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[Senate Report 111-275]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 545
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-275

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    RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES ACT

                                _______
                                

                 August 5, 2010.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 2741]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 2741) to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
City of Hermiston, Oregon, water recycling and reuse project, 
and for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the Act 
do pass.

                                Purpose

    The purpose of H.R. 2741 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize the Secretary of the Interior to participate in the 
City of Hermiston, Oregon, water recycling and reuse project, 
and for other purposes.

                          Background and Need

    The City of Hermiston is located in an agricultural area of 
Eastern Oregon and plans to use reclaimed water to replace 
other water the City currently supplies to a neighboring 
irrigation district for irrigation purposes. The City will 
utilize the Bureau of Reclamation's Title XVI program to assist 
with funding to construct upgrades at its existing water 
treatment plant. The upgraded facility will allow the City to 
maintain compliance with its National Pollutant Discharge 
Elimination System discharge permit required by section 402 of 
the Clean Water Act by providing a new source of clean, 
recycled water that can be supplied to the Umatilla River to 
augment river flows instead of relying on pumped groundwater. 
H.R. 2741 adds an additional project to the list of authorized 
Title XVI projects. Federal funding contributions are limited 
to 25% of the project costs, or $20 million, whichever is less.

                          Legislative History

    H.R. 2741, sponsored by Representative Walden, passed the 
House of Representatives by voice vote on September 23, 2009. 
Companion legislation, S. 1573, was introduced by Senator Wyden 
on August 4, 2009. The subcommittee on Water and Power held a 
hearing on H.R. 2741 and S. 1573 on April 27, 2010. The 
Committee on Energy and Natural Resources considered H.R. 2741 
at its business meeting on June 16, 2010, and ordered it 
favorably reported without amendment at its business meeting on 
June 21, 2010.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on June 21, 2010, by voice vote of a quorum 
present, recommends that the Senate pass H.R. 2741.

                      Section-by-Section Analysis

    Section 1 amends the Reclamation Wastewater and Groundwater 
Study and Facilities Act, Title XVI of Public Law 102-575, by 
adding a new section authorizing the Secretary of the Interior 
to participate in the design, planning, and construction of 
permanent facilities to reclaim and reuse water in the City of 
Hermiston, Oregon, with a federal cost-share not to exceed 25 
percent of the total cost.

                   Cost and Budgetary Considerations

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

H.R. 2741--A bill to amend the Reclamation Wastewater and Groundwater 
        Study and Facilities Act to authorize the Secretary of the 
        Interior to participate in the city of Hermiston, Oregon, water 
        recycling and reuse project

    Summary: H.R. 2741 would authorize the Bureau of 
Reclamation to participate in developing a project to reclaim 
and reuse groundwater in Hermiston, Oregon. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing H.R. 2741 would cost $7 million over the 2011-2015 
period.
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    H.R. 2741 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.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2741 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--
                                                         -------------------------------------------------------
                                                            2011     2012     2013     2014     2015   2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        7        0        0        0        0         7
Estimated Outlays.......................................        4        2        1        0        0         7
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
2741 will be enacted in fiscal year 2010 and that the federal 
share of the project's costs will be appropriated in 2011. 
Estimated outlays are based on historical spending patterns for 
similar water recycling projects.
    H.R. 2741 would authorize the Bureau of Reclamation to 
design, plan, and construct water recycling facilities in 
Hermiston, Oregon. The federal share of the project's costs 
would be limited to the lesser of 25 percent of the total 
project costs or $20 million. Based on information from the 
bureau, CBO estimates that the total cost of the project would 
be about $26 million. Under the bill, the federal share of the 
project's costs would be about $7 million; the remaining $19 
million would be the responsibility of local governments, as 
would operation and maintenance of the facility.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2741 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The bill would benefit Hermiston, Oregon, 
by authorizing federal assistance for planning, designing, and 
constructing water facilities.
    Previous CBO estimate: On September 18, 2009, CBO provided 
a cost estimate for H.R. 2741 as ordered reported by the House 
Committee on Natural Resources on September 10, 2009. The two 
versions of the legislation are the same. Based on more recent 
information from the Bureau of Reclamation, CBO now estimates 
that the total cost of this project would be $26 million, $4 
million more than we estimated in 2009. We now estimate that 
the federal share of the project's costs would be $7 million.
    Estimate prepared by: Federal Costs: Aurora Swanson; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, 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 H.R. 2741.
    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 H.R. 2741, as ordered reported.

                   Congressionally Directed Spending

    H.R. 2741, as ordered 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

  Statement of Kira L. Finkler, Deputy Commissioner for External and 
  Intergovernmental Affairs, Bureau of Reclamation, Department of the 
                                Interior

    Madam Chairwoman and Members of the Subcommittee, I am Kira 
Finkler, Deputy Commissioner for External and Intergovernmental 
Affairs at the Bureau of Reclamation (Reclamation). I am 
pleased to provide the views of the Department of the Interior 
(Department) on S. 1573, the City of Hermiston, Oregon, Water 
Recycling and Reuse Project. For reasons I will discuss below, 
the Administration cannot support the bill.
    S. 1573 would amend the Reclamation Wastewater and 
Groundwater Study and Facilities Act (Public Law 102-575, 43 
U.S.C. 390h et seq.), commonly called Title XVI, to authorize 
the Secretary of the Interior to participate in the design, 
planning, and construction of permanent facilities needed to 
reclaim and reuse wastewater in the City of Hermiston, Oregon. 
The project is being implemented by the City of Hermiston.
    The City of Hermiston, located in north central Oregon, is 
one of the largest communities within Reclamation's Umatilla 
Project area. The project proposed by the City includes 
upgrades and construction at their existing wastewater 
treatment facility and construction of a delivery system that 
would deliver recycled water to the West Extension Irrigation 
District. The recycled water would be used by the District to 
irrigate agricultural lands. By 2031, it is estimated this 
proposed project would provide the District with an approximate 
2,034 acre-feet of drought resistant water supply during the 
irrigation season. The current total estimated cost for this 
project is approximately $25.8 million.
    In January 2010, the City of Hermiston submitted their 
feasibility report to Reclamation for review under the Title 
XVI program. In April 2010, Reclamation's review team completed 
the review and made the certification that the proposed project 
``Meets Requirements'' as defined under section 1604 of Public 
Law 102-575, as amended.
    The City and Reclamation's Pacific Northwest Region are 
continuing to coordinate on actions that are necessary to be 
complete prior to implementation of the proposed project. This 
includes activities such as the determination of the project 
sponsor's financial capability, completion of Federal 
environmental compliance actions, water contracts, water 
rights, and entering into a land use agreement since the 
delivery pipe is to cross Reclamation land.
    S. 1573 would authorize the City of Hermiston's project 
under Title XVI for Federal funding not to exceed 25 percent of 
the total cost of the project.
    While the Department supports efforts to increase local 
water supplies and increase recycled water use, this project 
would compete for funds with other needs within the Reclamation 
program, including other Title XVI projects currently under 
construction. In general, the Department supports the Title XVI 
Reclamation and Reuse program. The 2011 budget proposal 
includes funding for the Department's WaterSMART Program, and 
Title XVI is an important element of that program. 
Specifically, the 2011 budget proposal includes $29 million for 
the Title XVI program, a 113% increase over the 2010 enacted 
level.
    As part of this total, the Department is requesting $20 
million for Title XVI projects to be selected using criteria to 
identify activities most closely aligned with Title XVI 
statutory and program goals. On March 15, 2010, Reclamation 
posted an announcement inviting comment on draft funding 
criteria for Title XVI projects. After these criteria are 
finalized with comments received up through April 16, 
Reclamation will review and rank Title XVI project proposals 
received through a public funding opportunity announcement 
based on those criteria subject to appropriations in fiscal 
year 2011.
    Separately, in July of 2009, the Department announced the 
allocation of approximately $135 million in grants for 
specifically authorized Title XVI projects using funds from the 
American Recovery and Reinvestment Act, or ARRA. We recognize 
that water reuse is an essential tool in stretching the limited 
water supplies in the West, and I believe the FY 2011 Budget 
request on top of the ARRA funding has demonstrated the 
emphasis placed by this Administration on this Program. 
However, given that there are 53 already authorized Title XVI 
projects and numerous competing mission priorities and demands 
on Reclamation's budget, the Department cannot support the 
authorization of new Title XVI projects or extensions of 
existing authorized cost ceilings at this time.
    Reclamation will, however, continue to work with project 
proponents to evaluate the completeness of feasibility studies 
of their projects.
    Madam Chairwoman, this concludes my testimony. Thank you 
for the opportunity to comment on S. 1573. I would be pleased 
to answer any questions at this 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 H.R. 2741, 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):

     RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992

      Public Law 102-575, Title XVI, Section 16XX (106 Stat. 4663)

 AN ACT To amend the Reclamation Wastewater and Groundwater Study and 
     Facilities Act to authorize the Secretary of the Interior to 
participate in the City of Hermiston, Oregon, water recycling and reuse 
                    project, and for other purposes

    Be it enacted by the Senate and the House of 
Representatives of The United States of America in Congress 
assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reclamation Projects 
Authorization and Adjustment Act of 1992''.

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TABLE OF CONTENTS

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TITLE XVI--RECLAMATION WASTEWATER AND GROUND WATER STUDIES

           *       *       *       *       *       *       *

SEC. 16XX. CITY OF HERMISTON, OREGON, WATER RECYCLING AND REUSE 
                    PROJECT.

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       TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES

SEC. 1601. SHORT TITLE.

    This title may be referred to as the ``Reclamation 
Wastewater and Groundwater Study and Facilities Act''.

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SEC. 16XX. CITY OF HERMISTON, OREGON, WATER RECYCLING AND REUSE 
                    PROJECT.

    (a) Authorization.--The Secretary, in cooperation with the 
City of Hermiston, Oregon, is authorized to participate in the 
design, planning, and construction of permanent facilities to 
reclaim and reuse water in the City of Hermiston, Oregon.
    (b) Cost Share.--The Federal share of the costs of the 
project described in subsection (a) shall not exceed 25 percent 
of the total cost.
    (c) Limitation.--The Secretary shall not provide funds for 
the operation and maintenance of the project described in 
subsection (a).

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