```

[Senate Report 107-119]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 273
107th Congress                                                   Report
                                 SENATE
 1st Session                                                    107-119

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

 
                     WATER SECURITY PROGRAM GRANTS

                                _______
                                

               December 10, 2001.--Ordered to be printed

                                _______
                                

   Mr. Jeffords, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 1608]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1608) to establish a program to provide 
grants to drinking water and wastewater facilities to meet 
immediate security needs, having considered the same reports 
favorably thereon with an amendment and recommends that the 
bill, as amended, do pass.

                    General Statement and Background

    In the wake of the events of September 11, 2001, our 
nation's drinking water and wastewater facilities have worked 
diligently to ensure that they are protected from any potential 
security breaches. This is an effort that needs to occur as 
soon as possible. However, in many cases, this is also an 
unplanned effort, and therefore, in many cases, unbudgeted. The 
purpose of this legislation is to provide short-term assistance 
for these facilities to upgrade their physical security before 
the end of the fiscal year in which this legislation is 
enacted. The committee does not intend for this program to 
provide any mid-term or long-term assistance for physical 
security upgrades to drinking water and wastewater facilities. 
This legislation is intended to provide a rapid infusion of 
assistance to ensure that our nation's water infrastructure 
system is as secure as possible in the wake of the events of 
September 11, 2001.

                      Section-by-Section Analysis

Section 1. Water Security Grants
    This section establishes the grant program by which the 
Administrator of the Environmental Protection Agency will 
provide assistance to drinking water and wastewater facilities.
    Subsection defines key terms in the bill. ``Administrator'' 
is defined as the Administrator of the Environmental Protection 
Agency. ``Eligible entity'' is defined as a publicly or 
privately owned drinking water or wastewater facility. An 
``eligible project or activity'' is defined as a project or 
activity carried out by an eligible entity to address an 
immediate physical security need. This section clarifies that 
the following items are included in the definition of eligible 
project or activity: security staffing, detection of intruders, 
installation and maintenance of fencing, gating, or lighting; 
installation of and monitoring on closed-circuit television; 
rekeying of doors and locks; site maintenance, such as 
maintenance to increase visibility around facilities, windows, 
and doorways; development, acquisition, or use of guidance 
manuals, educational videos, or training programs; and a 
program established by a State to provide technical assistance 
or training to water and wastewater facility managers, 
especially such a program that emphasizes small or rural 
eligible entities.
    This subsection also excludes any large-scale or system-
wide project that includes a large capital improvement or 
vulnerability assessment. The committee included this language 
to ensure that the funds provided under this authorization are 
only used for short-term, immediate physical security 
improvements. The committee anticipates that all drinking water 
and wastewater facilities will undertake a full-scale physical 
and cyber vulnerability assessment. The committee anticipates 
that the majority of security modifications at drinking water 
and wastewater facilities will be made as a result of these 
assessments. The committee does not intend for the funds 
provided under this bill to pay for these types of 
modifications.
    Subsection (b) requires the Administrator to establish a 
grant program to allocate funds to States for use in awarding 
grants to eligible entities. The funds will be provided to 
States in accordance with the formula in section 1452(a)(1)(D) 
of the Safe Drinking Water Act (42 U.S.C. 300j-12(a)(1)(D)) 
within 30 days. The States are required to distribute a notice 
to each eligible entity that funds are available within 30 days 
after receipt of funds.
    Subsection (c) provides for the award of grants. Eligible 
entities are required to submit grant applications to States in 
the form prescribed by the State. In order to receive funds 
under this program, eligible entities must agree to expend all 
funds provided by the grant not later than September 30 of the 
fiscal year in which this Act is enacted.
    This subsection also includes a requirement that States 
shall ensure, to the maximum extent practicable in accordance 
with the income and population distribution of the State, that 
a sufficient percentage of the funds allocated to the State 
under subsection (b)(2) are available for disadvantaged, small, 
and rural eligible entities in the State. The committee intends 
that this provision ensure that disadvantaged, small, and rural 
eligible entities receive a proportionate share of funds 
provided by States under this program.
    Subsection (d) outlines details regarding eligible projects 
and activities. Grants to eligible entities can be used for one 
or more eligible projects or activities. The committee included 
language in this subsection requiring States to coordinate with 
training programs of rural water associations of a State that 
are in effect as of the date on which the grant is awarded.
    Subsection (e) authorizes appropriations of $50,000,000 to 
carry out this grant program for the fiscal year in which this 
Act is enacted.

                          Legislative History

    Senator Smith of New Hampshire, Senator Jeffords, Senator 
Crapo, and Senator Graham introduced S. 1608 on October 31, 
2001.

                                Hearings

    A hearing was held on S. 1608 and other infrastructure 
security bills on November 1, 2001 before the full committee. 
Witnesses included Michael Brown, Deputy Director, Federal 
Emergency Management Agency, Washington, DC; Joe Moravec, 
Commissioner, Public Building Service, General Services 
Administration, Washington, DC; Dr. David Sampson, Assistant 
Secretary for Economic Development, Economic Development 
Administration, U.S. Department of Commerce, Washington, DC; 
Richard Meserve, Chairman, Nuclear Regulatory Commission, 
Rockville, MD; Herbert Mitchell, Associate Administrator for 
Disaster Assistance, Small Business Administration, Washington, 
DC; and Marianne L. Horinko, Assistant Administrator Office of 
Solid Waste and Emergency Response, Environmental Protection 
Agency, Washington, DC.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider S. 1608 on November 8, 2001. The committee agreed by 
voice vote to an amendment in the nature of a substitute 
offered by Senator Smith of New Hampshire.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes evaluation of 
the regulatory impact of the reported bill. The bill does not 
create any additional regulatory burdens, nor will it cause any 
adverse impact on the personal privacy of individuals.

                          Mandates Assessment

    S. 1608 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, and tribal 
governments.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:
                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 16, 2001.

Hon. James Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

Dear Mr. Chairman: The Congressional Budget Office has prepared 
the enclosed cost estimate for S. 1608, a bill to establish a 
program to provide grants to drinking water and wastewater 
facilities to meet immediate security needs.
    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), who can be reached at 226-2860, 
and Elyse Goldman (for the State and local impact), who can be 
reached at 225-3220.
            Sincerely,
                                             Dan L. Crippen
                              ----------                              

S. 1608, A bill to establish a program to provide grants to drinking 
        water and wastewater facilities to meet immediate security 
        needs, as ordered reported by the Senate Committee on 
        Environment and Public Works on November 8, 2001

                                SUMMARY

    S. 1608 would authorize an appropriation of $50 million to 
the Environmental Protection Agency (EPA) for new grants to 
States to address security concerns at drinking water and 
wastewater facilities. States would use such grants to assist 
publicly or privately owned drinking water or wastewater 
facilities for projects or activities related to an immediate 
physical security need, such as the installation of fencing or 
lighting.
    CBO estimates that implementing this legislation would cost 
$50 million in fiscal year 2002, assuming appropriation of the 
authorized amount. The bill would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
S. 1608 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, and tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of S. 1608 is shown in the 
following table. The costs of this legislation fall within 
budget function 300 (natural resources and environment).
    For this estimate, CBO assumes that the bill will be 
enacted by the end of this calendar year, that the full amount 
authorized will be appropriated in fiscal year 2002, and that 
all funds will be allocated to States promptly following this 
legislation's enactment. Each State would be responsible for 
soliciting, reviewing, and funding grant applications from 
local water systems.

                 By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
                                   2002    2003    2004    2005    2006
------------------------------------------------------------------------
 CHANGES IN SPENDING SUBJECT TO
          APPROPRIATION
Authorization Level.............      50       0       0       0       0
Estimated Outlays...............      50       0       0       0       0
------------------------------------------------------------------------

Pay-As-You-Go Considerations: None.

              Intergovernmental and Private-Sector Impact

    S. 1608 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on State, 
local, and tribal governments. The bill would provide a 
significant benefit to State and local governments by 
authorizing $50 million in grants to States who would in turn 
award funds to drinking water and wastewater facilities for 
increasing immediate physical security. Any costs associated 
with the grant program would be considered a condition of aid.

Estimate Prepared By: Federal Costs: Susanne S. Mehlman; Impact 
on State, Local, and Tribal Governments: Elyse Goldman; Impact 
on the Private Sector: Cecil McPherson.

Estimate Approved By: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    Section 12 of rule XXVI of the Standing Rules of the 
Senate, provides that reports to the Senate should show changes 
in existing law made by the bill as reported. Passage of this 
bill will make no changes to existing law.


```