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[Senate Report 108-232]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 442
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-232

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                   HAWAII WATER RESOURCES ACT OF 2004

                                _______
                                

                 March 9, 2004.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 960]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 960) to amend the Reclamation Wastewater 
and Groundwater Study and Facilities Act to authorize certain 
projects in the State of Hawaii and to amend the Hawaii 
Resources Act of 2000 to modify the water resources study, 
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 1, line 5, strike ``2003'' and insert ``2004''.
    2. On page 2, line 5, strike ``1636'' and insert ``1637''.
    3. On page 3, strike lines 13 through 22 and insert the 
following:

``is amended by inserting after the item relating to section 
1636 the following:

``SEC. 1637. HAWAII RECLAMATION PROJECTS.''.

                                Purpose

    The purpose of S. 960 is to amend the Reclamation 
Wastewater and Groundwater Study and Facilities Act to 
authorize certain projects in the State of Hawaii.

                          Background and Need

    S. 960 authorizes the Secretary of the Interior to 
undertake three water projects in the State of Hawaii.
    Hawaii has areas on the leeward sides of all its islands 
that are dry and have very limited water supplies. Many of 
these areas have remarkable similarities to the high deserts in 
the Western United States. Additionally, Hawaii is also 
experiencing varying degrees of drought conditions both on the 
Big Island and in other parts of the state. The Honolulu Board 
of Water Supply projects that on Oahu freshwater use will 
exceed recharge rates in 2018.
    The three projects authorized in S. 960 would help Hawaii 
better manage its water resources, particularly in some of the 
areas where water is becoming increasingly scarce. The first 
project, in Honolulu County, would provide a reliable source of 
water through resource diversification to meet existing and 
future water demands specifically in the Ewa area of Oahu, 
where water demands are exceeding the availability of drinking 
water. Specifically, the proposed project is a 5 million gallon 
per day seawater desalination facility. Seawater Reverser 
Osmosis Membrane Technology is proposed, in which approximately 
11 million gallons per day of seawater is needed to produce 5 
million gallons per day of potable water. Seawater source 
wells, rather than direct ocean intake, will be used to ensure 
higher water quality. Brine disposal will be through shallow 
cap rock wells with temporary brine holding ponds.
    The second project, north of Kona, would address the issue 
of effluent being discharged into a temporary disposal sump 
from the Kealakehe Wastewater Treatment Plant. The effluent has 
a particularly high suspended solids content. The proposed 
project will utilize subsurface wetlands to reduce the 
suspended solids prior to disinfection. Retrofitting an 
existing lagoon and completing construction of an additional 
lagoon would create subsurface wetlands. An open surface 
wetland would also be constructed to reduce the effluent 
disposal, create habitat for two endangered species, and 
provide recreational opportunities for the public. Once the 
effluent water quality has been upgraded and the maximum amount 
of flow diverted for use onsite in the constructed wetlands, a 
distribution system would be needed to convey the recycled 
water to potential users.
    The final project, in Lahaina, would facilitate the use of 
recycled water by extending the County of Maui's main recycled 
water pipeline. The county has been one of the water recycling 
leaders in the State of Hawaii; however, increased use of 
recycled water is limited by the lack of adequate 
infrastructure to distribute recycled water to additional 
users. Specifically, a lack of adequate recycled water storage 
and associated pipelines are the main constraints to increased 
use of recycled water in the area.

                          Legislative History

    S. 960 was introduced by Senator Akaka on April 30, 2003. 
Senator Inouye is a co-sponsor. The Water and Power 
Subcommittee held a hearing on S. 960 on May 13, 2003. S. Hrg. 
108-64. At the business meeting on February 11, 2004, the 
Committee on Energy and Natural Resources ordered S. 960, 
favorably reported, with an amendment.

            Committee Recommendation and Tabulation of Votes

    The Committee on Energy and Natural Resources, in open 
business session on February 11, 2004, by a unanimous vote of a 
quorum present, recommends that the Senate pass S. 960, if 
amended, as described herein.
    The rollcall vote on reporting the measure was 23 yeas, 0 
nays, as follows:
        YEAS                          NAYS
Mr. Domenici
Mr. Nickles
Mr. Craig
Mr. Campbell *
Mr. Thomas
Mr. Alexander
Ms. Murkowski
Mr. Talent
Mr. Burns
Mr. Smith *
Mr. Bunning
Mr. Kyl *
Mr. Bingaman
Mr. Akaka
Mr. Dorgan *
Mr. Graham *
Mr. Wyden *
Mr. Johnson *
Ms. Landrieu *
Mr. Bayh *
Mrs. Feinstein *
Mr. Schumer *
Ms. Cantwell

    * Indicates voted by proxy.

                          Committee Amendments

    During consideration of S. 960, the Committee adopted an 
amendment making three technical corrections to the bill and 
striking a section previously passed on the Energy and Water 
Development Appropriations Act of 2004 (Public Law 108-137).

                      Section-by-Section Analysis

    Section 1 states the short title.
    Section 2(a) amends the Reclamation Wastewater and 
Groundwater Study and Facilities Act by adding a new section 
1637.
    Section 1637(a)(1) provides authorization for the 
Secretary, in cooperation with the Board of Water Supply, City 
and County of Honolulu, to participate in the design, planning, 
and construction of a project in Kalaeola, Hawaii, to 
desalinate and distribute seawater for direct potable use.
    Section 1637(a)(2) authorizes the Secretary, in cooperation 
with the county of Hawaii Department of Environmental 
Management, to participate in the design, planning and 
construction of facilities in Kealakehe, for the treatment and 
distribution of recycled water for environmental purposes.
    Section 1637(a)(3) authorizes the Secretary in cooperation 
with the county of Maui Wastewater Reclamation Division, to 
participate in the design, planning, and construction of, and 
to acquire land for, facilities in Lahaina, Hawaii, for the 
distribution of recycled water for non-potable uses.
    Section 1637(b) provides a Federal cost share of no more 
than 25 percent of the total cost of the project.
    Section 1637(c) provides that the Federal funds shall not 
be used for the operation and maintenance of the facilities.
    Section 1637(d) authorizes appropriations. Section 2(b) 
makes a conforming amendment to the table of contents.

                   Cost and Budgetary Considerations

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 24, 2004.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 960, the Hawaii 
Water Resources Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julie 
Middleton.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

S. 960--Hawaii Water Resources Act of 2004

    Summary: S. 960 would authorize the Secretary of the 
Interior to participate in three separate reclamation projects 
in Hawaii. The Bureau of Reclamation estimates that these 
projects would cost $66 million. The bill would limit the 
federal share of project costs to 25 percent and would prohibit 
the use of federal funds for operating or maintaining the 
projects. In addition, this bill would increase the amount 
authorized to be appropriated for the Hawaii Water Resources 
Study from $0.3 million to $2 million.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 960 would cost $16 million over 
the 2005-2009 period. Enacting S. 960 would not affect direct 
spending or revenues.
    S. 960 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. The federal funds authorized by this bill would 
benefit local governments in Hawaii. Any costs incurred by 
these governments to provide the required matching funds would 
be voluntary.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 960 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--
                                                           -----------------------------------------------------
                                                              2004     2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level.............................        0        5        4        4        4        0
Estimated outlays.........................................        0        3        4        4        4        1
----------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that S. 
960 will be enacted before the end of fiscal year 2004 and that 
the necessary amounts will be appropriated in each fiscal year 
starting in 2005. Based on information from the Bureau of 
Reclamation and historical spending patterns of similar 
construction projects, CBO estimates that implementing the 
construction projects outlined in this bill would cost $16 
million over the 2005-2009 period.
    CBO does not estimate a cost for increasing the 
authorization of appropriations for the Hawaii Water Resources 
Study because this provision became law in the Energy and Water 
Development Appropriations Act, 2004 (Public Law 108-137).
    Intergovernmental and Private-Sector Impact: S. 960 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. The federal funds authorized by this bill 
would benefit local governments in Hawaii. Any costs incurred 
by these governments to provide the required matching funds 
would be voluntary.
    Estimate Prepared by: Federal Costs: Julie Middleton. 
Impact on State, Local, and Tribal Governments: Marjorie 
Miller. Impact on the Private Sector: Paige Piper/Bach.
    Estimated Approved by: Peter H. Fontaine, 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. 960. 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. 960, as ordered reported.

                        Executive Communications

    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. 960 on May 13, 2003. These reports had 
not been received at the time the report on S. 960 was filed. 
The testimony provided by the Department of the Interior at the 
Subcommittee hearing follows:

  Statement of John W. Keys III, Commissioner, Bureau of Reclamation, 
                       Department of the Interior

    My name is John Keys and I am the Commissioner of the 
Bureau of Reclamation. I am pleased to appear before this 
Subcommittee to provide the Department's views on S. 960.
    S. 960 would amend two Acts--the Reclamation Wastewater and 
Groundwater Study and Facilities Act (43 U.S.C. 390h et seq.), 
commonly called Title XVI, and the Hawaii Water Resources Act 
of 2000 (Public Law 106-566, Title I).
    Because S. 960 was introduced as recently as April 30, 
2003, we have had little time to thoroughly analyze the merits 
of the legislation. Therefore, until we have had 
thatopportunity, we cannot support S. 960. We do note that section 2 of 
the proposed legislation adds three additional projects to title XVI. 
Due to the tremendous backlog of current projects already authorized 
under this program, we currently oppose the addition of any new 
projects. And, based on recent funding levels, it could take 
Reclamation more than 15 years to complete funding of the 27 currently 
authorized projects.
    Thank you for the opportunity to comment on S. 960. That 
concludes my statement and 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, changes in existing law made by 
the bill S. 960, 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

           *       *       *       *       *       *       *

SEC. 2. DEFINITION AND TABLE OF CONTENTS.

    For purposes of this Act, the term ``Secretary'' means the 
Secretary of the Interior.

                            TABLE OF CONTENTS

Sec. 1. Short title.
     * * * * * * *

        TITLE XVI--RECLAMATION WASTEWATER AND GROUNDWATER STUDIES

Sec. 1601. Short title.
     * * * * * * *
Sec. 1635. Lakehaven, Washington, Water Reclamation and Reuse Project.
Sec. 1637. Hawaii reclamation projects.
     * * * * * * *

       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''.

           *       *       *       *       *       *       *

SEC. 1637. HAWAII RECLAMATION PROJECTS.

    (a) Authorization.--The Secretary may--
          (1) in cooperation with the Board of Water Supply, 
        City and County of Honolulu, Hawaii, participate in the 
        design, planning, and construction of a project in 
        Kalaeloa, Hawaii, to desalinate and distribute seawater 
        for direct potable use within the service area of the 
        Board;
          (2) in cooperation with the County of Hawaii 
        Department of Environmental Management, Hawaii, 
        participate in the design, planning, and construction 
        of facilities in Kealakehe, Hawaii, for the treatment 
        and distribution of recycled water and for 
        environmental purposes within the County; and
          (3) in cooperation with the County of Maui Wastewater 
        Reclamation Division, Hawaii, participate in the 
        design, planning, and construction of, and acquire land 
        for, facilities in Lahaina, Hawaii, for the 
        distribution of recycled water from the Lahaina 
        Wastewater Reclamation Facility for non-potable uses 
        within the County.
    (b) Cost Share.--The Federal share of the costs of a 
project described in subsection (a) shall not exceed 25 percent 
of the total cost of the project.
    (c) Limitation.--Funds provided by the Secretary shall not 
be used for the operation and maintenance of a project 
described in subsection (a).
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.

                                
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