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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-260

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



 
           SENATOR PAUL SIMON WATER FOR THE POOR ACT OF 2005

                                _______
                                

October 28, 2005.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hyde, from the Committee on International Relations, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1973]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on International Relations, to whom was 
referred the bill (H.R. 1973) to make access to safe water and 
sanitation for developing countries a specific policy objective 
of the United States foreign assistance programs, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     6
Background and Need for the Legislation..........................     6
Hearings.........................................................    12
Committee Consideration..........................................    12
Votes of the Committee...........................................    12
Congressional Budget Office Cost Estimate........................    12
Performance Goals and Objectives.................................    14
Constitutional Authority Statement...............................    15
Section-by-Section Analysis......................................    15
New Advisory Committees..........................................    17
Congressional Accountability Act.................................    17
Federal Mandates.................................................    17
Changes in Existing Law Made by the Bill, as Reported............    17

                             The Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senator Paul Simon Water for the 
Poor Act of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Water-related diseases are a human tragedy, killing up 
        to five million people annually, preventing millions of people 
        from leading healthy lives, and undermining development 
        efforts.
            (2) A child dies an average of every 15 seconds because of 
        lack of access to safe water and adequate sanitation.
            (3) In the poorest countries in the world, one out of five 
        children dies from a preventable, water-related disease.
            (4) Lack of access to safe drinking water, inadequate 
        sanitation, and poor hygiene practices are directly responsible 
        for the vast majority of diarrheal diseases which kill over two 
        million children each year.
            (5) At any given time, half of all people in the developing 
        world are suffering from one or more of the main diseases 
        associated with inadequate provision of water supply and 
        sanitation services.
            (6) Over 1.1 billion people, one in every six people in the 
        world, lack access to safe drinking water.
            (7) Nearly 2.6 billion people, two in every five people in 
        the world, lack access to basic sanitation services.
            (8) Half of all schools in the world do not have access to 
        safe drinking water and basic sanitation.
            (9) Over the past 20 years, two billion people have gained 
        access to safe drinking water and 600 million people have 
        gained access to basic sanitation services.
            (10) Access to safe water and sanitation and improved 
        hygiene are significant factors in controlling the spread of 
        disease in the developing world and positively affecting worker 
        productivity and economic development.
            (11) Increasing access to safe water and sanitation 
        advances efforts toward other development objectives, such as 
        fighting poverty and hunger, promoting primary education and 
        gender equality, reducing child mortality, promoting 
        environmental stability, improving the lives of slum dwellers, 
        and strengthening national security.
            (12) Providing safe supplies of water and sanitation and 
        hygiene improvements would save millions of lives by reducing 
        the prevalence of water-borne diseases, water-based diseases, 
        water-privation diseases, and water-related vector diseases.
            (13) Because women and girls in developing countries are 
        often the carriers of water, lack of access to safe water and 
        sanitation disproportionately affects women and limits women's 
        opportunities at education, livelihood, and financial 
        independence.
            (14) Between 20 percent and 50 percent of existing water 
        systems in developing countries are not operating or are 
        operating poorly.
            (15) In developing world water delivery systems, an average 
        of 50 percent of all water is lost before it gets to the end-
        user.
            (16) Every $1 invested in safe water and sanitation would 
        yield an economic return of between $3 and $34, depending on 
        the region.
            (17) Developing sustainable financing mechanisms, such as 
        pooling mechanisms and revolving funds, is necessary for the 
        long-term viability of improved water and sanitation services.
            (18) The annual level of investment needed to meet the 
        water and sanitation needs of developing countries far exceeds 
        the amount of Official Development Assistance (ODA) and 
        spending by governments of developing countries, so 
        facilitating and attracting greater public and private 
        investment is essential.
            (19) Meeting the water and sanitation needs of the lowest-
        income developing countries will require an increase in the 
        resources available as grants from donor countries.
            (20) The long-term sustainability of improved water and 
        sanitation services can be advanced by promoting community 
        level action and engagement with civil society.
            (21) Target 10 of the United Nations Millennium Development 
        Goals is to reduce by half the proportion of people without 
        sustainable access to safe drinking water by 2015.
            (22) The participants in the 2002 World Summit on 
        Sustainable Development, held in Johannesburg, South Africa, 
        including the United States, agreed to the Plan of 
        Implementation of the World Summit on Sustainable Development 
        which included an agreement to work to reduce by one-half ``the 
        proportion of people who are unable to reach or afford safe 
        drinking water,'' and ``the proportion of people without access 
        to basic sanitation'' by 2015.
            (23) At the World Summit on Sustainable Development, the 
        United States announced the Water for the Poor Initiative, 
        committing $970 million for fiscal years 2003 through 2005 to 
        improve sustainable management of fresh water resources and 
        accelerate and expand international efforts to achieve the goal 
        of cutting in half by 2015 the proportion of people who are 
        unable to reach or to afford safe drinking water.
            (24) United Nations General Assembly Resolution 58/217 
        (February 9, 2004) proclaimed ``the period from 2005 to 2015 
        the International Decade for Action, `Water for Life', to 
        commence on World Water Day, 22 March 2005'' for the purpose of 
        increasing the focus of the international community on water-
        related issues at all levels and on the implementation of 
        water-related programs and projects.
            (25) Around the world, 263 river basins are shared by two 
        or more countries, and many more basins and watersheds cross 
        political or ethnic boundaries.
            (26) Water scarcity can contribute to insecurity and 
        conflict on subnational, national, and international levels, 
        thus endangering the national security of the United States.
            (27) Opportunities to manage water problems can be 
        leveraged in ways to build confidence, trust, and peace between 
        parties in conflict.
            (28) Cooperative water management can help resolve 
        conflicts caused by other problems and is often a crucial 
        component in resolving such conflicts.
            (29) Cooperative water management can help countries 
        recover from conflict and, by promoting dialogue and 
        cooperation among former parties in conflict, can help prevent 
        the reemergence of conflict.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to increase the percentage of water and sanitation 
        assistance targeted toward countries designated as high 
        priority countries under section 6(f) of this Act;
            (2) to ensure that water and sanitation assistance reflect 
        an appropriate balance of grants, loans, contracts, investment 
        insurance, loan guarantees, and other assistance to further 
        ensure affordability and equity in the provision of access to 
        safe water and sanitation for the very poor;
            (3) to ensure that the targeting of water and sanitation 
        assistance reflect an appropriate balance between urban, 
        periurban, and rural areas to meet the purposes of assistance 
        described in section 135 of the Foreign Assistance Act of 1961, 
        as added by section 5(a) of this Act;
            (4) to ensure that forms of water and sanitation assistance 
        provided reflect the level of existing resources and markets 
        for investment in water and sanitation within recipient 
        countries;
            (5) to ensure that water and sanitation assistance, to the 
        extent possible, supports the poverty reduction strategies of 
        recipient countries and, when appropriate, encourages the 
        inclusion of water and sanitation within such poverty reduction 
        strategies;
            (6) to promote country and local ownership of safe water 
        and sanitation programs, to the extent appropriate;
            (7) to promote community-based approaches in the provision 
        of affordable and equitable access to safe water and 
        sanitation, including the involvement of civil society;
            (8) to mobilize and leverage the financial and technical 
        capacity of businesses, governments, nongovernmental 
        organizations, and civil society in the form of public-private 
        alliances;
            (9) to encourage reforms and increase the capacity of 
        foreign governments to formulate and implement policies that 
        expand access to safe water and sanitation in an affordable, 
        equitable, and sustainable manner, including integrated 
        strategic planning; and
            (10) to protect the supply and availability of safe water 
        through sound environmental management, including preventing 
        the destruction and degradation of ecosystems and watersheds.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) in order to make the most effective use of amounts of 
        Official Development Assistance for water and sanitation and 
        avoid waste and duplication, the United States should seek to 
        establish innovative international coordination mechanisms 
        based on best practices in other development sectors; and
            (2) the United States should greatly increase the amount of 
        Official Development Assistance made available to carry out 
        section 135 of the Foreign Assistance Act of 1961, as added by 
        section 5(a) of this Act.

SEC. 5. ASSISTANCE TO PROVIDE SAFE WATER AND SANITATION.

    (a) In General.--Chapter 1 of part I of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the 
following new section:

``SEC. 135. ASSISTANCE TO PROVIDE SAFE WATER AND SANITATION.

    ``(a) Purposes.--The purposes of assistance authorized by this 
section are--
            ``(1) to promote good health, economic development, poverty 
        reduction, women's empowerment, conflict prevention, and 
        environmental sustainability by providing assistance to expand 
        access to safe water and sanitation, promoting integrated water 
        resource management, and improving hygiene for people around 
        the world;
            ``(2) to seek to reduce by one-half from the baseline year 
        1990 the proportion of people who are unable to reach or afford 
        safe drinking water and the proportion of people without access 
        to basic sanitation by 2015;
            ``(3) to focus water and sanitation assistance toward the 
        countries, locales, and people with the greatest need;
            ``(4) to promote affordability and equity in the provision 
        of access to safe water and sanitation for the very poor, 
        women, and other vulnerable populations;
            ``(5) to improve water efficiency through water demand 
        management and reduction of unaccounted-for water;
            ``(6) to promote long-term sustainability in the affordable 
        and equitable provision of access to safe water and sanitation 
        through the creation of innovative financing mechanisms such as 
        national revolving funds, and by strengthening the capacity of 
        recipient governments and communities to formulate and 
        implement policies that expand access to safe water and 
        sanitation in a sustainable fashion, including integrated 
        planning;
            ``(7) to secure the greatest amount of resources possible, 
        encourage private investment in water and sanitation 
        infrastructure and services, particularly in lower middle-
        income countries, without creating unsustainable debt for low-
        income countries or unaffordable water and sanitation costs for 
        the very poor; and
            ``(8) to promote the capacity of recipient governments to 
        provide affordable, equitable, and sustainable access to safe 
        water and sanitation.
    ``(b) Authorization.--To carry out the purposes of subsection (a), 
the President is authorized to furnish assistance for programs in 
developing countries to provide affordable and equitable access to safe 
water and sanitation.
    ``(c) Activities Supported.--Assistance provided under subsection 
(b) shall, to the maximum extent practicable, be used to--
            ``(1) expand affordable and equitable access to safe water 
        and sanitation for underserved populations;
            ``(2) support the design, construction, maintenance, 
        upkeep, repair, and operation of water delivery and sanitation 
        systems;
            ``(3) improve the safety and reliability of water supplies, 
        including environmental management; and
            ``(4) improve the capacity of recipient governments and 
        local communities, including capacity-building programs for 
        improved water resource management.
    ``(d) Local Currency.--The President may use payments made in local 
currencies under an agreement made under title I of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.) to 
provide assistance under this section.''.
    (b) Conforming Amendment.--Section 104(c) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1704(c)) is amended by 
adding at the end the following new paragraph:
            ``(9) Safe water and sanitation.--To provide assistance 
        under section 135 of the Foreign Assistance Act of 1961 to 
        promote good health, economic development, poverty reduction, 
        women's empowerment, conflict prevention, and environmental 
        sustainability by increasing affordable and equitable access to 
        safe water and sanitation.''.

SEC. 6. SAFE WATER AND SANITATION STRATEGY.

    (a) Strategy.--The President, acting through the Secretary of 
State, shall develop a strategy to further the United States foreign 
assistance objective to provide affordable and equitable access to safe 
water and sanitation in developing countries, as described in section 
135 of the Foreign Assistance Act of 1961, as added by section 5(a) of 
this Act.
    (b) Consultation.--The strategy required by subsection (a) shall be 
developed in consultation with the Administrator of the United States 
Agency for International Development, the heads of other appropriate 
Federal departments and agencies, international organizations, 
international financial institutions, recipient governments, United 
States and international nongovernmental organizations, indigenous 
civil society, and other appropriate entities.
    (c) Implementation.--The Secretary of State, acting through the 
Administrator of the United States Agency for International 
Development, shall implement the strategy required by subsection (a). 
The strategy may also be implemented in part by other Federal 
departments and agencies, as appropriate.
    (d) Consistent With Safe Water and Sanitation Policy.--The strategy 
required by subsection (a) shall be consistent with the policy stated 
in section 3 of this Act.
    (e) Content.--The strategy required by subsection (a) shall 
include--
            (1) an assessment of the activities that have been carried 
        out, or that are planned to be carried out, by all appropriate 
        Federal departments and agencies to improve affordable and 
        equitable access to safe water and sanitation in all countries 
        that receive assistance from the United States;
            (2) specific and measurable goals, benchmarks, and 
        timetables to achieve the objective described in subsection 
        (a);
            (3) an assessment of the level of funding and other 
        assistance for United States water and sanitation programs 
        needed each year to achieve the goals, benchmarks, and 
        timetables described in paragraph (2);
            (4) methods to coordinate and integrate United States water 
        and sanitation assistance programs with other United States 
        development assistance programs to achieve the objective 
        described in subsection (a);
            (5) methods to better coordinate United States water and 
        sanitation assistance programs with programs of other donor 
        countries and entities to achieve the objective described in 
        subsection (a); and
            (6) an assessment of the commitment of governments of 
        countries that receive assistance under section 135 of the 
        Foreign Assistance Act of 1961, as added by section 5(a) of 
        this Act, to policies or policy reforms that support affordable 
        and equitable access by the people of such countries to safe 
        water and sanitation.
    (f) Designation of High Priority Countries.--The strategy required 
by subsection (a) shall further include the designation of high 
priority countries for assistance under section 135 of the Foreign 
Assistance Act of 1961, as added by section 5(a) of this Act. This 
designation shall be made on the basis of--
            (1) countries in which the need for increased access to 
        safe water and sanitation is greatest; and
            (2) countries in which assistance under such section can be 
        expected to make the greatest difference in promoting good 
        health, economic development, poverty reduction, women's 
        empowerment, conflict prevention, and environmental 
        sustainability.
    (g) Reports.--
            (1) Initial report.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary of State shall 
        submit to the appropriate congressional committees a report 
        that describes the strategy required by subsection (a).
            (2) Subsequent reports.--
                    (A) In general.--Not less than once every year 
                after the submission of the initial report under 
                paragraph (1) until 2015, the Secretary of State shall 
                submit to the appropriate congressional committees a 
                report on the status of the implementation of the 
                strategy, progress made in achieving the objective 
                described in subsection (a), and any changes to the 
                strategy since the date of the submission of the last 
                report.
                    (B) Additional information.-- Such reports shall 
                include information on the amount of funds expended in 
                each country or program, disaggregated by purpose of 
                assistance, including information on capital 
                investments, and the source of such funds by account.
            (3) Definition.--In this subsection, the term ``appropriate 
        congressional committees'' means--
                    (A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.

SEC. 7. MONITORING REQUIREMENT.

    The Secretary of State and the Administrator of the United States 
Agency for International Development shall monitor the implementation 
of assistance under section 135 of the Foreign Assistance Act of 1961, 
as added by section 5(a) of this Act, to ensure that the assistance is 
reaching its intended targets and meeting the intended purposes of 
assistance.

SEC. 8. SENSE OF CONGRESS REGARDING DEVELOPMENT OF LOCAL CAPACITY.

    It is the sense of Congress that the Secretary of State should 
expand current programs and develop new programs, as necessary, to 
train local water and sanitation managers and other officials of 
countries that receive assistance under section 135 of the Foreign 
Assistance Act of 1961, as added by section 5(a) of this Act.

SEC. 9. SENSE OF CONGRESS REGARDING ADDITIONAL WATER AND SANITATION 
                    PROGRAMS.

     It is the sense of the Congress that--
            (1) the United States should further support, as 
        appropriate, water and sanitation activities of United Nations 
        agencies, such as the United Nations Children's Fund (UNICEF), 
        the United Nations Development Programme (UNDP), and the United 
        Nations Environment Programme (UNEP); and
            (2) the Secretary of the Treasury should instruct each 
        United States Executive Director at the multilateral 
        development banks (within the meaning of section 1701(c) of the 
        International Financial Institutions Act) to encourage the 
        inclusion of water and sanitation programs as a critical 
        element of their development assistance.

SEC. 10. REPORT REGARDING WATER FOR PEACE AND SECURITY.

    (a) Sense of Congress.--It is the sense of Congress that United 
States programs to support and encourage efforts around the world to 
develop river basin, aquifer, and other watershed-wide mechanisms for 
governance and cooperation are critical components of long-term United 
States national security and should be expanded.
    (b) Report.--The Secretary of State, in consultation with the 
Administrator of the United States Agency for International 
Development, shall submit to the Committee on International Relations 
of the House of Representatives and the Committee on Foreign Relations 
of the Senate a report on efforts that the United States is making to 
support and promote programs that develop river basin, aquifer, and 
other watershed-wide mechanisms for governance and cooperation.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for fiscal 
year 2006 and each subsequent fiscal year such sums as may be necessary 
to carry out this Act and the amendments made by this Act.
    (b) Other Amounts.--Amounts appropriated pursuant to the 
authorization of appropriations in subsection (a) shall be in addition 
to the amounts otherwise available to carry out this Act and the 
amendments made by this Act.
    (c) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under section (a) are authorized to 
remain available until expended.

                          Purpose and Summary

    The ``Senator Paul Simon Water for the Poor Act of 2005'' 
(H.R. 1973) authorizes assistance to promote increased access 
to safe water and sanitation for vulnerable populations in 
developing countries in an affordable and equitable way. The 
Act requires the Secretary of State to develop a strategy to 
achieve such goals and sets out policy on providing water and 
sanitation assistance. The purpose of the strategy is to 
elevate the role of water and sanitation policy in the 
development of U.S. foreign policy and improve the 
effectiveness of U.S. official programs undertaken in support 
of the strategy. The strategy shall be developed in 
consultation with the Administrator of the United States Agency 
for International Development (USAID), and other Federal 
departments and agencies.

                Background and Need for the Legislation

    The United States has demonstrated its long-term support 
for addressing global water challenges. The ``Water for the 
Poor'' and ``Clean Water for People'' Initiatives, established 
in 2002 and 2003, respectively, are attempts by the 
Administration to ensure access to clean water and sanitation 
services, improve watershed management, and increase the 
productivity of water. Previous Congresses have provided 
specific appropriations for water and sanitation programs in 
developing countries. H.R. 1973 takes into account previous 
legislative initiatives, as well as current aspects of global 
water challenges and requires the Administration to develop and 
implement a strategy to provide affordable and equitable access 
to safe water and sanitation in developing countries.
    The Committee calls upon the United States Government to 
establish and implement a comprehensive strategy that elevates 
the importance of access to safe water and sanitation in U.S. 
foreign aid policy. The Committee notes that in developing and 
implementing this strategy, the objective should be to improve 
access to safe water and sanitation in an affordable and 
equitable way, including: increasing assistance for safe water 
and sanitation programs; promoting integrated water resource 
management; and improving sanitation for vulnerable populations 
in developing countries.
    An estimated 1.1 billion people lack access to safe 
drinking water and nearly 2.6 billion people lack access to 
basic sanitation services. Each year, more than three billion 
people suffer from water-related diseases, from which up to 
five million people die. Most victims are children under the 
age of five. As with the HIV/AIDS crisis, the lack of safe 
water and sanitation in developing countries represents a 
growing threat to developing countries, as well as to overall 
U.S. foreign policy objectives.
    Freshwater accounts for only two to three percent of the 
world's total water resources. Approximately two-thirds of this 
freshwater is locked in glaciers and permanent snow cover. In 
addition, overall water scarcity and geographic disparities, 
poor water quality and inadequate sanitation, inefficient use 
and poor management, and increasing demand from population and 
industrial growth reduce the availability of the world's 
freshwater supply and contribute to the increase in water-
related diseases.
    The Committee notes the strong linkages between access to 
safe water and sanitation and other development sectors 
(including health, education, and agriculture), economic 
development, and gender equality. The Committee recognizes it 
is necessary to find innovative mechanisms and solutions that 
combine technology, funding, capacity building and diplomacy to 
improve affordable and equitable access to safe water and 
sanitation to those in need. The Committee is aware that safe 
water is a vital strategic resource, and there can be no 
sustainable development or long-term security without it and, 
in reflecting that awareness, the Committee expects that safe 
water and sanitation assistance will be integrated with other 
United States development assistance programs.
    The Committee acknowledges the selfless work of a great 
public servant, the late Senator Paul Simon of Illinois by 
naming this Act after him. The Committee recognizes the 
valuable contributions made by Senator Simon in his book 
entitled, Tapped Out: The Coming World Crisis in Water Scarcity 
and What We Can Do About It. The Committee believes that 
Senator Simon's memory and work in this field has helped to 
garner the political will to find solutions to global water 
challenges.

                            THE LEGISLATION

    The ``Senator Paul Simon Water for the Poor Act of 2005'' 
(H.R. 1973) provides additional legislative authorities to the 
President with respect to the provision of assistance to 
increase access to safe water and sanitation to those in need, 
and contains important provisions that will strengthen existing 
programs by improving the Administration's oversight of water 
and sanitation programs by creating better coordination and 
encouraging innovative initiatives and reforms within recipient 
countries.
    H.R. 1973 addresses the Committee's concerns that U.S. 
assistance to provide safe water and sanitation services does 
not adequately benefit those regions and countries in the 
greatest need. The Committee contends that by requiring the 
Administration to develop and implement a coherent and 
inclusive strategy, the United States can improve the impact 
and delivery of water and sanitation assistance in developing 
countries.
    Providing access to safe water and sanitation is not a 
stated policy objective in the Foreign Assistance Act of 1961. 
Current water and sanitation assistance programs are designed 
and managed on a bilateral basis by USAID field mission 
offices. With the exception of water and sanitation programs in 
Afghanistan, Iraq, Jordan, and West Bank/Gaza, USAID's water 
and sanitation programs are relatively small in scale. The 
Committee is concerned that, in the past, the geographical 
distribution of funding for water and sanitation programs have 
not corresponded to the level of need and, recognizing this, 
directs the Secretary of State to designate high-priority 
countries for safe water and sanitation assistance. In 
particular, the Committee believes that it is essential to 
increase the assistance provided to sub-Saharan Africa, which 
faces one of the greatest challenges to meeting safe water and 
sanitation needs.
    The following chart is based on data from a joint UNICEF 
and WHO 2004 study.


    It demonstrates two key points that are often lost in the 
debate about water and sanitation: the need is truly global, 
and the need is both rural and urban. The Committee recognizes 
that the global nature of the problem requires a global 
response. Many of the people who lack access to safe, clean, 
drinking water are scattered across the rural countryside or in 
small towns and villages, where the impact of this problem on 
all aspects of life is pervasive. However, as the world 
undergoes a process of massive urbanization, with 2.5 billion 
people expected to move to cities in the developing world over 
the next 25 years, developing countries will face new and 
expanding challenges in meeting safe water and sanitation 
needs. This legislation provides the State Department and USAID 
with the flexibility and capability to meet the need for safe 
water and sanitation wherever it is greatest.
Providing Safe Water and Sanitation
    The legislation is a comprehensive approach that seeks to 
provide the United States Government with a broad array of 
tools that can be used to increase the number of people served 
by safe water and sanitation delivery systems, including 
programs to improve the capacity of national governments and 
local communities to maintain and expand access to those 
delivery systems and enhance community involvement and 
ownership in water and sanitation programs. Through these 
efforts progress can further be made in combating challenges in 
other development areas.
    The Committee believes that this legislation will help save 
lives, reduce hunger, and eliminate poverty. The Committee is 
aware that a comprehensive approach that includes expanding 
access to safe water and sanitation is a significant step 
toward improving health and economic productivity in developing 
countries. The relationship between safe water and sanitation 
to overall public health is an important element in determining 
the progress of human development. By some estimates, nearly 80 
percent of all illnesses in developing countries are water-
related and most of them are preventable. These illnesses 
include cholera, typhoid, trachoma and schistosomiasis. Over 
half of the hospital beds in the developing world are occupied 
by people suffering from preventable diseases caused by unsafe 
water and inadequate sanitation. Furthermore, diarrhea and 
parasites caused by contaminated water are leading causes of 
malnutrition killing millions of children every year. In 
addition, access to safe water and sanitation is vital to the 
treatment of victims suffering from the HIV/AIDS crisis.
    The Committee also believes that lack of access to safe 
water and sanitation contributes to poverty and hinders 
economic development. This legislation will seek to help to 
reduce poverty by encouraging the inclusion of water and 
sanitation programs in the poverty reduction strategies of 
recipient countries. The Committee recognizes that water-
related diseases negatively impact worker productivity and 
prevent adults from pursuing their economic livelihoods. A 
World Health Organization study estimated that for every $1 
invested in safe water and sanitation an economic return 
between $3 and $34 is possible.
    Improving access to safe water and sanitation is critical 
to correcting gender disparities and improving girls' access to 
education. Water and sanitation inadequacies have had a 
disproportionate effect on women and children. Women and 
children are the primary collectors of water in developing 
countries, and they often have to travel long distances. The 
average distance women in Africa and Asia walk to collect water 
is six kilometers. In areas where water resources are distant 
and/or scarce, both girls and boys often miss school for the 
sake of collecting water for the household. In addition, half 
of all schools in the world do not have access to safe drinking 
water and sanitation. Often, girls are reluctant to attend 
schools lacking private sanitary facilities.
    The Committee places great importance on ensuring that 
assistance promotes affordability and equity in access to safe 
water and sanitation for the very poor. While the Committee 
recognizes the important contribution that foreign and domestic 
private investment can make in providing safe water and basic 
sanitation in some places, it also notes certain failed water 
privatization efforts, including the conditioning of loans on 
private sector involvement. The Committee expects that any 
assistance provided under this Act will ensure affordability 
and equity for the very poor, including ensuring that access 
does not become unaffordable to the very poor through high fees 
or other financial barriers, that the very poor do not receive 
lower standards of service, and that programs to expand access 
specifically target the very poor and other vulnerable 
populations.
    This legislation requires a report regarding water for 
peace and security. Approximately 260 river basins are shared 
by two or more countries. The Committee is aware that shared 
river basins have the potential to serve as sources of 
contention. The Committee is also aware that shared river 
basins provide opportunities for governments and communities to 
engage in active dialogue and promote cooperation so that all 
entities involved can benefit from the water resource. 
Promoting cooperation over access to and use of river basins is 
an important element in conflict prevention on sub-national, 
national, and international levels. The Committee expects the 
Administration to promote cooperation and dialogue on a 
regional and global level. The Committee acknowledges that the 
following river basins are strategic candidates whereby 
cooperation by the governments and communities has the ability 
to mitigate potential and actual conflict: the Nile, Jordan, 
Mekong, Amu Darya and Sri Darya, Tigris/Euphrates, Indus, and 
Southern Africa river basins. The Committee recognizes Friends 
of the Earth Middle East for its unique work on cross-border 
community projects in the Jordan River Basin and recommends 
that such programs be emulated in other shared river basins.
    This legislation promotes environmental sustainability 
through effective management of water resources on local, 
national, and international levels. The Committee recognizes 
that stronger environmental management is needed to protect 
watersheds and freshwater resources, such as rivers, springs, 
and aquifers, which are the main sources of water in developing 
countries. For example, the Committee notes the devastating 
impact of arsenic-contaminated aquifers and wells in Bangladesh 
and urges that greater attention be paid to water quality in 
Bangladesh and other countries receiving assistance under this 
Act. In addition, preserving natural resources surrounding 
water sources, such as forests and naturally diverse plant 
communities, is essential to protecting and purifying these 
critical freshwater resources. Sound integrated management of 
water and other local natural resources is critical to 
preserving the availability and quality of drinking water. The 
Committee also recognizes that the limited nature of water 
resources in many areas will require technological advances and 
making more efficient use of water supplies, including the 
promotion of efforts to conserve water in agriculture, 
industrial, and residential usage.
Creating a Strategy
    This legislation builds upon previous United States 
initiatives and commitments made at the 2002 World Summit on 
Sustainable Development, held in Johannesburg, South Africa to 
reduce by one-half ``the proportion of people who are unable to 
reach or afford safe drinking water,'' and ``the proportion of 
people without access to basic sanitation'' by 2015, from the 
baseline year of 1990, which was codified in the Millennium 
Development Goals, as adopted by the United Nations General 
Assembly on September 8, 2000, in the Millennium Declaration. 
H.R. 1973 directs the Administration to develop and implement a 
coordinated strategy to meet these commitments to provide 
affordable and equitable access to safe water and sanitation in 
developing countries.
    By establishing a strategy, the United States will be 
better equipped to provide coordinated assistance for water-
related programs. This legislation requires the Secretary of 
State to assess the adequacy of current activities, define 
measurable objectives on the basis of U.S. commitments codified 
in the Foreign Assistance Act of 1961, as amended by this 
legislation, and improve the coordination and integration of 
water and sanitation programs with other United States 
development assistance programs, and with the water and 
sanitation assistance programs of other donor countries and 
institutions.
    The Committee expects that the strategic provision of water 
and sanitation assistance will improve the effectiveness of 
aid. Attention needs to be focused on the quality, forms, and 
distribution of assistance in addition to the levels of 
assistance. For example, countries most in need of access to 
safe water and sanitation have received the least amount of 
donor assistance and innovative financing mechanisms such as 
revolving funds should be expanded. At the same time, the 
Committee urges the Administration to increase the level of 
water and sanitation assistance, including assistance provided 
in the form of grants.
    The Committee directs the Secretary of State to develop the 
strategy in a fashion consistent with the statements of policy 
expressed in the Act and further requests the Secretary to 
include an explanation of how the implementation of the 
strategy is consistent with the statements of policy in the 
annual report. The Committee calls upon the Secretary of State 
to consult with all appropriate stakeholders in developing the 
strategy.
    The Committee recognizes the challenges of previous 
international efforts to increase access to safe water and 
sanitation in the developing world and expects the 
Administration to implement water and sanitation programs in a 
fashion that considers lessons learned. In particular, poor 
communities have often been unable to provide for the upkeep of 
water and sanitation delivery systems that require expensive 
maintenance. The Committee believes that the Administration 
should promote community-based approaches, the involvement of 
civil society, and national and, where appropriate, local 
ownership of water programs so as to ensure that water and 
sanitation delivery systems meet the needs and capacity of 
recipient communities.
    This legislation will establish a coherent and centralized 
strategy that aims to elevate the role of safe water and 
sanitation programs in United States foreign policy and meet 
the commitments made by the United States. Combating global 
water challenges is an important mechanism in implementing 
broader U.S. foreign policy objectives. The Committee believes 
that this legislation is the product of bi-partisan cooperation 
and is an important step in defining a clear and coherent 
United States international water policy.

                                Hearings

    The Committee held a hearing on June 29, 2005 entitled, 
``The Global Water Crisis: Evaluating U.S. Strategies to 
Enhance Access to Safe Water and Sanitation.'' The hearing 
consisted of a briefing and two panels. The briefing was 
provided by the following officials of the United Nations: Ms. 
Vanessa Tobin, Chief, Water Environment Sanitation Section, 
United Nations Children's Fund; and Mr. Olav Kjorven, Director 
of the Energy Environment Group, Bureau for Development Policy, 
United Nations Development Program. Panel one featured the 
following witnesses representing the Administration: The 
Honorable John F. Turner, Assistant Secretary, Bureau of Oceans 
and International Environmental Scientific Affairs, U.S. 
Department of State; and Ms. Jacqueline E. Schafer, Deputy 
Assistant Administrator, Bureau for Economic Growth, 
Agriculture and Trade, U.S. Agency for International 
Development. Panel two featured: Mr. Peter Lochery, Senior 
Advisor on Water, Sanitation and Environmental Health, CARE 
USA; Geoffrey D. Dabelko, Ph.D., Director, Environmental Change 
and Security Project; and Mr. Malcolm S. Morris, Chairman, 
Millennium Water Alliance.

                        Committee Consideration

    The Committee considered H.R. 1973 and ordered it favorably 
reported as amended at a meeting on September 15, 2005.

                         Votes of the Committee

    There were no recorded votes during the consideration of 
H.R. 1973.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 28, 2005.
Hon. Henry J. Hyde, Chairman,
Committee on International Relations,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1973, the Senator 
Paul Simon Water for the Poor Act of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sam 
Papenfuss, who can be reached at 226-2840.
            Sincerely,
                                       Douglas Holtz-Eakin.
Enclosure

cc:
        Honorable Tom Lantos
        Ranking Member
H.R. 1973--Senator Paul Simon Water for the Poor Act of 2005.

                                SUMMARY

    H.R. 1973 would authorize the President to furnish foreign 
assistance to provide safe water and sanitation to people in 
developing countries and also would authorize the appropriation 
of such sums as may be necessary for fiscal year 2006 and each 
subsequent year to carry out this assistance. This assistance 
could be used for a variety of programs, including programs 
that help manage water resources. The bill would require that 
the Secretary of State develop a strategy for providing this 
assistance and make annual reports on the implementation of 
that strategy.
    CBO estimates that implementing H.R. 1973 would cost about 
$3 million in 2006 and $130 million over the 2006-2010 period, 
assuming appropriation of the necessary amounts. Enacting the 
bill would not affect direct spending or receipts.
    H.R. 1973 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 1973 is shown in the 
following table. The costs of this legislation fall within 
budget function 150 (international affairs). For the purposes 
of this estimate, we assume that the bill will be enacted 
before the end of calendar year 2005.

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                                       2006     2007     2008     2009     2010
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level                                             43       44       45       46       47
Estimated Outlays                                                          3       15       32       38       41
----------------------------------------------------------------------------------------------------------------

                           BASIS OF ESTIMATE

    H.R. 1973 would authorize the President to furnish 
assistance for programs that provide safe water and sanitation 
in developing countries. This assistance could be used to 
support the design, construction, maintenance, or operation of 
water delivery and sanitation systems; to improve the safety of 
water supplies; and to help local governments and communities 
manage their water resources. The bill would require that the 
Secretary of State develop a strategy for providing this 
assistance and identify high-priority countries based on 
criteria specified in the bill. The bill would authorize the 
appropriation of such sums as may be necessary for fiscal year 
2006 and subsequent years to provide this assistance.
    Under current law, the U.S. Agency for International 
Development (USAID) already provides assistance to developing 
countries for the provision of safe water and sanitation. In 
2005, USAID expects to obligate about $540 million on water 
projects around the world with about $150 million of that 
amount for drinking water and sanitation projects world wide--
$12 million for Sub-Saharan Africa, $37 million for Asia, and 
$25 million for Latin America. While USAID already provides 
substantial amounts of assistance for water programs in 
developing countries, a large part of that assistance goes to 
Jordan, Egypt, and the West Bank or Gaza.
    Under the bill, CBO expects that assistance for other 
developing countries would increase, especially for those in 
Sub-Saharan Africa. Absent information from the Administration 
on how it might implement this bill, we assume that the amount 
of money spent on drinking water and sanitation in Sub-Saharan 
Africa would double in 2006 and increase with inflation in each 
subsequent year. Additionally, we assume spending for the same 
projects in Asian and Latin America would increase by 50 
percent in 2006, with adjustments for inflation thereafter. 
Accordingly, CBO estimates that implementing this bill would 
cost $3 million in 2006 and $130 million over the 2006-2010 
period, assuming appropriation of the estimated amounts.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    H.R. 1973 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would not affect the budgets of 
state, local, or tribal governments.

                         PREVIOUS CBO ESTIMATE

    On March 18, 2005, CBO transmitted a cost estimate for S. 
600, the Foreign Affairs Authorization Act, Fiscal Years 2006 
and 2007, as reported by the Senate Committee on Foreign 
Relations on March 10, 2005. Title XXVI of that bill would 
authorize the President to furnish assistance to programs that 
provide access to safe water and sanitation and promote sound 
water management, similar to the authorization specified in 
H.R. 1973. In addition, S. 600 would authorize the creation of 
a pilot program with the authority to issue investment 
insurance, investment guarantees, and loan guarantees, as well 
as to assist investors or provide direct investment in safe 
drinking water and sanitation infrastructure. There is no 
similar provision in H.R. 1973, and thus the estimated costs 
for implementing H.R. 1973 are lower than those estimated for 
title XXVI in S. 600.

                    Performance Goals and Objectives

    The goals and objectives of this legislation are to 
authorize assistance to promote increased access to safe water 
and sanitation for vulnerable populations in developing 
countries in an affordable and equitable way.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8, clause 18 of the 
Constitution.

               Section-by-Section Analysis and Discussion

    Section 1. Short Title. Section 1 contains a short title, 
the ``Senator Paul Simon Water for the Poor Act of 2005.''
    Section 2. Findings. Section 2 contains 29 findings. The 
first nine findings summarize data on water-related diseases 
and access to safe water and sanitation. Findings ten through 
thirteen describe the benefits associated with increasing 
access to safe water and sanitation. Findings fourteen and 
fifteen discuss the capacity of existing water infrastructure. 
Findings sixteen through nineteen outline the foreign 
assistance needed and the economic gains to be made from 
investing in safe water and sanitation and the importance of 
affordability through sustainable financing mechanisms, and 
grants, and highlights the need for increased public and 
private investment. Finding twenty notes the role that 
community and civil society involvement can play in ensuring 
the long-term sustainability of safe water and sanitation 
services. Findings twenty-one through twenty-four cite the 
commitments the United States and the international community 
made at the 2002 World Summit on Sustainable Development, held 
in Johannesburg, South Africa, including an agreement to work 
to reduce by one-half ``the proportion of people who are unable 
to reach or afford safe drinking water,'' and ``the proportion 
of people without access to basic sanitation'' by the year 
2015. Findings twenty-five through twenty-nine focus on the 
cooperation and management of river basins and their water 
resources, and notes that water scarcity can contribute to 
insecurity and conflict on subnational, national, and 
international levels, thus endangering the national security of 
the United States.
    Section 3. Statement of Policy. Section 3 contains 10 
statements. These statements define the policy of the United 
States in the area of assistance for safe water and sanitation. 
This section explains the need to increase targeted assistance 
toward high priority countries. It also contains clauses that 
describe the various modes of assistance that should help to 
ensure affordability and equity in the provision of access to 
safe water and sanitation for the very poor. This section 
states that water and sanitation assistance should support the 
poverty reductions strategies of recipient countries and 
encourages reforms among foreign governments that expand access 
to safe water and sanitation.
    Section 4. Sense of Congress. Section 4 contains two 
clauses that discuss improving the efficiency of current water 
and sanitation assistance programs and increasing Official 
Development Assistance for water and sanitation programs.
    Section 5. Assistance to Provide Safe Water and Sanitation.
    Section 5(a) amends Chapter 1 of part I of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) by adding a new 
section to read as follows: Sec. 135. Assistance to Provide 
Safe Water and Sanitation.
    Section 135(a) outlines the purposes of assistance.
    Section 135(b) authorizes the President to furnish 
assistance for programs in developing countries to provide 
affordable and equitable access to safe water and sanitation.
    Section 135(c) outlines the activities to be supported.
    Section 135(d) states that the President may use local 
currencies to provide assistance under this section.
    Section 5(b) amends section 104(c) of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1704 
(c)) by adding a new paragraph (9) which expands the authority 
of this Act to include increasing affordable and equitable 
access to safe water and sanitation.
    Section 6. Safe Water and Sanitation Strategy. This section 
authorizes the development and implementation of a strategy on 
safe water and sanitation.
    Section 6(a) requires the President, through the Secretary 
of State, to develop and implement a strategy to further the 
United States foreign assistance objective to provide 
affordable and equitable access to safe water and sanitation in 
developing countries.
    Section 6(b) requires that this strategy be developed in 
consultation with the Administrator for USAID and other 
appropriate Federal agencies and entities.
    Section 6(c) requires that the implementation of this 
strategy be implemented through the Administrator of USAID.
    Section 6(d) states that the strategy should be consistent 
with the statements of policy listed in section 3 of this Act.
    Section 6(e) describes the content of the strategy.
    Section 6(f) states that the strategy should include the 
designation of high priority countries, which are defined as 
countries in which the need for access to safe water and 
sanitation is greatest and in which assistance can be expected 
to make the greatest difference in promoting good health, 
economic development, poverty reduction, women's empowerment, 
conflict prevention, and environmental sustainability.
    Section 6(g) requires that not later than 180 days after 
the date of enactment of this Act, the Secretary of State must 
submit a report describing the strategy. In addition, there is 
an annual reporting requirement until 2015 on the 
implementation, objectives, progress made and changes 
pertaining to the strategy.
    Section 7. Monitoring Requirement. This section requires 
that the Secretary of State and the Administrator of the USAID 
monitor the implementation of assistance authorized under this 
Act.
    Section 8. Sense of Congress Regarding Development of Local 
Capacity. This section expresses the sense of Congress that 
training of local water and sanitation managers and other local 
officials should be included in assistance programs to ensure 
the sustainability of water infrastructure.
    Section 9. Sense of Congress Regarding Additional Water and 
Sanitation Programs. This section expresses the sense of 
Congress that the U.S. should support the activities of the 
United Nations agencies working on water and sanitation 
programs. In addition, it recommends that the Secretary of 
Treasury instruct each U.S. Executive Director at the 
multilateral development banks to encourage the inclusion of 
water and sanitation programs as a critical element in their 
development assistance.
    Section 10. Report Regarding Water for Peace and Security. 
This section expresses the sense of Congress that cooperation 
over shared water resources is a critical component of long-
term U.S. national security. Section 10 (b) requires a report 
on efforts that the Untied States is making to support and 
promote programs that develop river basin, aquifer, and other 
watershed-wide mechanisms for governance and cooperation.
    Section 11. Authorization of Appropriations. This section 
is divided into three parts.
    Section 11(a) authorizes to be appropriated to the 
President to carry out this Act such sums as may be necessary 
for fiscal year 2006 and each subsequent fiscal year.
    Section 11(b) establishes that amounts appropriated 
pursuant to subsection (a) are in addition to amounts otherwise 
available for such purposes.
    Section 11 (c) establishes that authorization of 
appropriations pursuant to section (a) are authorized to remain 
available until expended.

                        New Advisory Committees

    H.R.1973 does not establish or authorize any new advisory 
committees.

                    Congressional Accountability Act

    H.R. 1973 does not apply to the legislative branch.

                            Federal Mandates

    [See CBO estimate]

         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 italics and existing law in which no change is 
proposed is shown in roman):

FOREIGN ASSISTANCE ACT OF 1961

           *       *       *       *       *       *       *


                                 PART I

Chapter 1--Policy; Development Assistance Authorizations 

           *       *       *       *       *       *       *


SEC. 135. ASSISTANCE TO PROVIDE SAFE WATER AND SANITATION.

    (a) Purposes.--The purposes of assistance authorized by 
this section are--
            (1) to promote good health, economic development, 
        poverty reduction, women's empowerment, conflict 
        prevention, and environmental sustainability by 
        providing assistance to expand access to safe water and 
        sanitation, promoting integrated water resource 
        management, and improving hygiene for people around the 
        world;
            (2) to seek to reduce by one-half from the baseline 
        year 1990 the proportion of people who are unable to 
        reach or afford safe drinking water and the proportion 
        of people without access to basic sanitation by 2015;
            (3) to focus water and sanitation assistance toward 
        the countries, locales, and people with the greatest 
        need;
            (4) to promote affordability and equity in the 
        provision of access to safe water and sanitation for 
        the very poor, women, and other vulnerable populations;
            (5) to improve water efficiency through water 
        demand management and reduction of unaccounted-for 
        water;
            (6) to promote long-term sustainability in the 
        affordable and equitable provision of access to safe 
        water and sanitation through the creation of innovative 
        financing mechanisms such as national revolving funds, 
        and by strengthening the capacity of recipient 
        governments and communities to formulate and implement 
        policies that expand access to safe water and 
        sanitation in a sustainable fashion, including 
        integrated planning;
            (7) to secure the greatest amount of resources 
        possible, encourage private investment in water and 
        sanitation infrastructure and services, particularly in 
        lower middle-income countries, without creating 
        unsustainable debt for low-income countries or 
        unaffordable water and sanitation costs for the very 
        poor; and
            (8) to promote the capacity of recipient 
        governments to provide affordable, equitable, and 
        sustainable access to safe water and sanitation.
    (b) Authorization.--To carry out the purposes of subsection 
(a), the President is authorized to furnish assistance for 
programs in developing countries to provide affordable and 
equitable access to safe water and sanitation.
    (c) Activities Supported.--Assistance provided under 
subsection (b) shall, to the maximum extent practicable, be 
used to--
            (1) expand affordable and equitable access to safe 
        water and sanitation for underserved populations;
            (2) support the design, construction, maintenance, 
        upkeep, repair, and operation of water delivery and 
        sanitation systems;
            (3) improve the safety and reliability of water 
        supplies, including environmental management; and
            (4) improve the capacity of recipient governments 
        and local communities, including capacity-building 
        programs for improved water resource management.
    (d) Local Currency.--The President may use payments made in 
local currencies under an agreement made under title I of the 
Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1701 et seq.) to provide assistance under this section.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 104 OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 
                                  1954

SEC. 104. USE OF LOCAL CURRENCY PAYMENT.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Activities.--The proceeds from the payments referred to 
in subsection (a) may be used in the appropriate developing 
country for the following:
            (1) * * *

           *       *       *       *       *       *       *

            (9) Safe water and sanitation.--To provide 
        assistance under section 135 of the Foreign Assistance 
        Act of 1961 to promote good health, economic 
        development, poverty reduction, women's empowerment, 
        conflict prevention, and environmental sustainability 
        by increasing affordable and equitable access to safe 
        water and sanitation.

           *       *       *       *       *       *       *