29–010

Calendar No. 684

108TH CONGRESS REPORT " SENATE ! 2d Session 108–328

CHIMAYO WATER SUPPLY SYSTEM AND ESPANOLA 

FILTRATION FACILITY ACT OF 2004

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. 2511] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 2511) to direct the Secretary of the Interior to 

conduct a feasibility study of a Chimayo water supply system, to 

provide for the planning, design, and construction of a water supply, reclamation, and filtration facility for Espanola, New Mexico, 

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 ‘‘Chimayo Water Supply System and Espanola Filtration Facility Act of 2004’’. 

TITLE I—CHIMAYO WATER SUPPLY SYSTEM 

SEC. 101. DEFINITIONS. 

In this title: 

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

(2) STUDY AREA.—The term ‘‘study area’’ means the Santa Cruz River Valley in the eastern margin of the Espanola Basin. 

(3) SYSTEM.—The term ‘‘system’’ means a water supply system described in 

section 102(a). 

(4) TOWN.—The term ‘‘Town’’ means the town of Chimayo, New Mexico, located in Rio Arriba County and Santa Fe County, New Mexico. 

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SEC. 102. CHIMAYO WATER SUPPLY SYSTEM FEASIBILITY STUDY. 

(a) IN GENERAL.—The Secretary, in cooperation with appropriate State and local 

authorities, shall conduct a study to determine the feasibility of constructing a 

water supply system for the Town in the study area that includes potable water 

transmission lines, pump stations, and storage reservoirs. 

(b) SCOPE OF STUDY.—In conducting the study under subsection (a), the Secretary shall— 

(1) consider operating the system in connection with the Espanola Water 

Filtration Facility; 

(2) consider various options for supplying water to the Town, including connection to a regional water source, local sources, sources distributed throughout 

the Town, and sources located on adjacent Bureau of Land Management land; 

(3) consider reusing or recycling water from local or regional sources; 

(4) consider using alternative water supplies such as surface water, brackish water, nonpotable water, or deep aquifer groundwater; and 

(5) determine the total lifecycle costs of the system, including— 

(A) long-term operation, maintenance, replacement, and treatment 

costs of the system; and 

(B) management costs (including personnel costs). 

(c) DEADLINE FOR STUDY.—As soon as practicable, but not later than 3 years 

after the date of enactment of this Act, the Secretary shall complete the study. 

(d) COST SHARING.—The Federal share of the cost of the study shall be 75 percent. 

(e) COORDINATION.—The Secretary shall coordinate activities of the Bureau of 

Reclamation, the Bureau of Land Management, and the United States Geological 

Survey in the furtherance of the study, including— 

(1) accessing any Bureau of Land Management land adjacent to the study 

area that is necessary to carry out this section; and 

(2) the drilling of any exploratory wells on Bureau of Land Management 

land adjacent to the study area that are necessary to determine water resources 

available for the Town. 

(f) REPORT.—The Secretary shall submit to Congress a report on the results of 

the feasibility study not later than the earlier of— 

(1) the date that is 1 year after the date of completion of the feasibility 

study; or 

(2) the date that is 4 years after the date of enactment of this Act. 

SEC. 103. EMERGENCY WATER SUPPLY DEVELOPMENT ASSISTANCE. 

(a) IN GENERAL.—The Secretary may enter into contracts with water authorities 

in the study area to provide emergency water supply development assistance to any 

eligible person or entity, as the Secretary determines to be appropriate. 

(b) ELIGIBLE ACTIVITIES.—The Secretary may provide assistance under subsection (a) for— 

(1) hauling water; 

(2) the installation of water purification technology at the community wells 

or individual point-of-use; 

(3) the drilling of wells; 

(4) the installation of pump stations and storage reservoirs; 

(5) the installation of transmission and distribution pipelines to bring water 

to individual residential service connections; 

(6) the engineering, design, and installation of an emergency water supply 

system; and 

(7) any other eligible activity, as the Secretary determines to be appropriate. 

(c) COST SHARING.—The Federal share of the cost of any activity under this section shall be 75 percent. 

SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—There is authorized to be appropriated— 

(1) to carry out section 102, $2,000,000 for the period of fiscal years 2005 

through 2008; and 

(2) to carry out section 103, $3,000,000 for the period of fiscal years 2005 

through 2010. 

(b) LIMITATION.—Amounts made available under subsection (a)(1) shall not be 

available for the construction of water infrastructure for the system. 

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TITLE II—ESPANOLA WATER FILTRATION 

FACILITY 

SEC. 201. DEFINITIONS. 

In this title: 

(1) COMPONENT.—The term ‘‘component’’ means a water delivery infrastructure development described in section 202(b). 

(2) FACILITY.—The term ‘‘facility’’ means the Espanola water filtration facility described in section 202(a). 

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

acting through the Commissioner of Reclamation. 

SEC. 202. ESPANOLA WATER FILTRATION FACILITY. 

(a) IN GENERAL.—The Secretary shall provide financial assistance to the city of 

Espanola, New Mexico, for the construction of an Espanola water filtration facility 

consisting of projects— 

(1) to divert and fully use imported water to meet future demands in the 

greater Espanola, New Mexico region, including construction of— 

(A) presedimentation basins for removal of sediments; 

(B) an influent pump station to supply water into treatment facilities; 

(C) a pretreatment facility; 

(D) filtration facilities; 

(E) finished water storage facilities; 

(F) a finished water booster pump station; 

(G) sludge dewatering facilities; and 

(H) potable water transmission lines to connect into the water distribution facilities of the city of Espanola, New Mexico; and 

(2) to use reclaimed water to enhance groundwater resources and surface 

water supplies. 

(b) PARTICIPATION.—The Secretary may provide financial assistance to the 

Santa Clara and San Juan Pueblos of New Mexico and the non-Federal sponsors 

of the facility for the study, planning, design, and construction of a water delivery 

infrastructure development for the Santa Clara and San Juan Pueblos as a component of the facility. 

(c) COST SHARING.—The Federal share of the total cost of the facility and the 

component shall not exceed 25 percent. 

(d) LIMITATION ON USE OF FUNDS.—Funds provided by the Secretary may not 

be used for the operation or maintenance of the facility or the component. 

SEC. 203. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated for the construction of the facility 

$3,000,000 for the period of fiscal years 2005 through 2009.

PURPOSE OF THE MEASURE

The purpose of S. 2511 is to direct the Secretary of the Interior 

to conduct a feasibility study of a Chimayo water supply system, 

to provide for the planning, design, and construction of a water 

supply, reclamation, and filtration facility for Espanola, New Mexico, and for other purposes. 

BACKGROUND AND NEED

The 3,000 citizens of the unincorporated community of Chimayo, 

New Mexico rely on individual wells for their potable water and deteriorated septic systems to dispose of waste water. The condition 

of the water and sewer infrastructure in the basin results in 75 

percent of well samples taken having significant contamination of 

both total coliform and fecal coliform and high levels of total dissolved solids. Because of the unreliability of the well water, some 

residents drink free-flowing water from irrigation ditches, which 

also contain high levels of fecal coliform. In 2001, the region was 

declared an emergency area and received potable water from National Guard tanker trucks. Chimayo is still an emergency area. 

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The city of Espanola’s current water system produces approximately 1,000 gallons per minute less than is needed to provide for 

its current population. This production shortfall has resulted in inadequate water pressure throughout the city. The chronic lack of 

pressure is prevalent especially in the portion of the city where the 

Espanola Hospital is located. The city has twice declared a state of 

emergency due to lack of adequate water and water pressure. As 

a result, the city has called on the National Guard to supply water 

to the hospital. Although the city of Espanola has been allocated 

1,000 acre feet per annum of San-Juan Chama Project water by the 

Bureau of Reclamation, the city is unable to divert this water due 

to inadequate water infrastructure. Instead of making use of its 

available San Juan Chama water, the city has been depleting its 

limited groundwater supplies. 

LEGISLATIVE HISTORY

S. 2511 was introduced by Senator Domenici on June 8, 2004 and 

referred to the Committee on Energy and Natural Resources. Senator Bingaman is an original cosponsor. The Subcommittee on 

Water and Power held a hearing on S. 2511 on June 17, 2004. The 

Committee on Energy and Natural Resources ordered S. 2511, 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. 2511, if 

amended as described herein. 

COMMITTEE AMENDMENT

During the consideration of S. 2511, 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 change directs the Secretary of the Interior to evaluate 

water resources on Bureau of Land Management land adjacent to 

Chimayo. 

SECTION-BY-SECTION ANALYSIS

Section 1 provides the short title, the ‘‘Chimayo Water Supply 

System and Espanola Filtration Facility Act of 2004.’’

Section 101 defines the terms used in title 1 of the Act. 

Section 102 subsection (a) directs the Secretary to conduct a 

study to determine the feasibility of constructing a water supply 

system for Chimayo. 

Subsection (b) provides criteria that the Secretary shall consider 

when conducting the study. 

Subsection (c) directs the Secretary to complete the study as soon 

as practicable but not later than three years after the date of enactment of this Act. 

Subsection (d) provides that the Federal share of the cost shall 

be 75 percent. 

Subection (e) provides that the Secretary shall coordinate the activities of the Bureau of Reclamation, the Bureau of Land ManageVerDate jul 14 2003 04:06 Aug 27, 2004 Jkt 029010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR328.XXX SR328
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ment, and the United States Geological Survey in assessing water 

resources on adjacent BLM land. 

Subsection (f) directs the Secretary to submit to Congress a report on the results of the feasibility study. 

Section 103 subsection (a) authorizes the Secretary to provide 

emergency water supply assistance to Chimayo. 

Subsection (b) lists the activities the Secretary may undertake to 

provide emergency water assistance. 

Subsection (c) provides that the Federal share of the cost shall 

be 75 percent. 

Section 104 subsection (a) authorizes to be appropriated $2,000,000 for the Chimayo water supply feasibility study and 

$3,000,000 for emergency water assistance for fiscal years 2005 

through 2009. 

Subsection (b) prohibits funds made available for the feasibility 

study from being spent on construction. 

Section 201 defines the terms used in title 2 of the Act. 

Section 202 subsection (a) directs the Secretary to provide financial assistance to the city of Espanola, New Mexico for construction 

of a water filtration facility. 

Subsection (b) provides that the Secretary may provide financial 

assistance to the Santa Clara and San Juan Pueblos for water infrastructure as a component of the facility. 

Subsection (c) provides that the Federal cost share for the filtration facility shall not exceed 25 percent. 

Subsection (d) prohibits funds made available for the filtration 

facility from being used for operation and maintenance. 

Section 203 authorizes to be appropriated for the filtration facil- ity $3,000,000 for fiscal years 2005 through 2009. 

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. 2511, the Chimayo Water 

Supply System and Espanola Filtration Facility Act of 2004. 

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. 2511—Chimayo Water Supply System and Espanola Filtrations 

Facility Act of 2004

Summary: S. 2511 would authorize the appropriation of $2 million over the 2005–2008 period for a water supply feasibility study 

for the town of Chimayo, New Mexico. The bill also would authorVerDate jul 14 2003 04:06 Aug 27, 2004 Jkt 029010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR328.XXX SR328
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ize the appropriation of $3 million over the 2005–2010 period for 

emergency water supply development assistance in the town of 

Chimayo and the Santa Cruz River Valley. For both the study and 

the development assistance, the bill would authorize the Secretary 

of the Interior to pay 75 percent of the total project costs. Finally, 

S. 2511 would authorize the appropriation of $3 million over the 

2005–2009 period for a new water filtration facility in the city of 

Espanola, New Mexico. This bill would limit the federal share of 

the cost of constructing this facility to 25 percent. 

Assuming appropriation of the authorized amounts, CBO estimates that implementing the bill would cost $8 million over the 

2005–2009 period. Enacting S. 2511 would not affect direct spending or revenues. 

S. 2511 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

The communities participating in the feasibility study and the 

water filtration project would incur costs as a result of matching 

requirements in the bill, but those costs would be incurred voluntarily. Those communities would benefit from the bill’s enactment. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 2511 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. 2511 

will be enacted near the end of 2004. Based on historical spending 

patterns of similar projects, CBO estimates that implementing this 

bill would cost $8 million over the 2005–2009 period.

By fiscal year, in millions of dollars—

2005 2006 2007 2008 2009

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level ....................................................................... 2 2 2 1 1

Estimated outlays ......................................................................................... 1 2 2 2 1

Intergovernmental and private-sector impact: S. 2511 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would impose no costs on state, local, or tribal governments. 

Estimate prepared by: Federal Costs: Julie Middleton. Impact on 

State, Local, and Tribal Governments: Leo Lex. 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. 2511. 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. 2511. 

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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. 2511. These reports had not been received at 

the time the report on S. 2511 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 Chairman, may name is John W. Keys III, Commissioner of Reclamation. I am pleased to be here today to 

present the views of the Department of the Interior (Department) regarding S. 2511, which would authorize a feasibility study for a Chimayo water supply system, and for 

planning, design, and construction of a water supply, reclamation, and filtration facility for Espanola, New Mexico. 

We share the views of the sponsor of this bill, Senator 

Domenici, regarding the importance of safe and reliable 

water supplies for cities, towns, and villages. The goals of 

the bill are commendable. While the Administration cannot support S. 2511 in its current form, we do think that 

it points out the urgency for Congress to enact rural water 

legislation now pending before the Senate. Both the 

Espanola and Chimayo communities may directly benefit 

from establishment of a systematic rural water program 

within Reclamation. 

Rural water legislation would provide Reclamation with 

authority and guidelines to assist rural communities as 

they develop proposals for rural water solutions based on 

sound economics and best practices. Among three separate 

versions of rural water legislation now pending before the 

U.S. Senate, there is bi-partisan, interbranch consensus 

that the federal cost share should not exceed 50% for planning on rural water projects, at least until a capability-topay analysis that is consistently utilized indicates that a 

different cost-share is more equitable. 

The rural water legislation would provide a mechanism 

for Reclamation and the communities to calculate that capability to pay for both construction and operation and 

maintenance. This helps in two ways. Reclamation and 

Congress will be able to identify fair construction costsharing requirements, and local sponsors will be able to 

objectively assess whether they will have the resources to 

properly operate and maintain projects constructed under 

the program. 

By contrast, Title I of S. 2511 provides that any assistance or grants for Chimayo would be made on a non-reimbursable basis, and with only a 25 percent local cost-sharing requirement. 

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Title II of the bill directs the Secretary of the Interior, 

acting through the Bureau of Reclamation to provide financial assistance to the city of Espanola, New Mexico, for 

the construction of an Espanola water filtration facility. 

Reclamation has already provided financial assistance of about $400,000 to the City of Espanola to perform a feasibility study, including environmental reviews under the 

National Environmental Policy Act. However, Reclamation 

has not yet received the feasibility study from the City of 

Espanola required under Section 1604 for review and acceptance. We believe this is a critical step that should precede construction authorization of the proposed filtration 

facility for three reasons: (1) Reclamation has not yet reviewed the feasibility study for adequacy; (2) the feasibility 

report never contemplated providing water to Chimayo; 

and (3) the Espanola feasibility study may need to be expanded to include these additional concerns. 

Until these questions are resolved, construction authorization is not appropriate. Reclamation believes that after 

reviewing the feasibility study provided by Espanola, we 

would be in a far better position to help shape legislation 

to authorize construction. Furthermore, regarding the 

Chimayo project, with which we are only minimally familiar, the needs of the Community may be better met by one 

of the other numerous Federal rural water programs. 

Thank you, Madam Chairman, 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. 2511, as ordered reported.

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