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[Senate Report 113-230]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 517
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-230

======================================================================

 
                  SECURE WATER AMENDMENTS ACT OF 2014

                                _______
                                

                 July 31, 2014.--Ordered to be printed

                                _______
                                

   Ms. Landrieu, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2019]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2019) to reauthorize and update certain 
provisions of the Secure Water Act, having considered the same, 
reports favorably thereon with amendments and recommends that 
the bill, as amended, do pass.
    The amendments are as follows:
    1. On page 2, strike lines 24 and 25 and insert the 
following: to carry out this section $100,000,000''.
    2. On page 3, strike lines 6 through 8 and insert the 
following: by striking ``2009 through 2013'' and inserting 
``2014 through 2018''.

                                Purpose

    The purpose of S. 2019 is to reauthorize and update certain 
provisions of the Secure Water Act.

                          Background and Need

    The Department of the Interior's WaterSMART program is a 
key component of the Bureau of Reclamation's implementation of 
the SECURE Water Act of 2009 (42 U.S.C. 10361 et seq.). It 
includes grants to fund locally cost-shared water management 
improvements that save significant amounts of water. Completed 
WaterSMART grant projects and other conservation activities are 
already saving an estimated 616,000 acre-feet per year of 
water--enough water for more than 2.4 million people. 
WaterSMART grants leverage non-federal investment at greater 
than a 2:1 ratio.
    Authorized appropriations for WaterSMART grants will likely 
be fully expended this year. To ensure that the Bureau of 
Reclamation can continue to operate this program, S. 2019 is 
needed to increase the authorization ceiling, to clarify that 
activities to plan for and reduce the impacts of drought are 
eligible for WaterSMART grants, and to make projects in the 
State of Hawaii eligible for grants.
    This bill also amends section 9508 of the Secure Water Act 
of 2009 (42 U.S.C. 10368) to extend the authorization for the 
program through FY 2018. This program will provide resources 
for states to gather and analyze water supply and use 
information in a consistent manner, which would create a 
uniform, dependable national assessment of water availability 
and use.

                          Legislative History

    Senators Schatz, Heinrich, Hirono, Udall of Colorado, Udall 
of New Mexico, and Wyden introduced S. 2019 on February 12, 
2014. The Subcommittee on Water and Power held a hearing on S. 
2019 (S. Hrg. 113-284) on February 27, 2014. At its business 
meeting on June 18, 2014, the Senate Energy and Natural 
Resources Committee ordered S. 2019 favorably reported with two 
amendments.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on June 18, 2014, by a voice vote of a 
quorum present, recommends that the Senate pass S. 2019, if 
amended as described herein. Senators Lee and Scott asked to be 
recorded as voting no.

                          Committee Amendments

    During its consideration of S. 2019, the committee adopted 
two amendments. The first amendment strikes the authorization 
of ``such sums as are necessary'' and inserts an authorization 
limit of $100 million. The second amendment reduces the period 
during which funds are authorized to carry out the grant 
program in section 9508(c) of the Omnibus Public Land 
Management Act of 2009 from 10 years to 5 years.

                      Section-by-Section Analysis

    Section 1 provides a short title.
    Section 2(a)(1) amends section 9504 of the Omnibus Public 
Land Management Act of 2009 (42 U.S.C. 10364) to allow the 
Secretary to provide grants and cooperative agreements that 
plan for or address the impacts of drought and to expand the 
applicant eligibility to include those from Hawaii.
    Subsection 2(a)(2) amends authorization of the 
appropriations to be $100,000,000.
    Section 3 amends section 9508(e)(2) of the Omnibus Public 
Land Management Act of 2009 (42 U.S.C. 10368(e)(2)) to 
authorize appropriations to carry out the State water resource 
agencies grant program for the period of fiscal years 2014 
through 2018.

                   Cost and Budgetary Considerations

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

S. 2019--SECURE Water Amendments Act of 2014

    Summary: S. 2019 would authorize the Bureau of Reclamation 
to provide grants to eligible nonfederal partners to carry out 
projects to mitigate drought conditions, conserve water, and 
restore watersheds in 17 western states, certain U.S. 
Territories, and Hawaii. The bill also would authorize grants 
to state water agencies to develop and maintain data on water 
availability. S. 2019 would authorize the appropriation of $113 
million for those activities.
    Based on information from the Bureau of Reclamation, and 
assuming appropriation of specified amounts, CBO estimates that 
implementing S. 2019 would cost $111 million over the 2015-2019 
period. Enacting S. 2019 would not affect direct spending or 
revenues; therefore pay-as-you-go procedures do not apply.
    S. 2019 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of S. 2019 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--
                                                    ------------------------------------------------------------
                                                       2015      2016      2017      2018      2019    2015-2019
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
WaterSMART Grants:
    Estimated Authorization Level..................        25        35        30        10         0        100
    Estimated Outlays..............................        15        27        31        19         7         99
State Water Agency Grants:
    Estimated Authorization Level..................         3         3         3         3         0         13
    Estimated Outlays..............................         2         3         3         3         1         12
    Total Changes:
        Estimated Authorization Level..............        28        38        33        13         0        113
        Estimated Outlays..........................        17        30        34        22         8        111
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes that S. 
2019 will be enacted near the end of fiscal year 2014 and that 
the authorized amounts will be appropriated over the next four 
years. Estimated outlays are based on historical spending 
patterns for those activities.
    Under current law, the bureau provides grants to nonfederal 
partners in 17 western states and certain U.S. Territories--
subject to a 50 percent cost share--to design and construct 
projects to conserve water, generate renewable energy, and 
restore watersheds. In fiscal year 2014, appropriations for 
that program--known as WaterSMART--reached the current 
authorization ceiling of $200 million. S. 2019 would authorize 
the appropriation of an additional $100 million for the 
program. The bill also would make nonfederal partners in Hawaii 
eligible to participate in WaterSMART and clarify that drought 
planning is an authorized activity under the program.
    S. 2019 would reauthorize a water assessment program that 
provides grants to state agencies to develop and integrate data 
about water availability for local planners. In addition to 
reauthorizing the program--which expired in 2013--the bill 
would authorize the appropriation of $12.5 million for the 
program.
    Based on information from the bureau, CBO estimates that 
implementing those provisions would cost $111 million over the 
2015-2019 period, assuming appropriation of specified amounts.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: S. 2019 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal entities would 
benefit from federal grants and cooperative agreements 
authorized in the bill that would support water management and 
assessment programs. Any costs to those entities, including 
matching funds, would be incurred voluntarily as a condition of 
receiving federal assistance.
    Estimate prepared by: Federal Costs: Aurora Swanson; Impact 
on State, Local, and Tribal Governments: Jon Sperl; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, 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. 2019.
    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. 2019, as ordered reported.

                   Congressionally Directed Spending

    S. 2019, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony provided by the Bureau of Reclamation at the 
February 27, 2014 Subcommittee on Water and Power hearing on S. 
2019 follows:

   Statement of Robert Quint, Senior Advisor, Bureau of Reclamation, 
                       Department of the Interior

    Chairman Schatz and members of the Subcommittee, I am Bob 
Quint, Senior Advisor at the Bureau of Reclamation 
(Reclamation). Thank you for the opportunity to provide the 
views of the Department of the Interior (Department) on S. 
2019. The bill would raise the authorization ceiling for water 
and energy conservation grants under the Secure Water Act of 
2009 (42 USC 10364(e)), clarify that activities related to 
drought are authorized under the program, and revise the 
program's eligibility to include the State of Hawaii as 
discussed below. The Department supports this bill.
    Reclamation owns and operates water projects that promote 
and sustain economic development within the 17 Western States. 
The mission of Reclamation is to manage, develop, and protect 
water and related resources in an environmentally and 
economically sound manner in the interest of the American 
public. Since it was established in 1902, Reclamation has 
constructed more than 600 dams and reservoirs including Hoover 
Dam on the Colorado River and Grand Coulee on the Columbia 
River. Reclamation is the largest wholesaler of water in the 
country, delivering water to more than 31 million people, and 
providing one out of five western farmers with irrigation water 
for 10 million acres of farmland across the United States. 
Reclamation is also the second largest producer of 
hydroelectric power in the United States, and provides 
significant amounts of renewable energy to customers throughout 
the West.
    On February 10, 2010, Secretary Ken Salazar signed a 
Secretarial order establishing the Department's WaterSMART 
Initiative, which implements the Secure Water Act. The 
``SMART'' in WaterSMART stands for ``Sustain and Manage 
America's Resources for Tomorrow.'' The WaterSMART Program 
includes WaterSMART Grants, Reclamation's Basin Studies, 
Landscape Conservation Cooperatives, West-Wide Climate Risk 
Assessments, the Title XVI Water Reclamation and Recycling 
program, the Cooperative Watershed Management Program, the 
Water Conservation Field Service Program, USGS's Water 
Availability and Use Assessments, and the WaterSMART 
Clearinghouse. Through the WaterSMART Program, the Department 
works with states, tribes, local governments, and non-
governmental organizations to secure and stretch water supplies 
for use by existing and future generations to benefit people, 
the economy, and the environment and will identify measures 
needed to address climate change and future demands.
    WaterSMART activities are the most effective means the 
Department of the Interior has to assist state and local water 
providers and users address volatility of supplies, economic 
security, and create resilience in the face of climate change. 
WaterSMART allows the Department to provide incentives and 
tools to achieve sustainable supplies, while supporting water 
managers who make their own decisions about what programs and 
activities will be the best and most practical fit in their 
particular watersheds.
    WaterSMART Grants are directly aligned with the 
Department's Priority Goal for Water Conservation: to enable 
capability to increase the available water supply to 730,000 
acre-feet of water savings per year by September 2013 and to a 
cumulative goal of 790,000 acre-feet by September 2014. 
Reclamation has met the September 2013 goal and is on track to 
meet the 2014 target: together, projects funded through 
WaterSMART and Reclamation's other water conservation 
activities from 2010 through 2013 are expected to result in 
over 734,000 acre-feet of water savings per year. This would 
not have been possible without the ingenuity and 
resourcefulness of our water and power customers who apply for 
and implement WaterSMART's water and energy efficiency grant 
projects at the district level. The projects funded by the 
WaterSMART program not only play a major role in helping 
minimize the effects of drought on the environment and 
agriculture and urban communities, but also contributes to 
drought resiliency.
    WaterSMART also acknowledges the nexus between energy and 
water use. In addition to saving water, WaterSMART Grant 
projects from 2010-2013 are expected by their sponsors to save 
over 45 million kilowatt-hours annually--enough power for 3,900 
households--and additional savings are expected in the future. 
Additional milestones are described in the program's three-year 
progress report, online at http://www.usbr.gov/WaterSMART.
    Reclamation is committed to continuing WaterSMART, and it 
is anticipated that the program will exhaust its authorized 
appropriations for WaterSMART Grants. Therefore, in order to 
continue use of this highly valuable and continually 
oversubscribed program, which is significantly contributing to 
drought resiliency in the West, an increase in the 
authorization ceiling will be needed. S. 2019 would amend 
Section 9504(e) of the Secure Water Act, raising the ceiling 
from $200 million to an authorization to be appropriated such 
sums as are necessary to carry out this section for each of 
fiscal years 2015 through 2023. A ceiling raise is consistent 
with part of the Appropriations language section of 
Reclamation's FY 2014 budget request. A ceiling raise to $250 
million, as was included in the budget request, would ensure 
that these important water management improvements could 
continue temporarily but would not likely allow for funding 
beyond 2016. For that reason, Reclamation supports the language 
in S. 2019 to authorize funding for the program through 2023.
    Section 2 of S. 2019 would make clear that Section 9504(a) 
authorizes Reclamation to provide financial assistance to plan 
for or address the impacts of drought. Reclamation shares the 
sponsor's view that activities related to drought are 
appropriately addressed under this section and appreciates the 
clarification of this authority.
    Section 2 of S. 2019 would also revise the eligibility 
language in the Secure Water Act to allow entities located in 
Hawaii to be eligible for WaterSMART grant funding 
opportunities. WaterSMART Grants funding opportunity 
announcements have been limited to the States and U.S. 
Territories identified under 43 U.S.C. Sec. 391. With a number 
of exceptions, Reclamation's primary mission has generally been 
constrained to the 17 continental Western States, which all 
share an arid climate and a well-established history of prior 
appropriations water rights doctrines. One such exception is 
the State of Hawaii, which shares many of the same features as 
the U.S. Territories, and also already participates in several 
Reclamation programs such as the Title XVI program, limited 
application of the Reclamation States Emergency Drought Relief 
Program, and water resource studies authorized under P.L. 106-
566 and P.L. 102-575. However, Reclamation notes that we do not 
support adding additional states to the WaterSMART program at 
this time, as the piece-meal incorporation of additional states 
would be a significant expansion of Reclamation's mission when 
the agency is already struggling to fulfill its commitments 
within its traditional and currently authorized area of 
operations. For these reasons, the Department believes that 
this expansion of authority should be limited to the State of 
Hawaii.
    Finally, Section 3 of S. 2019 would extend the authority of 
the Secretary to provide grants to State water resource 
agencies. This authority ran out in 2013 and the Department 
supports the language in Section 3 that extends the grant 
program in Section 9508(c) for another decade for such sums as 
may be necessary to remain available until expended. The 
valuable partnership with State water resource agencies is a 
critical national asset for determining water availability 
nationwide.
    In conclusion, the Department is committed to continuing 
the WaterSMART Program, as the Federal government has a 
responsibility to provide leadership and tools to address the 
increasing and widespread challenges of imbalance between 
supply and demand. Sustainable water supplies are the 
underpinning of a stable economic base, employment continuity, 
and smart growth. We can provide incentives to encourage water 
conservation and reuse, leadership in new technology to 
increase usable supplies, and assistance for ecosystem 
restoration efforts that increase the certainty of water 
supplies for the future. All of these efforts depend on 
partnerships with local utilities, states, tribes, and others.
    This concludes my statement. Again, the Department supports 
S. 2019. I would be pleased to answer questions at the 
appropriate time.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 2019, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

               OMNIBUS PUBLIC LAND MANAGEMENT ACT OF 2009

                           Public Law 111-11

    AN ACT To designate certain land as components of the National 
   wilderness Preservation System, to authorize certain programs and 
  activities in the Department of the Interior and the Department of 
                  Agriculture, and for other purposes

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Omnibus 
Public Land Management Act of 2009''.

           *       *       *       *       *       *       *

TITLE IX--BUREAU OF RECLAMATION AUTHORIZATIONS

           *       *       *       *       *       *       *

Subtitle F--Secure Water

           *       *       *       *       *       *       *

SEC. 9504. WATER MANAGEMENT IMPROVEMENT.

    (a) Authorization of Grants and Cooperative Agreements.--
          (1) Authority of secretary.--The Secretary may 
        provide any grant to, or enter into an agreement with, 
        any eligible applicant to assist the eligible applicant 
        in planning, designing, or constructing any 
        improvement--

           *       *       *       *       *       *       *

                  (H) To carry out any other activity--
                          (i) to address any climate-related 
                        impact to the water supply of the 
                        United States that increases ecological 
                        resiliency to the impacts of climate 
                        change; [or]
                          (ii) to prevent any water-related 
                        crisis or conflict at any watershed 
                        that has a nexus to a Federal 
                        reclamation project located in a 
                        service area [.]; or
                          (iii) to plan for or address the 
                        impacts of drought.
          (2) Application.--To be eligible to receive a grant, 
        or enter into an agreement with the Secretary under 
        paragraph (1), an eligible applicant shall--
                  [(A) be located within the States] (A) be 
                located in--
                          (i) the States and areas referred to 
                        in the first section of the Act of June 
                        17, 1902 (43 U.S.C. 391)[; and] ; or
                          (ii) the State of Hawaii; and
                  (B) submit to the Secretary an application 
                that includes a proposal of the improvement or 
                activity to be planned, designed, constructed, 
                or implemented by the eligible applicant.

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--
          [There is authorized to be appropriated to carry out 
        this section $200,000,000] There are authorized to be 
        appropriated to carry out this section $100,000,000, to 
        remain available until expended.

           *       *       *       *       *       *       *

SEC. 9508. NATIONAL WATER AVAILABILITY AND USE ASSESSMENT PROGRAM.

    (a) Establishment.--The Secretary, in coordination with the 
Advisory Committee and State and local water resource agencies, 
shall establish a national assessment program to be known as 
the ``national water availability and use assessment 
program''--

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--
          (1) In general.-- There is authorized to be 
        appropriated to carry out subsections (a), (b), and (d) 
        $20,000,000 for each of fiscal years 2009 through 2023, 
        to remain available until expended.
          (2) Grant program.--There is authorized to be 
        appropriated to carry out subsection (c) $12,500,000 
        for the period of fiscal years [2009 through 2013] 2014 
        through 2019, to remain available until expended.

           *       *       *       *       *       *       *

                                  
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