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106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-593

======================================================================



 
                 ALTERNATIVE WATER SOURCES ACT OF 2000
                                _______
                                

  May 2, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1106]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 1106) to authorize the 
Administrator of the Environmental Protection Agency to make 
grants to State agencies with responsibility for water source 
development for the purpose of maximizing available water 
supply and protecting the environment through the development 
of alternative water sources, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  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 ``Alternative Water Sources Act of 
2000''.

SEC. 2. GRANTS FOR ALTERNATIVE WATER SOURCE PROJECTS.

  Title II of the Federal Water Pollution Control Act (33 U.S.C. 1281 
et seq.) is amended by adding at the end the following:

``SEC. 220. GRANTS FOR ALTERNATIVE WATER SOURCE PROJECTS.

  ``(a) In General.--The Administrator may make grants to State, 
interstate, and intrastate water resource development agencies 
(including water management districts and water supply authorities), 
local government agencies, private utilities, and nonprofit entities 
for alternative water source projects to meet critical water supply 
needs.
  ``(b) Eligible Entity.--The Administrator may make grants under this 
section to an entity only if the entity has authority under State law 
to develop or provide water for municipal, industrial, and agricultural 
uses in an area of the State that is experiencing critical water supply 
needs.
  ``(c) Selection of Projects.--
          ``(1) Limitation.--A project that has received funds under 
        the reclamation and reuse program conducted under the 
        Reclamation Projects Authorization and Adjustment Act of 1992 
        (43 U.S.C. 390h et seq.) shall not be eligible for grant 
        assistance under this section.
          ``(2) Additional consideration.--In making grants under this 
        section, the Administrator shall consider whether the project 
        is located within the boundaries of a State or area referred to 
        in section 1 of the Reclamation Act of June 17, 1902 (32 Stat. 
        385), and within the geographic scope of the reclamation and 
        reuse program conducted under the Reclamation Projects 
        Authorization and Adjustment Act of 1992 (43 U.S.C. 390h et 
        seq.).
  ``(d) Committee Resolution Procedure.--
          ``(1) In general.--No appropriation shall be made for any 
        alternative water source project under this section, the total 
        Federal cost of which exceeds $3,000,000, if such project has 
        not been approved by a resolution adopted by the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives or the Committee on Environment and Public 
        Works of the Senate.
          ``(2) Requirements for securing consideration.--For purposes 
        of securing consideration of approval under paragraph (1), the 
        Administrator shall provide to a committee referred to in 
        paragraph (1) such information as the committee requests and 
        the non-Federal sponsor shall provide to the committee 
        information on the costs and relative needs for the alternative 
        water source project.
  ``(e) Uses of Grants.--Amounts from grants received under this 
section may be used for engineering, design, construction, and final 
testing of alternative water source projects designed to meet critical 
water supply needs. Such amounts may not be used for planning, 
feasibility studies or for operation, maintenance, replacement, repair, 
or rehabilitation.
  ``(f) Cost Sharing.--The Federal share of the eligible costs of an 
alternative water source project carried out using assistance made 
available under this section shall not exceed 50 percent.
  ``(g) Reports.--
          ``(1) Reports to administrator.--Each recipient of a grant 
        under this section shall submit to the Administrator, not later 
        than 18 months after the date of receipt of the grant and 
        biennially thereafter until completion of the alternative water 
        source project funded by the grant, a report on eligible 
        activities carried out by the grant recipient using amounts 
        from the grant.
          ``(2) Report to congress.--On or before September 30, 2005, 
        the Administrator shall transmit to Congress a report on the 
        progress made toward meeting the critical water supply needs of 
        the grant recipients under this section.
  ``(h) Definitions.--In this section, the following definitions apply:
          ``(1) Alternative water source project.--The term 
        `alternative water source project' means a project designed to 
        provide municipal, industrial, and agricultural water supplies 
        in an environmentally sustainable manner by conserving, 
        managing, reclaiming, or reusing water or wastewater or by 
        treating wastewater.
          ``(2) Critical water supply needs.--The term `critical water 
        supply needs' means existing or reasonably anticipated future 
        water supply needs that cannot be met by existing water 
        supplies, as identified in a comprehensive statewide or 
        regional water supply plan or assessment projected over a 
        planning period of at least 20 years.
  ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $75,000,000 for each of fiscal 
years 2000 through 2004. Such sums shall remain available until 
expended.''.

                          Summary and Purpose

    The purpose of H.R. 1106, the ``Alternative Water Sources 
Act of 2000,'' is to authorize the Environmental Protection 
Agency (EPA) to provide grants for alternative water source 
projects to meet critical water supply needs.

                  Background and Need for Legislation

    In recent years, there has been increasing interest by 
communities across the nation and Congress in ensuring the 
availability of water sources to meet future water supply 
needs. Growth in population and increasing environmental 
awareness are causing many communities to explore alternative 
water supplies through reclamation, reuse, conservation and the 
like. While Clean Water Act construction grants (before fiscal 
year 1991) and state revolving loan funds (since fiscal year 
1989) have been available for such activities, most 
expenditures to date have been for more traditional wastewater 
projects, and not for enhancing water supplies.
    The Reclamation Projects Authorization and Adjustment Act 
of 1992 authorized the Bureau of Reclamation (the Bureau) to 
conduct appraisal investigations, feasibility studies, and 
research regarding water reclamation and reuse projects, and to 
construct, operate, and maintain cooperative demonstration 
projects for water reclamation and water reuse projects (with a 
75 to 50 percent non-federal cost share). This program is 
limited to 17 western states and four territories. There is no 
authorization for assistance from the Bureau for water 
reclamation and reuse in the remaining 33 states, or the 
District of Columbia and Puerto Rico. Over the past few years, 
funds for certain water source development projects in Florida 
and other states facing significant water supply needs have 
been provided in annual appropriations bills, through the EPA 
State and Tribal Assistance Grants account.
    H.R. 1106, as reported, would authorize the EPA to provide 
grants ($75 million a year for fiscal years 2000 through 2004), 
on a cost-shared basis, for alternative water source projects. 
It would also prohibit a project that has received funds under 
the Bureau of Reclamation's water reclamation and reuse program 
from receiving funding under the EPA program. In addition, the 
EPA Administrator would be required to take into account the 
eligibility of a project for funding under the existing Bureau 
of Reclamation program when selecting projects for funding 
under this new, nationwide program. Adequate consideration 
should be given to selecting and funding projects in areas not 
eligible for assistance under the Bureau of Reclamation's 
program.

      Discussion of Committee Bill and Section-By-Section Analysis


Section 1. Short title

    This Act may be cited as the ``Alternative Water Sources 
Act of 2000.''

Section 2. Grants for Alternative Water Source Projects

    This section amends the Clean Water Act by adding a new 
section 220, ``Grants for Alternative Water Source Projects.'' 
The new section has the following subsections:
    (a) In General.--Subsection (a) authorizes EPA to make 
grants for alternative water source projects to meet critical 
water supply needs.
    (b) Eligible Entity.--Subsection (b) specifies that 
eligibility for grants is restricted to those entities with 
authority under State law to develop or provide water for 
municipal and industrial, or agricultural uses in areas that 
are experiencing critical water supply needs.
    (c) Selection of Projects.--Subsection (c)(1) prohibits a 
project that has received funds under the Bureau of 
Reclamation's water reclamation and reuse program from being 
eligible for grant assistance under this section.
    Subsection (c)(2) requires the EPA Administrator to 
consider whether a project is eligible under the Bureau of 
Reclamation's water reclamation and reuse program when 
selecting projects for grants under this section.
    (d) Committee Resolution Procedure.--Subsection (d)(1) 
prohibits the appropriation of funds for a project with a 
federal cost greater than $3 million if the project has not 
been approved by a resolution adopted by either the House or 
Senate authorizing committee of jurisdiction.
    In order to secure the appropriate authorizing committee's 
consideration of a committee resolution for a proposed project, 
subsection (d)(2) requires the EPA Administrator and the non-
Federal sponsor for the proposed project to provide to the 
committee the required information on the project, including 
project costs, and area water supply needs.
    (e) Uses of Grants.--Subsection (e) provides that grant 
funding received under this section may be used for 
engineering, design, construction, and final testing of 
alternative water source projects designed to meet critical 
water supply needs. Such grant funding may not be used for 
operation, maintenance, replacement, repair or rehabilitation 
of such projects.
    (f) Cost Sharing.--Subsection (f) provides that the federal 
cost-share for a project receiving assistance under this 
section shall not exceed fifty percent of the eligible costs.
    (g) Reports.--Subsection (g)(1) requires that each 
recipient of a grant under this section submit a report to the 
EPA Administrator on the eligible activities carried out by the 
recipient using grant funding. This report shall be submitted 
to the EPA Administrator no later than 18 months after the date 
the recipient receives grant funding and every two years 
thereafter, until the alternative water source project funded 
by the grant is complete.
    Subsection (g)(2) requires the EPA Administrator to submit 
a report to Congress on the progress made toward meeting the 
critical water supply needs of the grant recipients under this 
section. This report is to be transmitted to Congress on or 
before September 30, 2005.
    (h) Definitions.--For the purposes of this section, 
subsection (h) provides the following definitions: (1) 
``Alternative Water Source Project'' means a project designed 
to provide municipal, industrial, and agricultural water 
supplies in an environmentally sustainable manner by 
conserving, managing, reclaiming, or reusing water or 
wastewater or by treating wastewater. These projects fall 
within the definition of treatment works. The Committee intends 
that all such projects, including wastewater treatment 
projects, be designed to provide water supplies in an 
environmentally sustainable manner. (2) ``Critical Water Supply 
Needs'' means existing or reasonably anticipated future water 
supply needs that cannot be met by existing water supplies, as 
identified in a comprehensive statewide or regional water 
supply plan or assessment projected over a planning period of 
at least 20 years.
    (i) Authorization of Appropriations.--To carry out this 
section, subsection (i) authorizes $75 million for each of 
fiscal years 2000 through 2004. These funds are to remain 
available until expended.

                    Hearings and Legislative History

    On April 22, 1998, the Water Resources and Environment 
Subcommittee held hearings on water resources projects and 
policies, including alternative water sources. Testimony was 
given by Representatives Thurman, Fowler, Mica, and Corrine 
Brown on H.R. 3243, the predecessor to H.R. 1106 that had been 
introduced in the 105th Congress.

                        Committee Consideration

    On April 5, 2000, the Water Resources and Environment 
Subcommittee approved by voice vote, H.R. 1106, with an 
amendment in the nature of a substitute. The substitute 
amendment (a) redrafted this authorization as an amendment to 
title II of the Clean Water Act; (b) made technical and 
clarifying changes; (c) expanded the geographic scope of the 
program; (d) clarified that a project that has received funds 
under the reclamation and reuse programs of the Bureau of 
Reclamation is not eligible for funding under the EPA grant 
program; and (e) instructed the EPA Administrator to take into 
account the eligibility of a project for funding under the 
Bureau of Reclamation's reclamation and reuse program when 
selecting projects for funding under the EPA program.
    On Tuesday, April 11, 2000, the Committee on Transportation 
and Infrastructure met in open session and ordered the bill 
reported to the House by voice vote.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each rollcall vote on a motion to 
report and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. There 
were no rollcall votes in the Committee.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance with House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 1106.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
1106 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 19, 2000.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1106, the 
Alternative Water Sources Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Susanne S. 
Mehlman (for federal costs) and Victoria Heid Hall (for the 
state and local impact).
            Sincerely,
                                          Barry B. Anderson
                                              (For Dan L. Crippen).
    Enclosure.

               congressional budget office cost estimate

H.R. 1106--Alternative Water Sources Act of 2000

    Summary: H.R. 1106 would authorize the appropriation of $75 
million for each of fiscal years 2000 through 2004 for a new 
water supply program to be administered by the Environmental 
Protection Agency (EPA). It would authorize grants to state 
agencies for the planning, construction, and testing of 
projects designed to meet critical water supply needs, subject 
to certain conditions. Projects that have already received 
funding under the Reclamation Projects Authorization and 
Adjustment Act would not be eligible for grants under this 
bill. CBO estimates that implementing this legislation would 
cost $256 million over the 2000-2005 period, assuming 
appropriation of the authorized amounts.
    The bill would not affect direct spending or receipts; 
therefore, pay-as-you-go procedures would not apply. H.R. 1106 
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.
    Estimated cost to the Federal Government: For purposes of 
this estimate, CBO assumes that the amounts authorized will be 
appropriated for each fiscal year and that outlays will follow 
the pattern of past appropriations for similar projects. The 
estimated impact of H.R. 1106 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and the environment).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2000    2001    2002    2003    2004    2005
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization level.............................................      75      75      75      75      75       0
Estimated outlays...............................................       2      17      38      60      71      68
----------------------------------------------------------------------------------------------------------------

    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 1106 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no cost on state, local, or 
tribal governments. Enacting the bill would benefit state and 
local governments by authorizing grants and any costs to match 
grant funds would be incurred voluntarily.
    Estimate prepared by: Federal costs: Susanne S. Mehlman; 
impact on State, local, and tribal governments: Victoria Heid 
Hall; impact on the private sector: Jean Wooster.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4.)

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1.)

         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 italic and existing law in which no change is 
proposed is shown in roman):

         SECTION 220 OF THE FEDERAL WATER POLLUTION CONTROL ACT


SEC. 220. GRANTS FOR ALTERNATIVE WATER SOURCE PROJECTS.

  (a) In General.--The Administrator may make grants to State, 
interstate, and intrastate water resource development agencies 
(including water management districts and water supply 
authorities), local government agencies, private utilities, and 
nonprofit entities for alternative water source projects to 
meet critical water supply needs.
  (b) Eligible Entity.--The Administrator may make grants under 
this section to an entity only if the entity has authority 
under State law to develop or provide water for municipal, 
industrial, and agricultural uses in an area of the State that 
is experiencing critical water supply needs.
  (c) Selection of Projects.--
          (1) Limitation.--A project that has received funds 
        under the reclamation and reuse program conducted under 
        the Reclamation Projects Authorization and Adjustment 
        Act of 1992 (43 U.S.C. 390h et seq.) shall not be 
        eligible for grant assistance under this section.
          (2) Additional consideration.--In making grants under 
        this section, the Administrator shall consider whether 
        the project is located within the boundaries of a State 
        or area referred to in section 1 of the Reclamation Act 
        of June 17, 1902 (32 Stat. 385), and within the 
        geographic scope of the reclamation and reuse program 
        conducted under the Reclamation Projects Authorization 
        and Adjustment Act of 1992 (43 U.S.C. 390h et seq.).
  (d) Committee Resolution Procedure.--
          (1) In general.--No appropriation shall be made for 
        any alternative water source project under this 
        section, the total Federal cost of which exceeds 
        $3,000,000, if such project has not been approved by a 
        resolution adopted by the Committee on Transportation 
        and Infrastructure of the House of Representatives or 
        the Committee on Environment and Public Works of the 
        Senate.
          (2) Requirements for securing consideration.--For 
        purposes of securing consideration of approval under 
        paragraph (1), the Administrator shall provide to a 
        committee referred to in paragraph (1) such information 
        as the committee requests and the non-Federal sponsor 
        shall provide to the committee information on the costs 
        and relative needs for the alternative water source 
        project.
  (e) Uses of Grants.--Amounts from grants received under this 
section may be used for engineering, design, construction, and 
final testing of alternative water source projects designed to 
meet critical water supply needs. Such amounts may not be used 
for planning, feasibility studies or for operation, 
maintenance, replacement, repair, or rehabilitation.
  (f) Cost Sharing.--The Federal share of the eligible costs of 
an alternative water source project carried out using 
assistance made available under this section shall not exceed 
50 percent.
  (g) Reports.--
          (1) Reports to administrator.--Each recipient of a 
        grant under this section shall submit to the 
        Administrator, not later than 18 months after the date 
        of receipt of the grant and biennially thereafter until 
        completion of the alternative water source project 
        funded by the grant, a report on eligible activities 
        carried out by the grant recipient using amounts from 
        the grant.
          (2) Report to congress.--On or before September 30, 
        2005, the Administrator shall transmit to Congress a 
        report on the progress made toward meeting the critical 
        water supply needs of the grant recipients under this 
        section.
  (h) Definitions.--In this section, the following definitions 
apply:
          (1) Alternative water source project.--The term 
        ``alternative water source project'' means a project 
        designed to provide municipal, industrial, and 
        agricultural water supplies in an environmentally 
        sustainable manner by conserving, managing, reclaiming, 
        or reusing water or wastewater or by treating 
        wastewater.
          (2) Critical water supply needs.--The term ``critical 
        water supply needs'' means existing or reasonably 
        anticipated future water supply needs that cannot be 
        met by existing water supplies, as identified in a 
        comprehensive statewide or regional water supply plan 
        or assessment projected over a planning period of at 
        least 20 years.
  (i) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $75,000,000 for each 
of fiscal years 2000 through 2004. Such sums shall remain 
available until expended.