[House Report 108-668]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-668
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SOUTHERN CALIFORNIA GROUNDWATER REMEDIATION ACT
_______
September 8, 2004.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Pombo, from the Committee on Resources, submitted the following
R E P O R T
[To accompany H.R. 4606]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 4606) to authorize the Secretary of the Interior, acting
through the Bureau of Reclamation and in coordination with
other Federal, State, and local government agencies, to
participate in the funding and implementation of a balanced,
long-term groundwater remediation program in California, and
for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Southern California Groundwater
Remediation Act''.
SEC. 2. DEFINITIONS.
For the purposes of this Act:
(1) Groundwater remediation.--The term ``groundwater
remediation'' means actions that are necessary to prevent,
minimize, clean up, or mitigate damage to groundwater.
(2) Local water authority.--The term ``local water
authority'' means a currently existing (on the the date of the
enactment of this Act) public water district, public water
utility, public water planning agency, municipality, or Indian
Tribe located within the natural watershed of the Santa Ana
River in the State of California.
(3) Remediation fund.--The term ``Remediation Fund'' means
the Southern California Groundwater Remediation Fund
established pursuant to section 3(a).
(4) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
SEC. 3. SOUTHERN CALIFORNIA GROUNDWATER REMEDIATION.
(a) Southern California Groundwater Remediation.--
(1) Establishment of remediation fund.--There shall be
established within the Treasury of the United States an
interest bearing account to be known as the ``Southern
California Groundwater Remediation Fund''.
(2) Administration of remediation fund.--The Remediation Fund
shall be administered by the Secretary, acting through the
Bureau of Reclamation. The Secretary shall administer the
Remediation Fund in cooperation with the local water authority.
(3) Purposes of remediation fund.--
(A) In general.--Subject to subparagraph (B), the
amounts in the Remediation Fund, including interest
accrued, shall be used by the Secretary to provide
grants to the local water authority to reimburse the
local water authority for the Federal share of the
costs associated with designing and constructing
groundwater remediation projects to be administered by
the local water authority.
(B) Cost-sharing limitation.--
(i) In general.--The Secretary may not
obligate any funds appropriated to the
Remediation Fund in a fiscal year until the
Secretary has deposited into the Remediation
Fund an amount provided by non-Federal
interests sufficient to ensure that at least 35
percent of any funds obligated by the Secretary
for a groundwater remediation project are from
funds provided to the Secretary for that
project by the non-Federal interests.
(ii) Non-federal responsibility.--Each local
water authority shall be responsible for
providing the non-Federal amount required by
clause (i) for projects under that local water
authority. The State of California, local
government agencies, and private entities may
provide all or any portion of the non-Federal
amount.
(iii) Credits toward non-federal share.--For
purposes of clause (ii), the Secretary shall
credit the appropriate local water authority
with the value of all prior expenditures by
non-Federal interests made after January 1,
2000, that are compatible with the purposes of
this section, including--
(I) all expenditures made by non-
Federal interests to design and
construct groundwater remediation
projects, including expenditures
associated with environmental analyses,
and public involvement activities that
were required to implement the
groundwater remediation projects in
compliance with applicable Federal and
State laws; and
(II) all expenditures made by non-
Federal interests to acquire lands,
easements, rights-of-way, relocations,
disposal areas, and water rights that
were required to implement a
groundwater remediation project.
(b) Compliance With Applicable Law.--In carrying out the activities
described in this section, the Secretary shall comply with any
applicable Federal and State laws.
(c) Relationship to Other Activities.--Nothing in this section shall
be construed to affect other Federal or State authorities that are
being used or may be used to facilitate remediation and protection of
the groundwater in the natural watershed of the Santa Ana River in the
State of California. In carrying out the activities described in this
section, the Secretary shall integrate such activities with ongoing
Federal and State projects and activities. None of the funds made
available for such activities pursuant to this section shall be counted
against any Federal authorization ceiling established for any
previously authorized Federal projects or activities.
(d) Financial Statements and Audits.--The Secretary shall ensure that
all funds obligated and disbursed under this Act and expended by a
local water authority, are accounted for in accordance with generally
accepted accounting principles and are subjected to regular audits in
accordance with applicable procedures, manuals, and circulars of the
Department of the Interior and the Office of Management and Budget.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Remediation such sums as may be necessary to carry
out the purposes of this Act to remain available until expended.
PURPOSE OF THE BILL
The purpose of H.R. 4606 is to authorize the Secretary of
the Interior, acting through the Bureau of Reclamation and in
coordination with other federal, State and local government
agencies, to participate in the funding and implementation of a
balanced, long-term groundwater remediation program in
California, and for other purposes.
BACKGROUND AND NEED FOR LEGISLATION
Throughout the Santa Ana watershed in southern California,
approximately 30 water wells are currently shut down or out of
production due to perchlorate and other contaminants. Some
estimate that an additional 300 wells are at risk because of
perchlorate, a naturally occurring and man-made chemical. In
Rialto, California, a perchlorate plume has spread
approximately seven miles from the City's industrial area. The
contamination, affecting 250,000 residents, has prompted State
and federal investigations and triggered a water emergency.
Much of the perchlorate manufactured in the United States
is used as an ingredient of solid rocket propellant, fireworks
and roadside flares. Research indicates that perchlorate
interferes with iodide uptake into the thyroid gland. In
adults, the thyroid helps to regulate metabolism. In children,
the thyroid plays a major role in proper development and
metabolism. As a result, officials in southern California are
working to develop long-term plans for groundwater remediation.
H.R. 4606 establishes the ``Southern California Basins
Groundwater Remediation Fund'' within the U.S. Treasury. The
Fund, subject to annual appropriations and administered by the
Bureau of Reclamation, would provide such sums as may be
necessary to remediate groundwater supplies in the Santa Ana
watershed. The bill requires a local cost share of 35 percent.
Perchlorate is the chemical compound of primary concern,
although funds will be available to remediate other groundwater
challenges in the area.
COMMITTEE ACTION
H.R. 4606 was introduced by Congressman Joe Baca (D-CA) on
June 17, 2004. The bill was referred to the Committee on
Resources and within the Committee to the Subcommittee on Water
and Power. On June 23, 2004, the Subcommittee held a hearing on
the bill. On July 8, 2004, the Subcommittee met to mark up the
bill. No amendments were offered and the bill was forwarded to
the Full Resources Committee by unanimous consent. On July 14,
2004, the Resources Committee met to mark up the bill.
Congresswoman Grace Napolitano (D-CA) offered an amendment to
strike all references to the San Gabriel Basin. The amendment
was adopted by unanimous consent. No additional amendments were
offered and the bill, as amended, was ordered favorably
reported to the House of Representatives by unanimous consent.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
The bill may be cited as the ``Southern California
Groundwater Remediation Act.''
Section 2. Definitions.
This section defines various terms used in the bill.
Section 3. Southern California Basins Remediation.
This section establishes the ``Southern California Basins
Groundwater Remediation Fund'' within the Treasury of the
United States. The Fund will be administered by the Secretary
of the Interior, through the Bureau of Reclamation, and in
cooperation with the local water authority. The section
requires that the Fund shall be used for reimbursing the local
water authority for the federal share of the costs for the
planning, design, and construction of groundwater remediation
projects. The Section requires that the local non-federal cost
share be no less than 35 percent. Non-federal funding sources
may include State or local government agencies and private
entities.
As ordered reported, the section also states that the bill
shall not affect other federal and State authorities being used
or may be used for remediation and protection of the
groundwater in the natural watersheds of the Santa Ana River in
California. Furthermore, no funds used for activities and
projects pursuant to this section shall be counted against
federal authorization ceilings established for previously
authorized federal activities and projects. This section also
requires that the Secretary ensure that all funds obligated,
disbursed, and expended by a local water authority are
accounted for in accordance with generally accepted accounting
principles. Regular audits may be conducted in accordance with
applicable procedures of the Department of the Interior and the
Office of Management and Budget.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, credit
authority, or an increase or decrease in revenues or tax
expenditures. According to the Congressional Budget Office,
enactment of this bill would increase direct spending by less
than $500,000 annually over the 2005-2006 time period and by
about $1 million annually from 2007-2014.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to authorize the Secretary of the
Interior, acting through the Bureau of Reclamation and in
coordination with other federal, State and local government
agencies, to participate in the funding and implementation of a
balanced, long-term groundwater remediation program in
California, and for other purposes.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 4606--Southern California Groundwater Remediation Act
Summary: H.R. 4606 would establish an interest-bearing
account in the Treasury called the Southern California Basins
Groundwater Remediation Fund and would authorize the
appropriation of such sums as is necessary to be deposited into
the fund. The bill would authorize the Bureau of Reclamation to
use the fund to provide grants to the local water authority for
groundwater cleanup projects in the Santa Ana River watershed
in California. H.R. 4606 would authorize the bureau to pay up
to 65 percent of the cost of the groundwater cleanup projects.
The bureau, however, would not have the authority to obligate
money for a project until the nonfederal share of the costs (35
percent) is either deposited into the account or credited to
the account as an in-kind contribution.
Assuming appropriation of the necessary funds, CBO
estimates that implementing H.R. 4606 would cost $39 million
over the 2005-209 period and an additional $46 million after
that period. In addition, enacting this bill would increase
direct spending by less than $500,000 annually over the 2005-
2006 period and by about $1 million annually over the 2007-2014
period. (Enacting the bill would not affect federal revenues.)
H.R. 4606 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 California. Any expenditures made
by those governments to provide the required matching funds
would be made voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 4606 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
-------------------------------------------------
2005 2006 2007 2008 2009
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level................................. 10 10 10 10 10
Estimated Outlays............................................. 3 7 9 10 10
CHANGES IN DIRECT SPENDING
Estimated Authorization Level................................. * * 1 1 1
Estimated Outlays............................................. * * 1 1 1
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Note: * = less than $500,000.
Basis of estimate
Spending subject to appropriation
For this estimate, CBO assumes that H.R. 4606 will be
enacted near the start of fiscal year 2005 and that the
necessary funds will be appropriated to the Southern California
Basins Groundwater Remediation Fund in equal amounts over the
2005-2009 period.
H.R. 4606 would authorize appropriation of the necessary
amounts to the Southern California Basins Groundwater
Remediation Funds. For this estimate, CBO assumes that the
federal funds needed to implement the bill would be similar to
the authorization for the San Gabriel Basin Restoration Fund,
which is $85 million (Public Law 106-554) and addresses similar
types of water quality projects in a watershed of a similar
size. Because the bill would require that the nonfederal cost
share be deposited into the fund or in-kind contributions be
credited before funds could be obligated, CBO expects that
spending on those projects would be somewhat slower than
historical federal spending on water projects.
Direct spending
Under this bill, nonfederal funds equal to 35 percent of
the total cost of the project would be required to be either
deposited into the account or credited to the account as an in-
kind contribution before any funds could be obligated. Any cash
deposits would be recorded as offsetting receipts (a form of
direct spending). Currently, it is unknown how much of the
nonfederal contributions would be cash and how much would be
in-kind donations. Any receipt to the fund, however, would be
offset by equal amounts of direct spending from the fund over
the 2005-2014 period, with no net significant impact in any
year.
In addition, the bill would authorize the bureau to spend
interest earned on the Southern California Basins Groundwater
Remediation Fund. CBO estimates that provision would increase
direct spending by less than $500,000 annually over the 2005-
2006 period and about $1 million annually over the 2007-2014
period.
Intergovernmental and private-sector impact: H.R. 4606
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 California. Any expenditures
made by those governments to provide the required matching
funds would be made voluntarily.
Estimate prepared by: Federal Costs: Julie Middleton;
Impact on State, Local, and Tribal Governments: Marjorie
Miller; and Impact on the Private Sector: Karen Raupp.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.