29–006 

108TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 108–668 

SOUTHERN CALIFORNIA GROUNDWATER REMEDIATION 

ACT 

SEPTEMBER 8, 2004.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. POMBO, from the Committee on Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 4606] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Resources, to whom was referred the bill 

(H.R. 4606) to authorize the Secretary of the Interior, acting 

through the Bureau of Reclamation and in coordination with other 

Federal, State, and local government agencies, to participate in the 

funding and implementation of a balanced, long-term groundwater 

remediation program in California, and for other purposes, having 

considered the same, report favorably thereon with an amendment 

and recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Southern California Groundwater Remediation Act’’. 

SEC. 2. DEFINITIONS. 

For the purposes of this Act: 

(1) GROUNDWATER REMEDIATION.—The term ‘‘groundwater remediation’’ 

means actions that are necessary to prevent, minimize, clean up, or mitigate 

damage to groundwater. 

(2) LOCAL WATER AUTHORITY.—The term ‘‘local water authority’’ means a currently existing (on the the date of the enactment of this Act) public water district, public water utility, public water planning agency, municipality, or Indian 

Tribe located within the natural watershed of the Santa Ana River in the State 

of California. 

(3) REMEDIATION FUND.—The term ‘‘Remediation Fund’’ means the Southern 

California Groundwater Remediation Fund established pursuant to section 3(a). 

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. 

SEC. 3. SOUTHERN CALIFORNIA GROUNDWATER REMEDIATION. 

(a) SOUTHERN CALIFORNIA GROUNDWATER REMEDIATION.— 

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(1) ESTABLISHMENT OF REMEDIATION FUND.—There shall be established within 

the Treasury of the United States an interest bearing account to be known as 

the ‘‘Southern California Groundwater Remediation Fund’’. 

(2) ADMINISTRATION OF REMEDIATION FUND.—The Remediation Fund shall be 

administered by the Secretary, acting through the Bureau of Reclamation. The 

Secretary shall administer the Remediation Fund in cooperation with the local 

water authority. 

(3) PURPOSES OF REMEDIATION FUND.— (A) IN GENERAL.—Subject to subparagraph (B), the amounts in the Remediation Fund, including interest accrued, shall be used by the Secretary to 

provide grants to the local water authority to reimburse the local water authority for the Federal share of the costs associated with designing and constructing groundwater remediation projects to be administered by the local 

water authority. 

(B) COST-SHARING LIMITATION.— (i) IN GENERAL.—The Secretary may not obligate any funds appropriated to the Remediation Fund in a fiscal year until the Secretary 

has deposited into the Remediation Fund an amount provided by nonFederal interests sufficient to ensure that at least 35 percent of any 

funds obligated by the Secretary for a groundwater remediation project 

are from funds provided to the Secretary for that project by the nonFederal interests. 

(ii) NON-FEDERAL RESPONSIBILITY.—Each local water authority shall 

be responsible for providing the non-Federal amount required by clause 

(i) for projects under that local water authority. The State of California, 

local government agencies, and private entities may provide all or any 

portion of the non-Federal amount. 

(iii) CREDITS TOWARD NON-FEDERAL SHARE.—For purposes of clause 

(ii), the Secretary shall credit the appropriate local water authority 

with the value of all prior expenditures by non-Federal interests made 

after January 1, 2000, that are compatible with the purposes of this 

section, including— 

(I) all expenditures made by non-Federal interests to design and 

construct groundwater remediation projects, including expenditures 

associated with environmental analyses, and public involvement 

activities that were required to implement the groundwater remediation projects in compliance with applicable Federal and State 

laws; and 

(II) all expenditures made by non-Federal interests to acquire 

lands, easements, rights-of-way, relocations, disposal areas, and 

water rights that were required to implement a groundwater remediation project. 

(b) COMPLIANCE WITH APPLICABLE LAW.—In carrying out the activities described 

in this section, the Secretary shall comply with any applicable Federal and State 

laws. 

(c) RELATIONSHIP TO OTHER ACTIVITIES.—Nothing in this section shall be construed to affect other Federal or State authorities that are being used or may be 

used to facilitate remediation and protection of the groundwater in the natural watershed of the Santa Ana River in the State of California. In carrying out the activities described in this section, the Secretary shall integrate such activities with ongoing Federal and State projects and activities. None of the funds made available for 

such activities pursuant to this section shall be counted against any Federal authorization ceiling established for any previously authorized Federal projects or activities. 

(d) FINANCIAL STATEMENTS AND AUDITS.—The Secretary shall ensure that all 

funds obligated and disbursed under this Act and expended by a local water authority, are accounted for in accordance with generally accepted accounting principles 

and are subjected to regular audits in accordance with applicable procedures, manuals, and circulars of the Department of the Interior and the Office of Management 

and Budget. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to the Remediation such sums as may be necessary to carry out the purposes of this 

Act to remain available until expended. 

PURPOSE OF THE BILL

The purpose of H.R. 4606 is to authorize the Secretary of the Interior, acting through the Bureau of Reclamation and in coordination with other federal, State and local government agencies, to 

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participate in the funding and implementation of a balanced, longterm groundwater remediation program in California, and for other 

purposes. 

BACKGROUND AND NEED FOR LEGISLATION

Throughout the Santa Ana watershed in southern California, approximately 30 water wells are currently shut down or out of production due to perchlorate and other contaminants. Some estimate 

that an additional 300 wells are at risk because of perchlorate, a 

naturally occurring and man-made chemical. In Rialto, California, 

a perchlorate plume has spread approximately seven miles from 

the City’s industrial area. The contamination, affecting 250,000 

residents, has prompted State and federal investigations and triggered a water emergency. 

Much of the perchlorate manufactured in the United States is 

used as an ingredient of solid rocket propellant, fireworks and 

roadside flares. Research indicates that perchlorate interferes with 

iodide uptake into the thyroid gland. In adults, the thyroid helps 

to regulate metabolism. In children, the thyroid plays a major role 

in proper development and metabolism. As a result, officials in 

southern California are working to develop long-term plans for 

groundwater remediation. 

H.R. 4606 establishes the ‘‘Southern California Basins Groundwater Remediation Fund’’ within the U.S. Treasury. The Fund, 

subject to annual appropriations and administered by the Bureau 

of Reclamation, would provide such sums as may be necessary to 

remediate groundwater supplies in the Santa Ana watershed. The 

bill requires a local cost share of 35 percent. Perchlorate is the 

chemical compound of primary concern, although funds will be 

available to remediate other groundwater challenges in the area. 

COMMITTEE ACTION

H.R. 4606 was introduced by Congressman Joe Baca (D–CA) on 

June 17, 2004. The bill was referred to the Committee on Resources and within the Committee to the Subcommittee on Water 

and Power. On June 23, 2004, the Subcommittee held a hearing on 

the bill. On July 8, 2004, the Subcommittee met to mark up the 

bill. No amendments were offered and the bill was forwarded to the 

Full Resources Committee by unanimous consent. On July 14, 

2004, the Resources Committee met to mark up the bill. Congresswoman Grace Napolitano (D–CA) offered an amendment to strike 

all references to the San Gabriel Basin. The amendment was 

adopted by unanimous consent. No additional amendments were offered and the bill, as amended, was ordered favorably reported to 

the House of Representatives by unanimous consent. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

The bill may be cited as the ‘‘Southern California Groundwater 

Remediation Act.’’ 

Section 2. Definitions. 

This section defines various terms used in the bill. 

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Section 3. Southern California Basins Remediation. 

This section establishes the ‘‘Southern California Basins Groundwater Remediation Fund’’ within the Treasury of the United 

States. The Fund will be administered by the Secretary of the Interior, through the Bureau of Reclamation, and in cooperation with 

the local water authority. The section requires that the Fund shall 

be used for reimbursing the local water authority for the federal 

share of the costs for the planning, design, and construction of 

groundwater remediation projects. The Section requires that the 

local non-federal cost share be no less than 35 percent. Non-federal 

funding sources may include State or local government agencies 

and private entities. 

As ordered reported, the section also states that the bill shall not 

affect other federal and State authorities being used or may be 

used for remediation and protection of the groundwater in the natural watersheds of the Santa Ana River in California. Furthermore, 

no funds used for activities and projects pursuant to this section 

shall be counted against federal authorization ceilings established 

for previously authorized federal activities and projects. This section also requires that the Secretary ensure that all funds obligated, disbursed, and expended by a local water authority are accounted for in accordance with generally accepted accounting principles. Regular audits may be conducted in accordance with applicable procedures of the Department of the Interior and the Office 

of Management and Budget. 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII 

of the Rules of the House of Representatives, the Committee on Resources’ oversight findings and recommendations are reflected in 

the body of this report. 

CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United States 

grants Congress the authority to enact this bill. 

COMPLIANCE WITH HOUSE RULE XIII

1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the Rules of 

the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(3)(B) of that rule provides 

that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. 

2. Congressional Budget Act. As required by clause 3(c)(2) of rule 

XIII of the Rules of the House of Representatives and section 

308(a) of the Congressional Budget Act of 1974, this bill does not 

contain any new budget authority, credit authority, or an increase 

or decrease in revenues or tax expenditures. According to the Congressional Budget Office, enactment of this bill would increase direct spending by less than $500,000 annually over the 2005–2006 

time period and by about $1 million annually from 2007–2014. 

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3. General Performance Goals and Objectives. As required by 

clause 3(c)(4) of rule XIII, the general performance goal or objective 

of this bill is to authorize the Secretary of the Interior, acting 

through the Bureau of Reclamation and in coordination with other 

federal, State and local government agencies, to participate in the 

funding and implementation of a balanced, long-term groundwater 

remediation program in California, and for other purposes. 

4. Congressional Budget Office Cost Estimate. Under clause 

3(c)(3) of rule XIII of the Rules of the House of Representatives and 

section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 

H.R. 4606—Southern California Groundwater Remediation Act 

Summary: H.R. 4606 would establish an interest-bearing account 

in the Treasury called the Southern California Basins Groundwater 

Remediation Fund and would authorize the appropriation of such 

sums as is necessary to be deposited into the fund. The bill would 

authorize the Bureau of Reclamation to use the fund to provide 

grants to the local water authority for groundwater cleanup 

projects in the Santa Ana River watershed in California. H.R. 4606 

would authorize the bureau to pay up to 65 percent of the cost of 

the groundwater cleanup projects. The bureau, however, would not 

have the authority to obligate money for a project until the nonfederal share of the costs (35 percent) is either deposited into the 

account or credited to the account as an in-kind contribution. 

Assuming appropriation of the necessary funds, CBO estimates 

that implementing H.R. 4606 would cost $39 million over the 2005– 

209 period and an additional $46 million after that period. In addition, enacting this bill would increase direct spending by less than 

$500,000 annually over the 2005–2006 period and by about $1 million annually over the 2007–2014 period. (Enacting the bill would 

not affect federal revenues.) 

H.R. 4606 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. 

The federal funds authorized by this bill would benefit local governments in California. Any expenditures made by those governments to provide the required matching funds would be made voluntarily. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 4606 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— 

2005 2006 2007 2008 2009 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ............................................................ 10 10 10 10 10 

Estimated Outlays ............................................................................... 3 7 9 10 10 

CHANGES IN DIRECT SPENDING 

Estimated Authorization Level ............................................................ * * 1 1 1 

Estimated Outlays ............................................................................... * * 1 1 1 

Note: * = less than $500,000. 

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Basis of estimate 

Spending subject to appropriation 

For this estimate, CBO assumes that H.R. 4606 will be enacted 

near the start of fiscal year 2005 and that the necessary funds will 

be appropriated to the Southern California Basins Groundwater 

Remediation Fund in equal amounts over the 2005–2009 period. 

H.R. 4606 would authorize appropriation of the necessary 

amounts to the Southern California Basins Groundwater Remediation Funds. For this estimate, CBO assumes that the federal 

funds needed to implement the bill would be similar to the authorization for the San Gabriel Basin Restoration Fund, which is $85 

million (Public Law 106–554) and addresses similar types of water 

quality projects in a watershed of a similar size. Because the bill 

would require that the nonfederal cost share be deposited into the 

fund or in-kind contributions be credited before funds could be obligated, CBO expects that spending on those projects would be somewhat slower than historical federal spending on water projects. 

Direct spending 

Under this bill, nonfederal funds equal to 35 percent of the total 

cost of the project would be required to be either deposited into the 

account or credited to the account as an in-kind contribution before 

any funds could be obligated. Any cash deposits would be recorded 

as offsetting receipts (a form of direct spending). Currently, it is 

unknown how much of the nonfederal contributions would be cash 

and how much would be in-kind donations. Any receipt to the fund, 

however, would be offset by equal amounts of direct spending from 

the fund over the 2005–2014 period, with no net significant impact 

in any year. 

In addition, the bill would authorize the bureau to spend interest 

earned on the Southern California Basins Groundwater Remediation Fund. CBO estimates that provision would increase direct 

spending by less than $500,000 annually over the 2005–2006 period and about $1 million annually over the 2007–2014 period. 

Intergovernmental and private-sector impact: H.R. 4606 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. The federal funds authorized by this bill would benefit local 

governments in California. Any expenditures made by those governments to provide the required matching funds 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. 

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law. 

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CHANGES IN EXISTING LAW

If enacted, this bill would make no changes in existing law. 

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