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                                                       Calendar No. 607
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-288

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



 
    RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES ACT

                                _______
                                

               September 17, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 2115]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 2115) to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
design, and construction of a project to reclaim and reuse 
wastewater within and outside of the service area of the 
Lakehaven Utility District, Washington, having considered the 
same, reports favorably thereon without amendment and 
recommends that the Act do pass.

                         Purpose of the Measure

    The purpose of H.R. 2115 is to authorize the Secretary of 
the interior to participate in a project to reclaim and reuse 
wastewater within and outside the service area of the Lakehaven 
Utility District, Washington pursuant to the Reclamation 
Wastewater and Groundwater Study and Facilities Act.

                          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. 
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 the Federal share to 25 percent 
of the total cost, with an overall cap 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.
    The Lakehaven Utility District is one of Washington's 
largest water and sewer utilities providing 10.5 million 
gallons of water a day to over 100,000 residents and numerous 
corporate facilities in south King County and parts of Pierce 
County. The demand for water from these sources has increased 
to a point that the district may soon exceed safe water 
production limits and has resulted in reduction of water levels 
in all local aquifers.
    The District has prepared a plan to construct additional 
treatment systems at the two wastewater treatment plants in the 
district, to improve pipeline distribution systems for 
transporting water to the reuse areas, and systems to direct 
water back to the aquifer system. The cost of these facilities 
is estimated to be $38 million.

                          Legislative History

    H.R. 2115 was introduced by Representative Smith on June 7, 
2001, and passed the House of Representatives by voice vote on 
December 5, 2001. A related measure, S. 1385, was introduced by 
Senator Cantwell on August 3, 2001. A similar measure, S. 2301, 
was favorably reported by the Committee during the 106th 
Congress and passed the Senate on October 13, 2000. The 
Subcommittee on Water and Power held a hearing on H.R. 2115 and 
S. 1385 on June 6, 2002. At the business meeting on July 31, 
2002, the Committee on Energy and Natural Resources ordered 
H.R. 2115, favorably reported.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on July 31, 2002, by a voice vote of a quorum 
present, recommends that the Senate pass H.R. 2115, as 
described herein.

                      Section-by-Section Analysis

    Section 1 amends the Reclamation Wastewater and Groundwater 
Study and Facilities Act (Public Law 102-575, title XVI; 43 
U.S.C. 390h et seq.) by adding a new section 1635 as follows:
    Subsection (a) authorizes the Secretary of the Interior to 
work with the Lakehaven Utility District to plan, design, 
acquire land for, and construct a project to reclaim and reuse 
wastewater within and outside of the Lakehaven Utility 
District.
    Subsection (b) limits the Federal cost-share to an amount 
not to exceed 25 percent.
    Subsection (c) prohibits the Secretary from using any funds 
for the operation and maintenance of the project being 
authorized.
    Section 2 provides for a clerical amendment to the 
Reclamation Wastewater and Groundwater Study and Facilities 
Act.

                   Cost and Budgetary Considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, August 6, 2002.
Hon. Jeff Bingaman,
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 H.R. 2115, an act 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 a 
project to reclaim and reuse wastewater within and outside of 
the service area of the Lakehaven Utility District, Washington.
    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.

H.R. 2115--An act 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 a project to reclaim and reuse wastewater 
        within and outside of the service area of the Lakehaven Utility 
        District, Washington

    Summary: H.R. 2115 would authorize the Secretary of the 
Interior through the Bureau of Reclamation to participate in 
the design, planning, and construction of a project to reclaim 
and reuse wastewater in the Lakehaven Utility District. CBO 
estimates that implementing H.R. 2115 would cost $88 million 
over the 2003-2007 period, assuming appropriation of the 
necessary amounts. H.R. 2115 would not affect direct spending 
or receipts; therefore, pay-as-you-go procedures would not 
apply.
    S. 2115 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 those costs would be 
voluntary.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 2115 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

Estimated authorization level......................................       10        0        0        0        0
Estimated outlays..................................................        1        1        1        2        3
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes H.R. 2115 
will be enacted near the start of fiscal year 2003 and that the 
necessary funds will be appropriated. Based on information from 
the Bureau of Reclamation, we estimate that the Lakehaven Water 
Reclamation and Reuse Project would cost $38 million. H.R. 2115 
would amend section 1615 of the Reclamation Wastewater and 
Groundwater Study and Facilities Act to authorize funding for 
this project. The act would limit the federal contribution to 
25 percent of the project's total cost. CBO estimates that 
implementing H.R. 2115 would cost the federal government $8 
million over the 2003-2007 period and an additional $2 million 
thereafter. The remaining project costs would be paid for with 
nonfederal funds. Under H.R. 2115, the federal government would 
not be authorized to fund the operation and maintenance of the 
project.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2115 
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 act, but 
these costs would be voluntary.
    Previous CBO estimate: On November 15, 2001, CBO prepared a 
cost estimate for H.R. 2115 as ordered reported by the House 
Committee on Resources on October 17, 2001. The two versions of 
this legislation are identical, and the estimated costs are the 
same, however, we now expect the legislation to be implemented 
in 2003.
    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.

                      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 H.R. 2115. 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 H.R. 2115.

                        Executive Communications

    The pertinent legislative report received by the Committee 
from the Department of the Interior setting forth Executive 
agency recommendation relating to H.R. 2115 is set forth below:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                    Washington, DC, August 9, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This letter responds to your request for 
the views of the Department of the Interior on S. 1385 and H.R. 
2115, concerning the Lakehaven water reclamation project in the 
state of Washington. This confirms testimony of Mark Limbaugh, 
Director of External and Intergovernmental Affairs, Bureau of 
Reclamation, on June 6. Although there are a few drafting 
differences between S. 1385 and H.R. 2115, the bills are 
effectively identical, and therefore, my statement is 
applicable to both bills. The Department previously submitted 
its views on H.R. 2115 to the House Resources Committee, by 
letter of October 22, 2001. The Department opposes both bills.
    S. 1385 and H.R. 2115 both 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. H.R. 1385 
and H.R. 2115 limit the Federal share of project costs to 25 
percent of the total costs and restrict the Secretary from 
providing funding for the operation and maintenance of this 
project. While the Department strongly encourages local water 
recycling efforts, we must oppose authorizing this additional 
Federal recycling project for the reasons described below.
    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 Reclamation 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 is in 
Arizona. The Secretary also was 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. In addition, 
the Secretary was authorized to conduct research and to 
construct, operate, and maintain demonstration projects. The 
Bureau of Reclamation has been administering a grant program to 
fund these Title XVI activities since FY 1994.
    In 1996, Public Law 104-266, the Reclamation Recycling and 
Water Conservation Act, was enacted. 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 anddevelopment projects. These new 
projects are distributed within five states, including California, 
Nevada, Utah, Texas, and New Mexico. Title XVI of P.L. 102-575 was 
further amended in 1998 by Public Law 105-321, to authorize a project 
in Salem, Oregon. Finally, Title XVI was amended twice in 2000, first 
by Public Law 106-544, to authorize a project in Sparks, Nevada, and 
then by Public Law 106-566, which provided the Secretary with general 
authority to conduct planning studies in the State of Hawaii. To date, 
Congress has provided funding to plan or construct 19 of these 25 
specifically authorized projects. In addition, under the general 
authority of Title XVI, funding has been provided to identify and 
investigate, at the appraisal or feasibility level, eight potential 
water recycling projects, and to conduct three research and 
demonstration 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 
construction 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 construction 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 all but four 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 25 currently 
authorized projects.
    Finally, the Department opposes enactment of the provision 
in S. 1385 and H.R. 2115 authorizing land acquisition prior to 
completion of a feasibility study. Federal contributions for 
land acquisition should await the outcome of a feasibility 
study.
    For these reasons, the Department cannot support 
authorizing this new construction request.
            Sincerely,
                                          John W. Keys III,
                               Commissioner, Bureau of Reclamation.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill H.R. 2115, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

     RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992

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                            TABLE OF CONTENTS

     * * * * * * *

 TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES 
                                   ACT

Sec. 1601. Short Title.
     * * * * * * *
Sec. 1635. Lakehaven, Washington, Water Reclamation and Reuse Project.

           *       *       *       *       *       *       *


       TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES


SEC. 1601. SHORT TITLE.

    This title may be referred to as the ``Reclamation 
Wastewater and Groundwater Study and Facilities Act''.

           *       *       *       *       *       *       *


SEC. 1635. LAKEHAVEN, WASHINGTON, WATER RECLAMATION AND REUSE PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
Lakehaven Utility District, Washington, is authorized to 
participate in the design, planning, and construction of, and 
land acquisition for, a project to reclaim and reuse 
wastewater, including degraded groundwaters, within and outside 
of the service area of the Lakehaven Utility District.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.

           *       *       *       *       *       *       *