A bill to amend the Water Desalination Act of 1996 to reauthorize that Act and to authorize the construction of a desalination research and development facility at the Tularosa Basin, New Mexico, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Supply Security Act of 2001''.

SEC. 2. AUTHORIZATION OF RESEARCH AND STUDIES.

    Section 4 of the Water Desalination Act of 1996 (42 U.S.C. 10301 
note; Public Law 104-298) is amended by adding at the end the 
following:
    ``(c) Tularosa Basin Desalination Facility.--
            ``(1) In general.--
                    ``(A) Technology progress plan.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this subsection, 
                        Sandia National Laboratories, in collaboration 
                        with the Secretary of Energy and in 
                        consultation with the Secretary, and using as 
                        models the roles of desalination facilities 
                        operated by the Federal Government and other 
                        research institutions as of the date of 
                        enactment of this subsection, shall develop a 
                        desalination technology progress plan that 
                        includes--
                                    ``(I) an overview of available 
                                short-term and long-term desalination 
                                technology development;
                                    ``(II) recommendations for the 
                                location, siting, and configuration of 
                                the facility under subparagraph (B);
                                    ``(III) an assessment of the 
                                contributions that the facility could 
                                make to the field of desalination; and
                                    ``(IV) recommendations concerning 
                                the most effective and efficient manner 
                                of carrying out subparagraph (B).
                            ``(ii) Cost-sharing requirements.--The 
                        cost-sharing requirements described in sections 
                        1604 and 1605 of the Wastewater and Groundwater 
                        Study and Facilities Act (43 U.S.C. 390h-2, 
                        390h-3) shall not apply to--
                                    ``(I) the funding of the technology 
                                progress plan described in clause (i);
                                    ``(II) the facility authorized to 
                                be constructed under subparagraph (B); 
                                or
                                    ``(III) any research carried out by 
                                Sandia National Laboratories under this 
                                Act.
                    ``(B) Testing and evaluation facility.--
                            ``(i) Construction.--Not later than 3 years 
                        after the date of completion of the technology 
                        progress plan under subparagraph (A), the 
                        Secretary of Energy, in collaboration with the 
                        Secretary and in accordance with the memorandum 
                        of understanding described in subparagraph (C) 
                        and the technology progress plan developed 
                        under subparagraph (A)(i), shall construct a 
                        desalination test and evaluation facility at 
                        the Tularosa Basin, located in Otero County in 
                        the State of New Mexico (referred to in this 
                        subsection as the `facility').
                            ``(ii) Report.--Not later than 1 year after 
                        the date on which the facility begins 
                        operation, the Secretary of Energy shall submit 
                        to Congress a report that describes project 
                        plans of, and any technological advancements 
                        developed by, the facility.
                            ``(iii) Contractors.--The Secretary of 
                        Energy may enter into such contracts as are 
                        necessary (including contracts with other 
                        Federal agencies, State agencies, educational 
                        institutions, and private entities and 
                        organizations) to carry out this subparagraph.
                    ``(C) Memorandum of understanding.--In carrying out 
                this paragraph, the Secretary of Energy and the 
                Secretary of the Interior shall enter into a memorandum 
                of understanding under which the Secretary of Energy 
                shall seek from the Secretary of the Interior, and the 
                Secretary of the Interior shall provide to the 
                Secretary of Energy, technical assistance and expertise 
                in the development and construction of the facility.
            ``(2) Purposes.--The facility--
                    ``(A) shall be used--
                            ``(i) to carry out research on, and to 
                        test, demonstrate, and evaluate, new 
                        desalination technologies (including long-term, 
                        alternative technologies that have the 
                        potential for significant desalination cost 
                        reductions beyond the time frame of the focus 
                        of current research);
                            ``(ii) to fully evaluate the performance of 
                        new technologies, including performance in--
                                    ``(I) energy consumption;
                                    ``(II) byproduct disposal; and
                                    ``(III) operational maintenance 
                                costs; and
                            ``(iii) to determine the most 
                        technologically-efficient and cost-efficient 
                        means by which potable water may be 
produced from salinated water or other water that is unsuitable for 
use; and
                    ``(B) should be capable of processing at least 
                100,000 gallons of water per day.
            ``(3) Collaboration; facility discretion.--
                    ``(A) Collaboration.--All research at the facility 
                shall be carried out by the Secretary of Energy, in 
                collaboration with the Secretary.
                    ``(B) Facility discretion.--Research described in 
                paragraph (2)(A)(i) may be carried out at the facility 
                or at any other laboratory facility determined to be 
                suitable by Sandia National Laboratories.
            ``(4) Provision of water.--
                    ``(A) In general.--Subject to subparagraph (B), all 
                desalinated water produced by the facility shall be 
                provided to 1 or more communities located in Otero 
                County, New Mexico, at no cost to the communities, as 
                jointly determined by the Secretary of Energy and the 
                Secretary.
                    ``(B) Timing; supplementary aspect.--The water 
                provided under subparagraph (A) shall be--
                            ``(i) provided only after technology 
                        testing demonstrates that the water is of a 
                        consistent, reliable quality, as determined by 
                        Sandia National Laboratories, in coordination 
                        with the Secretary of Energy; and
                            ``(ii) supplementary to water provided by 
                        public water systems or wells in the 
                        communities.
            ``(5) Technical advisory committee.--
                    ``(A) In general.--The Secretary and the Secretary 
                of Energy shall jointly establish a technical advisory 
                committee to provide, under such procedures as the 
                Secretary and the Secretary of Energy shall jointly 
                develop, program guidance and technical assistance in 
                carrying out this subsection.
                    ``(B) Composition.--
                            ``(i) In general.--The technical advisory 
                        committee shall be composed of--
                                    ``(I) representatives from the 
                                Department of the Interior and the 
                                Department of Energy, to be appointed 
                                by the Secretary and the Secretary of 
                                Energy, respectively; and
                                    ``(II) such additional 
                                representatives from academic 
                                institutions, the private sector, other 
                                Federal agencies, and educational 
                                institutions, as the Secretary and the 
                                Secretary of Energy, respectively, 
                                determine to be appropriate.
                            ``(ii) Chairpersons.--A representative of 
                        the Department of the Interior selected by the 
                        Secretary and a representative of the 
                        Department of Energy selected by the Secretary 
                        of Energy shall serve as cochairpersons of the 
                        technical advisory committee.
            ``(6) Cost sharing.--Section 7 shall not apply to this 
        subsection.''.

SEC. 3. CONSULTATION; AUTHORIZATION OF APPROPRIATIONS.

    The Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public 
Law 104-298) is amended--
            (1) by striking section 8;
            (2) by redesignating section 9 as section 8;
            (3) in section 8 (as redesignated by paragraph (2)), in the 
        first sentence, by striking ``Army,'' and inserting ``Army and 
        the Secretary of Energy,''; and
            (4) by adding at the end the following:

``SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Research and Studies.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary to carry out section 3 and section 4(c)(1)(A) 
        $6,000,000 for each of fiscal years 2002 through 2008.
            ``(2) Research programs.--Of the amounts made available 
        under paragraph (1)--
                    ``(A) not to exceed $1,000,000 for each fiscal year 
                may be awarded, without any cost-sharing requirement, 
                to institutions of higher education (including United 
                States-Mexico binational research foundations and 
                interuniversity research programs established by the 2 
                countries) for research grants; and
                    ``(B) not less than $1,000,000 of the amount made 
                available for fiscal year 2002 shall be used to carry 
                out section 4(c)(1)(A).
            ``(3) Internal research.--
                    ``(A) In general.--Of the amounts made available 
                under paragraph (1) to carry out section 3 for each of 
                fiscal years 2002 through 2008, the Secretary may use 
                not more than 25 percent for research carried out by 
                the Department of the Interior.
                    ``(B) Cost sharing.--Research described in 
                subparagraph (A) shall not be subject to any cost-
                sharing requirement.
    ``(b) Desalination Demonstration and Development.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary to carry out section 4 (other than section 
        4(c)) $30,000,000 for the period of fiscal years 2002 through 
        2008.
            ``(2) Desalination research and development facility.--
        There is authorized to be appropriated to the Secretary of 
        Energy for transfer to Sandia National Laboratories, to carry 
        out section 4(c) (other than section 4(c)(1)(A)) $6,000,000 for 
        each of fiscal years 2003 through 2008.''.

SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Authorization of Research and Studies.--Section 3 of the Water 
Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-298) is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), (3), (4), 
                (5), (6), and (7) as subparagraphs (A), (B), (C), (D), 
(E), (F), and (G), respectively, and indenting appropriately;
                    (B) by striking ``In order to'' and inserting the 
                following:
            ``(1) In general.--To'';
                    (C) in the first sentence--
                            (i) by striking ``is authorized to award 
                        grants and to enter into contracts,'' and 
                        inserting ``may award grants and enter into 
                        cooperative agreements, interagency agreements, 
                        and contracts,''; and
                            (ii) by inserting ``and'' after ``financing 
                        of research''; and
                    (D) by striking ``Awards'' and all that follows 
                through ``include--'' and inserting the following:
            ``(2) Locations.--If the Secretary determines that it is in 
        the national interest, the Secretary may carry out a program 
        described in paragraph (1), in accordance with all applicable 
        law, at a location outside the United States.
            ``(3) Basis for grants, agreements, and contracts.--All 
        awards of grants and all cooperative agreements, interagency 
        agreements, and contracts entered into under paragraph (1), 
        shall be made on the basis of a competitive, merit-reviewed 
        process.
            ``(4) Topics.--Research and study topics authorized by this 
        section include--''; and
            (2) in subsection (c), by striking ``other facilities and 
        educational institutions suitable'' and inserting the 
        following: ``educational institutions, international 
        organizations, international foundations, and international 
        educational institutions, and other facilities suitable''.
    (b) Desalination Demonstration and Development.--Section 4 of the 
Water Desalination Act of 1996 (42 U.S.C. 10301 note; Public Law 104-
298) is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) by inserting after subsection (a) the following:
    ``(b) Location.--If the Secretary determines that it is in the 
national interest, the Secretary may carry out the program described in 
subsection (a), in accordance with all applicable law, at a location 
outside the United States.''; and
            (3) in subsection (c) (as redesignated by paragraph (1)), 
        by striking ``conducted through'' and all that follows through 
        ``to develop'' and inserting the following: ``conducted through 
        the provision of grants to, and the entering into cooperative 
        agreements and contracts (including cost-sharing agreements) 
        with, non-Federal public utilities, State and local 
        governmental agencies, educational institutions, international 
        organizations, international foundations, international 
        educational institutions, and other entities, as appropriate, 
        to develop''.
    (c) Cost Sharing.--Section 7 of the Water Desalination Act of 1996 
(42 U.S.C. 10301 note; Public Law 104-298) is amended--
            (1) by striking the first sentence and inserting the 
        following:
    ``(a) In General.--
            ``(1) All projects.--Notwithstanding any other provision of 
        law, the Federal share of the cost of a research, study, or 
        demonstration project or a desalination development project or 
        activity carried out under this Act--
                    ``(A) except as provided in paragraph (2) and in 
                section 9(a)(3)(B), shall not exceed 100 percent of the 
                total cost of the project or activity; and
                    ``(B) may be paid out of--
                            ``(i) funds made available to the 
                        Secretary, in an amount not to exceed 50 
                        percent of the total cost of the project or 
                        activity;
                            ``(ii) funds made available to 1 or more 
                        other heads of Federal agencies; or
                            ``(iii) a combination of funds described in 
                        clauses (i) and (ii).
            ``(2) Interior projects.--The Federal share of the cost of 
        a project or activity described in paragraph (1) that is 
        carried out by the Secretary shall not exceed 50 percent.'';
            (2) by striking ``A Federal contribution'' and inserting 
        the following:
    ``(b) Determination of Infeasibility.--A contribution by the 
Secretary described in subsection (a)(2) that is'';
            (3) by striking ``The Secretary shall prescribe'' and 
        inserting the following:
    ``(c) Procedures.--The Secretary shall prescribe''; and
            (4) by striking ``Costs of operation,'' and inserting the 
        following:
    ``(d) Non-Federal Responsibilities.--Costs of operation,''.
    (d) Consultation.--Section 8 of the Water Desalination Act of 1996 
(42 U.S.C. 10301 note; Public Law 104-298) (as redesignated by section 
3(2)) is amended to read as follows:

``SEC. 8. CONSULTATION.

    ``(a) In General.--In carrying out this Act, the Secretary shall 
consult with the heads of other Federal agencies (including the 
Secretary of the Army) that have experience in conducting desalination 
research or operating desalination facilities.
    ``(b) International Consultation.--In a case in which the Secretary 
intends to conduct an activity under this Act in accordance with 
section 3(a)(2) or 4(b), the Secretary shall consult with the Secretary 
of State before beginning the conduct of the activity.
    ``(c) Other Programs.--Nothing in this Act prohibits any other 
agency from carrying out a program for desalination research or 
operation that is authorized under any other provision of law.''.

Summary: Water Supply Security Act of 2001 - Amends the Water Desalination Act of 1996 to direct Sandia National Laboratories to develop a desalination technology progress plan that includes recommendations for the location, siting, and configuration of a desalination test and evaluation facility at the Tularosa Basin located in Otero County in New Mexico. Provides for the construction of such facility by the Secretary of Energy after the completion of such plan. Requires that the facility: (1) be used to research, test, and evaluate, new desalination technologies, to fully evaluate their performance in energy consumption, byproduct disposal, and operational maintenance costs, and to determine the most technologically- and cost-efficient means by which potable water may be produced from salinated water or other water that is unsuitable for use. And (2) should be capable of processing at least 100,000 gallons of water per day. Requires all desalinated water produced by the facility to be provided, at no cost, to one or more communities in the county. Requires the Secretary of the Interior and the Secretary of Energy to establish a technology advisory committee to provide program guidance and technical assistance. Authorizes appropriations for such Act for FY 2002 through 2008 for research and studies, for the desalination technology progress plan, and for the desalination demonstration and development program. Authorizes the Secretary to carry out such research or such program at a location outside the United States upon determining it is in the nation interest and after consulting the Secretary of State. Revises Federal cost share provisions for projects and activities under such Act.