[House Report 108-204]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-204
======================================================================
 
  INCREASE IN FEDERAL SHARE OF SAN GABRIEL BASIN DEMONSTRATION PROJECT

                                _______
                                

 July 14, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 1284]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 1284) to amend the Reclamation Projects Authorization and 
Adjustment Act of 1992 to increase the Federal share of the 
costs of the San Gabriel Basin demonstration project, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 1284 is to amend the Reclamation 
Projects Authorization and Adjustment Act of 1992 to increase 
the Federal share of the costs of the San Gabriel Basin 
Demonstration Project.

                  Background and Need for Legislation

    The San Gabriel Basin Demonstration Project was authorized 
in Sec. 1614 of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (P.L. 102-575), as amended in 1996. The 
1992 authorization allows the Secretary of the Interior to 
provide technical and Federal financial assistance to the local 
project sponsors, up to a maximum of 25 percent of the total 
cost of the project. Amendments in 1996 limited spending for 
this Demonstration Project to $38 million.
    The San Gabriel Basin in Southern California is facing 
serious water quality and public health problems. The aquifer 
underlying the Basin is contaminated with a variety of 
hazardous substances, and several areas within the San Gabriel 
Valley have been placed on the national priority list by the 
EPA and are in the process of a Superfund cleanup. Groundwater 
in the aquifer provides drinking water for almost 1.5 million 
people in southern California, and contamination is threatening 
water supplies. Volatile Organic Compounds (VOCs) are the 
contaminants of primary concern. Perchlorate is also known to 
be present in the groundwater.
    Acting under the authority provided by Sec. 1614 of P.L. 
102-575, the Bureau of Reclamation is assisting in a project 
that will extract groundwater from an area in the Valley known 
as the Baldwin Park Operating Unit (designated as an 
Environmental Protection Agency Superfund site). Facilities are 
being built to treat the water to remove the volatile organic 
compounds and to deliver the treated water to entities for 
beneficial use.
    Since the Bureau of Reclamation was first authorized to 
participate in this project nearly eleven years ago, local 
project sponsors have expressed a desire to expand the scope of 
the Demonstration Project by increasing funding for three 
bordering operating units, known as Puente Valley, El Monte, 
and South El Monte Operable Units. Because the currently 
authorized spending limit is not adequate to allow the Bureau 
of Reclamation to fund these three units, an increase in the 
project cost ceiling is required. H.R. 1284 would increase the 
authorized Federal cost ceiling for the San Gabriel Basin 
Demonstration Project by $12,500,000 to cover these increased 
funding needs.
    Federal funds in the amount of $31,508,126 have been 
appropriated thus far for nine component projects of the San 
Gabriel Basin Demonstration Project. Under the increased cost 
ceiling in H.R. 1284, $4.5 million would be available to assist 
the City of Industry, California's work to treat VOCs at the 
Puente Valley Operable Unit, while $6.6 million would be 
available for the El Monte and South El Monte Operable Unit 
groundwater treatment projects. In addition, funds would be 
available for other projects now in the early planning stages.

                            Committee Action

    H.R. 1284 was introduced on March 13, 2003, by 
Congresswoman Grace Napolitano (D-CA). The bill was referred to 
the Committee on Resources, and within the Committee to the 
Subcommittee on Water and Power. On April 1, 2003, the 
Subcommittee held a hearing on the bill. On April 3, 2003, the 
Subcommittee met to mark up the bill. The bill was ordered 
favorably reported to the Full Resources Committee by voice 
vote. On June 11, 2003, the Full Resources Committee met to 
consider the bill. No amendments were offered and the bill was 
ordered favorably reported to the House of Representatives by 
unanimous consent.

                           Section-by-Section


Section 1. Increase of Federal share of San Gabriel Demonstration 
        Project

    This section increases the cost ceiling of the San Gabriel 
Demonstration Project by $12.5 million.

            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 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 increase the Federal share of the 
costs of the San Gabriel Basin Demonstration Project.
    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:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 25, 2003.
Hon. Richard Pombo,
Chairman, Committee on Resources, House of Representatives, Washington, 
        DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1284, a bill to 
amend the Reclamation Projects Authorization and Adjustment Act 
of 1992, to increase the Federal share of the costs of the San 
Gabriel Basin Demonstration Project.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 1284--A bill to amend the Reclamation Projects Authorization and 
        Adjustment Act of 1992 to increase the Federal share of the 
        costs of the San Gabriel Basin Demonstration Project

    Summary: H.R. 1284 would increase the amounts authorized to 
be appropriated for the San Gabriel Basin Demonstration Project 
in California by $12.5 million. Under current law, $38 million 
has been authorized to be appropriated for this project, and 
about $29 million has been appropriated to date. The project is 
designed to improve the quality and storage capacity of 
groundwater in the San Gabriel Basin. The increase in the 
authorized funding level would allow the Bureau of Reclamation 
to assist in the expansion of the project to include more 
facilities.
    Assuming appropriation of the authorized amount, CBO 
estimates that implementing the bill would cost about $11 
million over the 2004-2008 period, and an additional $1.5 
million after that period. Enacting H.R. 1284 would not affect 
direct spending or revenues.
    H.R. 1284 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. Enacting this bill would benefit the project's 
local sponsors.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 1284 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--
                                                                 -----------------------------------------------
                                                                   2003    2004    2005    2006    2007    2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Estimated Spending Under Current Law \1\:
    Estimated Authorization Level...............................       1       5       4       0       0       0
    Estimated Outlays...........................................       1       3       4       2       0       0
Proposed Changes:
    Estimated Authorization Level...............................       0       0       0       5       4       4
    Estimated Outlays...........................................       0       0       0       3       4       4
Spending Under H.R. 1284:
    Estimated Authorization Level...............................       1       5       4       5       4       4
    Estimated Outlays...........................................       1       3       4       5       4       4
----------------------------------------------------------------------------------------------------------------
\1\ About $9 million remain to be appropriated from the original authority for the San Gabriel Basin
  demonstration project. The 2003 level is the amount appropriated for that year for the project.

    Basis of Estimate: For this estimate, CBO assumes that H.R. 
1284 will be enacted near the start of fiscal year 2004 and 
that the necessary funds will be appropriated for each year. 
CBO estimates that implementing H.R. 1284 would cost about $11 
million over the 2004-2008 period, and an additional $1.5 
million after that period.
    Under current law, $9.2 million remain to be appropriated 
from the original authority of $38 million for the San Gabriel 
Basin Demonstration Project. Based on information from the 
bureau, CBO expects that the funds authorized under this bill 
would not be required until 2006.
    Intergovernmental and Private-Sector Impact: H.R. 1284 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on State, local, or 
tribal governments. Enacting this bill would benefit the 
project's local sponsors.
    Estimate prepared by: Federal costs, Julie Middleton; 
Impact on State, local, and tribal governments, Marjorie 
Miller; Impact on the private sector, Lauren Marks.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                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 (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):

 SECTION 1631 OF THE RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT 
                              ACT OF 1992


SEC. 1631. AUTHORIZATION OF APPROPRIATIONS.

    (a) * * *

           *       *       *       *       *       *       *

    (d)(1) * * *
    (2) [In the case](A) Subject to subparagraph (B), in the 
case of any project authorized by this title for which 
construction funds were appropriated before January 1, 1996, 
the Federal share of the cost of such project may not exceed 
the amount specified as the ``total Federal obligation'' for 
that project in the budget justification made by the Bureau of 
Reclamation for fiscal year 1997, as contained in part 3 of the 
report of the hearing held on March 27, 1996, before the 
Subcommittee on Energy and Water Development of the Committee 
on Appropriations of the House of Representatives.
    (B) In the case of the San Gabriel Basin demonstration 
project authorized by section 1614, the Federal share of the 
cost of such project may not exceed the sum determined by 
adding--
    (i) the amount that applies to that project under 
subparagraph (A); and
    (ii) $12,500,000.

                                
