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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-458

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



 
               NORTH BAY WATER REUSE PROGRAM ACT OF 2007

                                _______
                                

December 4, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 236]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 236) to authorize the Secretary of the Interior 
to create a Bureau of Reclamation partnership with the North 
Bay Water Reuse Authority and other regional partners to 
achieve objectives relating to water supply, water quality, and 
environmental restoration, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
    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 ``North Bay Water Reuse Program Act of 
2007''.

SEC. 2. PROJECT AUTHORIZATION.

    (a) In General.--The Reclamation Wastewater and Groundwater Study 
and Facilities Act (Public Law 102-575, title XVI; 43 U.S.C. 390h et 
seq.) is amended by adding at the end the following:

``SEC. 16__. NORTH BAY WATER REUSE PROGRAM.

    ``(a) Definitions.--In this section:
          ``(1) Eligible entity.--The term `eligible entity' means a 
        member agency of the North Bay Water Reuse Authority of the 
        State located in the North San Pablo Bay watershed in--
                  ``(A) Marin County;
                  ``(B) Napa County;
                  ``(C) Solano County; or
                  ``(D) Sonoma County.
          ``(2) Water reclamation and reuse project.--The term `water 
        reclamation and reuse project' means a project carried out by 
        the Secretary and an eligible entity in the North San Pablo Bay 
        watershed relating to--
                  ``(A) water quality improvement;
                  ``(B) wastewater treatment;
                  ``(C) water reclamation and reuse;
                  ``(D) groundwater recharge and protection;
                  ``(E) surface water augmentation; or
                  ``(F) other related improvements.
          ``(3) State.--The term `State' means the State of California.
    ``(b) North Bay Water Reuse Program.--
          ``(1) In general.--Contingent upon a finding of feasibility, 
        the Secretary, acting through a cooperative agreement with the 
        State or a subdivision of the State, is authorized to enter 
        into cooperative agreements with eligible entities for the 
        planning, design, and construction of water reclamation and 
        reuse facilities and recycled water conveyance and distribution 
        systems.
          ``(2) Coordination with other federal agencies.--In carrying 
        out this section, the Secretary and the eligible entity shall, 
        to the maximum extent practicable, use the design work and 
        environmental evaluations initiated by--
                  ``(A) non-Federal entities; and
                  ``(B) the Corps of Engineers in the San Pablo Bay 
                Watershed of the State.
          ``(3) Phased project.--A cooperative agreement described in 
        paragraph (1) shall require that the North Bay Water Reuse 
        Program carried out under this section shall consist of 2 
        phases as follows:
                  ``(A) First phase.--During the first phase, the 
                Secretary and an eligible entity shall complete the 
                planning, design, and construction of the main 
                treatment and main conveyance systems.
                  ``(B) Second phase.--During the second phase, the 
                Secretary and an eligible entity shall complete the 
                planning, design, and construction of the sub-regional 
                distribution systems.
          ``(4) Cost sharing.--
                  ``(A) Federal share.--The Federal share of the cost 
                of the first phase of the project authorized by this 
                section shall not exceed 25 percent of the total cost 
                of the first phase of the project.
                  ``(B) Form of non-federal share.--The non-Federal 
                share may be in the form of any in-kind services that 
                the Secretary determines would contribute substantially 
                toward the completion of the water reclamation and 
                reuse project, including--
                          ``(i) reasonable costs incurred by the 
                        eligible entity relating to the planning, 
                        design, and construction of the water 
                        reclamation and reuse project; and
                          ``(ii) the acquisition costs of land acquired 
                        for the project that is--
                                  ``(I) used for planning, design, and 
                                construction of the water reclamation 
                                and reuse project facilities; and
                                  ``(II) owned by an eligible entity 
                                and directly related to the project.
                  ``(C) Limitation.--The Secretary shall not provide 
                funds for the operation and maintenance of the project 
                authorized by this section.
          ``(5) Effect.--Nothing in this section--
                  ``(A) affects or preempts--
                          ``(i) State water law; or
                          ``(ii) an interstate compact relating to the 
                        allocation of water; or
                  ``(B) confers on any non-Federal entity the ability 
                to exercise any Federal right to--
                          ``(i) the water of a stream; or
                          ``(ii) any groundwater resource.
          ``(6) Authorization of appropriations.--There is authorized 
        to be appropriated for the Federal share of the total cost of 
        the first phase of the project authorized by this section 
        $25,000,000, to remain available until expended.''.
    (b) Conforming Amendment.--The table of sections in section 2 of 
Public Law 102-575 is amended by inserting after the last item relating 
to title XVI the following:

        ``Sec. 16__. North Bay water reuse program.''.

                          Purpose of the Bill

    The purpose of H.R. 236, as amended by the Committee on 
Natural Resources, is to amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act (Public Law 102-575, title 
XVI), to authorize the Secretary of the Interior to provide 
limited financial assistance for the planning, design, and 
construction of water reclamation and reuse facilities and 
recycled water conveyance and distribution systems, primarily 
to serve agricultural water users in eastern Marin and southern 
Sonoma counties, California.

                  Background and Need for Legislation

    The North Bay region of northern California has very 
limited surface and groundwater supplies. The area is not 
served by state or federal water projects and the local 
groundwater basin is declining. Urban, agricultural and 
environmental demands exceed the region's ability to provide a 
reliable, sustainable and economical water supply, especially 
for local agriculture (mostly vineyards for wine grapes). In 
addition, communities will eventually be forced to curtail 
their discharges of treated wastewater into San Pablo Bay.
    The North Bay Water Reuse Authority was created as a Joint 
Powers Authority to address these challenges. The Authority is 
a consortium of sanitation agencies and water suppliers in 
Marin, Sonoma and Napa counties.
    The Authority is now studying a large regional project that 
will collect municipal wastewater, treat it at several new and 
upgraded treatment plants, and recycle the water via a pipeline 
distribution system to irrigate vineyards in the project 
service area. When complete, the regional system is expected to 
develop about 30,000 acre-feet per year of recycled water for 
agriculture. Farmers taking recycled water from the project 
must agree to reduce their use of surface water supplies by the 
amount of recycled water they receive.
    When demand for irrigation water is low during the winter 
months, the recycled water will be used to help flush out 
abandoned salt evaporation ponds at the north end of San Pablo 
Bay. The ponds will eventually be converted to wetland habitat.
    H.R. 236 as amended authorizes the Secretary of the 
Interior, contingent upon a finding of feasibility to provide 
cost-shared financial assistance, to create a partnership 
between the Bureau of Reclamation and the North Bay Water Reuse 
Authority and other regional partners. This funding is to be 
used for the planning, design, and construction under the 
Bureau of Reclamation's ``Title XVI'' water recycling and reuse 
program.
    The legislation authorizes appropriations of $25,000,000 as 
the maximum federal share of the capital costs for the first 
phase of the project.

                            Committee Action

    H.R. 236 was introduced on January 4, 2007 by Rep. Mike 
Thompson (D-CA). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power. On May 17, 2007, the Subcommittee held a 
hearing on the bill. On October 16, 2007, the Subcommittee met 
to mark up the bill. Subcommittee Chairwoman Grace Napolitano 
(D-CA) offered an amendment in the nature of a substitute to 
clarify certain language in the bill. The amendment modifies 
the bill by making the project part of the existing ``Title 
XVI'' water recycling program, administered by the Bureau of 
Reclamation. The amendment also makes Secretarial action on the 
project and accompanying conveyance and distribution systems 
contingent on a final finding of feasibility. The amendment was 
adopted by unanimous consent, and the bill, as amended, was 
forwarded to the Full Committee on Natural Resources. On 
November 15, 2007, the Full Natural Resources Committee met to 
consider the bill. Subcommittee Chairwoman Napolitano offered 
an amendment in the nature of a substitute to incorporate 
changes made to the bill in Subcommittee markup and to include 
an additional clarifying provision regarding land acquisition 
for the project. The bill as amended was then ordered favorably 
reported to the House of Representatives by unanimous consent.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 designates the short title of the H.R. 236, as 
amended, as the ``North Bay Water Reuse Program Act of 2007.''

Section 2. Project authorization

    Section 2 amends the Reclamation Wastewater and Groundwater 
Study Facilities Act to include the North Bay Water Reuse 
Program.
    Section 2(a) defines certain terms as used in the bill.
    Section 2(b)(1) authorizes participation by the Secretary 
of the Interior in the planning, design, and construction of 
water reclamation and reuse facilities, and conveyance and 
distribution systems, contingent upon a finding of feasibility 
for the project.
    Section 2(b)(2) determines the project shall take into 
consideration design and environmental evaluations from other 
entities.
    Section 2(b)(3) determines this to be a phased project with 
two parts, the first phase consisting of the main treatment 
plant and main conveyance systems and a second part consisting 
of sub-regional distribution systems.
    Section 2(b)(4) limits the federal cost share to 25% of the 
first phase and sets out the form of non-federal in-kind 
services that may be counted as non-federal contributions to 
the completion of the project. This subsection also prohibits 
the use of federal funds for the operation and maintenance of 
the project.
    Section 2(b)(5) Limits any effect of this bill on state and 
federal water law or rights.
    Section 2(b)(6) Authorizes appropriations of $25,000,000 
for the federal share of the first phase of this project.

            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 Natural 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 authorize the Secretary of the 
Interior to create a Bureau of Reclamation partnership with the 
North Bay Water Reuse Authority and other regional partners to 
achieve objectives relating to water supply, water quality, and 
environmental restoration.
    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:

H.R. 236--North Bay Water Reuse Program Act of 2007

    Summary: H.R. 236 would authorize the Secretary of the 
Interior to enter into cooperative agreements with state 
entities in California to carry out water reclamation and reuse 
projects in the North San Pablo Bay watershed. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing H.R. 236 would cost $25 million over the 2008-2012 
period. Enacting the bill would not affect direct spending or 
revenues.
    H.R. 236 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. 236 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                          ------------------------------------------------------
                                                              2008       2009       2010       2011       2012
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level............................         10         15          0          0          0
Estimated Outlays........................................          8         12          5          0          0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the beginning of calendar year 2008 
and that the necessary amounts will be appropriated for each 
year.
    H.R. 236 would authorize the Secretary of the Interior to 
enter into cooperative agreements with local governments in 
California for the planning, design, and construction of phase 
I of a project to reclaim and reuse water in the North San 
Pablo Bay watershed in California. The project would be carried 
out in two phases, and the second phase would require a 
subsequent authorization from the Congress.
    Under the legislation, the federal share of this phase of 
the project would be limited to 25 percent. In addition, 
federal funds would not be available for operating and 
maintaining the project once it is completed. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing the legislation would cost $25 million over the 
2008-2012 period.
    Intergovernmental and private-sector impact: H.R. 236 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The state of California and certain county 
governments would benefit from the project authorized in this 
bill. Any costs to those governments would be incurred 
voluntarily.
    Estimate prepared by: Federal Costs: Tyler Kruzich; Impact 
on state, local, and tribal governments: Melissa Merrell; 
Impact on the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                           Earmark Statement

    H.R. 236 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                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)

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Reclamation Projects 
Authorization and Adjustment Act of 1992''.

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 GROUND WATER STUDIES

Sec. 1601. Short title.

           *       *       *       *       *       *       *

Sec. 16__. North Bay water reuse program.

           *       *       *       *       *       *       *


       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. 16----. NORTH BAY WATER REUSE PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means a member agency of the North Bay Water Reuse 
        Authority of the State located in the North San Pablo 
        Bay watershed in--
                  (A) Marin County;
                  (B) Napa County;
                  (C) Solano County; or
                  (D) Sonoma County.
          (2) Water reclamation and reuse project.--The term 
        ``water reclamation and reuse project'' means a project 
        carried out by the Secretary and an eligible entity in 
        the North San Pablo Bay watershed relating to--
                  (A) water quality improvement;
                  (B) wastewater treatment;
                  (C) water reclamation and reuse;
                  (D) groundwater recharge and protection;
                  (E) surface water augmentation; or
                  (F) other related improvements.
          (3) State.--The term ``State'' means the State of 
        California.
  (b) North Bay Water Reuse Program.--
          (1) In general.--Contingent upon a finding of 
        feasibility, the Secretary, acting through a 
        cooperative agreement with the State or a subdivision 
        of the State, is authorized to enter into cooperative 
        agreements with eligible entities for the planning, 
        design, and construction of water reclamation and reuse 
        facilities and recycled water conveyance and 
        distribution systems.
          (2) Coordination with other federal agencies.--In 
        carrying out this section, the Secretary and the 
        eligible entity shall, to the maximum extent 
        practicable, use the design work and environmental 
        evaluations initiated by--
                  (A) non-Federal entities; and
                  (B) the Corps of Engineers in the San Pablo 
                Bay Watershed of the State.
          (3) Phased project.--A cooperative agreement 
        described in paragraph (1) shall require that the North 
        Bay Water Reuse Program carried out under this section 
        shall consist of 2 phases as follows:
                  (A) First phase.--During the first phase, the 
                Secretary and an eligible entity shall complete 
                the planning, design, and construction of the 
                main treatment and main conveyance systems.
                  (B) Second phase.--During the second phase, 
                the Secretary and an eligible entity shall 
                complete the planning, design, and construction 
                of the sub-regional distribution systems.
          (4) Cost sharing.--
                  (A) Federal share.--The Federal share of the 
                cost of the first phase of the project 
                authorized by this section shall not exceed 25 
                percent of the total cost of the first phase of 
                the project.
                  (B) Form of non-federal share.--The non-
                Federal share may be in the form of any in-kind 
                services that the Secretary determines would 
                contribute substantially toward the completion 
                of the water reclamation and reuse project, 
                including--
                          (i) reasonable costs incurred by the 
                        eligible entity relating to the 
                        planning, design, and construction of 
                        the water reclamation and reuse 
                        project; and
                          (ii) the acquisition costs of land 
                        acquired for the project that is--
                                  (I) used for planning, 
                                design, and construction of the 
                                water reclamation and reuse 
                                project facilities; and
                                  (II) owned by an eligible 
                                entity and directly related to 
                                the project.
                  (C) Limitation.--The Secretary shall not 
                provide funds for the operation and maintenance 
                of the project authorized by this section.
          (5) Effect.--Nothing in this section--
                  (A) affects or preempts--
                          (i) State water law; or
                          (ii) an interstate compact relating 
                        to the allocation of water; or
                  (B) confers on any non-Federal entity the 
                ability to exercise any Federal right to--
                          (i) the water of a stream; or
                          (ii) any groundwater resource.
          (6) Authorization of appropriations.--There is 
        authorized to be appropriated for the Federal share of 
        the total cost of the first phase of the project 
        authorized by this section $25,000,000, to remain 
        available until expended.