[Senate Report 108-331]
[From the U.S. Government Publishing Office]
Calendar No. 687
108th Congress Report
SENATE
2d Session 108-331
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SAN GABRIEL BASIN DEMONSTRATION PROJECT FUNDING INCREASE
_______
August 25, 2004.--Ordered to be printed
Filed, under authority of the order of the Senate of July 22, 2004
_______
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 1284]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 1284) to amend the Reclamation Projects
Authorization and Adjustment Act of 1992 to increase the
Federal share of the costs of the San Gabriel Basin
demonstration project, having considered the same, reports
favorably thereon with an amendment and recommends that the
Act, as amended, do pass.
The amendment is as follows:
On page 2, line 15, strike ``$12,500,000'' and insert
``$6,500,000''.
Purpose
The purpose of H.R. 1284 is to amend the Reclamation
Projects Authorization and Adjustment Act of 1992 to increase
the Federal share of the costs of the San Gabriel Basin
Demonstration Project.
Background and Need
The San Gabriel Basin Demonstration Project was authorized
in section 1614 of the Reclamation Projects Authorization and
Adjustment Act of 1992 (Public Law 102-575), as amended in
1996. The project has three components: the Rio Hondo Water
Recycling Program; the San Gabriel Valley Water Reclamation
Project; and the San Gabriel Basin Demonstration Project. The
authorization caps the Federal cost-share at 25 percent of the
total cost of the project. The Federal share of the project is
currently authorized at $38 million. Of this amount,
approximately $32 million has been obligated.
The aquifer underlying the San Gabriel Basin in southern
California contains a variety of contaminants, including
volatile organic compounds. Areas within the San Gabriel Valley
have been placed on the national priority list by the
Environmental Protection Agency and are subject to remediation
under the Superfund program. Groundwater from the aquifer is an
important supply of drinking water.
Local project sponsors plan to expand the scope of the
demonstration project. According to the measure's proponents,
in order to expand the project's scope, an increase in the
Federal cost ceiling authorization is necessary.
Legislative History
H.R. 1284 was introduced by Congresswoman Napolitano on
March 13, 2003, and referred to the House Committee on
Resources. The Resources Committee's Subcommittee on Water and
Power conducted a hearing on H.R. 1284 on April 1, 2003, and
the full Committee discharged the measure on July 14, 2003. The
House of Representatives passed H.R. 1284 under suspension on
September 16, 2003. On September 17, 2003, the bill was
received in the Senate and referred to the Committee on Energy
and Natural Resources. On October 15, 2003, the Subcommittee on
Water and Power held a hearing on H.R. 1284. The Energy and
Natural Resources Committee, on July 14, 2004, by a unanimous
vote of a quorum present, ordered H.R. 1284 as amended,
favorably reported.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in an
open business meeting on July 14, 2004, by unanimous voice vote
of a quorum present, recommends that the Senate pass H.R. 1284,
if amended as described herein.
Committee Amendment
During the consideration of H.R. 1284, the Committee
adopted an amendment which increases the cost ceiling for the
San Gabriel Basin Demonstration Project by $6,500,000 instead
of $12,500,000.
Section-by-Section Analysis
Section 1 increases the cost ceiling for the San Gabriel
Demonstration Project by $6,500,000.
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, July 22, 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 H.R. 1284, an act to
amend the Reclamation Projects Authorization and Adjustment Act
of 1992 to increase the federal share of the costs of the San
Gabriel Basin demonstration project.
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.
H.R. 1284--An act to amend the Reclamation Projects Authorization and
Adjustment Act of 1992 to increase the federal share of the
costs of the San Gabriel Basin demonstration project
Summary: H.R. 1284 would increase the amount authorized to
be appropriated for the San Gabriel Basin demonstration project
in California by $6.5 million. Under current law, $38 million
has been authorized to be appropriated for this project, and
about $31 million has been appropriated to date. The project is
designed to improve the quality and storage capacity of
groundwater in the San Gabriel Basin. The increase in the
authorized funding level would allow the Bureau of Reclamation
to assist in the expansion of the project to include more
facilities.
Assuming appropriation of the authorized amount, CBO
estimates that implementing the act would cost about $2 million
in 2009 and an additional $5 million after that year. Enacting
H.R. 1284 would not affect direct spending or revenues.
H.R. 1284 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. Enacting this legislation would benefit the
project's local sponsors.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1284 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
------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Estimated spending under
current law \1\
Estimated authorization 1 1 2 2 2 0
level....................
Estimated outlays......... 1 1 2 2 2 1
Proposed changes:
Estimated authorization 0 0 0 0 0 3
level....................
Estimated outlays......... 0 0 0 0 0 2
Spending under H.R. 1284:
Estimated authorization 1 1 2 2 2 3
level....................
Estimated outlays......... 1 1 2 2 2 3
------------------------------------------------------------------------
\1\ About $7.5 million remains to be appropriated from the original
authority for the San Gabriel demonstration project. The 2004 level is
the amount appropriated for that year for the project.
Basis of estimate: For this estimate, CBO assumes that H.R.
1284 will be enacted this year, and that the necessary funds
will be appropriated for each year, but that no new funding
requirements would be triggered until 2009. (The estimate
assumes that amounts already authorized will be appropriated in
2005 through 2008.) CBO estimates that implementing H.R. 1284
would cost about $2 million in 2009 and an additional $5
million after that year.
Under current law, about $7.5 million remains to be
appropriated from the original authority of $38 million for the
San Gabriel Basin demonstration project. Based on information
from the bureau, CBO expects that the new funds authorized
under this act would not be required until 2009.
Intergovernmental and private-sector impact: H.R. 1284
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Enacting this legislation would benefit the
project's local sponsors.
Previous CBO estimate: On June 23, 2003, CBO transmitted a
cost estimate for H.R. 1284 as ordered reported by the House
Committee on Resources on June 11, 2003. In June of 2003, CBO
estimated that implementing H.R. 1284 would cost $11 million
over the 2004-2008 period. Since that estimate was prepared,
the Bureau of Reclamation has modified its plans to complete
the San Gabriel Demonstration Project by extending its
completion date until 2009. Because of that change, we now
estimate that implementing the legislation would entail new
costs of $2 million over the 2005-2009 period.
Estimate prepared by: Federal Costs: Julie Middleton.
Impact on State, Local, and Tribal Governments: Marjorie
Miller. Impact on the Private Sector: Amina Masood.
Estimate 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 H.R. 1284. The bill is not a regulatory measure in
the sense of imposing Government-established standards of
significant 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. 1284.
Executive Communications
On March 5, 2004, 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 views on H.R. 1284. These reports had not been
received at the time the report on H.R. 1284 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 Department of the
Interior at the Subcommittee hearing follows:
Statement of John W. Keys III, Commissioner, Bureau of Reclamation,
Department of the Interior
Madam Chairman, and members of the Subcommittee, I am John
Keys, Commissioner of the Bureau of Reclamation. I am pleased
to be here today to comment on H.R. 1284, which amends the
Reclamation Projects Authorization and Adjustment Act of 1992,
to increase the Federal share of the cost of the San Gabriel
Basin Demonstration Project.
Based on our investigation of this project, we do not
believe a cost ceiling increase is warranted at this time and,
as we stated in testimony before the House Resources Committee
on this bill, the Administration cannot support H.R. 1284 as
written. We believe that there is sufficient funding available
to provide the Federal cost share for all projects that are
contemplated for the San Gabriel Basin cleanup program.
Title XVI of P.L. 102-575, enacted in 1992, authorizes
Reclamation to participate in the San Gabriel Basin
Demonstration Project. There are three components of the
project: the Rio Hondo Water Recycling Program, the Central
Basin Municipal Water District; the San Gabriel Valley Water
Reclamation Project with the Upper San Gabriel Valley Municipal
Water District; and the San Gabriel Basin Demonstration Project
being done by the San Gabriel Basin Water Quality Authority.
Reclamation is authorized to provide up to 25 percent of the
cost of planning, design, and construction of the project
components for a Federal contribution of no more than
$38,090,000.
Congress provided the initial appropriation for the project
in Fiscal Year 1994, and through Fiscal Year 2003, a total of
$28,852,000 has been made available for the three components.
Of that amount, all but $6,000 has been obligated to existing
agreements. With the exception of Rio Hondo and San Gabriel
Valley Reclamation components, all existing agreements have
been fully funded. The Rio Hondo and San Gabriel Valley
Reclamation components, which are water recycling projects,
should be completed within the next two years, and are within
$700,000 of being fully funded for the 25 percent Federal
share. This leaves a net available amount of $8.6 million
before the ceiling is reached.
The primary component of the San Gabriel Basin
Demonstration is the groundwater cleanup program that will
result in the Basin being used as a conjunctive use water
resource for the region. Reclamation, working closely with the
San Gabriel Basin Water Quality Authority since 1994, has
executed 9 funding agreements with the Authority tofund
specific portions of the cleanup work. All agreements have been fully
funded for the 25 percent Federal share.
Over the last ten years that the project has received
funding, the schedules for all three components have slipped
significantly. In light of this, the San Gabriel Basin
Demonstration Project has consistently carried over significant
amounts of unexpected funds every year as a result of the
extended schedules. Due to these delays, the construction
schedule is not firm. In addition, smaller agreements to cover
cleanup projects in the El Monte, South El Monte and Puente
Valley Operable Units are being implemented. An agreement has
been executed with the Water Quality Authority to fund design
activities for these Operable Units. We have executed an
agreement for the Monterey Park Treatment Facility, which is in
the South El Monte Unit. To date we have obligated $2.425
million for the project, and spent approximately $1,114,000 of
that amount.
We believe that the total funding ceiling provided by the
title XVI authority and the Restoration Fund, which may also be
available for these projects, is sufficient to provide the
Federal cost share for all projects that are contemplated for
the San Gabriel Basin cleanup program. This title XVI project
has more than $8 million remaining under its ceiling after
fully funding all current project obligations. The Restoration
Fund has $25 million remaining under its ceiling after fully
funding all current project obligations. We believe that this
will adequately cover future projects being contemplated.
Therefore, the cost ceiling for the San Gabriel Basin
Demonstration Project authorized by title XVI does not need
currently to be increased beyond its authorized limit and thus
the Administration cannot support H.R. 1284.
In conclusion, Madam Chairman, I want to add that we have
an excellent working relationship with the San Gabriel
Demonstration Project partners and look forward to working with
them to complete this important project. This concludes my
remarks. I would be happy 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 Act, H.R. 1284, 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):
THE RECLAMATION PROJECTS AUTHORIZATION AND ADJUSTMENT ACT OF 1992
Public Law 102-575, as amended by Public Law 104-266 (43 U.S.C. 390h-
13)
* * * * * * *
SECTION 1631. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated
such sums as may be necessary to carry out the purposes and
provisions of this title.
* * * * * * *
(d) Ceiling on Federal Share.--
(1) Notwithstanding any other provision of sections
of this title and except as provided by paragraph (2),
the Federal share of the costs of each of the
individual projects authorized by sections authorized
by this title shall not exceed $20,000,000 (October
1996 prices).
(2) [In the case] (A) Subject to subparagraph (B),
the case of any project authorized by this title for
which construction funds were appropriated before
January 1, 1996, the Federal share of the costs of such
project may not exceed the amount specified as the
``total Federal obligation'' for that project in the
budget justification made by the Bureau of Reclamation
for fiscal year 1997, as contained in part 3 of the
report of the hearing held on March 27, 1996, before
the Subcommittee on Energy and Water Development of the
Committee on Appropriations of the House of
Representatives.
(B) In the case of the San Gabriel Basin
demonstration project authorized by section 1614, the
Federal share of the cost of such project may not
exceed the sum determined by adding--
(i) the amount that applies to that project
under subparagraph (A); and
(ii) $6,500,000.
* * * * * * *