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[Senate Report 106-437]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 882
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-437

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                       DENVER WATER REUSE PROJECT

                                _______
                                

               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. 1848]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1848) 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 Denver Water Reuse project, 
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. DENVER WATER REUSE PROJECT.

    (a) Authorization.--The Secretary of the Interior, in cooperation 
with the appropriate State and local authorities, may participate in 
the design, planning, and construction of the Denver Water Reuse 
Project (``Project'') to reclaim and reuse water in the service area of 
the Denver Water Department of the city and county of Denver, Colorado.
    (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.

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

    Design, planning, and construction of the Project authorized by the 
Act 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.

    2. Amend the title so as to read: ``To authorize the 
Secretary of the Interior, pursuant to the provisions of the 
Reclamation Wastewater and Groundwater to participate in the 
design, planning, and construction of the Denver Water Reuse 
project.''

                         purpose of the measure

    The purpose of S. 1848 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 Denver Water Reuse 
Project.

                          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 the 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 Denver Nonpotable Reuse Project will treat secondary 
wastewater for irrigation and industrial uses around the Denver 
International Airport and Rocky Mountain Wildlife Refuge. The 
project ultimately is designed to provide 15,000 acre feet, 
freeing up potable supplies for 30,000 homes. The reuse will 
also aid Denver in complying with the Blue River Decree, signed 
by the Secretary of the Interior, under which Denver conveys 
water from Colorado's western slope to its eastern slope 
customers. The total project cost for all three phases is about 
$100 million. Under the cost-share limitations of Public Law 
104-566, the Federal funding contribution will be limited to 
$20 million, notwithstanding the 25 percent limitation in the 
legislation.

                          legislative history

    S. 1848 was introduced by Senator Campbell on November 3, 
1999. The Subcommittee on Water and Power held a hearing on 
June 21, 2000. At the business meeting on September 20, 2000, 
the Committee on Energy and Natural Resources ordered S. 1848, 
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. 
1848, if amended as described herein.

                          committee amendment

    During the consideration of S. 1848, the Committee adopted 
an amendment in the nature of a substitute that rewrites the 
legislation to make it a freestanding bill, rather than 
amending title 16 of Public Law 102-575, which established the 
Wastewater reclamation program. The title of the bill was also 
amended to reflect that change.

                   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. 1848. 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. 1848, as ordered reported.

                       executive communications.

    On June 16, 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. 1848. These 
reports had not been received at the time the report on S. 1848 
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. 1848, concerning the Denver 
Water Reuse Project. My name is Eluid Martinez. I am 
Commissioner of the U.S. Bureau of Reclamation (Reclamation).
    S. 1848 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 Denver Water Reuse Project in 
the service area of the Denver Water Department in the city and 
County of Denver, Colorado. S. 1848 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 descried below.
    Mr. Chairman, in 1992, Congress adopted, and the President 
signed, the Reclamation Projects Authorization and Adjustment 
Act (Public Law 192-575). 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 of Public Law 102-575 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, 
Congress has provided funding to construct 14 of these 
projects, and to conduct feasibility studies on an additional 
three projects.
    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 of the Reclamation program, such as 
reducing the demand on existing Federal water supply 
facilities.
    The Department also opposes enactment of this legislation 
because authorizing new projects is likely to place an 
additional burden on Reclamation's already tight budget. To 
date, Reclamation has been unable to provide the full 
authorized funding amounts for any of the water reclamation and 
reuse projects presently authorized by Title XVI. At current 
funding levels, it will take Reclamation more than 10 years to 
complete funding of the 24 currently authorized projects.
    For all of the above 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. 1848, as 
ordered reported.

                                  
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