Growing populations and changing values have increased demands on water supplies and river systems, resulting in water use and management conflicts throughout the country. These demands are particularly evident in the West, where population is rapidly increasing and where climate variability and water scarcity make managing water supplies especially challenging. In many western states, agricultural and urban needs conflict, and these demands also compete with water demand for threatened and endangered species, recreation, and scenic enjoyment. Debate over western water resources revolves around the issue of how best to plan for and manage the use of this renewable, yet limited resource. Some observers advocate enhancing water supplies, through such steps as building new storage or diversion projects, expanding old ones, and funding water reclamation and reuse facilities. Others emphasize conservation and policies that provide opportunities for more efficient use of existing supplies, such as using market mechanisms or providing better price signals, which theoretically would result in more efficient water use. In practice, all of these tools are used by western water managers to varying degrees, and all have been addressed by Congress, again to varying degrees. To address growing challenges in western water management, Congress in 1992 directed the Secretary of the Interior to establish a federal water reclamation, recycling, and reuse program (Title XVI of P.L. 102-575 , the Reclamation Wastewater and Groundwater Studies and Facilities Act; 43 U.S.C. §390h). The act directed the Secretary to "investigate and identify" opportunities for water reclamation and reuse in the West, for design and construction of "demonstration and permanent facilities to reclaim and reuse wastewater, and to conduct research, including desalting, for the reclamation of wastewater and naturally impaired ground and surface waters" (43 U.S.C. §390h(a)). The Title XVI program appears to be at a crossroad. As reuse and desalination have become more viable options for addressing a variety of water management issues, legislative proposals for authorizing Title XVI projects have increased. At the same time, Administration support for the program has changed from full support prior to enactment in 1992, to the Administration's current position of generally not supporting projects proposed for authorization by project sponsors (primarily municipal water agencies) that have not gone through Reclamation's feasibility process. For example, the Administration, when asked, has testified against every Title XVI bill in the 108 th Congress and most of the pending bills in the 109 th Congress, citing mostly budgetary and project feasibility concerns. Further, the Administration continues to request funding only for projects that have received funding in prior years. Also during this time, congressional authorization of new projects has been significantly less than demand. Since 1996, six projects have been authorized. Of approximately 13 project authorization bills introduced during the 108 th Congress, two were enacted; as of August 2006, the 109 th Congress has enacted one bill and has 16 individual project authorizations in pending legislation. This situation has created frustration and confusion over the existing program, its future, and to some degree, the future role of the Department of the Interior's Bureau of Reclamation (Reclamation) in the rapidly growing West. Frustration is especially apparent among project sponsors whose authorized projects remain without Title XVI funding or with limited funding, and sponsors of pending project proposals, resulting in increased pressure on Congress and the Administration to address program issues. In sum, the resulting backlog of sparsely funded and unfunded projects, and pent-up demand for federal assistance, have raised the question of the future of the Title XVI program. Following is a Title XVI overview covering its genesis, implementation, and current status. This overview is followed by a brief discussion of a number of policy options for addressing issues associated with the Title XVI program. The Appendix provides details on the status of individual Title XVI projects and the overall program in Table A-1 . Title XVI authorized design and construction of demonstration and permanent facilities to reclaim and reuse wastewater, and provided authority to conduct research, including on desalting, for the reclamation of wastewater and naturally impaired ground and surface waters. Responsibility for undertaking the new program—commonly referred to as the Title XVI program—was assigned to Reclamation in the Department of the Interior (DOI). The original statute directed the Secretary to undertake appraisal investigations to identify opportunities for water reclamation and reuse, and provided authority to participate with other federal agencies, as well as state, regional, and local authorities in developing feasibility studies. The genesis for Reclamation's wastewater reclamation and reuse program was a six-year western drought in the late 1980s and early 1990s. In particular, the drought strongly affected California and the Southwest. It led to an intense debate in Congress over federal water supply policies, including how to address conflicts between the need and desire for continued operation of the federal Central Valley Project and the application of state and federal environmental laws that could potentially limit water deliveries in order to protect certain aquatic species or comply with water quality standards. The result of several years' effort in addressing this conflict was the Reclamation Projects Authorization and Adjustment Act of 1992 ( P.L. 102-575 ). While much attention has been given to Title XXXIV of that act (the Central Valley Project Improvement Act), Title XVI authorized construction of five specific reclamation water reuse and recycling projects in Arizona and California and established the reuse program. Title XVI of the act also authorized a comprehensive reuse study for Southern California, including Colorado River hydrologic regions. The latter language provides specific statutory authority for activities that were underway in 1991 in response to then-Secretary of the Interior Manuel Lujan's announcement of a "Comprehensive Water Reuse Initiative" for Southern California which spoke to the federal interest in management of the Colorado River. In addition to increasing the water supplies available to the area [southern California], this program would also decrease the area's dependency on water imports from the Colorado River, California, and Los Angeles Aqueducts, help restore and protect the quality of existing ground-water reserves, and help meet environmental water needs. Lujan said ... "Reclaimed water—one of the most dependable, abundant and underutilized water supplies available—could provide as much as 2 million acre-feet of water each year for the area." The Southern California study and other reuse studies initiated under the Title XVI authority, however, became caught in an apparent policy shift to decrease Administration support for the Title XVI program, a shift that grew out of the preparation of the FY2004 Reclamation budget. That FY2004 budget included an evaluation of the Title XVI's effectiveness by the Office of Management and Budget (OMB PART review process, discussed below). The policy shift resulted in an uncertain future for the studies underway, thus frustrating project sponsors. For example, the document produced from the Southern California study is a point of contention with a long history among Southern California stakeholders and Reclamation. Reclamation's Title XVI program is the only active federal program providing localities with financial and technical assistance for the development and construction of water reclamation and reuse facilities. However, according to the U.S. Council on Environmental Quality (CEQ), "a broad range of federal agency program activities employ water reuse, recycling, and reclamation technologies to achieve conservation and other program objectives." Although both the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency (EPA) have limited authorities to provide assistance to local entities for recycling projects (e.g., specific provisions for the Corps in 1992 and 1999 Water Resources Development Acts; a pilot program by EPA under the Alternative Water Sources Act; and general Clean Water Act water treatment and wastewater authorities), neither has an established, regularly funded program dedicated to such activities. Some of the authorized Corps reuse activities received funding for FY2003 in Title I of the Energy and Water Development Appropriation Act for FY2003 ( P.L. 108-7 ; Division D). The Corps also has authority for design and construction of Everglades wastewater reuse technology ( P.L. 106-541 ). In all, it appears $110.5 million in assistance has been authorized for Corps water reuse activities, with approximately $22.6 million appropriated as of FY2005. According to the CEQ report (pp. 8 and 9), water reuse, recycling, and reclamation activities fall within larger EPA program areas of water treatment, wastewater management, or water resources management (33 U.S.C. §1376). Funding for water reuse, recycling, and reclamation projects may be accomplished via Clean Water Act and Safe Drinking Water Act State Revolving Fund programs (33 U.S.C. §1381 and 42 U.S.C. 300f-300j, respectively). Although funds are not specifically authorized by Congress or targeted by EPA for such purposes, Congress periodically earmarks funding for specific reuse projects. For example, according to CEQ, project-specific reuse funding appropriated to EPA for FY2005 totaled $6.4 million. Congress has authorized 33 Title XVI projects (see the Appendix for additional information). To date, Reclamation has undertaken planning, design, and/or engineering activities for 21 projects. Nearly half of the 33 authorized projects are concentrated in Southern California. This concentration reflects the Southern California and Colorado River hydrologic region focus of the program as first authorized. The Title XVI contribution is limited to 25% of total project costs. Amendments in 1996 ( P.L. 104-266 ) authorized 18 new projects (of the current 33) and established new program guidance. The 1996 amendments retained the 25%/75% federal/non-federal cost share, but limited the federal Title XVI share to no more than $20 million per project. Reclamation has completed its funding obligations for three projects. Title XVI federal funding obligations are nearly complete (80% or more) for six other projects.