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[Senate Report 106-438]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 883
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-438

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    RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES ACT

                                _______
                                

               September 29, 2000.--Ordered to be printed

   Filed under authority of the order of the Senate of September 28 
                 (legislative day, September 22), 2000

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

                              R E P O R T

                         [To accompany S. 2195]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2195) to amend the Reclamation Wastewater 
and Groundwater Study and Facilities Act to authorize the 
Secretary of the Interior to participate in the design, 
planning, and construction of the Truckee watershed reclamation 
project for the reclamation and reuse of water, having 
considered the same, reports favorably thereon with an 
amendment and an amendment to the title and recommends that the 
bill, as amended, do pass.
    The amendments are as follows:
    1. Strike out all after the enacting clause and insert in 
lieu thereof the following:

SECTION 1. TRUCKEE WATERSHED RECLAMATION PROJECT

    (a) Authorization.--The Secretary of the Interior, in cooperation 
with Washoe County, Nevada, may participate in the design, planning, 
and construction of, the Truckee watershed reclamation project, 
consisting of the North Valley Reuse Project and the Spanish Springs 
Valley Septic Conversion Project, (``Project'') to reclaim and reuse 
wastewater (including degraded ground water) within and without the 
service area of Washoe County, Nevada.
    (b) Cost Share.--The Federal share of the cost of the Project shall 
not exceed 25 percent of the total cost.
    (c) Limitation.--Funds provided by the Secretary shall not be used 
for the operation or maintenance of the Project.
    (d) Funding.--Funds appropriated pursuant to section 1615 of the 
Reclamation Wastewater and Groundwater Study and Facilities Act may be 
used for the Project (106 Stat. 4663-4669, 43 U.S.C. 390h et seq.), as 
amended.

SEC. 2. RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES ACT

    Design, planning, and construction of the Project shall be in 
accordance with, and subject to the limitations contained in, the 
Reclamation Wastewater and Groundwater Study and Facilities Act (106 
Stat. 4663-4669, 43 U.S.C. 390h et seq.), as amended.
    Amend the title so as to read: ``To authorize the Secretary 
of the Interior, pursuant to the provisions of the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
participate in the design, planning, and construction of the 
Truckee watershed reclamation project for the reclamation and 
reuse of water.''

                         purpose of the measure

    The purpose of S. 2195 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
design, planning, and construction of the Truckee watershed 
reclamation project for the reclamation and reuse of water.

                          background and need

    Title XVI of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (P.L. 102-575, 106 Stat. 4006) 
authorized a program of wastewater reclamation and reuse 
feasibility and demonstration projects within the Reclamation 
States. The Federal share of costs was limited to 50 percent. 
In addition, several individual studies were directed as well 
as 5 projects (San Jose, Phoenix, San Diego, Los Angeles, and 
San Gabriel Basin) for which funding was limited to 25 percent. 
The legislation was directed at reuse of existing supplies and 
did not address desalination, although title XI did authorize a 
program to research and demonstrate methods for control of 
salinity at the Salton Sea in California with 50 percent 
Federal cost-sharing. Partially in response to the number of 
requests for participation in the program and the costs, P.L. 
104-266 modified the program to limit Federal contributions to 
25 percent of the total cost, with a maximum of $20 million, 
and required a feasibility analysis prior to the expenditure of 
any funds for construction. The new requirements were not made 
applicable to several very large projects, mainly in 
California, authorized under title XVI. The 1996 Act also 
included authorization for 18 additional water reclamation and 
reuse projects in California, Utah, New Mexico, Nevada, and 
Texas. Title XVI was again amended in October 1998 by P.L. 105-
321 to include authorization for the Willow Lake Natural 
Treatment System Project in Oregon.
    The use of reclaimed water in the arid West is significant, 
especially in areas experiencing groundwater overdraft or 
facing reduced freshwater supplies. While municipal uses are 
the primary benefits of the program, there can be significant 
indirect benefits for other consumptive uses, such as 
agriculture, and non-consumptive uses, such as augmenting in-
stream flows or reducing depletions.

The Truckee watershed reclamation project

    The Truckee Watershed Reclamation Project contains two 
separate components: the North Valley Reuse Project in Lemmon 
Valley, Nevada, and the Spanish Springs Valley Septic 
Conversion Project in Washoe County, Nevada. Both of these 
components were identified in a recently completed Regional 
Water Management Plan, developed by staff the cities of Reno 
and Sparks, Washoe County and Sierra Pacific Power Company, the 
dominant water purveyor in the region.

North Valley reuse project

    Lemmon Valley is located immediately north of Reno, Nevada 
and is separated into two distinct hydrobasins; the west basin 
lies primarily within the City of Reno, and the east basin lies 
primarily within unincorporated Washoe County. Both basins have 
limited groundwater and surface water resources.
    The use of reclaimed wastewater effluent within Lemmon 
Valley can reduce the region's current dependence on 
groundwater for irrigation purposes. The city of Reno and 
Washoe County plan to design and construct wastewater effluent 
reuse facilities necessary to convey treated wastewater to the 
region's recreation sites that currently hold groundwater 
rights for irrigation. Once the new effluent reuse system is 
operational, groundwater currently dedicated for irrigation 
purposes can be utilized as a reliable supplement to the 
region's potable water resources.
    Both Washoe County and the city of Reno operate wastewater 
facilities in the Lemmon Valley region. Approximately 2 miles 
separate the facilities. The Reno facility is designed to treat 
1.3 million gallons of wastewater per day. The city is 
currently modernizing and expanding the facility's treatment 
process, including the design of a new wastewater effluent 
reuse delivery system.
    Washoe County operates the Lemmon Valley Wastewater 
Treatment Facility. This facility treats an average of 240,000 
gallons of wastewater per day, and is projected to reach its 
current design capacity of 300,000 gallons per day by 2002. At 
that time, the facility will require major renovations, or 
complete abandonment and replacement. The facility currently 
does not have a beneficial effluent reuse system; rather 
treated effluent is disposed of in ponds designed to allow the 
wastewater to evaporate. The current cumulative water allowed 
to evaporate each year from the ponds is approximately 265 acre 
feet, or roughly the amount of water needed annually to 
irrigate 80 acres of grass.
    Washoe County and the city of Reno propose that the Lemmon 
Valley facility be closed when it reaches its treatment 
capacity in 2002. Wastewater currently being treated at the 
site would then be pumped 2 miles to the Reno facility for 
treatment. In 1996, CH2M Hill was retained to 
evaluate the feasibility to close the Lemmon Valley facility 
and combine treatment operations of the two facilities at the 
Reno facility. CH2M Hill determined that combining 
wastewater treatment at Reno was cost effective for sewer users 
due to lower capital and O&M costs compared to separate 
operation. More importantly, decommissioning the Lemmon Valley 
facility and pumping its wastewater to Reno for treatment would 
allow for more reclaimed effluent to be used in Reno's effluent 
reuse system, which would be beneficial to the entire Lemmon 
Valley area.
    Money from sources other than selling reuse water to 
replace potable supplies is needed to start the decommissioning 
process and construct the pump station, pipeline and plant 
expansion. Once these facilities are constructed, a revenue 
source would exist to pay for O&M and enhanced recycled water 
distribution due to the increased supply for recycled water. 
The title XVI funds would be used for this initial 
capitalization.

Spanish Springs project

    Currently over 1,900 homes in the Washoe County portion of 
Spanish Springs Valley are on individual septic systems. Sixty-
six percent of these septic systems are on lots less than 1 
acre and 97 percent of them are on lots of less than 2 acres. A 
recent USGS report commissioned by the Washoe County Regional 
Water Planning Commission (RWPC) identified nitrogen 
contamination of municipal and domestic wells in the area. The 
source of the nitrogen was confirmed to originate from septic 
tank discharge. As a result, the Nevada Division of 
Environmental Protection hasdirected Washoe County to develop a 
plan to bring a sewer system to the area. The county has eighteen 
months to develop a facility plan to alleviate the nitrogen 
contamination problem. Relocating wells will not be considered 
mitigation, only the elimination of the contaminant source.
    Newer subdivisions have brought a sewer interceptor to the 
area creating an opportunity to connect the existing homes, 
most of which are less than 20 years old. Another interceptor 
is being designed and would be available to convey additional 
flows to the Truckee Meadows Water Reclamation Facility. A 
study commissioned by the RWPC has developed a preliminary plan 
to connect these homes as mandated by the State. Costs 
estimates for doing so range from $10,000 to $13,000 per house, 
including a hook-up fee of $4700.
    The mandate to bring a sewer system to these homes requires 
Washoe County to develop an implementable plan by February 
2002. This plan would include a financial plan that requires 
the individual homeowners to contribute monthly payments as a 
revenue source to pay off a low interest loan obtained from the 
State of Nevada. Any grants to reduce these costs will reduce 
the impact to the homeowners. Potential sources of funding, in 
addition to title XVI funding, include wellhead protection 
grants and community development block grants.

                          legislative history

    S. 2195 was introduced by Senator Reid on March 7, 2000. 
The Subcommittee on Water and Power held a hearing on July 11, 
2000. At the business meeting on September 20, 2000, the 
Committee on Energy and Natural Resources ordered S. 2195, as 
amended, favorably reported.

            committee recommendation and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on September 20, 2000, by a unanimous voice 
vote with a quorum present, recommends that the Senate pass S. 
2195, if amended as described herein.

                          committee amendment

    During the consideration of S. 2195, the Committee adopted 
an amendment in the nature of a substitute that amends the 
legislation to make it a freestanding bill, rather than 
amending the existing title 16 Act of Public Law 102-575. The 
substitute amendment also specifies the two components of the 
project to be authorized. They are the North Valley Reuse 
Project and the Spanish Springs Valley Septic Conversion 
Project. The title of the bill is also amended. The 
authorization for this wastewater reuse project is limited to 
two specific projects--The North Valley Reuse Project and the 
Spanish Springs Valley Septic Conversion Project. The third 
project described in testimony at the July 11, 2000 Water and 
Power Subcommittee hearing, the Truckee River Channel 
Restoration Project, is specifically excluded from this 
authorization.

                   cost and budgetary considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      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. 2195. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic 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. 2195, as ordered reported.

                        executive communications

    On May 10, 2000, 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 agency recommendations on S. 2195. These 
reports had not been received at the time the report on S. 2195 
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 
Commissioner of the Bureau of Reclamation at the Subcommittee 
hearing follows:

 Statement of Eluid L. Martinez, Commissioner, Bureau of Reclamation, 
                       Department of the Interior

    Thank you for the opportunity to appear today to provide 
the Administration's views on S. 2195, concerning the Truckee 
(Nevada) watershed reclamation project. My name is Eluid 
Martinez. I am Commissioner of the U.S. Bureau of Reclamation 
(Reclamation).
    S. 2195 would amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act (43 U.S.C. 390h et seq.) 
[Title XVI of P.L. 102-575 (1992)] to authorize the Secretary 
of the Interior (Secretary) to participate in the design, 
planning, and construction of the Truckee watershed reclamation 
project in Washoe County, Nevada. S. 2195 limits the Federal 
share of project costs to 25 percent of the total costs and 
restricts the Secretary from providing funding for the 
operation and maintenance of this project. While Reclamation 
strongly encourages local water recycling efforts, we must 
oppose authorizing this additional Federal recycling project 
for the reasons described below.
    Mr. Chairman, in 1992, Congress adopted, and the President 
signed, the Reclamation Projects Authorization and Adjustment 
Act (Public Law 102-575). Title XVI of this Act, the Wastewater 
and Groundwater Study and Facilities Act, authorized the 
construction of five water reclamation and reuse projects. Four 
of these projects are in California and the fifth is in 
Arizona. The Secretary was also authorized to undertake a 
program to identify other water recycling opportunities 
throughout the 17 western United States, and to conduct 
appraisal level and feasibility level studies to determine if 
those opportunities are worthy of implementation. The Bureau of 
Reclamation has been administering a grant program to fund 
these Title XVI projects since FY 1994.
    In 1996, Public Law 104-266, the Reclamation Recycling and 
Water Conservation Act was enacted into law. This Act amended 
Title XVI and authorized the Secretary to participate in the 
planning, design, and construction of 18 additional projects, 
including two desalination research and development projects. 
These new projects are distributed within five states, 
including California, Nevada, Utah, Texas, and New Mexico. 
Title XVI was further amended in 1998 by Public Law 105-321 to 
authorize Reclamation to participate in the design, planning, 
and construction of the Willow Lake Natural Treatment System 
Project in Salem, Oregon. To date, of the 24 specifically 
authorized projects, 17 have received funding, 13 for 
construction and four (4) for feasibility studies. In addition, 
Congress has provided Reclamation funding to construct two 
research and demonstration projects, and to participate in 
appraisal level or feasibility level studies for more than ten 
other potential projects that have yet to be authorized for 
construction.
    Municipal, industrial, domestic, and agricultural 
wastewater reuse efforts can assist states and local 
communities in solving contemporary water supply problems. 
However, the Department opposes authorizing additional projects 
in the absence of feasibility studies to determine whether 
these particular projects warrant Federal funding. In general, 
Reclamation places priority on funding new projects that (1) 
are economically justified and environmentally acceptable in a 
watershed context; (2) are not eligible for funding under 
another Federal program; and (3) directly address 
Administration priorities for the Reclamation program, such as 
reducing the demand on existing Federal water supply 
facilities.
    S. 2195 would also increase outstanding Federal obligations 
for the water reclamation and reuse projects already authorized 
by Congress. These currently authorized projects are estimated 
to cost approximately $3 billion, and the Federal government's 
share of these costs is well in excess of $500 million. 
Although more than $188 million has been appropriated to 
Reclamation for 17 of the 24 currently authorized projects, 
that amount represents only about a third of the potential 
Federal contribution for the ongoing projects. At current 
funding levels, it will take Reclamation more than 10 years to 
complete the funding of the 24 currently authorized projects.
    For these reasons, the Department of the Interior cannot 
support authorizing this new construction request.
    This concludes my prepared testimony. I would be happy to 
answer any questions.

                        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. 2195, as 
ordered reported.

                                  
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