[Senate Report 110-375]
[From the U.S. Government Publishing Office]
Calendar No. 807
110th Congress Report
SENATE
2d Session 110-375
======================================================================
SAN GABRIEL BASIN RESTORATION FUND ACT
_______
June 16, 2008.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 123]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 123) to authorize appropriations for the
San Gabriel Basin Restoration Fund, having considered the same,
reports favorably thereon without amendment and recommends that
the Act do pass.
Purpose of the Measure
The purpose of H.R. 123 is to authorize appropriations for
the San Gabriel Basin Restoration Fund.
Background and Need
The San Gabriel Basin supplies drinking water to 1.4
million people in eastern Los Angeles County, California.
Volatile organic compounds, including suspected carcinogens,
were discovered in the groundwater basin in 1979. Efforts to
remove these compounds were moving forward under the federal
Superfund program until 1997 when perchlorate was found in
groundwater. This greatly complicated the cleanup process
because different treatment methods were required. The
perchlorate discovery closed a number of wells, cutting off the
entire water supply for one water district and restricting
water production for other producers. Faced with these
problems, water producers and the San Gabriel Basin Water
Quality Authority (WQA) began joint efforts to solve the
immediate water supply problems and create a comprehensive
solution. That effort led to establishment of the San Gabriel
Basin Restoration Fund (Restoration Fund), originally
authorized in 2000 as the San Gabriel Basin Water Quality
Initiative (Public Law 106-554).
The Restoration Fund's authorized appropriations ceiling
was established at $85,000,000 in total for groundwater cleanup
in the San Gabriel Basin and the Central Basin in Southern
California. Specifically, up to $75,000,000 was dedicated to
the WQA to address contamination in the San Gabriel Basin, and
up to $10,000,000 for the Central Basin Municipal Water
District (CBMWD) to address contamination in the Central Basin.
Use of the Restoration Fund is restricted to (1) construction
of groundwater treatment facilities and (2) operation and
maintenance of facilities for no more than 10 years. The WQA is
required to provide a 35% non-federal cost share on any federal
funds obligated for the cleanup. While the initial authorizing
legislation directed the Secretary of the Army to administer
the Restoration Fund, Congress in 2002 began appropriating the
Restoration Fund to the Bureau of Reclamation to administer
(Public Law 107-66). According to information supplied to the
Committee by the Bureau of Reclamation, as of November 2007,
CBMWD has received the full $10,000,000 originally authorized
in P.L. 106-554, while the WQA has not yet received the full
$75,000,000 originally authorized. Therefore, all funds
currently left under the current authorization ceiling of
$85,000,000 should be directed solely to the WQA.
Legislative History
H.R. 123 was introduced in the House of Representatives by
Representative David Dreier (CA) on January 4, 2007, and
referred to the Committee on Natural Resources. Representatives
Lucille Roybal-Allard, Adam Schiff, Grace Napolitano, Linda
Sanchez, and Hilda Solis are co-sponsors. Under suspension of
the rules, H.R. 123 passed the House of Representatives on
December 11, 2007. The bill was received in the Senate and
referred to the Committee on Environment and Public Works. On
April 10, 2008, the bill was discharged, and referred to the
Committee on Energy and Natural Resources. The Water and Power
Subcommittee held a hearing on H.R. 123 on April 24, 2008. At
its business meeting on May 7, 2008, the Committee on Energy
and Natural Resources ordered H.R. 123 favorably reported.
Committee Recommendation
The Committee on Energy and Natural Resources, in open
business session on May 7, 2008, by voice vote of a quorum
present, recommends that the Senate pass H.R. 123.
Section-by-Section Analysis
Section 1 amends the provision in P.L. 106-554 which
established the San Gabriel Restoration Fund, by increasing the
appropriations ceiling for the Restoration Fund from
$85,000,000 to $146,200,000. Of this amount, section 1 sets
aside a total of $21,200,000 for the CBMWD, which provides it
an additional $11,200,000. The set-aside for CBMWD has the
effect of reserving the balance of new authorized
appropriations ($50,000,000) for the WQA. Section 1 also
declares that both the WQA and CBMWD will be responsible for
providing a 35% non-federal cost share of any funds they
receive pursuant to H.R. 123.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
H.R. 123--An act to authorize appropriations for the San Gabriel Basin
Restoration Fund
Summary: H.R. 123 would authorize the appropriation of
additional amounts to the San Gabriel Basin Restoration Fund
and would make the use of those funds contingent on the
provision of matching funds by local entities in the state of
California. Assuming appropriation of the necessary amounts,
CBO estimates that implementing H.R. 123 would cost $50 million
over the 2009-2013 period. Enacting H.R. 123 would not affect
direct spending or revenues.
H.R. 123 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.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 123 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--
---------------------------------------
2009 2010 2011 2012 2013
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level... 12 12 12 12 13
Estimated Outlays............... 10 10 10 10 10
------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the beginning of fiscal year
2009 and that the necessary amounts will be appropriated for
each year.
H.R. 123 would increase--from $85 million to $146.2
million--the total amount authorized to be appropriated to the
San Gabriel Basin Restoration Fund. Under current law, the
Secretary of the Interior, working in coordination with
municipalities, is authorized to use amounts in that fund to
help design and construct water quality projects in the San
Gabriel River Basin in California and to reimburse those
facilities' operation and maintenance costs.
Based on historical spending patterns from the fund and
assuming appropriation of the necessary amounts, CBO estimates
that implementing the legislation would cost $50 million over
the 2009-2013 period, with additional spending of $11 million
occurring in later years.
Intergovernmental and private-sector impact: H.R. 123
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Assuming appropriation of the authorized
amounts, the San Gabriel Basin Water Quality Authority and the
Central Basin Municipal Water District would receive an
additional $50 million over the five-year period for water
restoration activities. That funding would be contingent on the
provision of matching funds by those entities, but they would
incur those costs voluntarily.
Previous CBO estimate: On December 11, 2007, CBO
transmitted a cost estimate for H.R. 123 as ordered reported by
the House Committee on Natural Resources on November 15, 2007.
The two versions of the legislation would authorize the same
total amount of funding for the San Gabriel Basin Restoration
Fund, and our estimates of discretionary spending are the same.
The House version would allow the Secretary of the Interior to
invest unspent balances in the fund, which would increase
direct spending by an estimated $3 million over the 2008-2013
period.
Estimate prepared by: Federal costs: Tyler Kruzich; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, 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. 123. 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 H.R. 123, as ordered reported.
Congressionally Directed Spending
H.R. 123, as reported, does not contain any congressionally
directed spending items, limited tax benefits, or limited
tariff benefits as defined in Rule XLIV of the Standing Rules
of the Senate.
Executive Communications
The testimony provided by the Bureau of Reclamation at the
subcommittee hearing on April 24, 2008 on H.R. 123 follows:
Statement of Robert W. Johnson, Commissioner, Bureau of Reclamation,
Department of the Interior
Mr. Chairman and Members of the Subcommittee, I am Robert
Johnson, Commissioner of the Bureau of Reclamation. I am
pleased to be here today to give the Department's views on H.R.
123, a proposal to increase the ceiling on funds authorized to
be appropriated to the San Gabriel Basin Restoration Fund. The
Administration does not support H.R. 123.
Groundwater contamination was first detected in the San
Gabriel Valley in 1979. Following this discovery, the U.S.
Environmental Protection Agency designated major portions of
the region's groundwater as Superfund sites. Between 1990 and
1997, EPA identified Potentially Responsible Parties at the
site who then engaged in negotiations with local water agencies
and began initial design work on an EPA-developed basin-wide
plan to set cleanup priorities. After reaching a detailed
agreement with seven local water agencies in March 2002, design
work was completed and construction work began. Construction of
the four planned groundwater extraction and treatment
facilities was largely completed in 2006.
As part of this effort to clean up the groundwater
contamination in the San Gabriel Basin and prevent the
contamination from spreading into the adjacent Central Basin,
the San Gabriel Basin Restoration Fund (Fund) was established
in 2001 by P.L. 106-554. Originally established as a Defense
Department account and subsequently transferred to the Interior
Department, this interest-bearing account reimburses the San
Gabriel Basin Water Quality Authority (WQA) and the Central
Basin Municipal Water District (District) for designing and
constructing facilities that help with groundwater cleanup
efforts in the Basin. The Fund is also authorized to reimburse
the WQA and District for operating and maintaining these
facilities for up to 10 years. A 35 percent non-Federal share
is required for projects. This cost-share can be met by credits
given to the WQA for expenditures used for water quality
projects that have already been built in the San Gabriel Basin,
in lieu of depositing the required 35 percent non-Federal share
for these projects into the Fund. To date, the entire non-
Federal share has been met by credits that have been certified
by Reclamation.
In Fiscal Year 2001, Congress appropriated $23 million for
deposit into the Fund. The Energy and Water Appropriations Act
for Fiscal Year 2002 (P.L. 107-66), transferred administrative
responsibility for the fund from the Secretary of the Army to
the Secretary of the Interior, and appropriated an additional
$12 million. Appropriations in fiscal years 2003-2008 brought
the total deposits to the Fund to $71.71 million. In addition,
the Fund has accumulated over $2.8 million in interest.
Reclamation has executed six grant agreements under the
Restoration Fund authority. One grant agreement is with the
Central Basin Municipal Water District, covering design,
construction, operation, and maintenance of their facility, up
to the $10 million ceiling established by the legislation for
this component. The other five agreements are with the WQA.
Four cover the design and construction of specific facilities,
and the fifth agreement covers operation and maintenance of
those four facilities.
The total estimated cost of the project authorized by the
legislation is about $204 million. Based on this cost estimate,
about $69 million would be allocated for the completion of all
five facilities, and about $135 million would be allocated to
fund the operation and maintenance of all five facilities for
10 years, as authorized.
The San Gabriel Basin Restoration Fund is and will continue
to be used for important local projects. Reclamation must
allocate its scarce budget toward funding already authorized
projects within the agency's traditional mission of delivering
water and power in an environmentally responsible and cost-
efficient manner, with emphasis on the needs of aging
infrastructure, the safety of existing facilities and dams, and
ongoing environmental restoration efforts. The Administration
has not budgeted for the San Gabriel Basin Restoration Fund in
any of the preceding fiscal years. The Administration believes
that resources should be allocated to achieving priorities
within Reclamation's traditional mission area and does not
support the $61.2 million cost ceiling increase proposed in
H.R. 123. Reclamation, however, will continue to work with the
WQA and the District when possible to advance the goal of
groundwater cleanup in the San Gabriel Basin.
Mr. Chairman, this concludes my testimony. Thank you for
the opportunity to comment on H.R. 123. 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 bill H.R. 123 as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, newmatter is printed in italic, existing law in which
no change is proposed is shown in roman):
CONSOLIDATED APPROPRIATIONS ACT, 2001
SAN GABRIEL BASIN, CALIFORNIA
Public Law 106-554 (114 Stat. 2763A-222)
SEC. 110. SAN GABRIEL BASIN, CALIFORNIA.
(a) San Gabriel Restoration.--
(1) Establishment of fund.--There shall be
established within the Treasury of the United States an
interest-bearing account to be known as the San Gabriel
Basin Restoration Fund (in this section referred to as
the ``Restoration Fund'').
(2) Administration of fund.--The Restoration Fund
shall be administered by the Secretary of the Interior,
in cooperation with the San Gabriel Basin Water Quality
Authority or its successor agency.
(3) Purposes of fund.--
(A) In general.--Subject to subparagraph (B),
the amounts in the Restoration Fund, including
interest accrued, shall be utilized by the
Secretary--
* * * * * * *
(B) Cost-sharing limitation.--
(i) In general.--The Secretary may
not obligate any funds appropriated to
the Restoration Fund in a fiscal year
until the Secretary has deposited in
the Fund an amount provided by non-
Federal interests sufficient to ensure
that at least 35 percent of any funds
obligated by the Secretary are from
funds provided to the Secretary by the
non-Federal interests.
(ii) Non-federal responsibility.--The
San Gabriel Basin Water Quality
Authority shall be responsible for
providing the non-Federal amount
required by clause (i). The State of
California, local government agencies,
and private entities may provide all or
any portion of such amount.
(iii) Credits toward non-federal
share.--For purposes of clause (ii),
the Secretary shall credit the San
Gabriel Basin Water Quality Authority
with the value of all prior
expenditures by non-Federal interests
made after February 11, 1993, that are
compatible with the purposes of this
section, including--
(I) all expenditures made by
non-Federal interests to design
and construct water quality
projects, including
expenditures associated with
environmental analyses and
public involvement activities
that were required to implement
the water quality 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 water quality
project.
(iv) Non-federal match.--After
$85,000,000 has cumulatively been
appropriated under subsection (d)(1),
the remainder of Federal funds
appropriated under subsection (d) shall
be subject to the following matching
requirement:
(I) San Gabriel Basin Water
Quality Authority.--The San
Gabriel Basin Water Quality
Authority shall be responsible
for providing a 35 percent non-
Federal match for Federal funds
made available to the Authority
under this Act.
(II) Central Basin Municipal
Water District shall be
responsible for providing a 35
percent non-Federal match for
Federal funds made available to
the District under this Act.
(4) Interest on funds in restoration fund.--No
amounts appropriated above the cumulative amount of
$85,000,000 to the Restoration Fund under subsection
(d)(1) shall be invested by the Secretary of the
Treasury in interest-bearing securities of the United
States.
* * * * * * *
(d) Authorization of Appropriations.--
(1) In general.--There is authorized to be
appropriated to the Restoration Fund established under
subsection (a) [$85,000,000] $146,200,000. Such funds
shall remain available until expended.
(2) Set-aside.--Of the amounts appropriated under
paragraph (1), no more than [$10,000,000] $21,200,000
shall be available to carry out the Central Basin Water
Quality Project.
* * * * * * *