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                                                       Calendar No. 815
110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-383

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



 
 RANCHO CALIFORNIA WATER DISTRICT RECYCLED WATER RECLAMATION FACILITY 
                                  ACT

                                _______
                                

                 June 16, 2008.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 1725]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 1725) to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
Rancho California Water District Southern Riverside County 
Recycled/Non-Potable Distribution Facilities and 
Demineralization/Desalination Recycled Water Treatment and 
Reclamation Facility Project, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the Act do pass.

                         Purpose of the Measure

    The purpose of H.R. 1725 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
Rancho California Water District Southern Riverside County 
Recycled/Non-Potable Distribution Facilities and 
Demineralization/Desalination Recycled Water Treatment and 
Reclamation Facility Project.

                          Background and Need

    Rancho California Water District (District) in southern 
California is participating in a Regional Integrated Resources 
Plan in which it is partnering with Western Municipal Water 
District and Eastern Municipal Water District to create a new 
supply of 16,000 acre-feet (AF) of water per year, sustain open 
space, maximize local water storage, and relieve 144 cubic feet 
per second (cfs) of treated water demand from Metropolitan 
Water District of Southern California (MWD) during peak times. 
The water recycling projects to be implemented by the District 
will free up enough treated water supply to meet the demands of 
up to 70,000 households. Currently, the District imports over 
half of its water supply from the Sacramento-San Joaquin Bay-
Delta, the Metropolitan Water District of Southern California, 
and the Colorado River. Groundwater resources are used to meet 
the remainder of the District's water demand. The District is 
pursuing water recycling and desalination as cost-effective and 
sustainable methods to reduce dependence on imported water 
supplies and finite groundwater resources.

                          Legislative History

    H.R. 1725 was introduced in the House of Representatives by 
Rep. Bono Mack on March 28, 2007, and referred to the Committee 
on Natural Resources. Under suspension of the rules, H.R. 1725 
passed the House of Representatives on July 10, 2007. The bill 
was received in the Senate and referred to the Committee on 
Energy and Natural Resources. The Subcommittee on Water and 
Power held a hearing on H.R. 1725 on April 8, 2008. At its 
business meeting on May 7, 2008, the Senate Committee on Energy 
and Natural Resources ordered H.R. 1725 to be favorably 
reported.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on May 7, 2008, by voice vote of a quorum 
present, recommends that the Senate pass H.R. 1725.

                      Section-by-Section Analysis

    Section 1 provides the short title of the Act.
    Section 2 amends the Reclamation Wastewater and Groundwater 
Study and Facilities Act by adding a new section authorizing 
the Secretary of the Interior to participate in a water 
recycling, demineralization, and desalination project with the 
Rancho California Water District in California, with a 25 
percent federal cost-share in an amount not to exceed $20 
million.

                   Cost and Budgetary Considerations

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

H.R. 1725--Rancho California Water District Recycled Water Reclamation 
        Facility Act of 2008

    Summary: H.R. 1725 would authorize the Secretary of the 
Interior, acting through the Bureau of Reclamation, to 
participate in the design, planning, and construction of 
permanent facilities for water recycling, demineralization, 
desalination, and distribution of nonpotable water supplies in 
Southern Riverside County, California.
    Assuming appropriation of the authorized amount, CBO 
estimates that implementing the legislation would cost $10 
million over the 2009-2013 period and another $10 million after 
2013 to complete the project. Enacting the legislation would 
have no effect on direct spending or revenues.
    H.R. 1725 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. 1725 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--
                                 ---------------------------------------
                                   2009    2010    2011    2012    2013
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...      20       0       0       0       0
Estimated Outlays...............       2       2       2       2       2
------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the beginning of fiscal year 
2009 and that the authorized amounts will be appropriated for 
each year.
    H.R. 1725 would authorize the Secretary of the Interior to 
participate in the design, planning, and construction of 
permanent facilities for water recycling, demineralization, 
desalination, and distribution of nonpotable water supplies in 
Southern Riverside County, California. The total estimated cost 
for the project is $103 million. The legislation would 
authorize the agency to contribute the lesser of $20 million or 
25 percent of the total project costs.
    Based on information provided by the agency, CBO estimates 
that construction on all components of the project would be 
completed in approximately 10 years. Any funding provided by 
the Secretary would not be available for operation or 
maintenance of the project.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing the act would cost $10 million over 
the 2008-2013 period and an additional $10 million after 2013.
    Intergovernmental and private-sector impact: H.R. 1725 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The Rancho California Water District would 
benefit from federal assistance authorized by the act; any 
costs to the district for the project would be incurred 
voluntarily.
    Previous estimate: On July 5, 2007, CBO transmitted a cost 
estimate for H.R. 1725, as ordered reported by the House 
Committee on Natural Resources on June 28, 2007. The versions 
of the legislation are the estimated costs of implementation.
    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.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 1725. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of H.R. 1725, as ordered reported.

                   Congressionally Directed Spending

    H.R. 1725, as reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Bureau of Reclamation at the 
subcommittee hearing on April 8, 2008 on H.R. 1725 follows:

 Statement of Kris Polly, Deputy Commissioner, Bureau of Reclamation, 
                    U.S. Department of the Interior

    Mr. Chairman and Members of the Subcommittee, I am Kris 
Polly, Deputy Commissioner at the Bureau of Reclamation. I am 
pleased to be here today to give the Department of the 
Interior's views on H.R. 1725, the Rancho California Water 
District Recycled Water Treatment and Reclamation Facility Act. 
Although the project has been deemed technically feasible, the 
Department does not support H.R. 1725.
    H.R. 1725 would amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act (43 U.S.C. 390h et seq.), 
to authorize the Secretary of the Interior to participate in 
the design, planning, and construction of the Rancho California 
Water District's facilities for water recycling, 
demineralization, desalination, and distribution of non-potable 
water supplies in Riverside County, California.
    The Rancho California Water District is located in 
southwestern Riverside County, which has been experiencing 
explosive growth. The District is heavily dependent on imported 
water provided by the Metropolitan Water District of Southern 
California. In order to lessen this dependence the District has 
developed a Regional Integrated Resources Plan that includes 
three components. Together, the component projects will expand 
local water resources by increasing conjunctive use by about 
13,000 acre-feet per year, expanding the use of recycled water 
by about 16,000 acre-feet per year, and substituting untreated 
water for the treated water that is currently being used for 
agricultural irrigation. Implementation of the Regional 
Integrated Resources Plan would require the construction of 
pipelines, pumping plants, an advanced water treatment 
facility, and brine disposal facilities. The total estimated 
cost is about $350 million.
    Reclamation, in collaboration with the District, recently 
completed work on a feasibility study and, on November 15, 
2007, deemed this project feasible. In Fiscal Year 2008, 
Congress appropriated $123,000 for this project. Using these 
funds, Reclamation is working with the Rancho California Water 
District to complete compliance with the National Environmental 
Policy Act (NEPA) for this project.
    H.R. 1725 authorizes the appropriation of up to $20 million 
or a maximum of 25 percent of total project costs, whichever is 
less. The Department supports efforts to increase local water 
supplies and increase recycled water use in southern 
California. However, this project would have to compete with 
other needs within the Reclamation program for funding priority 
in the President's Budget. While we are committed to working 
with the District to address its water supply needs, the 
Department continues to believe it is not prudent to authorize 
new Title XVI projects in light of the Federal cost share 
already authorized for Title XVI projects now being actively 
pursued.
    Of the 35 Title XVI projects specifically authorized and 2 
demonstration projects undertaken through the general 
authority, 21 projects are actively being pursued and 4 are 
complete. The Federal cost share for the active projects, after 
FY 2008, is nearly $400 million. The Federal cost share for the 
12 projects currently not being pursued is estimated at $220 
million.
    While Reclamation is not supporting new project 
authorizations at this time, we understand that the projects 
established by Title XVI are important to many water users in 
the West. To that end, Reclamation has revised and improved its 
Directives and Standards that govern reviews of Title XVI 
projects. By doing so, we believe that Reclamation can play a 
more constructive role with local sponsors in weighing the 
merits and ultimate feasibility of proposed water recycling 
projects.
    Mr. Chairman, this concludes my testimony. Thank you for 
the opportunity to comment on H.R. 1725. I would be happy to 
answer any questions at this time.

                        Changes In Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill H.R. 1725, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

     RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992


      Public Law 102-575, Title XVI, Section 16XX (106 Stat. 4663)


 AN ACT To authorize additional appropriations for the construction of 
   the Buffalo Bill Dam and Reservoir, Shoshone Project, Pick-Sloan 
                    Missouri Basin Program, Wyoming.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

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TABLE OF CONTENTS

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        TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES

     * * * * * * *
Sec. 16xx. Rancho California Water District Project, Califorinia
     * * * * * * *

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. 16XX. RANCHO CALIFORNIA WATER DISTRICT PROJECT, CALIFORNIA.

    (a) Authorization.--The Secretary, in cooperation with the 
Rancho California Water District, California, may participate 
in the design, planning, and construction of permanent 
facilities for water recycling, demineralization, and 
desalination, and distribution of non-potable water supplies in 
Southern Riverside County, California.
    (b) Cost Sharing.--The Federal share of the cost of the 
project described in subsection (a) shall not exceed 25 percent 
of the total cost of the project or $20,000,000, whichever is 
less.
    (c) Limitation.--Funds provided by the Secretary under this 
section shall not be used for operation or maintenance of the 
project described in subsection (a).

           *       *       *       *       *       *       *