year beginning in 2002. 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 2002-2004 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 UMRA. State and local governments might incur some 
costs to match the federal funds authorized by this bill, but 
these costs would be voluntary.
    Estimate prepared by: Federal costs: Rachel Milberg; Impact 
on State, local, and tribal governments: Majorie Miller, impact 
on the private sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine; Deputy Assistant 
Director for Budget Analysis.

                      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. 491. 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. 491, as ordered reported.

                        EXECUTIVE COMMUNICATIONS

    On May 25, 2001, the Committee on Energy and Natural 
Resources requested legislative reports form the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 491. These reports 
had not been received at the time the report on S. 491 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. At the Subcommittee hearing on S. 
1848 held in the 106th Congress, the Administration did not 
support the measure.

                        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. 491, as ordered 
reported.