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[House Report 108-668]
[From the U.S. Government Publishing Office]

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.--
          (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 non-Federal 
                        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 non-Federal 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 participate in the funding and implementation of a 
balanced, long-term 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.

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.
    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.

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.

                        CHANGES IN EXISTING LAW

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

                                  
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