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[Senate Report 108-326]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 682
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-326

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                NEW MEXICO WATER PLANNING ASSISTANCE ACT

                                _______
                                

                August 25, 2004.--Ordered to be printed

   Filed, under authority of the order of the Senate of July 22, 2004

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2460]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2460) to provide assistance to the State 
of New Mexico for the development of comprehensive State water 
plans, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends 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 ``New Mexico Water Planning Assistance 
Act''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior, acting through the Bureau of Reclamation and the 
        United States Geological Survey.
          (2) State.--The term ``State'' means the State of New Mexico.

SEC. 3. COMPREHENSIVE WATER PLAN ASSISTANCE.

  (a) In General.--Upon the request of the Governor of the State and 
subject to subsections (b) through (f), the Secretary shall--
          (1) provide to the State technical assistance and grants for 
        the development of comprehensive State water plans;
          (2) conduct water resources mapping in the State; and
          (3) conduct a comprehensive study of groundwater resources 
        (including potable, brackish, and saline water resources) in 
        the State to assess the quantity, quality, and interaction of 
        groundwater and surface water resources.
  (b) Technical Assistance.--Technical assistance provided under 
subsection (a) may include--
          (1) acquisition of hydrologic data, groundwater 
        characterization, database development, and data distribution;
          (2) expansion of climate, surface water, and groundwater 
        monitoring networks;
          (3) assessment of existing water resources, surface water 
        storage, and groundwater storage potential;
          (4) numerical analysis and modeling necessary to provide an 
        integrated understanding of water resources and water 
        management options;
          (5) participation in State planning forums and planning 
        groups;
          (6) coordination of Federal water management planning 
        efforts;
          (7) technical review of data, models, planning scenarios, and 
        water plans developed by the State; and
          (8) provision of scientific and technical specialists to 
        support State and local activities.
  (c) Allocation.--In providing grants under subsection (a), the 
Secretary shall, subject to the availability of appropriations, 
allocate--
          (1) $5,000,000 to develop hydrologic models and acquire 
        associated equipment for the New Mexico Rio Grande main stem 
        sections and Rios Pueblo de Taos and Hondo, Rios Nambe, 
        Pojoaque and Teseque, Rio Chama, and Lower Rio Grande 
        tributaries;
          (2) $1,500,000 to complete the hydrographic survey 
        development of hydrologic models and acquire associated 
        equipment for the San Juan River and tributaries;
          (3) $1,000,000 to complete the hydrographic survey 
        development of hydrologic models and acquire associated 
        equipment for Southwest New Mexico, including the Animas Basin, 
        the Gila River, and tributaries;
          (4) $4,500,000 for statewide digital orthophotography 
        mapping; and
          (5) such sums as are necessary to carry out additional 
        projects consistent with subsection (b).
  (d) Cost-Sharing Requirement.--
          (1) In general.--The non-Federal share of the total cost of 
        any activity carried out using a grant provided under 
        subsection (a) shall be 50 percent.
          (2) Form of non-federal share.--The non-Federal share under 
        paragraph (1) may be in the form of any in-kind services that 
        the Secretary determines would contribute substantially toward 
        the conduct and completion of the activity assisted.
  (e) Non-Reimbursable Basis.--Any assistance or grants provided to the 
State under this Act shall be made on a non-reimbursable basis.
  (f) Authorized Transfers.--On request of the State, the Secretary 
shall directly transfer to 1 or more Federal agencies any amounts made 
available to the State to carry out this Act.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this Act 
$3,000,000 for each of fiscal years 2005 through 2009.

                         PURPOSE OF THE MEASURE

    The purpose of S. 2460 is to provide assistance to the 
State of New Mexico for the development of comprehensive State 
water plans, and for other purposes.

                          BACKGROUND AND NEED

    The New Mexico Office of the State Engineer (NM OSE) is 
statutorily required to perform assessments and investigations 
of the numerous stream systems and ground water basins located 
within New Mexico. In order to perform these assessments, it is 
necessary for the NM OSE to undertake hydrographic surveys and 
develop hydrologic models. These assessments assist Federal 
agencies by providing fundamental information on hydrologic 
conditions important for flood assessment, land management, 
Tribal water resources assessments and Federal water project 
management. The NM OSE lacks adequate resources to perform 
necessary hydrologic models and data collection. This lack of 
resources impairs the NM OSE's ability to make informed 
decisions about the state's water resources, participate in 
State-Federal water management decisions, effectively perform 
water rights administration, and comply with New Mexico's 
compact deliveries.

                          LEGISLATIVE HISTORY

    S. 2460 was introduced by Senator Domenici on May 20, 2004 
and referred to the Energy and Natural Resources Committee. 
Senator Bingaman is a co-sponsor. The Subcommittee on Water and 
Power held a hearing on S. 2460 on June 17, 2004. The Committee 
on Energy and Natural Resources ordered S. 2460, as amended, 
favorably reported on July 14, 2004.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in an 
open business meeting on July 14, 2004, by unanimous voice vote 
of a quorum present, recommends that the Senate pass S. 2460 if 
amended as described herein.

                          COMMITTEE AMENDMENT

    During the consideration of S. 2460, the Committee adopted 
an amendment in the nature of a substitute. The substitute 
amendment addresses concerns raised during the Subcommittee 
hearing and in written submissions.
    The first change provides that the non-Federal share of the 
total cost of any activity undertaken pursuant to this Act 
shall be 50 percent. The second change provides that the non-
Federal contribution may be in the form of any in-kind services 
that the Secretary determines would contribute substantially 
toward the completion of the activity assisted. The final 
change raises the amount authorized to be appropriated for each 
fiscal year 2005 through year 2009 from $2,500,000 to 
$3,000,000.

                      SECTION-BY-SECTION ANALYSIS

    Section 1 provides the short title, the ``New Mexico Water 
Planning Assistance Act.''
    Section 2 defines the terms used in the Act.
    Section 3 subsection (a) directs the Secretary, upon the 
request of the Governor of New Mexico, to provide technical 
assistance and grants for the development of State water plans, 
conduct water resources mapping in the State, and conduct a 
study of groundwater resources.
    Subsection (b) specifies what technical assistance the 
Secretary may provide.
    Subsection (c) allocates grants among projects.
    Subsection (d) provides that the non-Federal cost share 
shall be 50 percent, the non-Federal share may be in the form 
of any in-kind services, the grants provided to the State shall 
be made on a non-reimbursable basis, and the Secretary shall 
transfer any amount made available under the Act to one or more 
Federal agencies upon request of the State.
    Section 4 authorizes to be appropriated $3,000,000 for each 
fiscal year 2005 through 2009 to carry out the Act.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 16, 2004.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2460, the New Mexico 
Water Planning Assistance Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 2460--New Mexico Water Planning Assistance Act

    Summary: S. 2460 would authorize the Secretary of the 
Interior acting through the Bureau of Reclamation and the U.S. 
Geological Survey to provide technical assistance and grants to 
the state of New Mexico for developing comprehensive water 
plans, conducting water resources mapping, and implementing a 
study of groundwater resources (including potable, brackish, 
and saline water resources). The bill would authorize the 
appropriation of $3 million annually over the 2005-2009 period 
for technical assistance and grants. S. 2460 would require 
nonfederal grantees to pay 50 percent of total project costs.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing the bill would cost about $14 
million over the 2005-2009 period, and an additional $1 million 
after that period. Enacting S. 2460 would not affect direct 
spending or revenues.
    S. 2460 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. Federal spending authorized by this bill would 
benefit the state of New Mexico, and any expenditures made by 
the state to satisfy the bill's matching requirement would be 
made voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2460 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 S. 2460 will be enacted near the end of 2004. 
Based on historical spending patterns of similar projects, CBO 
estimates that implementing this bill would cost $14 million 
over the 2005-2009 period, and an additional $1 million after 
that period.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization level................................................        3        3        3        3        3
Estimated outlays..................................................        2        3        3        3        3
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 2460 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Federal spending authorized by this bill 
would benefit the state of New Mexico, and any expenditures 
made by the state to satisfy the bill's matching requirement 
would be made voluntarily.
    Estimate prepared by: Federal Costs: Julie Middleton; 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller; and Impact on the Private Sector: Karen Raupp.
    Estimate approved by: Peter H. Fontaine, 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 S. 2460. The bill is not a regulatory measure in 
the sense of imposing Government-established standards of 
significant 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 S. 2460.

                        EXECUTIVE COMMUNICATIONS

    On June 16, 2004, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth executive views on S. 2460. These reports had not been 
received at the time the report on S. 2460 was filed. When the 
reports become available, the Chairman will request that they 
be printed in the Congressional Record for the advice of the 
Senate. The testimony provided by the Department of the 
Interior at the Subcommittee hearing follows:

  Statement of John W. Keys III, Commissioner, Bureau of Reclamation, 
                       Department of the Interior

    Madam Chair, may name is John W. Keys, III, Commissioner of 
Reclamation (Reclamation). I am pleased to be here today to 
present the views of the Department of the Interior 
(Department) regarding S. 2460, which would authorize 
assistance to be provided to the State of New Mexico for the 
development of comprehensive State water plans, and for other 
purposes.
    We share the views of the sponsor of this bill, Senator 
Domenici, that is, the importance of sound science for use by 
water resource planners. However, the Department is concerned 
about the financial resources that would be required for 
Reclamation and the United States Geological Survey (USGS) to 
carry out S. 2460 in the context of the availability of 
resources overall for Administration programs. Further, the 
provision for any assistance or grants to be made on a non-
reimbursable basis and without a cost-sharing requirement is 
inconsistent with the funding arrangements that Reclamation and 
USGS have for similar activities in other states. For these 
reasons, the Administration cannot support the bill as 
currently written.
    The bill directs the Secretary of the Interior, acting 
through Reclamation and the USGS, to (1) provide technical 
assistance and grants to the State for the development of 
comprehensive State water plans; (2) conduct water resources 
mapping in the State; and (3) conduct a comprehensive study of 
groundwater resources (including potable, brackish, and saline 
water resources) to assess the quantity, quality, and 
interaction of groundwater and surface water resources in the 
State. This would be accomplished through technical assistance 
and grants.
    The technical assistance role identified for the Department 
in this bill is consistent with the USGS's leadership role in 
interpretation, research, and assessment of the earth and 
biological resources of the nation. It is likewise consistent 
with the Reclamation's
leadership role in water resources research, modeling, 
analysis, assessment and management. However, the direction to 
provide these grants to the State on a noncompetitive basis is 
not in harmony with the Administration's efforts, such as 
through Water 2025, to use a competitive process to focus our 
existing resources in those areas where future water conflicts 
are most likely to occur. Even though some New Mexico projects 
would likely be very competitive in that process, the 
Administration would prefer that New Mexico's needs compete on 
an equal footing with other meritorious projects that apply for 
assistance. Let me briefly describe the activities of the USGS 
and Reclamation in this context.
    As the nation's largest water, earth, biological science, 
and civilian mapping agency, USGS conducts the most extensive 
groundwater and surface water investigations in the nation in 
conjunction with state and local partners. The USGS New Mexico 
District currently operates 209 streamflow stations and 
routinely measures groundwater levels at 1,658 well sites 
through cooperative programs with several local, state, tribal, 
and federal agencies. In addition to hydrologic monitoring 
programs, the USGS is providing hydrologic understanding to 
water agencies through the Cooperative Water Program by 
conducting several investigative projects that include 
describing the interaction of surface water and ground water in 
the Mesilla and Middle Rio Grande basins, evaluating modeling 
approaches in the Santa Fe Embayment and La Cienega areas of 
the Espanola Basin, and quantifying streamflow gains and losses 
in the Espanola Basin along the Rio Grande mainstem and its 
tributaries. In support of all water agencies within New 
Mexico, USGS technical specialists participate in work groups 
and committees each year. Currently, USGS personnel are 
involved in the New Mexico Brackish Water Task Force, the Rio 
Grande Environmental Assessment for Upper Rio Grande water 
operations, and the Department of the Interior's Southwest 
Strategy.
    Reclamation, as the nation's largest western water and 
hydro-electric power supplier and water management agency, 
conducts the most extensive river storage and delivery 
operations and related research in the seventeen western states 
in conjunction with tribal, state and local partners. 
Reclamation has provided technical and monetary assistance to 
two of the New Mexico state regional water plans, reviewed and 
commented on the draft State Water Plan, and provided water 
resource-related technical assistance through Reclamation's 
Technical Assistance to States planning program. In addition, 
Reclamation is actively involved in several Indian water supply 
projects within New Mexico, and has developed and maintains 
state-of-the-art, internet-delivered decision support data on 
evapotranspiration depletions to the Rio Grande system, and 
conducts daily river system modeling for water accounting, 
contracted deliveries and endangered species support.
    In summary, the goals of the bill are commendable, and the 
bill contains provisions that are within the scope and 
expertise of Reclamation and the USGS. However, it is the 
position of the Administration that funding for the activities 
in this bill be pursued through existing authorities and 
procedures, and not through specific Congressional direction 
that supersedes established processes, competitive or 
otherwise. Also, we believe that the cost-sharing provisions of 
this bill should conform to other similar programs undertaken 
by Reclamation and the USGS, such as the Reclamation Title XVI 
program, which requires a 50 percent local share, or the USGS 
Cooperative Water Program, which requires a dollar for dollar 
match of federal and non-federal funds. Requiring these cost-
shares not only stretches limited federal funds, but also 
emphasizes that States are primarily responsible for managing 
the water resources within their borders, and not the Federal 
government. Finally, we find that S. 2460 is sufficiently vague 
regarding the relative roles and functions of Reclamation and 
the USGS, which could cause significant delay in 
implementation, as well as the fact that the bill, as written, 
duplicates some existing agency programs and authorizations and 
sets a major precedent of providing federal funding for State 
water plans.
    Thank you, Madam Chair, for the opportunity to present this 
testimony. I will be pleased to answer questions you and other 
Members of the Subcommittee might have.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill S. 2460, as 
ordered reported.

                                  
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