89–010 

Calendar No. 612 

111TH CONGRESS REPORT " ! SENATE 2d Session 111–326 

CALLEGUAS MUNICIPAL WATER DISTRICT RECYCLING 

PROJECT 

SEPTEMBER 27, 2010.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany H.R. 2522] 

The Committee on Energy and Natural Resources, to which was 

referred the Act (H.R. 2522) to raise the ceiling on the Federal 

share of the cost of the Calleguas Municipal Water District Recycling Project, and for other purposes, having considered the same, 

reports favorably thereon without amendment and recommends 

that the Act do pass. 

PURPOSE

The purpose of H.R. 2522 is to raise the ceiling on the Federal 

share of the cost of the Calleguas Municipal Water district Recycling Project, and for other purposes. 

BACKGROUND AND NEED

The Calleguas Municipal Water District (Calleguas) is a public 

agency created to provide the southeastern portion of Ventura 

County with a reliable supplemental water supply. Calleguas delivers domestic, municipal, and industrial water service to over 

650,000 residents, and also provides water for agriculture. The 

groundwater underlying the Calleguas service area is highly saline 

and cannot be used for drinking water without significant treatment. Calleguas operates a regional desalination project to remove 

salt from the water supply, recycle it, and safely manage the saline 

waste concentrate for proper discharge to the ocean. The project 

has 3 phases. Phase 1 will be completed in 2011 and consists of a 

48-inch, 9-mile pipeline and a 30-inch diameter ocean outfall that 

extends 4,500 feet into the ocean. Phase 1 will result in the recVerDate Mar 15 2010 22:17 Sep 30, 2010 Jkt 089010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR326.XXX SR326

srobinson on DSKHWCL6B1PROD with HEARING
2 

lamation and reuse of about 15,000 acre-feet of water per year. 

Phases 2 and 3 of the project will provide an additional 43,000 

acre-feet of recycled water per year to the system. The total project 

cost is estimated to be $152 million. H.R. 2522 would increase the 

federal cost share from the previously authorized level of $20 million to the lesser of $40 million or 25% of the total construction 

costs. 

LEGISLATIVE HISTORY

H.R. 2522 was sponsored by Representative Gallegly and passed 

the House of Representatives by voice vote on September 22, 2009. 

H.R. 2522 was received in the Senate and referred to the Committee on Energy and Natural Resources on September 23, 2009. 

The Subcommittee on Water and Power held a hearing on H.R. 

2522 on April 27, 2010. The Committee on Energy and Natural Resources considered H.R. 2522 at its business meeting on August 5, 

2010 and ordered it favorably reported without amendment. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on August 5, 2010 by voice vote of a quorum present, 

recommends that the Senate pass H.R. 2522. 

SECTION-BY-SECTION ANALYSIS

H.R. 2522 amends Section 1631(d) of the Reclamation Wastewater and Groundwater Study and Facilities Act, Title XVI of Public Law 102–575, to raise the ceiling on the Federal share of the 

cost of the Calleguas Recycling Project to the lesser of $40 million 

or 25% of the total construction costs. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

H.R. 2522—A bill to raise the ceiling on the federal share of the cost 

of the Calleguas Municipal Water District Recycling Project, 

and for other purposes 

Summary: H.R. 2522 would increase the amount authorized to be 

appropriated for a water recycling project at the Calleguas Municipal Water District in California by $40 million. The additional 

funding would enable the Bureau of Reclamation (BOR) to complete a component of that project. 

CBO estimates that implementing H.R. 2522 would cost $16 million over the 2011–2015 period and $24 million after 2015, assuming appropriation of the additional amounts. Enacting H.R. 2522 

would not affect direct spending or revenues; therefore, pay-as-yougo procedures do not apply. 

H.R. 2522 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: The estimated budgetary impact of H.R. 2522 is shown in the following table. The costs 


srobinson on DSKHWCL6B1PROD with HEARING
3 

of this legislation fall within budget function 300 (natural resources 

and environment). 

By fiscal year, in millions of dollars— 

2011 2012 2013 2014 2015 2011– 

2015 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ...................................................... 3 3 3 4 4 17 

Estimated Outlays ........................................................................ 2 3 3 4 4 16 

Basis of estimate: For this estimate, CBO assumes that H.R. 

2522 will be enacted near the beginning of fiscal year 2011 and 

that the additional $40 million authorized to be appropriated will 

be provided in roughly equal increments over the next 10 years. 

Estimated outlays are based on historical spending patterns for 

similar water resource projects. 

The project was originally authorized in 1996 and in recent years 

has received funding totaling less than $2 million annually. An additional $5 million was provided for the project in the American Recovery and Reinvestment Act of 2009. H.R. 2522 would increase the 

amount authorized to be appropriated for the federal share of the 

Calleguas project from $20 million to $60 million. Based on information provided by the Bureau of Reclamation, CBO estimates 

that the total cost of constructing the next component of the multiphase Calleguas project would be about $220 million. Costs above 

the amount authorized to be appropriated by the Federal Government would be paid for by local project participants. 

Pay-as-you-go considerations: None. 

Intergovernmental and private-sector impact: H.R. 2522 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would benefit the Calleguas Municipal Water District. 

Previous CBO estimate: On September 18, 2009, CBO transmitted a cost estimate for H.R. 2522, as ordered reported by the 

House Committee on Natural Resources on September 10, 2009. 

The two versions of the legislation, and CBO’s estimate of their 

costs, are similar. 

Estimate prepared by: Federal Costs: Aurora Swanson; Impact 

on State, Local, and Tribal Governments: Melissa Merrell; Impact 

on the Private Sector: Amy Petz. 

Estimate approved by: Theresa Gullo, 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 

H.R. 2522. 

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 H.R. 2522, as ordered reported. 


srobinson on DSKHWCL6B1PROD with HEARING
4 

CONGRESSIONALLY DIRECTED SPENDING

H.R. 2522, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff 

benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

STATEMENT OF KIRA L. FINKLER, DEPUTY COMMISSIONER

FOR EXTERNAL AND INTERGOVERNMENTAL AFFAIRS, BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR

Madam Chairwoman and Members of the Subcommittee, 

I am Kira Finkler, Deputy Commissioner for External and 

Intergovernmental Affairs at the Bureau of Reclamation 

(Reclamation). I am pleased to provide the views of the Department of the Interior (Department) on H.R. 2522, a proposal to raise the ceiling on the Federal share of the cost 

of the Calleguas Municipal Water District (District) Recycling Project. For reasons I will discuss below, the Administration cannot support the bill. 

H.R. 2522 would amend the Reclamation Wastewater 

and Groundwater Study and Facilities Act (Public Law 

102–575, 43 U.S.C. 390h et seq.), commonly called Title 

XVI, to increase the ceiling on the Federal share of the 

costs of the Calleguas project to $60 million. This project 

is authorized by Section 1616 of Title XVI, and the Federal 

share of this project is currently limited to 25 percent of 

the total cost, or a maximum contribution of $20 million. 

The District submitted a feasibility study as required by 

the Title XVI statute, and it was certified as complete in 

April of 2000. The feasibility study included nine distinct 

components: five wastewater reclamation and reuse 

projects, three brackish groundwater recovery projects, and 

a regional brine disposal project. A cooperative agreement 

was executed in September 2000, to provide Federal funding for one of the wastewater reclamation and reuse 

projects known as the Conejo Creek Diversion Project. This 

project was completed in September, 2003, and is currently 

producing about 9,000 acre-feet of recycled water annually. 

The total Federal share for this component was almost 

$1.7 million. 

In January, 2003, a cooperative agreement was executed 

to provide federal funding for the Regional Brine Line component. To date, Reclamation has provided about $10 million to the District as the federal share of costs for this facility, which will provide a means to dispose of brine 

wastes from facilities such as brackish groundwater recovery projects throughout Ventura County. In addition, Reclamation has executed a cooperative agreement with the 

District to provide about $5 million from the American Recovery and Reinvestment Act (ARRA) for a specific reach 

of the Brine Line. 

The Regional Brine Line is being constructed in three 

phases, starting with Phase 1 near the coast, and proVerDate Mar 15 2010 22:17 Sep 30, 2010 Jkt 089010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6969 E:\HR\OC\SR326.XXX SR326

srobinson on DSKHWCL6B1PROD with HEARING
5 

gressing inland. The current estimated cost of Phase 1, 

which includes an ocean outfall, is about $76 million. The 

25 percent federal share of Phase 1 would be $19 million, 

which would obviously be reduced slightly because Reclamation has already provided $1.7 million for the Conejo 

Creek Diversion Project. The last reach of Phase 1 is the 

ARRA-funded section, which is scheduled to be completed 

in 2011, after which this reach will be placed in operation. 

Due to the current ceiling, there would be no additional 

Federal funds available for Phases 2 and 3, which together 

are estimated to cost about $145 million; nor for any of the 

remaining seven projects that were identified in the feasibility study due to the current ceiling. H.R. 1219 would authorize an additional $40 million for 

the Calleguas project under Title XVI, which would establish the Federal funding as not to exceed 25 percent or $60 

million, whichever is less. 

While the Department supports efforts to increase local 

water supplies and increase recycled water use, this 

project would compete for funds with other needs within 

the Reclamation program, including other Title XVI 

projects currently under construction. In general, the Department supports the Title XVI Reclamation and Reuse 

program. The 2011 budget proposal includes funding for 

the Department’s WaterSMART Program, and Title XVI is 

an important element of that program. Specifically, the 

2011 budget proposal includes $29 million for the Title 

XVI program, a 113% increase over the 2010 enacted level. As part of this total, the Department is requesting $20 

million for Title XVI projects to be selected using criteria 

to identify activities most closely aligned with Title XVI 

statutory and program goals. On March 15, 2010, Reclamation posted an announcement inviting comment on 

draft funding criteria for Title XVI projects. After these 

criteria are finalized with comments received up through 

April 16, Reclamation will review and rank Title XVI 

project proposals received based on those criteria subject to 

appropriations in fiscal year 2011. 

Separately, in July of 2009, the Department announced 

the allocation of approximately $135 million in grants for 

specific authorized Title XVI projects using funds from the 

American Recovery and Reinvestment Act, or ARRA. We 

recognize that water reuse is an essential tool in stretching the limited water supplies in the West, and I believe 

the FY 2011 Budget request on top of the ARRA funding 

has demonstrated the emphasis placed by this Administration on this Program. However, given that there are 53 already authorized Title XVI projects and numerous competing mission priorities and demands on Reclamation’s 

budget, the Department cannot support the authorization 

of new Title XVI projects or extensions of existing cost ceilings at this time. 

Reclamation will, however, continue to work with project 

proponents to evaluate the completeness of feasibility studies of their projects. 


srobinson on DSKHWCL6B1PROD with HEARING
6 

Madam Chairwoman, this concludes my testimony. 

Thank you for the opportunity to comment on H.R. 2522. 

I would be pleased to answer any questions at this time. 

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 H.R. 

2522, 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, Title XVI, Section 16XX (106 Stat. 4663) 

AN ACT To raise the ceiling on the Federal share of the cost of the Calleguas 

Municipal Water district Recycling Project, and for other purposes. 

Be it enacted by the Senate and the House of Representatives of 

The United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Reclamation Projects Authorization 

and Adjustment Act of 1992’’. 

* * * * * * * 

TITLE XVI—RECLAMATION WASTEWATER AND 

GROUND WATER STUDIES 

* * * * * * * 

SEC. 1631. AUTHORIZATION OF APPROPRIATIONS. 

* * * * * * * 

(d)(1) Notwithstanding any other provision of this title and except as provided by øparagraph (2)¿ paragraphs (2) and (3), the 

Federal share of the costs of each of the individual projects authorized by this title shall not exceed 520,000,000 (October 1996 

prices). 

* * * * * * * 

(3) In the case of the Calleguas Municipal Water District Recycling Project authorized by section 1616, the Federal share of. the 

cost of the Project may not exceed the sum determined by adding— 

(A) the amount that applies to the Project under paragraph (1); and 

(B) $40,000,000. 

* * * * * * * 

Æ 


srobinson on DSKHWCL6B1PROD with HEARING