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                                                       Calendar No. 619
105th Congress                                                   Report
                                 SENATE
 2d Session                                                     105-374
_______________________________________________________________________


 
    RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES ACT

                                _______
                                

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

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 2041]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2041) to amend the Reclamation Wastewater 
and Groundwater Study and Facilities Act to authorize the 
Secretary of the Interior to participate in the design, 
planning, and construction of the Willow Lake Natural Treatment 
System Project for the reclamation and reuse of water, and for 
other purposes, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                         Purpose of the Measure

    The legislation modifies title XVI of the Reclamation 
Projects Authorization and Adjustment Act of 1992, which 
established a program of water reclamation and reuse projects, 
to include the Willow Lake Natural Treatment System Project in 
Oregon.

                          Background and Need

    Title XVI of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (P.L. 102-575, 106 Stat. 4006) 
authorized a program of wastewater reclamation and reuse 
feasibility and demonstration projects within the Reclamation 
States. The Federal share of the costs was limited to 50%. In 
addition, several individual studies were directed as well as 5 
projects (San Jose, Phoenix, San Diego, Los Angeles, and San 
Gabriel Basin) for which funding was limited to 25%. The 
legislation was directed at reuse of existing supplies and did 
not address desalination although title XI of P.L. 102-575 did 
authorize a program to research and demonstrate methods for 
control of salinity at Salton Sea, California with 50% Federal 
cost-sharing. Partially in response to the number of requests 
for participation in the program and the anticipated costs, 
P.L. 104-266 modified the program to limit Federal 
contributions to 25% of the total cost to a maximum of $20 
million and required a feasibility analysis prior to the 
expenditure of any funds for construction. The new requirements 
were not made applicable to the several very large projects, 
mainly in California, authorized under title XVI. The FY '99 
budget proposal from the Department requested a total of $37 
million for the program.
    The importance of the use of reclaimed water in the arid 
West is significant, especially in areas experiencing 
groundwater overdraft or facing reduced freshwater supplies. 
While municipal uses are the primary beneficiaries of the 
program, there can be significant indirect benefits to other 
consumptive uses, such as agriculture, and non-consumptive 
uses, such as augmenting in-stream flows or reducing 
depletions.
    The city of Salem, Oregon, has a combined sanitary sewer 
system. Each winter, wet weather causes sewer overflows to 
spill into Salem creeks and streams, as well as the Willamette 
River. The natural treatment system is one component of a 
control facility and includes overland flow treatment and 
constructed wetlands treatment. The overland portion includes 
grassy swales and poplar trees for treatment. Constructed 
wetlands include shallow ponds with vegetation to provide both 
storage and treatment. The entire master plan is estimated at 
$250 million over the next 15 years, with the natural treatment 
component estimated at $30.8 million, not including a farm 
irrigation water reuse system. The project is designed in two 
phases and will produce between 10 and 20 million gallons per 
day of high quality effluent during summer months that could be 
used for irrigation. Under the terms of the legislation, the 
Federal contribution would be limited to 25% or about $7.5 
million.

                          Legislative History

    S. 2041 was introduced by Senator Smith on May 7, 1998. A 
hearing was held by the Subcommittee on Water and Power on June 
16, 1998. Similar legislation (H.R. 3964) was introducedby 
Congresswoman Hooley on May 22, 1998.
    At the business meeting on September 23, 1998, the 
Committee on Energy and Natural Resources ordered S. 2041 
favorably reported without amendment.

           Committee Recommendations and Tabulation of Votes

    The Committee on Energy and Natural Resources, in open 
business session on September 23, 1998, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
2041, without amendment.

                      Section-by-Section Analysis

    The legislation is self-explanatory.

                   Cost and Budgetary Considerations

    An estimate of the cost of this measure has been requested 
from the Congressional Budget Office, but has not been received 
as of the date of filing of this report. When the estimate is 
received, the Chairman will have it printed in the 
Congressional Record for the advice of the Senate. The 
estimated cost of the natural treatment system is about $30 
million. Under the formula in title XVI, Federal contributions 
would be limited to 25% or about $7.5 million.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2041. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2041, as ordered reported.

                        Executive Communications

    On June 5, 1998, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 2041. These 
reports had not been received at the time the report on S. 2041 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the 
Commissioner of the Bureau of Reclamation, Department of the 
Interior, at the Subcommittee hearing follows:

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

    Thank you for the opportunity to appear today to provide 
the Administration's view on S. 2041.
S. 2041, to authorize the Secretary of the Interior to participate in 
        the design, planning and construction of the Willow Lake 
        Natural Treatment System Project for reclamation and reuse of 
        water and for other purposes
    S. 2041 would amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act to authorize the Secretary 
of the Interior to participate in the design, planning and 
construction of the Willow Lake Natural Treatment System 
Project within and without the service area of the City of 
Salem, OR. S. 2041 would limit the Federal share of project 
costs to 25 percent of the total costs and restricts the 
Secretary from providing funding for the operation and 
maintenance of this project.
    Mr. Chairman, in 1992, Congress adopted and the President 
signed the Reclamation Projects Authorization and Adjustment 
Act. Title XVI of this Act, the Wastewater and Groundwater 
Study and Facilities Act, authorized the construction of five 
water reclamation and reuse projects. Four of these projects 
are in California and the fifth is in Arizona. The Secretary 
was also authorized to undertake a program to identify other 
water recycling opportunities throughout the 17 western United 
States, and to conduct appraisal level and feasibility level 
studies to determine if those opportunities are worthy of 
implementation. The Bureau of Reclamation has been 
administering a grant program to fund these Title XVI projects 
since FY 1994.
    In 1996, Public Law 104-266, the Reclamation Recycling and 
Water Conservation Act, was enacted into law. This Act amended 
Title XVI and authorized the Secretary to participate in the 
planning, design and construction of 18 additional projects, 
including two desalination research and development projects. 
These new projects are distributed within five states, 
including California, Nevada, Utah, Texas and New Mexico. To 
date, funding has been provided by Congress to construct four 
of the original 1992 projects and four of these newly 
authorized projects. Water reclamation and reuse efforts, such 
as municipal, industrial, domestic, and agricultural wastewater 
reuse, can assist states and local communities in solving 
contemporary water supply problems. However, these projects 
involve public functions that historically have been the 
responsibility of local communities. In addition, the 
Department opposes authorizing additional projects in the 
absence of studies to determine whether these particular 
projects warrant Federal funding. The Department also opposes 
enactment of this legislation because authorizing such new 
projects is likely to have the effect of adversely impacting 
other ongoing Bureau of Reclamation activities.
    To date, Reclamation has not completed the Federal funding 
of any of the water reclamation and reuse projects presently 
authorized by Title XVI. At current funding levels, it will 
take Reclamation more than 10 years to complete funding of the 
currently authorized projects.
    For all of the above reasons, the Department of the 
Interior and the Bureau of Reclamation cannot support 
authorizing this new construction request.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 2041, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

     RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992

Public Law 102-575--Oct. 30, 1992

           *       *       *       *       *       *       *


SEC. 2. DEFINITION AND TABLE OF CONTENTS.

    For purposes of this Act, the term ``Secretary'' means the 
Secretary of the Interior.

                            TABLE OF CONTENTS

Sec. 1. Short title.
Sec. 2. Definition and table of contents.
     * * * * * * *

       TITLE XVI--RECLAMATION WASTEWATER AND GROUND WATER STUDIES

     * * * * * * *
Sec. 1630. Tooele Wastewater Treatment and Reuse Project.
[Sec. 1631. Authorization of appropriations.]
[Sec. 1632. Ground water study.]
[Sec. 1633. Authorization of appropriations.]
Sec. 1631. Willow Lake Natural Treatment System Project.
Sec. 1632. Authorization of Appropriations.
Sec. 1633. Groundwater study.
Sec. 1634. Authorization of appropriations.
     * * * * * * *

SEC. 1631. WILLOW LAKE NATURAL TREATMENT SYSTEM PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
City of Salem, Oregon, is authorized to participate in the 
design, planning, and construction of the Willow Lake Natural 
Treatment System Project to reclaim and reuse wastewater within 
and without the service area of the City of Salem.
    (b) Cost Share.--The Federal share of the cost of a project 
described in subsection (a) shall not exceed 25 percent of the 
total cost.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of a project described in 
subsection (a).

SEC. [1631] 1632. AUTHORIZATION OF APPROPRIATIONS.

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

           *       *       *       *       *       *       *


SEC. [1632] 1633. GROUNDWATER STUDY.

           *       *       *       *       *       *       *


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

SEC. [1633] 1634. AUTHORIZATION OF APPROPRIATIONS.

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