[Senate Report 108-347]
[From the U.S. Government Publishing Office]
Calendar No. 701
108th Congress Report
SENATE
2d Session 108-347
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TULAROSA BASIN WATER RECLAMATION ACT
_______
September 20, 2004.--Ordered to be printed
_______
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1211]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1211) to further the purposes of title
XVI of the Reclamation Projects Authorization and Adjustment
Act of 1992, the ``Reclamation Wastewater and Groundwater Study
and Facilities Act'', by directing the Secretary of the
Interior to undertake a demonstration program for water
reclamation in the Tularosa Basin of New Mexico, and for other
purposes, having considered the same, reports favorably thereon
with an amendment and an amendment to the title and recommends
that the bill, as amended, do pass.
The amendments are as follows:
1. Strike out all after the enacting clause and insert in
lieu thereof the following:
SECTION 1. TULAROSA BASIN FACILITY.
(a) In general.--The Secretary of the Interior (referred to in this
Act as the ``Secretary'') shall construct, manage, and maintain a test
and evaluation facility (referred to in this Act as the ``facility'')
at the Tularosa Basin, located in Otero County in the State of New
Mexico capable of processing at least 100,000 gallons of water per day.
(b) Objectives of Facility.--The facility shall be used to carry out
research on, and to test, demonstrate, and evaluate new desalination
technologies to produce potable water from saline or other unsuitable
water, including analysis of effects on energy consumption, byproduct
disposal, and operations and maintenance costs to determine the most
technologically-efficient and cost-effective means to produce potable
water from saline or other unsuitable water using desalination
technologies.
(c) Technology Plan Development.--The Secretary shall contract with
Sandia National Laboratory (referred to in this Act as ``Sandia'') to
develop a desalination technology plan (referred to in this Act as the
``plan'') not later than 1 year after the date on which funds are made
available for the purposes of this Act. The plan shall--
(1) be developed in consultation with the Secretary and the
Secretary of Energy;
(2) consider the experience of similar facilities and
research programs operated by the Federal government and by
other research institutions; and
(3) include recommendations for the siting and configuration
of the facility and the research and development program to be
undertaken at the facility.
(d) Review of Plan.--The Secretary shall review the plan and may
modify or change any recommendation after consultation with the
Secretary of Energy.
(e) Construction of Facility.--Not later than 3 years after the date
of completion of the plan, the Secretary shall construct the facility
in accordance with the recommendations contained in the plan, including
any modifications or changes. The Secretary may contract with other
Federal agencies, State agencies, educational institutions, and private
entities for construction of the facility.
(f) Memorandum of Agreement for Operation.--The Secretary and the
Secretary of Energy shall enter into a Memorandum of Agreement for the
operation of the facility and the conduct of research under this Act.
Research may be conducted at the facility and may also be carried out
at any laboratory facility determined to be suitable by Sandia. The
Secretary and the Secretary of Energy shall establish a technical
advisory panel drawn from Federal or State agencies, academic
institutions, and private or public entities to provide program
guidance and technical assistance in the operation of the facility and
conduct of research.
(g) Provision of Water.--
(1) In general.--The Secretary shall dispose of all water
produced by the facility under contract with 1 or more
communities located in Otero County, New Mexico where the water
would be supplementary to water provided by public water
systems or wells in the communities and only after Sandia
notifies the Secretary that the water is of a consistent,
reliable quality.
(2) Cost.--Any water provided by the Secretary to a community
under paragraph (1) shall be provided at a cost not to exceed
the fair market value of the water.
(3) Use of revenue.--The Secretary may use the amounts
collected under paragraph (2) to assist in paying the
operational costs of the facility.
SEC. 2. RESEARCH AND DEVELOPMENT PROGRAM.
The Secretary and the Secretary of Energy may undertake research and
development of desalination technologies in addition to the program
carried out at the facility directly or by contract, interagency
agreement, cooperative agreement, or grant. Any agreement or grant may
be made only on the basis of a competitive, merit-reviewed process. The
Secretary and the Secretary of Energy may carry out the program at a
location outside the United States after consultation with and approval
by the Secretary of State.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Appropriations may be made to the Secretary and to the Secretary of
Energy. There are authorized to be appropriated such sums as may be
necessary to carry out the provisions of this Act, but not to exceed--
(1) $1,500,000 for development of the plan under section
1(c);
(2) $3,000,000 (January 2003 price levels), plus or minus
such amounts, if any, as may be required by reason of ordinary
fluctuations in construction costs as indicated by engineering
cost indexes applicable to the types of construction involved
for the construction of the facility;
(3) $6,000,000 for each of fiscal years 2005 through 2010 for
transfer to Sandia to carry out research programs associated
with the facility; and
(4) $10,000,000 for each of fiscal years 2005 through 2010
for research and development activities under section 2 of
which not more than $1,500,000 in any fiscal year may be for
research undertaken directly by the Secretary and not more than
$1,000,000 in any fiscal year may be for grants to institutions
of higher education (including United States-Mexico binational
research foundations and interuniversity research programs
established by the 2 countries).
2. Amend the title so as to read: ``A bill to direct the
Secretary of the Interior to undertake a demonstration program
for water reclamation in the Tularosa Basin of New Mexico, and
for other purposes.''.
PURPOSE OF THE MEASURE
The purpose of S. 1211 is to direct the Secretary of the
Interior to undertake a demonstration program for water
reclamation in the Tularosa Basin of New Mexico, and for other
purposes.
BACKGROUND AND NEED
Continued shortage of water in the Western United States
has led many communities to investigate desalination as a
method of transforming previously unuseable water to potable
water. Saline or brackish water exists in aquifers underlying
large portions of the United States, and many of these areas
coincide with areas facing future water shortages. Inland
desalination, while providing an opportunity faces several
critical issues including: (1) difficulty in the disposal of
concentrate or brine removed from the brackish or saline water;
(2) reducing the overall cost of water production which is
highly correlative with energy costs; and (3) lack of
technology that can be cost-effectively implemented for small
communities. While the cost of desalination is high for all
users, inland areas do not have the benefit of economies-of-
scale and ocean release of concentrate.
The U.S. Bureau of Reclamation began conducting
desalination research over 30 years ago. As the pioneer in this
field, much of the research produced continues to be today's
state of the art membrane technology used in the reverse
osmosis process. Funding, however, for the U.S. Bureau of
Reclamation desalinization research program has progressively
decreased.
In the 2001 Energy and Water Appropriations Act, Congress
appropriated funds to begin a partnership between the Bureau of
Reclamation and Sandia National Laboratories. Together, these
two entities jointly led a multi-agency effort to develop a
desalination technology roadmap which was completed in early
2003. The roadmap identifies in detail, the operational hurdles
that hinder wider application of desalination technology to
water supply problems in the United States and articulates a
research agenda that can be implemented to overcome these
hurdles. A key element of that research agenda is the Tularosa
Basin Desalination Facility.
The Tularosa Basin is a groundwater basin that occupies
much of south-central New Mexico and extends through Texas
toward the Mexican border. The great majority of water in the
basin is of brackish to saline quality. This location was
chosen for the demonstration facility for several reasons.
Primarily, the basin is an excellent area for demonstration
projects to access an array of water qualities over short
geographic areas. Additionally, the large quantities of native
water allow the facility to have a design capacity of 100,000
gallons per day without impacting other communities or water
rights holders. Finally, the local communities have been active
partners, providing land and rights-of-way, and helping with
well and facility permitting. The community engagement is based
on the growing realization that the Tularosa basin groundwater
is currently an unused but potentially valuable long-term
resource.
LEGISLATIVE HISTORY
S. 1211 was introduced by Senator Domenici on June 9, 2003
and referred to the Energy and Natural Resources Committee.
Senator Bingaman is a co-sponsor. The Subcommittee on Water and
Power held a hearing on S. 1211 on June 17, 2004. The Committee
on Energy and Natural Resources ordered S. 1211, as amended,
favorably reported on July 14, 2004.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in an
open business meeting on July 14, 2004, by unanimous voice vote
of a quorum present, recommends that the Senate pass S. 1211,
if amended as described herein.
COMMITTEE AMENDMENT
During the consideration of S. 1211, the Committee adopted
an amendment in the nature of a substitute. The substitute
amendment addresses concerns raised during the Subcommittee
hearing and in written submissions.
The first change provides that water produced by the
demonstration facility shall be sold to surrounding communities
at fair market value and the proceeds from the sale of the
water will be used to help pay the operational costs of the
facility.
The second change strikes from the title of the Act
reference to title XVI of the Reclamation Projects
Authorization and Adjustment Act of 1992.
There were also several technical amendments.
SECTION-BY-SECTION ANALYSIS
Section 1 subsection (a) directs the Secretary of the
Interior to construct and manage a test and evaluation facility
at the Tularosa Basin located in Otero County, New Mexico.
Section 2 subsection (a) sets forth the purposes of the
Act.
Subsection (b) provides that the objectives of the facility
are to perform research on and test new desalination
technologies.
Subsection (c) directs the Secretary of the Interior, in
collaboration with Sandia National Laboratory and the Secretary
of Energy, to develop a desalination technology plan, recommend
a location for the facility, and recommend research to be
carried out at the facility.
Subsection (d) directs the Secretary of the Interior to
review the plan and make any necessary modifications to the
plan after consulting with the Secretary of Energy.
Subsection (e) directs the Secretary of the Interior to
construct a facility consistent with the recommendations
contained in the plan no later than three years after the date
of completion of the plan.
Subsection (f) directs the Secretary of the Interior and
Secretary of Energy to enter into a Memorandum of Agreement for
operation of the facility and research to be undertaken
pursuant to the Act. Research may be carried out at the
facility or other laboratory facilities determined to be
suitable by Sandia National Laboratory. The Secretary of the
Interior and the Secretary and Energy shall establish a
technical advisory panel to provide technical assistance in the
operation of the facility and the conduct of research.
Subsection (g) directs the Secretary of the Interior to
sell water produced by the facility to surrounding communities
located in Otero County, New Mexico after Sandia National
Laboratories notifies the Secretary that the water is of
consistent, reliable quality. The water shall be sold at fair
market value and proceeds from the sale shall be used for
operation of the facility.
Section 2 provides that the Secretary of the Interior and
Secretary of Energy may undertake research and development of
desalination technology in addition to research carried out at
the facility. The additional research may by carried out
directly, by contract, interagency agreement, cooperative
agreement, or grant.
Section 3 authorizes to be appropriated $1,500,000 for
development of the plan, $3,000,000 for construction of the
facility, and $6,000,000 for each fiscal year, 2005 through
2010, for Sandia National Laboratory to carry out research
programs associated with the facility. The Act also authorizes
to be appropriated $10,000,000 for each fiscal year, 2005
through 2010, for research in addition to the Sandia-led
research carried out at the facility.
COST AND BUDGETARY CONSIDERATIONS
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the report is available, the
Chairman will request it to be printed in the Congressional
Record for the advice of the Senate.
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. 1211. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant 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. 1211.
EXECUTIVE COMMUNICATIONS
On June 16, 2004, 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 views on S. 1957. These reports had not been
received at the time the report on S. 1211 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 Department of Interior at
the Subcommittee hearing follows:
Statement of John W. Keys III, Commissioner of Reclamation, U.S.
Department of the Interior
Madam Chairman and members of the Subcommittee, I am John
Keys, Commissioner of Reclamation. I am pleased to be here
today to present the Department of Interior's views on S. 1211,
a bill to undertake a demonstration program for desalination of
brackish inland groundwater in the Tularosa Basin of New
Mexico, as well as to provide Reclamation additional authority
to undertake desalination research through a variety of
institutional arrangements, or outside the United States.
The Tularosa desalination test and evaluation facility will
be capable of processing at least 100,000 gallons of water per
day at the Tularosa Basin in New Mexico. In the FY 2002 Energy
and Water Appropriations Act, Congress directed the Bureau of
Reclamation, in cooperation with Sandia National Laboratories,
to evaluate the potential for developing such a desalination
research facility in the Tularosa Basin of New Mexico. The
facility study began in January 2002. Reclamation entered a
phased design/build contract with Laguna Construction Company,
Inc. in July 2003. Congress provided $4 million for the
continuation of this project in fiscal year 2004. Construction
will begin this month.
The Administration supports Congressional interest in
pursuing avenues of research that look at potential long-term
methods of augmenting scarce water supplies, including both
technical and market approaches. We are interested in working
with the Congress to determine whether the research program
identified in S. 1211 meets the federal Research and
Development Investment Criteria. These criteria were developed
over several years through a process of intense, thorough
consultation with the research community. They include four
main elements:
Relevance;
Quality;
Performance; and
Criteria for R&D Programs Developing
Technologies That Address Industry Issues.
Applying the criteria to the proposed research will help
determine the appropriate federal R&D role, if any. As the
Administration considers the appropriate level of federal
involvement, there are a few provisions of the bill that we
would like to work with the Committee on.
Reclamation's Science & Technology program, which plans and
coordinates the bulk of our research activities, is our main
program for identifying and implementing our research
priorities. This program received a high rating during its
recent evaluation under the Administration's Program Assessment
Rating Tool (PART), which rated it as `Effective'. This
recently revamped program should play a central role in the
determination of which research priorities the Bureau should
pursue. We are concerned that the bill as currently written
does not make use of this well-established expertise. If we are
to build, manage, and maintain the facility, as provided for in
Section 1(a) of the bill, the legislation should also clarify
that we will have more than a physical custodial role, i.e.,
our underlying program responsibility should be delineated, and
that should include a central role in determining research
priorities. Our process, in turn, is subject to the federal R&D
Criteria sketched out above.
Additionally, while we welcome opportunities to partner
with other agencies of the federal government, particularly
where we have complementary missions and capabilities, we are
concerned that, as originally drafted, our role under the bill
could be reduced to a funding path through the Department of
the Interior to other government agencies and laboratories. If
funds are ultimately appropriated to Interior, we want to take
more direct stewardship responsibility for the underlying work.
We suggest that funds for other agencies should be appropriated
directly to those agencies, for there is no compelling reason
to funnel them through Reclamation.
The Administration suggests that the portion of the bill
that would provide treated water to local communities at no
cost be rewritten to say that any such sale of water must be
for fair market value.
Furthermore, facility operation and maintenance should be
based on user fees. Larger demonstration projects, in most
cases, would be conducted off-site at urban and rural locations
under field conditions, and are not contemplated in the
construction of Tularosa.
While some facility users would be funded out of
Reclamation's research budget, supplemental fees could come
from the many other agencies currently funding desalination
research, such as the Office of Naval Research or the
Department of Energy when they perform work at Tularosa. In the
future we would hope that additional agencies would join the
list of desalination researchers using the facility.
We would be happy to work with the Subcommittee to further
develop these concepts.
Madam Chairman, our thinking on desalination will continue
to grow and mature as the research field does, and as the
federal government further subjects desalination research to
scrutiny under the federal R&D criteria. We welcome the
opportunity to work closely with the Committee as that process
unfolds, beginning with adjustments to S. 1211.
Madam Chairman, this concludes my remarks and 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, the Committee notes that no
changes in existing law are made by the bill S. 1211, as
ordered reported.