[House Report 108-564]
[From the U.S. Government Publishing Office]




108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-564
======================================================================

 
     AMENDING THE RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND 
     FACILITIES ACT TO AUTHORIZE THE SECRETARY OF THE INTERIOR TO 
 PARTICIPATE IN THE INLAND EMPIRE REGIONAL WATER RECYCLING PROJECT, TO 
 AUTHORIZE THE SECRETARY TO CARRY OUT A PROGRAM TO ASSIST AGENCIES IN 
   PROJECTS TO CONSTRUCT REGIONAL BRINE LINES IN CALIFORNIA, AND TO 
 AUTHORIZE THE SECRETARY TO PARTICIPATE IN THE LOWER CHINO DAIRY AREA 
           DESALINATION DEMONSTRATION AND RECLAMATION PROJECT

                                _______
                                

 June 23, 2004.--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. 142]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 142) to amend the Reclamation Wastewater and Groundwater 
Study and Facilities Act to authorize the Secretary of the 
Interior to participate in the Inland Empire regional water 
recycling project, to authorize the Secretary to carry out a 
program to assist agencies in projects to construct regional 
brine lines in California, and to authorize the Secretary to 
participate in the Lower Chino Dairy Area desalination 
demonstration and reclamation project, having considered the 
same, report favorably thereon with amendments and recommend 
that the bill as amended do pass.
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. PRADO BASIN NATURAL TREATMENT SYSTEM PROJECT.

  (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. 1636. PRADO BASIN NATURAL TREATMENT SYSTEM PROJECT.

  ``(a) In General.--The Secretary, in cooperation with the Orange 
County Water District, shall participate in the planning, design, and 
construction of natural treatment systems and wetlands for the flows of 
the Santa Ana River, California, and its tributaries into the Prado 
Basin.
  ``(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.
  ``(c) Limitation.--Funds provided by the Secretary shall not be used 
for the operation and maintenance of the project described in 
subsection (a).
  ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000.''.
  (b) Conforming Amendment.--The table of sections in section 2 of 
Public Law 102-575 is further amended by inserting after the item 
relating to section 1634 the following:

``Sec. 1636. Prado Basin Natural Treatment System Project.''.

SEC. 2. REGIONAL BRINE LINES.

  (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 further amended by adding at the end the following:

``SEC. 1637. REGIONAL BRINE LINES.

  ``(a) Southern California.--The Secretary, in cooperation with units 
of local government, may carry out a program under the Federal 
reclamation laws to assist agencies in projects to construct regional 
brine lines to export the salinity imported from the Colorado River to 
the Pacific Ocean as identified in--
          ``(1) the Salinity Management Study prepared by the Bureau of 
        Reclamation and the Metropolitan Water District of Southern 
        California; and
          ``(2) the Southern California Comprehensive Water Reclamation 
        and Reuse Study prepared by the Bureau of Reclamation.
  ``(b) Agreements and Regulations.--The Secretary may enter into such 
agreements and promulgate such regulations as are necessary to carry 
out this section.
  ``(c) Cost Sharing.--The Federal share of the cost of a project to 
construct regional brine lines described in subsection (a) shall not 
exceed--
          ``(1) 25 percent of the total cost of the project; or
          ``(2) $50,000,000.
  ``(d) Limitation.--Funds provided by the Secretary shall not be used 
for operation or maintenance of any project described in subsection 
(a).''.
  (b) Conforming Amendment.--The table of sections in section 2 of 
Public Law 102-575 is further amended by inserting after the item 
relating to section 1635 the following:

``Sec. 1637. Regional brine lines.''.

SEC. 3. LOWER CHINO DAIRY AREA DESALINATION DEMONSTRATION AND 
                    RECLAMATION PROJECT.

  (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 further amended by adding at the end the following:

``SEC. 1638. LOWER CHINO DAIRY AREA DESALINATION DEMONSTRATION AND 
                    RECLAMATION PROJECT.

  ``(a) In General.--The Secretary, in cooperation with the Chino Basin 
Watermaster, the Inland Empire Utilities Agency, and the Santa Ana 
Watershed Project Authority and acting under the Federal reclamation 
laws, shall participate in the design, planning, and construction of 
the Lower Chino Dairy Area desalination demonstration and reclamation 
project.
  ``(b) Cost Sharing.--The Federal share of the cost of the project 
described in subsection (a) shall not exceed--
          ``(1) 25 percent of the total cost of the project; or
          ``(2) $50,000,000.
  ``(c) Limitation.--Funds provided by the Secretary shall not be used 
for operation or maintenance of the project described in subsection 
(a).
  ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
  (b) Conforming Amendment.--The table of sections in section 2 of 
Public Law 102-575 is further amended by inserting after the item 
relating to section 1636 the following:

``Sec. 1638. Lower Chino dairy area desalination demonstration and 
reclamation project.''.

  Amend the title so as to read:

      A bill to amend the Reclamation Wastewater and Groundwater Study 
and Facilities Act to authorize the Secretary of the Interior to 
participate in the Prado Basin Natural Treatment System Project, to 
authorize the Secretary to carry out a program to assist agencies in 
projects to construct regional brine lines in California, and to 
authorize the Secretary to participate in the Lower Chino Dairy Area 
desalination demonstration and reclamation project.

                          Purpose of the Bill

    The purpose of H.R 142 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
Prado Basin Natural Treatment System Project, to authorize the 
Secretary to carry out a program to assist agencies in projects 
to construct regional brine lines in California, and to 
authorize the Secretary to participate in the Lower Chino Dairy 
Area desalination demonstration and reclamation project.

                  Background and Need for Legislation

    Many western states are faced with the formidable task of 
providing reliable water resources for rapidly increasing 
populations. Many communities depend on varied sources of water 
to meet these demands. In southern California, for example, 
communities depend on imported Colorado River water as the 
major source of water supply. However, in light of the historic 
Quantification Settlement Agreement,\1\ the region's dependence 
on this imported water source will be significantly reduced 
over time. Meanwhile, drought throughout Southern California 
and the western United States has only exacerbated water 
availability issues.
---------------------------------------------------------------------------
    \1\ This agreement provides California a transition period to 
implement water transfers and supply programs that will reduce the 
state's draw of the Colorado River to its 4.4 million acre-foot basic 
annual apportionment.
---------------------------------------------------------------------------
    As a result of dwindling supplies and increasing demands, 
communities continue to seek non-traditional methods to produce 
dependable water sources. The principal methods to develop non-
traditional water supplies in water-stressed areas are through 
water recycling and desalination. Water recycling is the 
treatment and management of wastewater to produce non-potable 
(non-drinkable) water suitable for reuse, and desalination is 
the method of removing excess salts from brackish or ocean 
waters. Recycled water is presently used for irrigation of 
residential lawns, golf courses, schools, parks, athletic 
fields, edible crops, and other landscape areas. Other uses 
include various types of industrial and power utility reuse and 
groundwater recharge. Thus, the primary goal of water recycling 
is to allow more potable water to be targeted for drinking 
water purposes. Desalination provides drinking water directly 
into the delivery system and is blended with other sources of 
potable water in many cases. One of the main challenges to 
desalination is the transport of the salts (also known as 
brine) to outfall stations.
    Water recycling and desalination are growing trends 
throughout the Nation. The federal government's specific role 
in these efforts is the Title XVI program, also known as ``The 
Reclamation Wastewater and Groundwater Study and Facilities 
Act.'' Authorized in 1992 and amended in 1996, the Title XVI 
program directs the Bureau of Reclamation in the Department of 
the Interior to award federal grants to communities developing 
non-traditional water supplies. The Title XVI program allows 
for a 50% federal cost share for feasibility studies and a 25% 
federal cost share for construction projects. The Committee 
notes that the significant local cost-share makes these 
projects attractive to private financing and partnerships and 
encourages regional solutions to complex water supply problems.
    As amended, H.R. 142 authorizes Title XVI funding for a 
number of areas in southern California. The bill seeks to 
improve the quality of the Orange County groundwater basin by 
naturally treating Santa Ana River flow through wetlands 
development. The treated water would be used for groundwater 
recharge. In addition, the wetlands will serve as a mitigation 
tool for threatened and endangered species. This mitigation 
measure will allow for increased water storage behind Prado 
Dam. The bill also authorizes Title XVI funding for the 
construction of a regional brine line that would convey reject 
brine from local ground water treatment plants and other nearby 
sites to an existing ocean outfall pump station, and create a 
Lower Chino Basin Dairy Area desalination project to clean 
brackish groundwater. Upon full implementation, these projects 
will create an estimated 50,000 new acre feet of water\2\ 
annually for southern California in order to help ``drought-
proof'' the region.
---------------------------------------------------------------------------
    \2\ The traditional measure of water, an acre-foot is the amount of 
water that would cover one acre of land to a depth of one foot.
---------------------------------------------------------------------------

                            Committee Action

    H.R. 142 was introduced by Congressman Gary G. Miller (R-
CA) on January 7, 2003. The bill was referred to the Committee 
on Resources, and within the Committee to the Subcommittee on 
Water and Power. On September 10, 2003, the Subcommittee held a 
hearing on the bill. On October 30, 2003, the Subcommittee met 
to mark up the bill. Congressman Ken Calvert (R-CA) offered an 
amendment in the Nature of a Substitute. It was adopted by 
unanimous consent. The Subcommittee then forwarded the bill, as 
amended, to the full Resources Committee by unanimous consent. 
On May 5, 2004, the Committee met to consider the bill. No 
further amendments were offered, and the bill as amended was 
favorably reported to the House of Representatives by unanimous 
consent.

                           Section-by-Section

    As ordered reported, Section 1 authorizes Title XVI funding 
for the Prado Basin Natural Treatment System Project. The 
Secretary of the Interior (Secretary) is directed to 
participate with the Orange County Water District in the 
planning, design and construction of natural treatment systems 
and wetlands for the flows of the Santa Ana River and its 
tributaries in southern California. The federal cost share is 
limited to 25%, or $20 million. Federal funding will not be 
used for operation and maintenance costs.
    Section 2 authorizes Title XVI funding for the construction 
of regional brine lines that would convey reject brine to an 
existing ocean outfall pump station. The Secretary is directed 
to work with local governments to export brine from imported 
Colorado River water to the Pacific Ocean. The federal cost 
share shall not exceed 25% or $50 million. Federal funding will 
not be used for operation and maintenance costs.
    Section 3 authorizes Title XVI funding for treating 
impaired ground water in the Lower Chino Basin Dairy Area. The 
Secretary is directed to cooperate with the Chino Basin 
Watermaster, the Inland Empire Utilities Agency and the Santa 
Ana Watershed Project Authority in the design, planning and 
construction of the Lower Chino Dairy Area desalination 
demonstration and reclamation project. The federal cost share 
shall not exceed 25% or $50 million. Federal funding will not 
be used for operation and maintenance costs.

            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 amend the Reclamation Wastewater 
and Groundwater Study and Facilities Act to authorize the 
Secretary of the Interior to participate in the Prado Basin 
Natural Treatment System Project, to authorize the Secretary to 
carry out a program to assist agencies in projects to construct 
regional brine lines in California, and to authorize the 
Secretary to participate in the Lower Chino Dairy Area 
desalination demonstration and reclamation 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 3, 2004.
Hon. Richard W. 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. 142, a bill to 
amend the Reclamation Wastewater and Groundwater Study and 
Facilities Act to authorize the Secretary of the Interior to 
participate in the Prado Basin Natural Treatment System 
project, to authorize the Secretary to carry out a program to 
assist agencies in projects to construct regional brine lines 
in California, and to authorize the Secretary to participate in 
the Lower Chino Dairy Area desalination demonstration and 
reclamation 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.
    Enclosure.

H.R. 142--A bill to amend the Reclamation Wastewater and Groundwater 
        Study and Facilities Act to authorize the Secretary of the 
        Interior to participate in the Prado Basin Natural Treatment 
        System project, to authorize the Secretary to carry out a 
        program to assist agencies in projects to construct regional 
        brine lines in California, and to authorize the Secretary to 
        participate in the Lower Chino Dairy Area desalination 
        demonstration and reclamation project

    Summary: H.R. 142 would authorize the Secretary of the 
Interior to participate in the design, planning, and 
construction of three new projects under the Reclamation 
Wastewater and Groundwater and Facilities Act, including the 
Prado Basin Natural Treatment System Project, the regional 
brine lines in Southern California, and the Lower Chino Dairy 
Area Desalination Demonstration and Reclamation Project. The 
bill would authorize the appropriation of $20 million for the 
federal share of the Prado Basin Natural Treatment System 
Project. In addition, the bill would authorize the 
appropriation of such sums as necessary for the federal share 
(up to $50 million) of each of the two other projects. For all 
three projects, the federal share would be limited to 25 
percent of the total project cost.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing H.R. 142 would cost $110 million 
over the 2005-2009 period and $10 million after that period. 
Enacting this bill would not affect direct spending or 
revenues.
    H.R. 142 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. The federal funds authorized by this bill would 
benefit local governments in California. Any costs incurred by 
these governments to provide the required matching funds would 
be voluntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 142 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--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Prado Basin Project:
    Estimated Authorization Level..................................        4        4        4        4        4
    Estimated Outlays..............................................        3        3        4        4        4
Regional Brine Lines:
    Estimated Authorization Level..................................       10       10       10       10       10
    Estimated Outlays..............................................        7        9       10       10       10
Lower Chino Dairy Project:
    Estimated Authorization Level..................................       10       10       10       10       10
    Estimated Outlays..............................................        7        9       10       10       10
    Total Changes:
        Estimated Authorization Level..............................       24       24       24       24       24
        Estimated Outlays..........................................       17       21       24       24       24
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
142 will be enacted near the end of fiscal year 2004 and that 
the necessary amounts will be appropriated in equal amounts 
over the 2005-2009 period. Based on preliminary information 
about the total cost of these projects, we assume that $50 
million would be needed for the federal share of construction 
costs of the regional brine lines and that $50 million would be 
needed for the federal share of the Lower Chino Dairy Project--
the maximum amount that would be authorized under the bill for 
each project. Based on historical spending patterns of similar 
projects, CBO estimates that implementing this bill would cost 
$110 million over the 205-2009 period and $10 million after 
that period.
    Intergovernmental and private-sector impact: H.R. 142 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The federal funds authorized by this bill 
would benefit local governments in California. Any costs 
incurred by these governments to provide the required matching 
funds would be voluntary.
    Estimate prepared by: Federal Costs: Julie Middleton; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; and Impact on the Private Sector: Paige Piper/Bach.
    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 (new matter is 
printed in italics 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)

           *       *       *       *       *       *       *


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. 1636. Prado Basin Natural Treatment System Project.
Sec. 1637. Regional brine lines.
Sec. 1638. Lower Chino dairy area desalination demonstration and 
          reclamation 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. 1636. PRADO BASIN NATURAL TREATMENT SYSTEM PROJECT.

  (a) In General.--The Secretary, in cooperation with the 
Orange County Water District, shall participate in the 
planning, design, and construction of natural treatment systems 
and wetlands for the flows of the Santa Ana River, California, 
and its tributaries into the Prado Basin.
  (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.
  (c) Limitation.--Funds provided by the Secretary shall not be 
used for the operation and maintenance of the project described 
in subsection (a).
  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $20,000,000.

SEC. 1637. REGIONAL BRINE LINES.

  (a) Southern California.--The Secretary, in cooperation with 
units of local government, may carry out a program under the 
Federal reclamation laws to assist agencies in projects to 
construct regional brine lines to export the salinity imported 
from the Colorado River to the Pacific Ocean as identified in--
          (1) the Salinity Management Study prepared by the 
        Bureau of Reclamation and the Metropolitan Water 
        District of Southern California; and
          (2) the Southern California Comprehensive Water 
        Reclamation and Reuse Study prepared by the Bureau of 
        Reclamation.
  (b) Agreements and Regulations.--The Secretary may enter into 
such agreements and promulgate such regulations as are 
necessary to carry out this section.
  (c) Cost Sharing.--The Federal share of the cost of a project 
to construct regional brine lines described in subsection (a) 
shall not exceed--
          (1) 25 percent of the total cost of the project; or
          (2) $50,000,000.
  (d) Limitation.--Funds provided by the Secretary shall not be 
used for operation or maintenance of any project described in 
subsection (a).

SEC. 1638. LOWER CHINO DAIRY AREA DESALINATION DEMONSTRATION AND 
                    RECLAMATION PROJECT.

  (a) In General.--The Secretary, in cooperation with the Chino 
Basin Watermaster, the Inland Empire Utilities Agency, and the 
Santa Ana Watershed Project Authority and acting under the 
Federal reclamation laws, shall participate in the design, 
planning, and construction of the Lower Chino Dairy Area 
desalination demonstration and reclamation project.
  (b) Cost Sharing.--The Federal share of the cost of the 
project described in subsection (a) shall not exceed--
          (1) 25 percent of the total cost of the project; or
          (2) $50,000,000.
  (c) Limitation.--Funds provided by the Secretary shall not be 
used for operation or maintenance of the project described in 
subsection (a).
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section.

           *       *       *       *       *       *       *


                                  
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