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                                                       Calendar No. 611
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-325

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



 
        BAY AREA REGIONAL WATER RECYCLING PROGRAM EXPANSION ACT

                                _______
                                

               September 27, 2010.--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. 2442]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 2442) to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to expand 
the Bay Area Regional Water Recycling Program, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the Act, as amended, do 
pass.
    The amendment is as follows:
    On page 6, line 11, strike ``shall'' and insert ``may''.

                                Purpose

    The purpose of H.R. 2442 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to expand 
the Bay Area Regional Water Recycling Program, and for other 
purposes.

                          Background and Need

    The Bay Area Recycle Water Coalition consists of a group of 
17 local San Francisco Bay Area water agencies. Seven recycled 
water projects were authorized under the Bay Area Regional 
Water Recycling Program Authorization Act of 2007, Public Law 
110-229. H.R. 2442 will authorize 6 additional projects: (1) 
the Central Contra Costa Sanitary District; (2) the Dublin San 
Ramon Services District; (3) the City of Petaluma; (4) the City 
of Redwood City; (5) the City of Palo Alto; and (6) the 
Ironhouse Sanitary District. It will also authorize additional 
funding for the existing Antioch Recycled Water Project and the 
South Bay Advanced Recycled Water Treatment Facility project.
    Continued drought conditions in California have resulted in 
low reliability of imported surface water supplies. Recycled 
water provides a new source of supply, reducing dependence on 
surface water while protecting groundwater resources from 
potential overdraft conditions and promoting wastewater 
management. The water agencies named in H.R. 2442 will utilize 
the Bureau of Reclamation's Title XVI program to assist with 
funding for construction of recycled water distribution system 
facilities to reclaim, treat, and deliver recycled water for 
continued beneficial uses throughout the Bay Area region. Under 
H.R. 2442, federal funding contributions are limited to 25% of 
the project costs.

                          Legislative History

    H.R. 2442 was sponsored by Representative George Miller and 
passed the House of Representatives on October 15, 2009. 
Companion legislation, S. 1138, was introduced by Senator 
Feinstein and Senator Boxer on May 21, 2009. The Subcommittee 
on Water and Power held a hearing on S. 1138 and H.R. 2442 on 
April 27, 2010. The Committee on Energy and Natural Resources 
adopted an amendment to H.R. 2442 on July 22, 2010, and at its 
business meeting on August 5, 2010, and ordered it favorably 
reported with amendment.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on August 5, 2010, by voice vote, recommends 
that the Senate pass H.R. 2442, if amended as described herein.

                          Committee Amendment

    During its consideration of H.R. 2442, the Committee 
adopted an amendment. The amendment replaces the word ``shall'' 
with the word ``may'' in providing the secretary discretion to 
reimburse project beneficiaries for certain construction costs 
incurred prior to enactment.

                      Section-by-Section Analysis

    Section 1 provides the short title of the bill.
    Section 2 amends the Reclamation Wastewater and Groundwater 
Study and Facilities Act, Title XVI of Public Law 102-575, by 
adding a new sections authorizing 6 additional project 
authorizations for: (1) the Central Contra Costa Sanitary 
District; (2) the Dublin San Ramon Services District; (3) the 
City of Petaluma; (4) the City of Redwood City; (5) the City of 
Palo Alto; and (6) the Ironhouse Sanitary District. The federal 
cost-share shall not exceed 25 percent of the total cost for 
each project. Section 2 also provides authority to the Bureau 
of Reclamation to reimburse construction costs incurred prior 
to enactment.
    Section 3 amends the Reclamation Wastewater and Groundwater 
Study and Facilities Act, Title XVI of Public Law 102-575, (as 
amended by section 512(a) of Public Law 110-229) to increase 
funding for the previously authorized Antioch Recycled Water 
Project and the South Bay Advanced Recycled Water Treatment 
Facility.

                   Cost and Budgetary Considerations

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

H.R. 2442--Bay Area Regional Water Recycling Program Expansion Act of 
        2009

    Summary: H.R. 2442 would authorize the Bureau of 
Reclamation to participate in six new water recycling projects 
and to increase the federal share of the costs for two existing 
projects in the San Francisco Bay area of California. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing H.R. 2442 would cost $38 million over the 2011-
2015 period. Enacting the legislation would not affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply.
    H.R. 2442 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. 2442 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--
                                                         -------------------------------------------------------
                                                            2011     2012     2013     2014     2015   2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        8        8        8        8        6        38
Estimated Outlays.......................................        5        7        9        9        8        38
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
2442 will be enacted near the beginning of fiscal year 2011. 
Estimated outlays are based on historical spending patterns for 
similar water resource projects.
    H.R. 2442 would authorize the Bureau of Reclamation to 
design, plan, and construct six new water recycling projects in 
the San Francisco Bay area. The legislation also would 
authorize an increase of $6 million for the federal share of 
project costs for two water recycling projects previously 
authorized in the bay area. In total, the bill would authorize 
the appropriation of $38 million. CBO assumes that those 
amounts would be provided in roughly equal increments over the 
next five years.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2442 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Funds authorized to be appropriated by the 
bill would benefit a number of cities and water districts in 
California.
    Previous CBO estimate: On September 28, 2009, CBO 
transmitted a cost estimate for H.R. 2442 as ordered reported 
by the House Committee on Natural Resources on September 10, 
2009, with a subsequent amendment provided to CBO on September 
28, 2009. The two versions of the legislation are similar, and 
the CBO cost estimates are also similar.
    Estimate prepared by: Federal Costs: Aurora Swanson; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, 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. 2442.
    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. 2442 as ordered reported.

                   Congressionally Directed Spending

    H.R. 2442 as ordered 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


  Statement of Kira L. Finkler, Deputy Commissioner for External and 
  Intergovernmental Affairs, Bureau of Reclamation, Department of the 
                                Interior

    Madam Chairwoman and Members of the Subcommittee, I am Kira 
Finkler, Deputy Commissioner for External and Intergovernmental 
Affairs at the Bureau of Reclamation (Reclamation). I am 
pleased to provide the views of the Department of the Interior 
(Department) on S. 1138, the Bay Area Regional Water Recycling 
Program (BARWRP) Expansion Act of 2009. For reasons I will 
discuss below, the Administration cannot support the bill.
    S. 1138 would amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act (Public Law 102-575, 43 
U.S.C. 390h et seq.), commonly called Title XVI, to authorize 
the Secretary of the Interior to participate in the design, 
planning, and construction of six new permanent facilities 
needed to reclaim, reuse, and treat groundwater and wastewater 
in the greater San Francisco Bay Area. The legislation would 
also increase the Federal cost share for two previously-
authorized Title XVI projects in the same area from $10.5 
million to $16.3 million. S. 1138 would increase the number of 
BARWRP projects from eight to fourteen. These new projects are 
being implemented by the Central Contra Costa Sanitary 
District, the Dublin San Ramon Services District, the City of 
Petaluma, the City of Redwood City, the City of Palo Alto, and 
the Ironhouse Sanitary District. The Federal cost share 
increases would be for the Delta Diablo Sanitation District and 
the Santa Clara Valley Water District.


                              new projects


    The Central Contra Costa Sanitary District's Concord 
Recycled Water Project feasibility report has been reviewed by 
Reclamation; a feasibility certification is expected to be made 
in April 2010.
    The Dublin San Ramon Services District's Central Dublin 
Recycled Water Distribution and Retrofit Project's feasibility 
materials were determined complete in December 2009.
    The City of Petaluma's Petaluma Recycled Water Project, 
Phase 2A, 2B, and 3 has not been determined to have a complete 
feasibility study. The City expects to submit feasibility 
materials by June 2010.
    The City of Redwood City has not submitted a complete 
feasibility report, financial capability information, or a NEPA 
compliance document for Reclamation's review and determination 
for the Central Redwood City Recycled Water Project. The City 
is currently updating its city-wide General Plan; it is planned 
to be adopted by City Council in summer of 2010. Planning for 
the Central Redwood City project, including preparation of a 
feasibility report will begin after adoption of the General 
Plan.
    The City of Palo Alto's Recycled Water Pipeline Project has 
not been determined to have a complete feasibility study. The 
City has not submitted financial capability information. The 
City anticipates submitting feasibility study materials by June 
2010. The City continues to work on a NEPA compliance document.
    The Ironhouse Sanitary District has not submitted a 
feasibility report, financial capability information, or a NEPA 
compliance document for Reclamation's review and determination 
for the Antioch Recycled Water Project. The District 
anticipates their recycled water master plan will be completed 
by the end of summer 2010. This plan will be the basis of the 
feasibility report that will be submitted in 2011. NEPA related 
work is also anticipated for 2011.


          previously authorized projects--increased cost share


    Delta Diablo Sanitation District's Antioch Recycled Water 
Project is authorized for construction, has been determined to 
have completed the necessary feasibility studies; it is 
financially capable under the Title XVI program, and is NEPA 
compliant.
    Santa Clara Valley Water District's South Bay Advanced 
Recycled Water Treatment Facility is authorized for 
construction, has been determined to have completed the 
necessary feasibility studies; it is financially capable under 
the Title XVI program, and is NEPA compliant.
    S. 1138 would authorize these projects under Title XVI for 
Federal funding with project-specific maximum Federal cost 
shares that do not to exceed 25 percent of the estimated total 
project cost.
    While the Department supports efforts to increase local 
water supplies and increase recycled water use, these projects 
would compete for funds with other needs within the Reclamation 
program, including other Title XVI projects currently under 
construction. In general, the Department supports the Title XVI 
Reclamation and Reuse program. The 2011 budget proposal 
includes funding for the Department's WaterSMART Program, and 
Title XVI is an important element of that program. 
Specifically, the 2011 budget proposal includes $29 million for 
the Title XVI program, a 113% increase over the 2010 enacted 
level.
    As part of this total, the Department is requesting $20 
million for Title XVI projects to be selected using criteria to 
identify activities most closely aligned with Title XVI 
statutory and program goals. On March 15, 2010, Reclamation 
posted an announcement inviting comment on draft funding 
criteria for Title XVI projects. After these criteria are 
finalized with comments received up through April 16, 
Reclamation will review and rank Title XVI project proposals 
received based on those criteria subject to appropriations in 
fiscal year 2011.
    Separately, in July of 2009, the Department announced the 
allocation of approximately $135 million in grants for specific 
authorized Title XVI projects using funds from the American 
Recovery and Reinvestment Act of 2009, or ARRA. We recognize 
that water reuse is an essential tool in stretching the limited 
water supplies in the West, and I believe the FY 2011 Budget 
request on top of the ARRA funding has demonstrated the 
emphasis placed by this Administration on this Program. 
However, given that there are 53 already authorized Title XVI 
projects and numerous competing mission priorities and demands 
on Reclamation's budget, the Department cannot support the 
authorization of new Title XVI projects or extensions of 
existing authorized cost ceilings at this time.
    Reclamation will, however, continue to work with project 
proponents to evaluate the feasibility of their projects.
    Madam Chairwoman, this concludes my testimony. Thank you 
for the opportunity to comment on S. 1138. I would be pleased 
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. 2442 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 amend the Reclamation Wastewater and Groundwater Study and 
Facilities Act to authorize the Secretary of the Interior to expand the 
   Bay Area Regional Water Recycling Program, and for other purposes.

    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''.

SEC. 2. DEFINITION AND TABLE OF CONTENTS.

           *       *       *       *       *       *       *


                             TABLE OF CONTENTS

     * * * * * * *

        TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES

     * * * * * * *
Sec. 16XX. CCCSD--Concord recycled water project.
Sec. 16XX. Central Dublin recycled water distribution and retrofit 
          project.
Sec. 16XX. Petaluma recycled water project, phases 2a, 2b, and 3.
Sec. 16XX. Central Redwood City recycled water project.
Sec. 16XX. Palo Alto recycled water pipeline project.
Sec. 16XX. Ironhouse Sanitary District (ISD) Antioch recycled water 
          project.

           *       *       *       *       *       *       *


       TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES

SEC. 1601. SHORT TITLE.

    This title may be referred to as the ``Reclamation 
Wastewater and Groundwater Study and Facilities Act''.

           *       *       *       *       *       *       *


SEC. 1644. ANTIOCH RECYCLED WATER PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
City of Antioch, California, and the Delta Diablo Sanitation 
District, is authorized to participate in the design, planning, 
and construction of recycled water system facilities.

           *       *       *       *       *       *       *

    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section [$2,250,000] 
$3,125,000.

           *       *       *       *       *       *       *


SEC. 1648. SOUTH BAY ADVANCED RECYCLED WATER TREATMENT FACILITY.

    (a) Authorization.--The Secretary, in cooperation with the 
City of San Jose, California, and the Santa Clara Valley Water 
District, is authorized to participate in the design, planning, 
and construction of recycled water treatment facilities.

           *       *       *       *       *       *       *

    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section [$8,250,000] 
$13,250,000.

           *       *       *       *       *       *       *


SEC. 16XX. CCCSD--CONCORD RECYCLED WATER PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
Central Contra Costa Sanitary District, California, is 
authorized to participate in the design, planning, and 
construction of recycled water distribution systems.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,800,000.

SEC. 16XX. CENTRAL DUBLIN RECYCLED WATER DISTRIBUTION AND RETROFIT 
                    PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
Dublin San Ramon Services District, California, is authorized 
to participate in the design, planning, and construction of 
recycled water system facilities.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $1,150,000.

SEC. 16XX. PETALUMA RECYCLED WATER PROJECT, PHASES 2A, 2B, AND 3.

    (a) Authorization.--The Secretary, in cooperation with the 
City of Petaluma, California, is authorized to participate in 
the design, planning, and construction of recycled water system 
facilities.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $6,000,000.

SEC. 16XX. CENTRAL REDWOOD CITY RECYCLED WATER PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
City of Redwood City, California, is authorized to participate 
in the design, planning, and construction of recycled water 
system facilities.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $8,000,000.

SEC. 16XX. PALO ALTO RECYCLED WATER PIPELINE PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
City of Palo Alto, California, is authorized to participate in 
the design, planning, and construction of recycled water system 
facilities.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $8,250,000.

SEC. 16XX. IRONHOUSE SANITARY DISTRICT (ISD) ANTIOCH RECYCLED WATER 
                    PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
Ironhouse Sanitary District (ISD), California, is authorized to 
participate in the design, planning, and construction of 
recycled water distribution systems.
    (b) Cost Share.--The Federal share of the cost of the 
project authorized by this section shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project authorized by this 
section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $7,000,000.

           *       *       *       *       *       *       *