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[Senate Report 109-159]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 255
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-159

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 TO AMEND THE SAFE DRINKING WATER ACT AMENDMENTS OF 1996 TO MODIFY THE 
GRANT PROGRAM TO IMPROVE SANITATION IN RURAL AND NATIVE VILLAGES IN THE 
                            STATE OF ALASKA

                                _______
                                

                October 24, 2005.--Ordered to be printed

                                _______
                                

    Mr. Inhofe, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1409]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1409) to amend the Safe Drinking Water Act 
Amendments of 1996, to modify the grant program to improve 
sanitation in rural and Native villages in the State of Alaska, 
having considered the same reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.

                    General Statement and Background

    The water and sewer conditions in many Alaskan Native 
villages rival the condition in rural communities in Third 
World countries. Residents throughout many villages in Alaska 
have to go to a central source, usually a well, to get fresh 
water. Without adequate sewer systems, residents must dump raw 
sewage, which contaminates the fresh groundwater. While Section 
303 of the Safe Drinking Water Act Amendments of 1996 has 
provided many communities with plumbing, nearly 33 percent of 
rural Alaskan homes are still without indoor plumbing. The 
program was authorized for $40 million per year for fiscal 
years 2001 through 2005. The program received $35 million in 
fiscal year 2001, $40 million in fiscal year 2002, $43 million 
in fiscal years 2003 and 2004 and $45 million in fiscal year 
2005. S. 1409 reauthorizes Section 303 of the Safe Drinking 
Water Act Amendments by authorizing $45 million each year for 
fiscal years 2006 through 2010. S. 1409 places certain 
conditions upon the grant of funds to ensure that the goals of 
the Safe Drinking Water Act Amendments of 1996 are met.

                     Objectives of the Legislation

    To amend Section 303 of the Safe Drinking Water Act 
Amendments of 1996 to improve sanitation in rural and Native 
villages in the State of Alaska.

                      Section-by-Section Analysis

Section 1. Grants to Alaska to improve sanitation in rural and native 
        villages.
Summary
    S. 1409 requires that each applicant clearly identify the 
scope and the goal of the project, and declare how the funds 
will be used to meet the specific stated goals of the project. 
It further requires the State of Alaska to establish long-term 
goals for the program, including providing water and sewer 
systems to Alaska Native villages and carry out regular reviews 
of the approved applicants to determine if the stated scope and 
goals of each grant are met. The bill also requires the State 
of Alaska to submit a report to the Environmental Protection 
Agency, describing the specific goals of each project; how the 
funds were used to meet the goal; and whether the goals of the 
project were met. It instructs the Environmental Protection 
Agency to recommend to the State of Alaska ways to correct any 
deficiencies identified in the report. It also reauthorizes the 
program at $45 million per year for fiscal years 2006 through 
2010.
Discussion
    Each year the Indian Health Service conducts a survey, the 
Sanitation Deficiency System Update which assesses the needs of 
rural Alaska villages. The 2005 SDS found that the estimated 
total need for these communities is $559 million. According to 
the State of Alaska, approximately 77 percent of rural Alaska 
homes have piped or community haul service and approximately 55 
percent of rural Alaska communities are served by pipes or 
community haul systems. Separately, the Office of Management 
Budget (OMB) recently raised concerns about the management of 
the Alaska Native Villages program by the State of Alaska and 
the Environmental Protection Agency. OMB found that the program 
did not have good performance data nor had it demonstrated 
progress in achieving its long-term goals. OMB also found that 
EPA does not collect timely and credible performance 
information and because it does not collect such information, 
cannot improve the programs performance. The committee included 
several new accountability measures to ensure that the funds in 
this program are efficiently spent to meet the needs of these 
Alaska Native Villagers.

                          Legislative History

    On July 14, 2005, Senator Murkowski introduced S. 1409, 
which was received, read twice and referred to the Committee on 
Environment and Public Works. The committee met on July 20, 
2005 to consider the bill. S. 1409, as amended, was ordered 
favorably reported by the committee.

                                Hearings

    No committee hearings were held on this bill.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider S. 1409 on July 20, 2005. A substitute amendment 
offered by Senators Inhofe and Jeffords was accepted by 
unanimous consent. The bill was ordered reported favorably by 
voice vote. No roll call votes were taken.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes evaluation of 
the regulatory impact of the reported bill. The bill does not 
create any additional regulatory burdens, nor will it cause any 
adverse impact on the personal privacy of individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee makes the following 
evaluation of the Federal mandates contained in the reported 
bill. S. 1409 imposes no Federal intergovernmental mandates on 
State, local, or tribal governments.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:
                              ----------                              

S. 1409, A bill to amend the Safe Drinking Water Act Amendments of 1996 
        to modify the grant program to improve sanitation in rural and 
        Native villages in the state of Alaska, As ordered reported by 
        the Senate Committee on Environment and Public Works on July 
        20, 2005
Summary
    S. 1409 would amend the grant program for rural and Native 
Alaskan villages as provided under the Safe Drinking Water Act 
Amendments of 1996. Current law authorize the appropriation of 
$40 million each year through 2005 for the Environmental 
Protection Agency (EPA) to provide grants to the state of 
Alaska to improve sanitation in rural and Native Alaskan 
villages. S. 1409 would increase and extend this authority to 
$45 million annually through 2010. (That level is equal to the 
amount appropriated for the program in 2005.)
    EPA would use the funds to provide grants to improve public 
water and wastewater systems and establish educational programs 
for the management of sanitation services in Alaska. CBO 
estimates that implementing S. 1409 would cost $192 million 
over the 2006-2010 period, assuming appropriation of the 
authorized amounts.
    Enacting this bill would not affect direct spending or 
receipts. S. 1409 contains no intergovernmental or new private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA). The bill would benefit local and tribal governments 
within the state of Alaska; any costs they incur would result 
from complying with conditions for receiving federal 
assistance.
Estimated Cost to the Federal Government
    The estimated budgetary impact of S. 1409 is shown in the 
following table. The costs of this legislation fall within 
budget function 300 (natural resources and environment). For 
this estimate, CBO assumes the full amounts authorized will be 
appropriated each year, and that spending will follow 
historical costs for this program.

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                                   2005    2006    2007    2008    2009    2010
----------------------------------------------------------------------------------------------------------------
                SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for Rural and Native Alaskan Drinking
 Water Grants...................................................
    Budget Authority\1\.........................................      45       0       0       0       0       0
    Estimated Outlays...........................................      44      22       9       2       0       0
Proposed Changes................................................
    Authorization Level.........................................       0      45      45      45      45      45
    Estimated Outlays...........................................       0      23      36      43      45      45
Spending Under S. 1409 for Rural and Native Alaskan Drinking
 Water Grants...................................................
    Authorization Level\1\......................................      45      45      45      45      45      45
    Estimated Outlays...........................................      44      45      45      45      45      45
----------------------------------------------------------------------------------------------------------------
\1\The 2005 level is the amount appropriated that year to EPA under the Safe Drinking Water Act Amendments of
  1996 for grants to improve sanitation in rural and Native Alaskan villages.

Intergovernmental and Private-Sector Impact
    S. 1409 contains no intergovernmental or new private-sector 
mandates as defined in UMRA. The bill would benefit local and 
tribal governments within the state of Alaska by authorizing 
grants to improve sanitation in rural communities and Native 
villages. Any costs they incur, including matching funds, would 
result from complying with conditions for receiving federal 
assistance.
    Estimate Prepared By: Federal Costs: Susanne Mehlman and 
Jimin Chung; Impact on State, Local, and Tribal Governments: 
Lisa Ramirez-Branum; Impact on the Private Sector: Alicia 
Handy.
    Estimate Approved By: Peter Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as 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:
                              ----------                              

                           [33 U.S.C. 1263A]

               TITLE 33--NAVIGATION AND NAVIGABLE WATERS

           CHAPTER 26--WATER POLLUTION PREVENTION AND CONTROL

              Subchapter I--Research and Related Programs

SEC. 1263A. GRANTS TO ALASKA TO IMPROVE SANITATION IN RURAL AND NATIVE 
                    VILLAGES

    (a) In general.--The Administrator of the Environmental 
Protection Agency may make grants to the State of Alaska for 
the benefit of rural and Native villages in Alaska to pay the 
Federal share of the cost of--
            (1) the development and construction of public 
        water systems and wastewater systems to improve the 
        health and sanitation conditions in the villages; and
            (2) training, technical assistance, and educational 
        programs relating to the operation and management of 
        sanitation services in rural and Native villages.
    (b) Federal share.--The Federal share of the cost of the 
activities described in subsection (a) of this section shall be 
50 percent.
    (c) Administrative expenses.--The State of Alaska may use 
an amount not to exceed 4 percent of any grant made available 
under this subsection for administrative expenses necessary to 
carry out the activities described in subsection (a) of this 
section.
    (d) Consultation with State of Alaska.--The Administrator 
shall consult with the State of Alaska on a method of 
prioritizing the allocation of grants under subsection (a) of 
this section according to the needs of, and relative health and 
sanitation conditions in, each eligible village.
    (e) Requirements.--As a condition of receiving a grant 
under this section, the State of Alaska shall--
            (1) require each applicant to clearly identify the 
        scope and the goal of the project for which funding is 
        sought and how the funds will be used to meet the 
        specific, stated goal of the project;
            (2) establish long-term goals for the program, 
        including providing water and sewer systems to Alaska 
        Native villages; and
            (3) carry out regular reviews of grantees to 
        determine if the stated scope and goals of each grant 
        are being met.
    (f) Reporting.--The State of Alaska shall submit to the 
Administrator of the Environmental Protection Agency a report 
describing the information obtained under subsection (e), 
including--
            (1) the specific goals of each project;
            (2) how funds were used to meet the goal; and
            (3) whether the goals were met.
    (g) Recommendation.--The Administrator of the Environmental 
Protection Agency shall recommend to the State of Alaska means 
by which the State of Alaska can address any deficiencies 
identified in the report under subsection (f).
    [(e)] (h) Authorization of appropriations.--There are 
authorized to be appropriated to carry out this section 
[$40,000,000] $45,000,000 for each of fiscal years 2001 through 
[2005] 2010.

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