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108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-506

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



 
           INLAND EMPIRE REGIONAL WATER RECYCLING INITIATIVE

                                _______
                                

  May 20, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 2991]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2991) to amend the Reclamation Wastewater and Groundwater 
Study and Facilities Act to authorize the Secretary of the 
Interior to participate in the Inland Empire regional recycling 
project and in the Cucamonga County Water District recycling 
project, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 2991 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
Inland Empire regional recycling project and in the Cucamonga 
Valley Water District \1\ recycling project.
---------------------------------------------------------------------------
    \1\ After the bill was introduced, the Cucamonga County Water 
District was renamed the Cucamonga Valley Water District.
---------------------------------------------------------------------------

                  Background and Need for Legislation

    Many southern California communities depend on varied 
sources of water to meet rising demands. However, imported 
water supplies will continue to decrease in light of the 
historic Quantification Settlement Agreement and long-term 
drought. As a result of dwindling supplies and increasing 
demands, communities continue to seek non-traditional methods 
to produce dependable water sources. The principal methods to 
develop non-traditional water supplies in water-stressed areas 
are through water recycling and desalination. The primary goal 
of water recycling is to allow more potable water to be 
targeted for drinking water purposes. Desalination provides 
drinking water directly into the delivery system and is often 
blended with other sources.
    Water recycling and desalination are growing trends 
throughout the Nation. The federal government's specific role 
in these efforts is the Title XVI program, also known as ``The 
Reclamation Wastewater and Groundwater Study and Facilities 
Act.'' Authorized in 1992 and amended in 1996, the Title XVI 
program directs the Bureau of Reclamation to award federal 
grants to communities developing non-traditional water 
supplies. The Title XVI program allows for a 50% federal cost 
share for feasibility studies and a 25% Federal cost share for 
construction projects. The Committee notes that the significant 
local cost-share makes these projects attractive to private 
financing and partnerships and encourages regional solutions to 
complex water supply problems.
    H.R. 2991 authorizes Title XVI funding for the Inland 
Empire Regional Water Recycling Project and the Cucamonga 
Valley Water District pilot satellite recycling plant in 
southern California. The bill would add a projected 75,000 new 
acre feet of water annually to one of the largest recycled 
water distribution systems in the Santa Ana River Watershed. 
Both the groundwater and surface water quality are impaired 
within the region. Groundwater impairment problems include 
perchlorate and volatile organic compounds. Some of the 
recycled water will be used to reclaim the groundwater basin 
and help drought-proof the service area. The recycling projects 
are proposed to be configured as ``satellite'' recycling 
plants, situated at higher elevations in some cases, with 
structures designed to blend into the local landscape. These 
satellite plants will develop the recycled water near where it 
will be used, offsetting the need for expensive energy costs 
for pumping. Thus, these plants will have an ``energy-smart'' 
design.

                            Committee Action

    H.R. 2991 was introduced by Congressman David Dreier (R-CA) 
on September 3, 2003. The bill was referred to the Committee on 
Resources. Within the Committee on Resources the bill was 
referred to the Subcommittee on Water and Power. On September 
10, 2003, the Subcommittee on Water and Power held a hearing on 
the bill. On October 30, 2003, a markup was held by the 
Subcommittee on Water and Power and the bill was forwarded to 
the full Resources Committee by voice vote without amendment. 
On May 5, 2004, the Full Resources Committee met to consider 
the bill. No amendments were offered and the bill was favorably 
reported to the House of Representatives by unanimous consent.

                      Section-by-Section Analysis

    Section 1 authorizes Title XVI funding for two water 
recycling projects in the Inland Empire and Cucamonga County. 
The section authorizes the Secretary of the Interior to 
participate in the design, planning and construction of the 
Inland Empire Regional Water Recycling Project and the 
Cucamonga County Water District pilot satellite recycling 
plant. The bill limits the federal cost share to 25% of the 
total costs of the projects, or $20 million for the Inland 
Empire project and $10 million for the Cucamonga County pilot 
project. Federal funds cannot be used for operation and 
maintenance costs.

            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 Inland Empire 
regional recycling project and in the Cucamonga County Water 
District recycling 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, May 18, 2004.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2991, the Inland 
Empire Regional Water Recycling Initiative.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 2991--Inland Empire Regional Water Recycling Initiative

    Summary: H.R. 2991 would authorize the Secretary of the 
Interior to participate in the design, planning, and 
construction of the Inland Empire regional water recycling 
project and the Cucamonga County Water District pilot satellite 
recycling plant. This bill would authorize the appropriation of 
$30 million for the federal share of both projects.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing H.R. 2991 would cost $26 million 
over the 2005-2009 period and $4 million after 2009. Enacting 
this bill would not affect direct spending or revenues.
    H.R. 2991 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 2991 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).
    For this estimate, CBO assumes that H.R. 2991 will be 
enacted near the end of fiscal year 2004 and that the 
authorized amounts will be appropriated in equal amounts over 
the 2005-2009 period. This bill would authorize the 
appropriation of $20 million for the Inland Empire recycling 
project and $10 million for the Cucamonga County recycling 
plant. Based on information from the Bureau of Reclamation, CBO 
estimates that implementing the projects outlined in this bill 
would cost $26 million over the 2005-2009 period and $4 million 
after 2009.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Inland Empire Recycling Project:
    Authorization level............................................        4        4        4        4        4
    Estimated outlays..............................................        2        3        3        4        4
Cucamonga County Recycling Plant:
    Authorization level............................................        4        3        3        0        0
    Estimated outlays..............................................        2        2        3        2        1
Total changes:
    Authorization level............................................        8        7        7        4        4
    Estimated outlays..............................................        4        5        6        6        5
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 2991 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The federal funds authorize by this bill 
would benefit local governments in California. Any costs 
incurred by these governments to provide the required matching 
funds would be voluntary.
    Estimate prepared by: Federal Costs: Julie Middleton. 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller. Impact on the Private Sector: Patrice Gordon.
    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 Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

     RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992


(Public Law 102-575)

           *       *       *       *       *       *       *


SEC. 2. DEFINITION AND TABLE OF CONTENTS.

  For purposes of this Act, the term ``Secretary'' means the 
Secretary of the Interior.

                            TABLE OF CONTENTS

Sec. 1. Short title.
     * * * * * * *

        TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES

Sec. 1601. Short title.
     * * * * * * *
Sec. 1635. Inland Empire Regional Water Recycling Program.
Sec. 1636. Cucamonga County Water Recycling 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. INLAND EMPIRE REGIONAL WATER RECYCLING PROJECT.

  (a) In General.--The Secretary, in cooperation with the 
Inland Empire Utilities Agency, may participate in the design, 
planning, and construction of the Inland Empire regional water 
recycling project described in the report submitted under 
section 1606(c).
  (b) Cost Sharing.--The Federal share of the cost of the 
project described in subsection (a) shall not exceed 25 percent 
of the total cost of the project.
  (c) Limitation.--Funds provided by the Secretary shall not be 
used for operation and maintenance of the project described in 
subsection (a).
  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $20,000,000.

SEC. 1636. CUCAMONGA COUNTY WATER DISTRICT.

  (a) In General.--The Secretary, in cooperation with the 
Cucamonga County Water District, may participate in the design, 
planning, and construction of the Cucamonga County Water 
District pilot satellite recycling plant in Rancho Cucamonga, 
California, to reclaim and recycle approximately 2 million 
gallons per day of domestic wastewater.
  (b) Cost Sharing.--The Federal share of the cost of the 
project described in subsection (a) shall not exceed 25 percent 
of the capital cost of the project.
  (c) Limitation.--Funds provided by the Secretary shall not be 
used for operation and maintenance of the project described in 
subsection (a).
  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section, $10,000,000.