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[Senate Report 111-326]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 612
111th Congress                                                   Report
  2d Session                  SENATE                            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 
reclamation 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-you-go 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 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 APPROPRIATIONEstimated 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.

                   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 progressing 
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.
    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 [paragraph (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.

           *       *       *       *       *       *       *

                                  
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