[Senate Report 109-198]
[From the U.S. Government Publishing Office]
Calendar No. 316
109th Congress Report
SENATE
1st Session 109-198
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WATER SUPPLY TECHNOLOGY PROGRAM ACT OF 2005
_______
December 8, 2005.--Ordered to be printed
Filed under authority of the order of November 18, 2005
_______
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1860]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1860) to amend the Energy Policy Act of
2005 to improve energy production and reduce energy demand
through improved use of reclaimed waters, 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. SHORT TITLE.
This Act may be cited as the ``Water Supply Technology Program Act
of 2005''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Advisory panel.--The term ``Advisory Panel'' means the
Water Supply Technology Advisory Panel established under
section 3(d).
(2) Program.--The term ``program'' means the water supply
technology research, development, demonstration, and commercial
application program established under section 3(a).
(3) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(4) Water agency.--The term ``water agency'' means any State,
instrumentality of a State, municipality, political
subdivision, authority, utility, district, association, or
other entity that provides water for public use.
(5) Water supply technology.--The term ``water supply
technology'' means--
(A) technologies for--
(i) desalination and associated concentrate
disposal;
(ii) water reuse and recycling;
(iii) removing contaminants from water,
including impaired water produced as a result
of energy production activities;
(iv) reducing the amount of energy required
to provide adequate water supplies;
(v) water use efficiency and conservation;
and
(vi) water monitoring and systems analysis;
and
(B) any other technologies identified by the
Secretary as appropriate to carry out the program.
SEC. 3. WATER SUPPLY TECHNOLOGY RESEARCH, DEVELOPMENT, DEMONSTRATION,
AND COMMERCIAL APPLICATION PROGRAM.
(a) Establishment.--In accordance with this Act, the Secretary
shall establish a national program for the research, development,
demonstration, and commercial application of economically viable and
cost-effective water supply technologies to--
(1) increase the amount of water available for human use;
(2) facilitate the widespread commercialization of newly
developed water supply technologies for use in real-world
applications, including the conduct of an assessment of
economic and other market-related factors relating to the
introduction and adoption of water supply technologies in
practical applications;
(3) facilitate collaboration among Federal agencies to
provide for the integration of research on, and the
development, demonstration, and commercial application of,
water supply technologies; and
(4) reclaim and improve access to previously unusable and
nontraditional water resources.
(b) Other Agreements.--The Secretary may enter into any grant,
contract, cooperative agreement, interagency agreement, or other
transaction, as the Secretary determines to be necessary to carry out
this Act.
(c) Program Lead Laboratory.--
(1) In general.--The Secretary shall designate 1 or more lead
National Laboratories to carry out water supply technology
research, development, demonstration, and commercial
application activities under the program.
(2) Considerations.--In determining the number of lead
laboratories to designate under paragraph (1), the Secretary
shall consider the amount of appropriations available to carry
out the program.
(3) Selection of university and water agency partners.--Each
lead laboratory designated under paragraph (1), in consultation
with the Advisory Panel, shall select at least 1 university
partner and at least 1 water agency partner to assist the lead
laboratory in carrying out the program.
(d) Advisory Panel.--
(1) In general.--The Secretary shall establish an advisory
panel, to be known as the ``Water Supply Technology Advisory
Panel'', to advise the Secretary on the activities carried out
under this Act.
(2) Membership.--Members of the Advisory Panel shall--
(A) have expertise in--
(i) water supply technology; or
(ii) legal or regulatory issues associated
with adopting water supply technologies in
real-world applications; and
(B) be representative of institutions of higher
education, industry, State and local governments,
international water supply technology institutions,
Federal agencies, and nongovernmental organizations.
(3) Duties.--The Advisory Panel shall--
(A) periodically assess the performance of water
supply technology research, development, demonstration,
and commercial application activities being carried out
under this Act;
(B) advise the Secretary on research priorities to be
carried out under this Act;
(C) make recommendations to the Secretary for
awarding research grants and demonstration project
grants; and
(D) identify legal, policy, or regulatory barriers to
implementing water supply technologies in real-world
applications.
(e) Water Supply Technology Assessment.--
(1) In general.--In consultation with the Secretary of
Agriculture, the Administrator of the Environmental Protection
Agency, the Secretary of Defense, the Administrator of the
National Aeronautics and Space Administration, the Director of
the National Science Foundation, the Secretary of the Interior,
the Director of the Office of Management and Budget, the
Director of the Office of Science and Technology Policy, and
the heads of other appropriate Federal agencies, the Secretary,
shall--
(A) assess the annual amount of Federal funding
levels and authorizations for water supply technology
research;
(B) assess the scope of the water supply technology
research performed by other agencies; and
(C) assess whether and to what extent Federal water
supply technology research is duplicative.
``(2) Technology roadmap.--In consultation with the Secretary
of Agriculture, the Administrator of the Environmental
Protection Agency, the Secretary of Defense, the Administrator
of the National Aeronautics and Space Administration, the
Director of the National Science Foundation, the Secretary of
the Interior, the Director of the Office of Science and
Technology Policy, the heads of other appropriate Federal
agencies, the Advisory Panel, and any lead laboratories
designated under subsection (d)(I), the Secretary, shall--
(A) assess any water supply technology research being
performed;
(B) identify water supply technology research and
development priorities; and
(C) develop a technology roadmap to identify critical
water supply technology research, development,
demonstration, and commercial application activities to
guide program activities.
(3) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate, the
Committee on Resources of the House of Representatives, and the
Committee on Energy and Commerce of the House of
Representatives a detailed report on--
(A) the assessments conducted under paragraphs (1)
and (2); and
(B) the technology roadmap developed under paragraph
(2)(C).
(f) Program Grants.--
(1) In general.--The Secretary shall provide competitive
grants to entities with expertise in the conduct of water
supply technology research, development, and demonstration
projects.
(2) Requirements.--The grants under paragraph (1) shall be
provided consistent with the technology roadmap developed under
subsection (e)(2)(C).
(3) Limitation.--Of amounts made available for grants under
section 4(b)(2), not more than 25 percent shall be provided to
National Laboratories and Federal agencies.
(4) Criteria.--The Secretary shall establish criteria for the
submission and review of grant applications and the provision
of grants under paragraph (1).
(g) Program Review.--
(1) In general.--The Secretary shall establish an independent
third party review process to conduct periodic peer reviews of
the program.
(2) Requirements.--In conducting a review under paragraph
(1), an independent third party reviewer shall--
(A) review the technology roadmap, technical
milestones, and plans for commercial application
developed under the program; and
(B) assess the progress of the program in achieving
the technical milestones and plans for commercial
application.
(h) Report to Congress.--Not later than 3 years after the date of
enactment of this Act and each year thereafter, the Secretary shall
submit to the Committee on Energy and Natural Resources of the Senate,
the Committee on Resources of the House of Representatives, and the
Committee on Energy and Commerce of the House of Representatives a
report that describes the activities carried out under this Act,
including the activities carried out under subsection (d)(3).
(i) Cost-Sharing Requirement.--Any activities carried out under
this Act shall be subject to section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352).
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
(a) In general.--There are authorized to be appropriated to the
Secretary to carry out this Act, including the completion of the
roadmap under section 3(e)(2)(C)--
(1) $5,000,000 for fiscal year 2006; and
(2) such sums as are necessary for each fiscal year
thereafter.
(b) Allocation.--Of amounts made available under subsection (a) for
fiscal year 2007 and each fiscal year thereafter--
(1) not more than 24 percent shall be made available to the 1
or more lead laboratories designated under section 3(c)( 1), to
be distributed equally between the lead laboratories if more
than 1 lead laboratory is designated, for the conduct of
activities under the program (including to carry out section
3(a)(2));
(2) at least 60 percent shall be made available for program
grants under section 3(f), of which 20 percent, or as the
Secretary determines to be appropriate, a higher percentage,
shall be made available for demonstration projects; and
(3) not more than 15 percent shall be used to pay the
administrative costs of carrying out the program, including
costs to support the activities of the Advisory Panel.
2. Amend the title so as to read: ``To establish a program
for the research, development, demonstration, and commercial
application of water supply technologies, and for other
purposes''.
PURPOSE OF MEASURE
The purpose of S. 1860 is to establish a program for the
research, development, demonstration, and commercial
application of water supply technologies.
BACKGROUND AND NEED
Water shortages impair the production of energy and
conversely, energy shortages impair the ability to provide
adequate water supplies. A 2005 report by the Multi-Laboratory
Energy-Water Nexus Committee, a consortium of twelve national
laboratories, found ``insufficient supplies of water can
cripple energy production...insufficient or too costly energy
can cripple water supplies.'' Electricity production is
entirely dependent on the availability of water, regardless of
fuel source. Additionally, the vast majority of energy fuel
production and processing is entirely dependent on having
adequate access to water. For example, Sandia National
Laboratories estimates that for every barrel of oil produced,
ten gallons of water are required. Similarly, the
transportation, distribution, acquisition and purification of
water require large amounts of energy. Pumping and treating
water for municipal and industrial uses account for two to
three percent of the world's energy consumption. Water
availability and energy production are inextricably linked. For
this reason, water shortages have the potential to impair
energy production.
Water shortages are anticipated domestically. A study by
the Governmental Accountability Office states that ``water
managers in thirty-six States anticipate shortages in
localities, regions, or State-wide in the next ten years.'' The
competing demands of energy production, population growth,
drought, agricultural needs, environmental needs, and tribal
interests in the West have resulted in a paucity of available
water. In the States expected to grow most rapidly--Nevada,
Texas, Arizona, Florida, California, and New Mexico--
consumptive use already nears or exceeds available supply.
Moreover, population growth in these regions shows no
indication of abating. The U.S. Census Bureau recently
estimated that by 2030, Nevada will have more than four million
residents, twice as many as in 2000. The availability of water
suitable for human use is also of great importance in the
Eastern United States. Despite receiving substantially more
rainfall than the Western United States, much of the east coast
is facing water shortages. Boston, Atlanta, and much of Florida
are nearing the end of readily available water.
A recent report released by the Center for Strategic and
International Studies and Sandia National Laboratories states
that during the 21st century water shortages will increasingly
be the source of international conflict and have the potential
to impair energy production capacity. ``The expected rise in
global population will drive a corresponding rise in demand for
food, energy, and water as well as tighten the
interdependencies between the three. Such close linkages also
give rise to an increasing possibility of political or economic
upheavals stemming from a lack of any one of the key
resources.'' Nearly 1.2 billion people, roughly one fifth of
the world's population, currently live without reliable access
to water. By 2030 it is estimated there will be an additional
three billion people in the world. Finding new sources of water
to meet this population growth will be an increasingly
challenging international issue.
Federal water resources research has remained level at
approximately $700 million in 2000 dollars since the mid-1970s.
Funding for water supply augmentation research has dropped
dramatically during the same period. Funding for water supply
augmentation and conservation dropped from $64 million in 1973
(in 2000 dollars) to $14 million in 2000. In recent years, the
Federal Government has invested approximately $130 billion in
research and development activities. Of this expenditure,
research related to water resources accounts for only 0.5
percent. Various sources call for a renewed Federal investment
in water resources research to address water scarcity. The
Multi-Laboratory Energy-Water Nexus Committee states that ``it
is time to reinvest in the research and technology development
needed to provide the tools to ensure sustainable water
supplies for energy, moving to less water-intensive electric
generation sources, and reducing the amount of energy required
to provide an adequate water supply.'' The Center for Strategic
and International Studies and Sandia National Laboratories
study identifies increased investment in water technology by
developed nations as a way to avoid ``instability or conflict
related to water supplies.'' A report by the National Research
Council found that ``the nation's water resources research
enterprise is not as well organized and financed as it will
need to be if the science required to address the multiplying
water problems confronting the United States is to be
available.''
LEGISLATIVE HISTORY
S. 1860 was introduced on October 7, 2005, by Senator
Domenici for himself, and Senators Bingaman, Alexander, and
Frist and was referred to the Committee on Energy and Natural
Resources. Senators Feinstein and Salazar are also cosponsors.
The full Committee held a hearing on S. 1860 on October 20,
2005. At the business meeting on November 16, 2005, the
Committee on Energy and Natural Resources ordered S. 1860
favorably reported with an amendment in the nature of a
substitute.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in an
open business meeting on November 16, 2005, by unanimous voice
vote of a quorum present, recommends that the Senate pass S.
1860, if amended as described herein.
COMMITTEE AMENDMENT
During consideration of S. 1860, the Committee adopted an
amendment in the nature of a substitute which addresses
concerns raised during the committee hearing and in written
submissions and an amendment to the title.
The substitute makes nine major changes in the bill as
introduced. The first change removes the designation of Sandia,
Lawrence Livermore and Oak Ridge National Laboratories as lead
laboratories. The amendment instead directs the Secretary of
Energy (hereinafter ``Secretary'') to designate the lead
laboratory or lead laboratories and directs the Secretary to
take into account the amount of appropriations made available
to carry out the program in making their designation. The
second change directs the lead laboratory or lead laboratories
to each partner with a water agency to carry out the program. A
definition of ``water agency'' was also added by the substitute
amendment. The third change provides that the Secretary shall
conduct the technology assessment and roadmap. As introduced,
S. 1860 provided that the Secretary, acting though the National
Laboratories would conduct the technology assessment and
roadmap. The fourth change directs the Secretary to submit a
report on the findings of the technology assessment and roadmap
within 18 months. As introduced, S. 1860 required the Secretary
to submit the report within 24 months. The fifth change directs
the Secretary to establish an independent third party review of
the activities carried out under the program. As introduced, S.
1860 provided that the National Academy of Science would carry
out the review. The sixth change expressly provides that
activities carried out under the Act shall be subject to the
cost-sharing provisions of section 988 of the Energy Policy Act
of 2005. The seventh change provides that not more than 25
percent of the funding would be provided to the lead laboratory
or lead laboratories. As introduced, S. 1860 provided that at
least 40 percent of the funding would be provided to the lead
laboratory or lead laboratories. The eighth change provides
that at least 60 percent of the funding would go to competitive
grants. Of this amount, at least 20 percent shall be provided
for demonstration projects. As introduced, S. 1860 provided
that at least 40 percent of the funding would be provided for
competitive grants, no percentage of funding was allocated for
demonstration projects. The ninth change deletes the amendment
to the Energy Policy Act of 2005 (Public Law 109-58), creating
this Act as a new section 112 of the Energy Policy Act of 2005.
SECTION-BY-SECTION ANALYSIS
Section 1 provides the short title, the ``Water Supply
Technology Program Act of 2005.''
Section 2 defines the terms used in the Act.
Section 3 subsection (a) directs the Secretary to establish
a national program for the research, development,
demonstration, and commercial application of economically
viable and cost-effective water supply technologies to:
increase the amount of water available for human use;
facilitate the widespread commercialization of newly developed
water supply technologies for use in real-world applications;
facilitate collaboration among federal agencies in their water
supply technology activities; and reclaim and improve access to
previously unusable and nontraditional water sources.
Subsection (b) provides that the Secretary may enter into
any grant, contract, agreement, or other transaction, as the
Secretary determines necessary to carry out the Act.
Subsection (c) directs the Secretary to select one or more
lead National Laboratory to carry out water supply technology
research, development, demonstration, and commercial
application activities under the program. The subsection also
directs the Secretary to consider the amount of appropriations
available to carry out the program in determining the number of
lead laboratories to designate. The subsection also provides
that each lead laboratory, in collaboration with the advisory
panel, shall select at least one university partner and one
water agency partner
Subsection (d) directs the Secretary to establish a ``Water
Supply Technology Advisory Panel'' consisting of members that
have expertise in water supply technology or legal or
regulatory issues associated with adopting water supply
technologies in real-world applications. The subsection
provides that the advisory panel: assess the performance of the
activities being carried out under the Act; advise the
Secretary on research priorities; make recommendations to the
Secretary for awarding grants; and identify legal, policy, or
regulatory barriers to implementing water supply technologies.
Subsection (e) directs the Secretary, in collaboration with
appropriate Federal agencies to: assess the amount of annual
Federal authorizations and appropriations for water supply
technology research; assess water supply technology research
performed by other Federal agencies; and assess whether and to
what extent the research is duplicative. The subsection also
directs the Secretary, in collaboration with appropriate
Federal agencies, the lead laboratory or lead laboratories and
the advisory panel to: assess any water supply technology
research being performed; identify research and development
priorities; and develop a technology roadmap. The subsection
directs the Secretary to submit a report on the activities
carried out under this subsection within 18 months after the
activities are completed.
Subsection (f) directs the Secretary to provide competitive
grants to entities with expertise in the conduct of water
supply technology research, development, and demonstration
projects. The subsection also provides that the grants shall be
provided consistent with the technology roadmap and that not
more than 25 percent of funds made available for grants shall
be provided to National Laboratories and Federal agencies.
Subsection (g) directs the Secretary to establish a third-
party review of: the technology roadmap; technology milestones;
plans for commercial application developed under the program;
and to assess the progress of the program in achieving the
technical milestones and plans for commercial application.
Subsection (h) directs the Secretary to submit a report to
Congress that describes the activities carried out under this
Act three years after the date of enactment of this Act and
each year thereafter.
Subsection (i) provides that any activities carried out
under this Act shall comply with section 988 of the Energy
Policy Act of 2005 (42 U.S.C. 16352) related to cost-sharing.
Section 4 subsection (a) authorizes $5,000,000 to be
appropriated for fiscal year 2006 to carry out the roadmap
under section 3(e)(2)(C) and authorizes to be appropriated such
sums as necessary for each fiscal year thereafter.
Subsection (b) provides that, for amounts appropriated for
fiscal year 2007 and each fiscal year thereafter, not more than
25 percent shall be made available to the one or more lead
laboratories. The subsection further provides that, if more
than one laboratory is designated as a lead laboratory, the
amount appropriated to the lead laboratories shall be
distributed equally among the lead laboratories for the conduct
of activities under the program, including to carry out section
3(a)(2). The subsection further provides that, for amounts
appropriated for fiscal year 2007 and each fiscal year
thereafter, at least 60 percent shall be made available for
program grants under section 3(f), of which, at least 20
percent shall be made available for demonstration projects. The
term ``demonstration projects'' includes: tests of water supply
technologies intended to assess performance in the natural
variability of real world parameters and outside of well-
controlled laboratory conditions which reduce the risk for
commercial application; tests designed to identify problems
associated with using a water supply technology on a large
scale and other problems that may arise in applying a new water
supply technology in a field setting; and tests designed to
incorporate water supply technology into large-scale production
and commercial applications. The subsection further provides
that not more than 15 percent shall be used to pay the
administrative costs of carrying out the program, including
costs to support the advisory panel.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 1860--Water Supply Technology Program Act of 2005
Summary: S. 1860 would authorize research and development
(R&D) on water supply technologies at the Department of Energy
(DOE). The new program would support collaborative research by
national laboratories, universities, and water agencies on
practical applications of technologies in such areas as
desalination, contaminant removal, and water reuse and
recycling. The bill would authorize the appropriation of $5
million for the program in 2006 and such sums as may be
necessary thereafter. Other provisions would direct the
Secretary of Energy to assess technology needs, set research
priorities, and coordinate efforts with other agencies and a
Water Supply Technology Advisory Panel.
CBO estimates that implementing this bill would cost about
$94 million over the 2006-2010 period, assuming appropriation
of the necessary amounts. Enacting this bill would have no
effect on direct spending or revenues.
S. 1860 contains no intergovernmental or private-sector
mandates as defined by the Unfunded Mandates Reform Act (UMRA).
The bill would authorize a research and development program
that would benefit participating institutions of higher
education and water agencies. Any costs incurred by those
entities would result from complying with conditions for
receiving federal assistance.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1860 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level...................................... 5 15 25 35 45
Estimated Outlays.................................................. 4 8 17 27 38
----------------------------------------------------------------------------------------------------------------
Basis of estimate: CBO assumes that the bill will be
enacted by the end of calendar year 2005 and that the amounts
necessary to implement the R&D program will be appropriated for
each year. CBO estimates that implementing this program would
require funding levels to increase from the $5 million
authorized for 2006 to about $45 million by 2010.
As outlined by the bill, the program would support R&D by
multiple parties--at least one national laboratory, one
university, and a water supply agency--and focus on the
development, demonstration and commercialization of complex
technologies. Thus, CBO expects that this water supply program
would be similar in scale to DOE's other applied research and
development initiatives, which generally spend between $10
million and $80 million a year. Estimated outlays are based on
historical trends for such similar R&D programs.
Intergovernmental and private-sector impact: S. 1860
contains no intergovernmental or private-sector mandates as
defined by UMRA. The bill would authorize a research and
development program that would benefit participating
institutions of higher education and water agencies. Any costs
incurred by those entities would result from complying with
conditions for receiving federal assistance.
Estimate prepared by: Federal Costs: Kathleen Gramp. Impact
on State, Local, and Tribal Governments: Lisa Ramirez-Branum.
Impact on the Private Sector: Craig Cammarata.
Estimate approved by: Peter H. Fontaine, Deputy 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 S. 1860. 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. 1860.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of Energy at the
full Committee hearing on S. 1860 in the 109th Congress
follows:
Statement of Douglas L. Faulkner, Acting Assistant Secretary for Energy
Efficiency and Renewable Energy, Department of Energy
Mr. Chairman and Members of the Committee, I appreciate the
opportunity to testify today on S. 1016, requiring the
Secretary of Energy to make incentive payments to the owners of
qualified desalination facilities to partially offset the cost
of electrical energy required to operate facilities, and S.
1860, which would amend the Energy Policy Act of 2005 to
improve energy production and reduce energy demand through
improved use of reclaimed waters and other purposes.
Although supplying and distributing water is largely a
local responsibility, we believe there is a Federal role in
providing appropriate scientific and technological support for
these efforts. S. 1016, however, poses a narrower question:
Should the Department of Energy subsidize electricity costs at
desalination facilities? We believe the answer is no. While
well intended, S. 1016 is not a comprehensive approach to the
challenge we face. It would subsidize a narrow group of
electricity users engaged in water desalination efforts, and
could divert limited Federal funding from efforts to engage in
a more comprehensive approach.
It is our view that incentive payments are not the best
means to remove the energy cost barriers to desalinating water.
Instead, we feel continued targeted Federal support for
desalination research and development consistent with the
Administration's Research and Development Investment Criteria,
as well as our ongoing efforts to reduce energy demand and
increase supply through the adoption of comprehensive energy
legislation, will have a larger impact in the long-run on
reducing desalination costs than will making incentive payments
to the owners or operators of individual facilities.
The Department of Energy finds S. 1860 to be well
intentioned as it shares our view that we must develop
innovative new approaches to dealing with the regional,
national, and global challenges related to water availability
and quality. However, we have several concerns regarding the
specific language of this bill.
First, the bill appears to shift substantial statutory
authority from the Secretary to the designated National Labs
and places the lead National Labs in inappropriate roles for
assessing Federal funding and activities across agencies. We
are also concerned that the bill appears to leave out the
private sector and its key role in RD&D and commercialization.
The bill places as much as two-thirds of the funding at the
lead National Labs, largely outside of any merit-based
competitive process and it does so with little flexibility, not
recognizing that the allocation of funding will vary with the
status of technology RD&D and commercialization, and private
sector roles. We believe that the funding levels, roles and
responsibilities for the Labs, Universities, and private sector
should be determined by the Secretary in order to meet the
national needs identified by the legislation.
We share the view that we must develop innovative new
approaches to dealing with the regional, national, and global
challenges related to water availability and quality, and this
is an issue that is commanding significant attention at the
highest levels of the Administration.
For example, in August 2004 the White House Office of
Science and Technology Policy (OSTP) and Office of Management
and Budget (OMB) identified water as a top Administration
research and development priority and called upon the National
Science and Technology Council (NSTC) to ``develop a
coordinated, multi-year plan to improve research to understand
the processes that control water availability and quality, and
to collect and make available the data needed to ensure an
adequate water supply for the Nation's future.'' The NSTC
Committee on Environment and Natural Resources has formed a
Subcommittee on Water Availability and Quality (SWAQ) comprised
of more than 15 Federal Departments and Agencies who are now in
the process of developing a comprehensive research plan. Their
first report, ``Science and Technology to Support Fresh Water
Availability in the United States,'' was released in November,
2004. Among the points highlighted by this report are the
following:
We do not have an adequate understanding of
water availability at national, regional, or local
levels.
Water, once considered a ubiquitous
resource, is now scarce in some parts of the country--
and not just in the West as one might assume.
The amounts of water needed to maintain our
natural environmental resources are not well known.
We need to evaluate alternatives to use
water more efficiently, including technologies for
conservation and supply enhancement such as water reuse
and recycling as a way to make more water available.
We need improved tools to predict the future
of our water resources to enable us to better plan for
the more efficient operation of our water
infrastructure.
The Water Desalination Act of 1996 (Public Law 104-298)
gave lead responsibility to the Department of the Interior to
conduct, encourage, and assist in the financing of research to
develop cost-effective and efficient means for converting
saline water into potable water suitable for beneficial uses.
We are looking at ways to better coordinate our efforts with
those of the Department of the Interior and other agencies
through the process underway in the NTSC's Subcommittee on
Water Availability and Quality.
At the Department of Energy, we have been in serious
discussions with some of our labs on what we call the ``energy-
water nexus.'' The relationship between energy and water is not
well understood by the public, and it is surprising to many,
for instance, that the amount of fresh water withdrawn
nationally for electricity production is more than twice as
much as the water used for residential, commercial, and
industrial purposes, and is comparable to the amount of water
used for agricultural irrigation. Meanwhile, pumping, storing,
and treating water consumes huge amounts of electricity--an
estimated 7 percent of California's electricity consumption is
used just to pump water.
We understand that our energy and water supplies are
interconnected. In fact, as much energy is used for water and
wastewater purposes as for other major industrial sectors of
the U.S. economy such as paper and pulp and petroleum refining.
Although the hearing today focuses on producing drinkable
water through a technological process, the equally important
aspect of the larger issue is finding ways to reduce water
consumption and remove some of the demand pressure from
regional water supplies. Price and regulatory signals can
create market incentives to reduce water use. One area for
consideration is the water intensive process of thermoelectric
generation from fossil fuels such as coal. For these systems,
an average of 25 gallons of water is withdrawn to produce a
kilowatt hour (kWh) of electricity of which nearly one-half
gallon is consumed by evaporation. Overall, fossil-fuel-fired
power plants require withdrawals of more than 97 billion
gallons of fresh water each day.
The Department's Office of Fossil Energy is supporting
several research projects aimed at reducing the amount of fresh
water needed by power plants and to minimize potential impacts
of plant operations on water quality. One project at West
Virginia University is assessing the feasibility of using
underground coal mine water as a source of cooling water for
power plants. A North Dakota project is attempting to reduce
the water consumption of power plants by recovering a large
fraction of the water present in the plant flue gas. A project
in New Mexico is exploring whether produced waters, the
byproduct of natural gas and oil extraction which often present
a disposal issue, can be used to meet up to 25 percent of the
cooling water needed at the San Juan Generating Station, as
well as investigating an advanced wet-dry hybrid cooling
system. In addition, the Department currently has a competitive
solicitation on the street seeking additional innovative
technologies and concepts for reducing the amount of fresh
water needed to operate fossil-based thermoelectric power
stations, including advanced cooling and water recovery
technologies. The Department is also investigating whether a
suite of specially selected, salt-tolerant agricultural crops
or other plants can be used to remove sodium and other salts
from coalbed methane produced water so that it can be safely
discharged or used in agriculture.
One promising new approach to electricity generation,
Integrated Gasification Combined Cycle (IGCC) technology that
converts coal and other hydrocarbons into synthetic gas, offers
significant environmental and water benefits compared to
traditional pulverized coal power plants. Because the steam
cycle of IGCC plants typically produces less than 50 percent of
the power output, IGCC plants require 30 to 60 percent less
water than conventional coal- fired power plants. The
Department is supporting research, development, and
demonstration on a number of advancements that will
significantly drive down the costs of IGCC plants.
The Fossil Energy office is also supporting work at the
University of Florida investigating an innovative diffusion-
driven desalination process that would allow a power plant that
uses saline water for cooling to become a net producer of fresh
water. Hot water from the condenser provides the thermal energy
to drive the desalination process. Using a diffusion tower,
saline water cools and condenses the low pressure steam and
fresh water is then stripped from the humidified air exiting
the tower. This process is more advantageous than conventional
desalination technology in that it may be driven by waste heat
with very low thermodynamic availability. In addition, cool
air, a by-product of this process, can be used to cool nearby
buildings.
The Department's Office of Energy Efficiency and Renewable
Energy (EERE) is supporting R&D for innovative wind and solar
electricity supply technologies that have attributes that may
prove to be very beneficial to the desalination industry.
For example, wind power is now becoming a competitive,
clean, bulk electric power supply option in many areas of the
Nation, and places no further demand on water supplies for its
operation. In addition, excellent offshore wind resources are
available near many coastal areas facing water supply
challenges. The role that wind could play in powering
desalination could take a range of forms, from stand-alone
systems exclusively powered by wind, to desalination plants
that receive the majority of their energy requirements from
wind power delivered via electricity grid systems. In either
case, the relative ease and low cost of storing desalinated
water, in comparison with storing electricity, will allow
operating flexibilities that will facilitate using inherently
variable wind power as a primary energy source for
desalination.
We are currently funding a concept design study which will
set up engineering and economic models to examine viability of
wind-powered reverse osmosis systems, looking at applications
for coastal seawater, inland brackish water, and water produced
during oil or gas recovery. A second project will model solar
and wind resources for a desalination unit to determine the
effects of variable loads on desalination, and perform pilot-
scale testing to determine how renewable energy could reduce
desalination costs.
We are also undertaking a mapping project to overlay data
such as fresh and brackish water resources, wind resources,
water consumption, estimated growth, and electricity supply.
Two maps will be developed, one of the United States, and one
for the four-state region of Colorado, Utah, Arizona, and New
Mexico, identifying locations that have the best economic and
technical potential for using wind to power desalination. Even
as we proceed with these activities, we are mindful that the
energy intensive technique of reverse osmosis we use for
desalination today may not be the membrane technology of
tomorrow. But whether that breakthrough comes from a lab
working specifically on desalination, or through an area of
broader scientific research remains to be seen. The
Department's Office of Science, for example, is studying
microbes and smart membranes that may ultimately have relevance
to desalination in the future.
Having said that, it seems certain that desalination will
play an important role in maintaining and expanding our
Nation's, and indeed, the world's water supply. Where fresh
water aquifers are under pressure in many regions, over-drafted
and subject to saltwater intrusion, brackish aquifers can be
found throughout the country and the world, a ready source of
new water. More than 120 countries are now using desalination
technologies to provide potable water, most commonly in the
Persian Gulf where energy costs are low. The desalination
plants of the future must come in a range of sizes so that they
can be installed where demand exists-smaller footprint
facilities which can make use of smaller deposits of impaired
water, at a price the community can afford. For American
companies, the growing need for desalination will open new
global markets. Mr. Chairman, this completes my prepared
statement, and I am happy to answer any questions the Committee
may have.
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. 1860, as
ordered reported.