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                                                       Calendar No. 684
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-328

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



 
  CHIMAYO WATER SUPPLY SYSTEM AND ESPANOLA FILTRATION FACILITY ACT OF 
                                  2004

                                _______
                                

                August 25, 2004.--Ordered to be printed

   Filed, under authority of the order of the Senate of July 22, 2004

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2511]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2511) to direct the Secretary of the 
Interior to conduct a feasibility study of a Chimayo water 
supply system, to provide for the planning, design, and 
construction of a water supply, reclamation, and filtration 
facility for Espanola, New Mexico, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chimayo Water Supply System and 
Espanola Filtration Facility Act of 2004''.

                  TITLE I--CHIMAYO WATER SUPPLY SYSTEM

SEC. 101. DEFINITIONS.

    In this title:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (2) Study area.--The term ``study area'' means the Santa 
        Cruz River Valley in the eastern margin of the Espanola Basin.
            (3) System.--The term ``system'' means a water supply 
        system described in section 102(a).
            (4) Town.--The term ``Town'' means the town of Chimayo, New 
        Mexico, located in Rio Arriba County and Santa Fe County, New 
        Mexico.

SEC. 102. CHIMAYO WATER SUPPLY SYSTEM FEASIBILITY STUDY.

    (a) In General.--The Secretary, in cooperation with appropriate 
State and local authorities, shall conduct a study to determine the 
feasibility of constructing a water supply system for the Town in the 
study area that includes potable water transmission lines, pump 
stations, and storage reservoirs.
    (b) Scope of Study.--In conducting the study under subsection (a), 
the Secretary shall--
            (1) consider operating the system in connection with the 
        Espanola Water Filtration Facility;
            (2) consider various options for supplying water to the 
        Town, including connection to a regional water source, local 
        sources, sources distributed throughout the Town, and sources 
        located on adjacent Bureau of Land Management land;
            (3) consider reusing or recycling water from local or 
        regional sources;
            (4) consider using alternative water supplies such as 
        surface water, brackish water, nonpotable water, or deep 
        aquifer groundwater; and
            (5) determine the total lifecycle costs of the system, 
        including--
                    (A) long-term operation, maintenance, replacement, 
                and treatment costs of the system; and
                    (B) management costs (including personnel costs).
    (c) Deadline for Study.--As soon as practicable, but not later than 
3 years after the date of enactment of this Act, the Secretary shall 
complete the study.
    (d) Cost Sharing.--The Federal share of the cost of the study shall 
be 75 percent.
    (e) Coordination.--The Secretary shall coordinate activities of the 
Bureau of Reclamation, the Bureau of Land Management, and the United 
States Geological Survey in the furtherance of the study, including--
            (1) accessing any Bureau of Land Management land adjacent 
        to the study area that is necessary to carry out this section; 
        and
            (2) the drilling of any exploratory wells on Bureau of Land 
        Management land adjacent to the study area that are necessary 
        to determine water resources available for the Town.
    (f) Report.--The Secretary shall submit to Congress a report on the 
results of the feasibility study not later than the earlier of--
            (1) the date that is 1 year after the date of completion of 
        the feasibility study; or
            (2) the date that is 4 years after the date of enactment of 
        this Act.

SEC. 103. EMERGENCY WATER SUPPLY DEVELOPMENT ASSISTANCE.

    (a) In General.--The Secretary may enter into contracts with water 
authorities in the study area to provide emergency water supply 
development assistance to any eligible person or entity, as the 
Secretary determines to be appropriate.
    (b) Eligible Activities.--The Secretary may provide assistance 
under subsection (a) for--
            (1) hauling water;
            (2) the installation of water purification technology at 
        the community wells or individual point-of-use;
            (3) the drilling of wells;
            (4) the installation of pump stations and storage 
        reservoirs;
            (5) the installation of transmission and distribution 
        pipelines to bring water to individual residential service 
        connections;
            (6) the engineering, design, and installation of an 
        emergency water supply system; and
            (7) any other eligible activity, as the Secretary 
        determines to be appropriate.
    (c) Cost Sharing.--The Federal share of the cost of any activity 
under this section shall be 75 percent.

SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated--
            (1) to carry out section 102, $2,000,000 for the period of 
        fiscal years 2005 through 2008; and
            (2) to carry out section 103, $3,000,000 for the period of 
        fiscal years 2005 through 2010.
    (b) Limitation.--Amounts made available under subsection (a)(1) 
shall not be available for the construction of water infrastructure for 
the system.

              TITLE II--ESPANOLA WATER FILTRATION FACILITY

SEC. 201. DEFINITIONS.

    In this title:
            (1) Component.--The term ``component'' means a water 
        delivery infrastructure development described in section 
        202(b).
            (2) Facility.--The term ``facility'' means the Espanola 
        water filtration facility described in section 202(a).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Commissioner of 
        Reclamation.

SEC. 202. ESPANOLA WATER FILTRATION FACILITY.

    (a) In General.--The Secretary shall provide financial assistance 
to the city of Espanola, New Mexico, for the construction of an 
Espanola water filtration facility consisting of projects--
            (1) to divert and fully use imported water to meet future 
        demands in the greater Espanola, New Mexico region, including 
        construction of--
                    (A) presedimentation basins for removal of 
                sediments;
                    (B) an influent pump station to supply water into 
                treatment facilities;
                    (C) a pretreatment facility;
                    (D) filtration facilities;
                    (E) finished water storage facilities;
                    (F) a finished water booster pump station;
                    (G) sludge dewatering facilities; and
                    (H) potable water transmission lines to connect 
                into the water distribution facilities of the city of 
                Espanola, New Mexico; and
            (2) to use reclaimed water to enhance groundwater resources 
        and surface water supplies.
    (b) Participation.--The Secretary may provide financial assistance 
to the Santa Clara and San Juan Pueblos of New Mexico and the non-
Federal sponsors of the facility for the study, planning, design, and 
construction of a water delivery infrastructure development for the 
Santa Clara and San Juan Pueblos as a component of the facility.
    (c) Cost Sharing.--The Federal share of the total cost of the 
facility and the component shall not exceed 25 percent.
    (d) Limitation on Use of Funds.--Funds provided by the Secretary 
may not be used for the operation or maintenance of the facility or the 
component.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the construction of the 
facility $3,000,000 for the period of fiscal years 2005 through 2009.

                         PURPOSE OF THE MEASURE

    The purpose of S. 2511 is to direct the Secretary of the 
Interior to conduct a feasibility study of a Chimayo water 
supply system, to provide for the planning, design, and 
construction of a water supply, reclamation, and filtration 
facility for Espanola, New Mexico, and for other purposes.

                          BACKGROUND AND NEED

    The 3,000 citizens of the unincorporated community of 
Chimayo, New Mexico rely on individual wells for their potable 
water and deteriorated septic systems to dispose of waste 
water. The condition of the water and sewer infrastructure in 
the basin results in 75 percent of well samples taken having 
significant contamination of both total coliform and fecal 
coliform and high levels of total dissolved solids. Because of 
the unreliability of the well water, some residents drink free-
flowing water from irrigation ditches, which also contain high 
levels of fecal coliform. In 2001, the region was declared an 
emergency area and received potable water from National Guard 
tanker trucks. Chimayo is still an emergency area.
    The city of Espanola's current water system produces 
approximately 1,000 gallons per minute less than is needed to 
provide for its current population. This production shortfall 
has resulted in inadequate water pressure throughout the city. 
The chronic lack of pressure is prevalent especially in the 
portion of the city where the Espanola Hospital is located. The 
city has twice declared a state of emergency due to lack of 
adequate water and water pressure. As a result, the city has 
called on the National Guard to supply water to the hospital. 
Although the city of Espanola has been allocated 1,000 acre 
feet per annum of San-Juan Chama Project water by the Bureau of 
Reclamation, the city is unable to divert this water due to 
inadequate water infrastructure. Instead of making use of its 
available San Juan Chama water, the city has been depleting its 
limited groundwater supplies.

                          LEGISLATIVE HISTORY

    S. 2511 was introduced by Senator Domenici on June 8, 2004 
and referred to the Committee on Energy and Natural Resources. 
Senator Bingaman is an original cosponsor. The Subcommittee on 
Water and Power held a hearing on S. 2511 on June 17, 2004. The 
Committee on Energy and Natural Resources ordered S. 2511, as 
amended, favorably reported on July 14, 2004.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in an 
open business meeting on July 14, 2004, by unanimous voice vote 
of a quorum present, recommends that the Senate pass S. 2511, 
if amended as described herein.

                          COMMITTEE AMENDMENT

    During the consideration of S. 2511, the Committee adopted 
an amendment in the nature of a substitute. The substitute 
amendment addresses concerns raised during the Subcommittee 
hearing and in written submissions.
    The change directs the Secretary of the Interior to 
evaluate water resources on Bureau of Land Management land 
adjacent to Chimayo.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 provides the short title, the ``Chimayo Water 
Supply System and Espanola Filtration Facility Act of 2004.''
    Section 101 defines the terms used in title 1 of the Act.
    Section 102 subsection (a) directs the Secretary to conduct 
a study to determine the feasibility of constructing a water 
supply system for Chimayo.
    Subsection (b) provides criteria that the Secretary shall 
consider when conducting the study.
    Subsection (c) directs the Secretary to complete the study 
as soon as practicable but not later than three years after the 
date of enactment of this Act.
    Subsection (d) provides that the Federal share of the cost 
shall be 75 percent.
    Subection (e) provides that the Secretary shall coordinate 
the activities of the Bureau of Reclamation, the Bureau of Land 
Management, and the United States Geological Survey in 
assessing water resources on adjacent BLM land.
    Subsection (f) directs the Secretary to submit to Congress 
a report on the results of the feasibility study.
    Section 103 subsection (a) authorizes the Secretary to 
provide emergency water supply assistance to Chimayo.
    Subsection (b) lists the activities the Secretary may 
undertake to provide emergency water assistance.
    Subsection (c) provides that the Federal share of the cost 
shall be 75 percent.
    Section 104 subsection (a) authorizes to be appropriated 
$2,000,000 for the Chimayo water supply feasibility study and 
$3,000,000 for emergency water assistance for fiscal years 2005 
through 2009.
    Subsection (b) prohibits funds made available for the 
feasibility study from being spent on construction.
    Section 201 defines the terms used in title 2 of the Act.
    Section 202 subsection (a) directs the Secretary to provide 
financial assistance to the city of Espanola, New Mexico for 
construction of a water filtration facility.
    Subsection (b) provides that the Secretary may provide 
financial assistance to the Santa Clara and San Juan Pueblos 
for water infrastructure as a component of the facility.
    Subsection (c) provides that the Federal cost share for the 
filtration facility shall not exceed 25 percent.
    Subsection (d) prohibits funds made available for the 
filtration facility from being used for operation and 
maintenance.
    Section 203 authorizes to be appropriated for the 
filtration facility $3,000,000 for fiscal years 2005 through 
2009.

                   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, July 16, 2004.
Hon. Pete V. Domenici,
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. 2511, the Chimayo 
Water Supply System and Espanola Filtration Facility Act of 
2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 2511--Chimayo Water Supply System and Espanola Filtrations Facility 
        Act of 2004

    Summary: S. 2511 would authorize the appropriation of $2 
million over the 2005-2008 period for a water supply 
feasibility study for the town of Chimayo, New Mexico. The bill 
also would authorize the appropriation of $3 million over the 
2005-2010 period for emergency water supply development 
assistance in the town of Chimayo and the Santa Cruz River 
Valley. For both the study and the development assistance, the 
bill would authorize the Secretary of the Interior to pay 75 
percent of the total project costs. Finally, S. 2511 would 
authorize the appropriation of $3 million over the 2005-2009 
period for a new water filtration facility in the city of 
Espanola, New Mexico. This bill would limit the federal share 
of the cost of constructing this facility to 25 percent.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing the bill would cost $8 million over 
the 2005-2009 period. Enacting S. 2511 would not affect direct 
spending or revenues.
    S. 2511 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The communities participating in the feasibility study and the 
water filtration project would incur costs as a result of 
matching requirements in the bill, but those costs would be 
incurred voluntarily. Those communities would benefit from the 
bill's enactment.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2511 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 S. 2511 will be enacted near the end of 2004. 
Based on historical spending patterns of similar projects, CBO 
estimates that implementing this bill would cost $8 million 
over the 2005-2009 period.

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

Estimated authorization level......................................        2        2        2        1        1
Estimated outlays..................................................        1        2        2        2        1
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 2511 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Julie Middleton. 
Impact on State, Local, and Tribal Governments: Leo Lex. Impact 
on the Private Sector: Karen Raupp.
    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. 2511. The bill is not a regulatory measure in 
the sense of imposing Government-established standards of 
significant 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. 2511.

                        EXECUTIVE COMMUNICATIONS

    On June 16, 2004, 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 views on S. 2511. These reports had not been 
received at the time the report on S. 2511 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 Department of the 
Interior at the Subcommittee hearing follows:

  Statement of John W. Keys III, Commissioner, Bureau of Reclamation, 
                       Department of the Interior

    Madam Chairman, may name is John W. Keys III, Commissioner 
of Reclamation. I am pleased to be here today to present the 
views of the Department of the Interior (Department) regarding 
S. 2511, which would authorize a feasibility study for a 
Chimayo water supply system, and for planning, design, and 
construction of a water supply, reclamation, and filtration 
facility for Espanola, New Mexico.
    We share the views of the sponsor of this bill, Senator 
Domenici, regarding the importance of safe and reliable water 
supplies for cities, towns, and villages. The goals of the bill 
are commendable. While the Administration cannot support S. 
2511 in its current form, we do think that it points out the 
urgency for Congress to enact rural water legislation now 
pending before the Senate. Both the Espanola and Chimayo 
communities may directly benefit from establishment of a 
systematic rural water program within Reclamation.
    Rural water legislation would provide Reclamation with 
authority and guidelines to assist rural communities as they 
develop proposals for rural water solutions based on sound 
economics and best practices. Among three separate versions of 
rural water legislation now pending before the U.S. Senate, 
there is bi-partisan, interbranch consensus that the federal 
cost share should not exceed 50% for planning on rural water 
projects, at least until a capability-to-pay analysis that is 
consistently utilized indicates that a different cost-share is 
more equitable.
    The rural water legislation would provide a mechanism for 
Reclamation and the communities to calculate that capability to 
pay for both construction and operation and maintenance. This 
helps in two ways. Reclamation and Congress will be able to 
identify fair construction cost-sharing requirements, and local 
sponsors will be able to objectively assess whether they will 
have the resources to properly operate and maintain projects 
constructed under the program.
    By contrast, Title I of S. 2511 provides that any 
assistance or grants for Chimayo would be made on a non-
reimbursable basis, and with only a 25 percent local cost-
sharing requirement.
    Title II of the bill directs the Secretary of the Interior, 
acting through the Bureau of Reclamation to provide financial 
assistance to the city of Espanola, New Mexico, for the 
construction of an Espanola water filtration facility.
    Reclamation has already provided financial assistance of 
about $400,000 to the City of Espanola to perform a feasibility 
study, including environmental reviews under the National 
Environmental Policy Act. However, Reclamation has not yet 
received the feasibility study from the City of Espanola 
required under Section 1604 for review and acceptance. We 
believe this is a critical step that should precede 
construction authorization of the proposed filtration facility 
for three reasons: (1) Reclamation has not yet reviewed the 
feasibility study for adequacy; (2) the feasibility report 
never contemplated providing water to Chimayo; and (3) the 
Espanola feasibility study may need to be expanded to include 
these additional concerns.
    Until these questions are resolved, construction 
authorization is not appropriate. Reclamation believes that 
after reviewing the feasibility study provided by Espanola, we 
would be in a far better position to help shape legislation to 
authorize construction. Furthermore, regarding the Chimayo 
project, with which we are only minimally familiar, the needs 
of the Community may be better met by one of the other numerous 
Federal rural water programs.
    Thank you, Madam Chairman, for the opportunity to present 
this testimony. I will be pleased to answer questions you and 
other members of the subcommittee might have.

                        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. 2511, as 
ordered reported.