[Senate Report 107-118]
[From the U.S. Government Publishing Office]
Calendar No. 272
107th Congress Report
SENATE
1st Session 107-118
======================================================================
WATER INFRASTRUCTURE SECURITY AND RESEARCH DEVELOPMENT ACT
_______
December 10, 2001.--Ordered to be printed
_______
Mr. Jeffords, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[to accompany S. 1593]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred a bill (S. 1593), a bill to authorize the
Administrator of the Environmental Protection Agency to
establish a grant program to support research projects on
critical infrastructure protection for water supply systems,
and for other purposes, having considered the same reports
favorably thereon with an amendment and recommends that the
bill, as amended, do pass.
General Statement and Background
S. 1593 authorizes the U.S. Environmental Protection Agency
to provide funding to support research projects on critical
infrastructure protection for water supply systems.
Since the events of September 11, 2001, the United States
has worked to ensure that our critical infrastructure systems
are protected. There are many short-term actions that have
already been taken.
Based on the recommendations of Presidential Decision
Directive 63, issued by President Clinton in 1998, the
Environmental Protection Agency and its industry partner, the
Association of Metropolitan Water Agencies, have established a
communications system, a water infrastructure Information
Sharing and Analysis Center, designed to provide real-time
threat assessment data to water utilities throughout the
nation. Through this partnership, the Environmental Protection
Agency and the Association of Metropolitan Water Agencies are
working to develop generic assessment tools that individual
water utilities can use to assess their facilities for
potential physical and cyber threats. In October 2001, the
Environmental Protection Agency established the Water
Protection Task Force to ensure that activities to protect and
secure water supply infrastructure are comprehensive and are
carried out expeditiously. During that same month, the EPA
disseminated information to America's water utilities
information about specific steps they can take to protect their
sources of supply and their infrastructure. Working with the
FBI, EPA also sent notice to local law enforcement agencies
asking them to work closely with their local water utilities to
provide extra security. The committee intends for S. 1593 to
supplement these short-term efforts by focusing on mid- to
long-term actions designed to enhance our current water
security capabilities.
S. 1593 focuses on mid-term and long-term efforts that
will:
continue ongoing work called for by Presidential
Decision Directive 63
conduct research to assess potential threats to
our water supply system, and
develop solutions to safeguard our water systems
against those threats.
This legislation authorizes twelve million dollars per year
from 2002 to 2007 for the Environmental Protection Agency to
use for grants to or cooperative agreements with research
institutions for these purposes.
Objectives of the Legislation
The work conducted under this legislation will yield
valuable information, technologies, processes, and guidelines
regarding physical and cyber threats to our water supply
systems that water systems throughout the nation will be able
to apply at their own facilities.
Specifically, projects eligible for funding under this
program will:
assess security issues by conducting
vulnerability assessments and developing tools to conduct those
assessments;
protect water supply systems by--
--developing technologies, processes, guidelines,
standards, and procedures that protect the physical
assets, information systems, and cyber assets of water
supply systems from biological, chemical, and
radiological contamination;
--developing real-time monitoring systems to protect
against biological, chemical, and radiological
contamination;
develop technologies and processes for
mitigation, response, and recovery from biological, chemical,
and radiological contamination of our water supplies;
continue the operation of the Information Sharing
and Analysis Center to provide current threat information in a
timely manner to water supply systems;
test and evaluate new technologies and processes
by developing pilot facilities to demonstrate these new
approaches and their affect on operations and costs of the
water supply systems.
The legislation includes a specific provision requiring
that projects conducted under this program reflect the needs of
water supply systems of various sizes and geographic areas of
the United States. This section is intended to ensure that both
large and small and rural and urban systems in all areas of the
country receive some focus under this program. With a diverse
approach to the work conducted under this program, the
Environmental Protection Agency will ensure that all aspects of
our nation's water supply system benefit from the information,
technologies, and processes developed through this program.
Section-by-Section Analysis
Section 1. Short Title
Water Infrastructure Security and Research Development Act.
Section 2. Definitions
This section defines key terms used in the bill.
Administrator is defined as the Administrator of the
Environmental Protection Agency.
``Research Institution'' is defined as a public or private
nonprofit institution or other entity that has the expertise to
perform research on the security of water supply systems and
complies with applicable laws for safeguarding sensitive
information. National laboratories are specifically included in
this definition. Grants, cooperative agreements, or contractual
arrangements that the Environmental Protection Agency
undertakes in this program will be with research institutions.
The requirement to safeguard sensitive information is specified
here to ensure that the research conducted under this program
is not misused or made available to anyone for purposes other
than that which is it was intended-to increase the security of
our nation's water supply system.
``Water supply system'' is defined as a public water system
as defined in section 1401 of the Safe Drinking Water Act (42
U.S.C. 300f) or a publicly owned treatment works, which is a
treatment works as defined in section 212 of the Federal Water
Pollution Control Act (33 U.S.C. 1292.) For the purposes of
this Act only, the term water supply system includes water
sources, a system of aqueducts, tunnels, reservoirs, or pumping
facilities to convey water from the water source, a treatment
facility, a distribution system carrying finished water to
users through a system of mains and subsidiary pipes, or a
wastewater collection and treatment system. The committee
intends that this expanded definition apply only to this Act.
It in no way seeks to modify any existing definitions under the
Safe Drinking Water Act or the Federal Water Pollution Control
Act. The definition for this Act is intended to ensure that
each part of our nation's water supply system is addressed by
this program and that each part receives the benefit of the
information collected. This definition specifically includes
both drinking water and wastewater systems for the same
purpose.
Section 3. Water Infrastructure Security Grant Program
This section establishes the program. It requires the
Administrator to establish a program to make grants to, and
enter into cooperative agreements or contracts with, research
institutions to improve the protection and security of water
supply systems by carrying out eligible projects to address
physical and cyber threats to water supply systems.
It requires that the Administrator consult with the
Director of Central Intelligence to ensure that programs
conducted under this Act appropriately protect classified
information. This language reflects a request by the Senate
Select Committee on Intelligence to ensure that this Act
clearly states that any classified information that is produced
or used by this program will be appropriately protected. This
section includes procedures for the Administrator to consult
with all other appropriate Federal agencies regarding
guidelines, procedures, and criteria for the award of
assistance under this program. The committee expects that as
part of this process, the Administrator will work with the
Federal Bureau of Investigation and other appropriate agencies
to ensure that non-classified information of a sensitive nature
is appropriately used and safeguarded.
This section describes the types of projects that will be
eligible for assistance under this program to include projects
that:
(1) assess security issues for water supply systems by
a. conducting system-specific and system-wide
assessments of the scope of and future
implications of security issues for water
supply systems; and
b. developing and refining vulnerability
assessment tools for water supply systems to
identify physical vulnerabilities, including
biological, chemical, and radiological
contamination; and cyber vulnerabilities;
(2) protect water supply systems from a potential
threat by:
a. developing technologies, processes,
guidelines, standards, and procedures that
protect
i. the physical assets of water supply
systems, including protection from the
impact of biological, chemical, and
radiological contamination;
ii. information systems, including
process controls and supervisory
control and data acquisition; and
iii. cyber systems at water supply
systems;
b. developing real-time monitoring systems to
protect against biological, chemical, or
radiological attack; and
c. developing educational and awareness
programs for water supply systems;
(3) develop technologies and processes for addressing
the mitigation, response, and recovery of biological,
chemical, and radiological contamination of water
supply systems;
(4) implement the requirements of Presidential Decision
Directive 63 by refining and operating the Information
Sharing and Analysis Center to capture and share
information concerning threats, malevolent events, and
best practices; and
(5) test and evaluate new technologies and processes
by--
a. developing regional pilot facilities to
demonstrate upgraded security systems, assess
new technologies, and determine the effect of
enhanced security on operations and costs of
the water supply system; or
b. conducting demonstrations of other
technologies and processes to protect water
supply systems.
This section also establishes selection criteria for awards
of assistance. It requires that the Administrator establish
guidelines, procedures, and criteria for awards in consultation
with representatives of appropriate Federal and State agencies,
water supply systems, and other appropriate public and private
entities. The committee expects that as part of this process,
the Administrator will work with the Federal Bureau of
Investigation and other appropriate agencies to ensure that
non-classified information of a sensitive nature is
appropriately used and safeguarded. The committee expects that
classified information will be dealt with as described in
section 3(b) of this Act.
This section requires that the Administrator ensure that
projects carried out under this Act reflect the needs of water
supply systems of various sizes and geographic areas of the
United States. This language is intended to ensure that large
and small, rural and urban, wealthy and disadvantaged systems
in all areas of the country benefit from the information,
technologies, and processes developed through this program. The
committee intends to ensure that small, rural and disadvantaged
systems receive an appropriate level of attention.
This section also establishes reporting requirements and
deadlines. First, the Administrator is required to transmit a
copy of the guidelines, procedures, and criteria established
for awards under this program to the Committee on Science of
the House of Representatives and the Committee on Environment
and Public Works of the Senate. Second, this section provides
for not more than a 30-day period after transmittal of these
reports for the Administrator to publish the guidelines,
procedures, and criteria in the Federal Register. Third, this
section requires that the Administrator periodically submit to
the Committee on Science of the House of Representatives and
the Committee on Environment and Public Works of the Senate a
report on the status of the program.
Assistance in any given year for an individual project is
limited to $1,000,000. This does not preclude one research
institution from receiving more than $1,000,000 in one year for
more than one individual projects. It does not preclude a
multi-year project from receiving $1,000,000 more than one
time.
The Federal share for testing and evaluation projects
described in this section (subsection (c)(5)) shall be 50
percent. The Federal share for all other projects shall be 100
percent. The non-Federal share may be provided in cash or in-
kind.
This section includes information sharing requirements to
ensure that the information generated by this program is made
available to all U.S. water systems. The Administrator is
required to evaluate the results of the projects conducted
under this program and, as soon as practicable, disseminate the
results through the Information Sharing and Analysis Center or
other appropriate means. The committee intends for the
Administrator to ensure that sensitive information is
safeguarded during this process, and that classified
information is handled in accordance with section 3(b) of this
Act.
Section 4. Authorization of Appropriations
This section authorizes $12,000,000 per year for each of
fiscal years 2002 through 2007, to remain available until
expended.
Section 5. Assistance for Arsenic Requirements
This section provides that the Administrator shall use
$20,000,000 per year in 2002 and 2003 of unobligated funds to
provide assistance for small water supply systems to comply
with requirements relating to arsenic in drinking water. By
including this language, the committee recognizes the
commitment made by EPA Administrator in October 2001 to provide
this level of funding over the next two years for research and
development of more cost-effective technologies to help small
systems to meet the new standard. The committee is aware of
concerns raised regarding the potential cost of compliance with
lower arsenic standards for small systems. The National Academy
of Sciences, in a report released in September 2001, found that
even at 3 ppb, the lowest level feasible to achieve, according
to EPA's January 22, 2001 rule, the combined cancer risks are
about 1 in 1000. The committee intends for the funds provided
by this section to work to reduce the potential cost of
compliance with lower arsenic standards for small systems to
ensure that the level of protection of human health provided by
the EPA's January 22, 2001 arsenic rule be available to
individuals who are served not only by large systems but also
by small systems.
Legislative History
Senators Jeffords, Smith of New Hampshire, and Crapo
introduced S. 1593 on October 30, 2001. Senator Graham of
Florida co-sponsored the bill on November 8, 2001. Senator
Corzine co-sponsored the bill on November 6, 2001, and Senator
Bingaman co-sponsored the bill on November 15, 2001.
Hearings
A hearing was held on S. 1593 and other infrastructure
security bills on November 1, 2001 before the full committee.
Witnesses included: Michael Brown, Deputy Director, Federal
Emergency Management Agency, Washington, DC; Joe Moravec,
Commissioner, Public Building Service, General Services
Administration, Washington, DC; Dr. David Sampson, Assistant
Secretary for Economic Development, Economic Development
Administration, U.S. Department of Commerce, Washington, DC;
Richard Meserve, Chairman, Nuclear Regulatory Commission,
Rockville, MD; Herbert Mitchell, Associate Administrator for
Disaster Assistance, Small Business Administration, Washington,
DC; and Marianne L. Horinko, Assistant Administrator Office of
Solid Waste and Emergency Response, Environmental Protection
Agency, Washington, DC.
Rollcall Votes
The Committee on Environment and Public Works met to
consider S. 1593, a bill to authorize the Administrator of the
Environmental Protection Agency to establish a grant program to
support research projects on critical infrastructure protection
for water supply systems, and for other purposes, on November
8, 2001. The committee adopted by voice vote an amendment in
the form of a substitute offered by Senators Jeffords, Smith of
New Hampshire, Crapo, and Graham, after adopting an amendment
by Senator Jeffords by voice vote.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee makes evaluation of
the regulatory impact of the reported bill.
The bill, S. 1593, requires that the Administrator of the
EPA issue the guidelines, procedures, and criteria for
administration of this program in the Federal Register. The
bill will not cause any adverse impact on the personal privacy
of individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the committee finds that S. 1593 contains
no intergovernmental or private-sector mandates as defined in
the Unfunded Mandates Reform Act (UMRA) and would impose no
costs on State, local, and tribal governments.
Cost of Legislation
Section 403 of the Congressional Budget and Impoundment
control Act requires that a statement of the cost of the
reported bill, prepared by the Congressional Budget Office, be
included in the report. That statement follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 16, 2001.
Hon. James Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has prepared
the enclosed cost estimate for S. 1593, the Water
Infrastructure Security and Research Development Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis,
who can be reached at 226-2860.
Sincerely,
Dan L. Crippen
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S. 1593 Water Infrastructure Security and Research Development Act, as
ordered reported by the Senate Committee on Environment and
Public Works on November 8, 2001
SUMMARY
S. 1593 would authorize the appropriation of $72 million
over the 2002-2007 period for the Environmental Protection
Agency (EPA) to provide new grants to research institutions to
carry out projects aimed at improving the protection and
security of water supply systems, including protection from
biological and chemical contamination.
In addition, enacting S. 1593 would authorize EPA to use
$40 million over the 2002-2003 period from funds previously
appropriated (but not obligated) to provide assistance to small
water supply systems to comply with new regulations on arsenic
in drinking water. That additional spending is considered
direct spending, so pay-as-you-go procedures would apply to the
bill.
S. 1593 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, and tribal
governments.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of S. 1593 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
------------------------------------------------------------------------
2002 2003 2004 2005 2006
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO
APPROPRIATION
Authorization Level\1\.......... 12 12 12 12 12
Estimated Outlays............... 5 10 12 12 12
CHANGES IN DIRECT SPENDING
Estimated Budget Authority...... 0 0 0 0 0
Estimated Outlays............... 8 17 12 3 0
------------------------------------------------------------------------
\1\ S. 1593 also would authorize the appropriation of $12 million for
fiscal year 2007.
BASIS OF ESTIMATE
For this estimate, CBO assumes that the bill will be
enacted by the end of calendar year 2001, that the full amounts
authorized will be appropriated each fiscal year, and that
outlays will occur at rates similar to past funding for EPA's
Science and Technology programs. CBO estimates that
implementing S. 1593 would increase spending subject to
appropriation by $51 million over the 2002-2006 period, with an
additional $21 million to be spent after 2006.
In addition, section 5 would authorize EPA to use $40
million of funds previously appropriated (but not obligated)
from its Safe Drinking Water State Revolving Fund program (or
other programs) to provide grants to small water supply systems
to comply with arsenic contamination requirements. Because this
provision would allow EPA to spend funds that we estimate would
not otherwise be used, we estimate this provision would
increase direct spending by $40 million over the next five
years.
PAY-AS-YOU-GO CONSIDERATIONS
The Balanced Budget and Emergency Deficit Control Act sets
up pay-as-you-go procedures for legislation affecting direct
spending or receipts. The net changes in outlays that are
subject to pay-as-you-go procedures are shown in the following
table. For the purposes of enforcing pay-as-you-go procedures,
only the effects in the budget year and the succeeding four
years are counted.
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
Changes in outlays.............. 8 17 12 3 0 0 0 0 0 0
Changes in receipts............. N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
----------------------------------------------------------------------------------------------------------------
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
S. 1593 contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on state,
local, and tribal governments. The bill would benefit state and
local governments by establishing a grant program for research
institutions, including public universities, to improve the
protection and security of public water supply systems. In
addition, S. 1593 would authorize $40 million for small water
supply systems to comply with requirements relating to arsenic
in drinking water. Any costs associated with the grant programs
would be considered a condition of aid.
Estimate Prepared by: Federal Costs: Susanne S. Mehlman Impact
on State, Local, and Tribal Governments: Elyse Goldman Impact
on the Private Sector: Cecil McPherson.
Estimate Approved by: Peter H. Fontaine Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law
Section 12 of rule XXVI of the Standing Rules of the
Senate, provides that reports to the Senate should show changes
in existing law made by the bill as reported. Passage of this
bill will make no changes to existing law.