[Senate Report 105-375]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 624
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-375
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     RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992

                                _______
                                

  October 7 (legislative day, October 2), 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 2140]

    The Committee on Energy and Natural Resources, to which was 
referred to the bill (S. 2140) to amend the Reclamation 
Projects Authorization and Adjustment Act of 1992 to authorize 
the Secretary of the Interior to participate in the design, 
planning, and construction of the Denver Water Reuse project, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                         Purpose of the Measure

    The legislation modifies title XVI of the Reclamation 
Projects Authorization and Adjustment Act of 1992 that 
establishes a program of water reclamation and reuse projects 
to include a Denver Water Reuse Project.

                          Background and Need

    Title XVI of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (P.L. 102-575, 106 Stat. 4006) 
authorized a program of wastewater reclamation and reuse 
feasibility and demonstration projects within the Reclamation 
States. The Federal share of the costs was limited to 50%. In 
addition, several individual studies were directed as well as 5 
projects (San Jose, Phoenix, San Diego, Los Angeles, and San 
Gabriel Basin) for which funding was limited to 25%. The 
legislation was directed at reuse of existing supplies and did 
not address desalination although title XI of P.L. 102-575 did 
authorize a program to research and demonstrate methods for 
control of salinity at Salton Sea, California with 50% federal 
cost-sharing. Partially in response to the number of requests 
for participation in the program and the anticipated costs, 
P.L. 104-266 modified the program to limit Federal 
contributions to 25% of the total cost to a maximum of $20 
million and required a feasibility analysis prior to the 
expenditure of any funds for construction. The new requirements 
were not made applicable to the several very large projects, 
mainly in California, authorized under Title XVI. The FY'99 
budget proposal from the Department requested a total of $27 
million for the program.
    The importance of the use of reclaimed water in the arid 
West is significant, especially in areas experiencing 
groundwater overdraft or facing reduced freshwater supplies. 
While municipal uses are the primary beneficiaries of the 
program, there can be significant indirect benefits to other 
consumptive uses, such as agriculture, and non-consumptive 
uses, such as augmenting in-stream flows or reducing 
depletions.
    The Denver Nonpotable Reuse Project will treat secondary 
wastewater for irrigation and industrial uses around the Denver 
International Airport and Rocky Mountain Wildlife Refuge. The 
project ultimately is designed to provide 15,000 acre feet 
freeing up potable supplies for 30,000 homes. The reuse will 
also aid Denver in complying with the Blue River Decree, signed 
by the Secretary of the Interior, under which Denver conveys 
water from Colorado's western slope to its eastern slope 
customers. The total project cost for all three phases is about 
$100 million. Under the limitations of P.L. 104-566, the 
federal participation will be limited to $20 million, 
notwithstanding the 25% limitation in the legislation.

                          Legislative History

    S. 2140 was introduced by Senator Campbell on June 5, 1998. 
A hearing was held by the Subcommittee on Water and Power on 
June 16, 1998.
    At the business meeting on September 23, 1998, the 
Committee on Energy and Natural Resources ordered S. 2140 
favorably reported without amendment.

           Committee Recommendations and Tabulation of Votes

    The Committee on Energy and Natural Resources, in open 
business session on September 23, 1998, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
2140, without amendment.

                      Section-by-Section Analysis

    The legislation is self-explanatory.

                   Cost and Budgetary Considerations

    An estimate of the cost of this measure has been requested 
from the Congressional Budget Office, but has not been received 
as of the date of filing of this report. when the estimate is 
received, the Chairman will have it printed in the 
Congressional Record for the advice of the Senate. S. 2140 
limits the Federal cost-share to 25% of the projects estimated 
$100 million total cost. Under the limitations of Public Law 
104-566, Federal funding for a specific wastewater project is 
limited to no more than $20 million.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of Rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2140. 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 S. 2140, as ordered reported.

                        Executive Communications

    On June 8, 1998, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 2140. These 
reports had not been received at the time the report on S. 2140 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the 
Commissioner of the Bureau of Reclamation, Department of the 
Interior, at the Subcommittee hearing follows:

     Statement of Eluid L. Martinez, Commissioner, U.S. Bureau of 
                Reclamation, Department of the Interior

    Thank you for the opportunity to appear today to provide 
the Administration's views on S. 2140.


 s. 2140, to authorize the secretary of the interior to participate in 
the design, planning and construction of the denver water reuse project


    S. 2140 would amend the Reclamation Projects Authorization 
and Adjustment Act of 1992 to authorize the Secretary of the 
Interior to participate in the design, planning and 
construction of the Denver Water Reuse Project in the service 
area of the Denver Water Department in the City and County of 
Denver, Colorado. S. 2140 would limit the Federal share of 
project costs to 25 percent of the total costs and restricts 
the Secretary from providing funding for the operation and 
maintenance of this project.
    Mr. Chairman, in 1992, Congress adopted and the President 
signed the Reclamation Projects Authorization and Adjustment 
Act. Title XVI of this Act, the Wastewater and Groundwater 
Study and Facilities Act, authorized the construction of five 
water reclamation and reuse projects. Four of these projects 
are in California and the fifth is in Arizona. The Secretary 
was also authorized to undertake a program to identify other 
water recycling opportunities throughout the 17 western United 
States, and to conduct appraisal level and feasibility level 
studies to determine if those opportunities are worthy of 
implementation. The Bureau of Reclamation has been 
administering a grant program to fund these Title XVI projects 
since FY 1994.
    In 1996, Public Law 104-266, the Reclamation Recycling and 
Water Conservation Act, was enacted into law. This Act amended 
Title XVI and authorized the Secretary to participate in the 
planning, design and construction of 18 additional projects, 
including two desalination research and development projects. 
These new projects are distributed within five states, 
including California, Nevada, Utah, Texas and New Mexico. To 
date, funding has been provided by Congress to construct four 
of the original 1992 projects and four of these newly 
authorized projects. Water reclamation and reuse efforts, such 
as municipal, industrial, domestic, and agricultural wastewater 
reuse, can assist states and local communities in solving 
contemporary water supply problems. However, these projects 
involve public functions that historically have been the 
responsibility of local communities. In addition, the 
Department opposes authorizing additional projects in the 
absence of studies to determine whether these particular 
projects warrant Federal funding. The Department also opposes 
enactment of this legislation because authorizing such new 
projects is likely to have the effect of adversely impacting 
other ongoing Bureau of Reclamation activities.
    To date, Reclamation has not completed the Federal funding 
of any of the water reclamation and reuse projects presently 
authorized by title XVI. At current funding levels, it will 
take Reclamation more than 10 years to complete funding of the 
currently authorized projects.
    For all of the above reasons, the Department of the 
Interior and the Bureau of Reclamation cannot support 
authorizing this new construction request.
    That concludes my prepared testimony, I would be happy to 
answer any questions.

                        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 S. 2140, 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--OCT. 30, 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.
Sec. 2. Definition and table of contents.
     * * * * * * *

       TITLE XVI--RECLAMATION WASTEWATER AND GROUND WATER STUDIES

     * * * * * * *
Sec. 1630. Tooele Wastewater Treatment and Reuse Project.
Sec. 1631. Denver Water Reuse Project.
Sec. [1631] 1632. Authorization of appropriations.
Sec. [1632] 1633. Ground water study.
Sec. [1633] 1634. Authorization of appropriations.
     * * * * * * *

SEC. 1631. DENVER WATER REUSE PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
appropriate State and local authorities, may participate in the 
design, planning, and construction of the Denver Water Reuse 
project to reclaim and reuse water in the service area of the 
Denver Water Department of the city and county of Denver, 
Colorado.
    (b) Cost Share.--The Federal share of the cost of the 
project described in subsection (a) shall not exceed 25 percent 
of the total cost.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation or maintenance of the project described in 
subsection (a).

SEC. [1631] 1632. AUTHORIZATION OF APPROPRIATIONS.

    (a) There are authorized to be appropriated such sums as 
may be necessary to carry out the purposes and provisions of 
sections 1601 through [1630] 1631 of this title.

           *       *       *       *       *       *       *


SEC. [1632] 1633. GROUNDWATER STUDY.

           *       *       *       *       *       *       *


    (c) The report shall be submitted to the Committees on 
Appropriations and Interior and Insular Affairs of the House of 
Representatives and the Committees on Appropriations and Energy 
and Natural Resources of the Senate within three years of the 
appropriation of funds authorized by section [1633] section 
1634.

SEC. [1633] 1634. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for fiscal years 
beginning after September 30, 1992, $4,000,000 to carry out the 
study authorized by [section 1632] section 1633.