[House Report 108-650]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-650
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LLAGAS RECLAMATION GROUNDWATER REMEDIATION INITIATIVE
_______
September 7, 2004.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
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Mr. Pombo, from the Committee on Resources, submitted the following
R E P O R T
[To accompany H.R. 4459]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources to whom was referred the bill
(H.R. 4459) 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 without amendment and recommend that the bill
do pass.
PURPOSE OF THE BILL
The purpose of H.R. 4459 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.
BACKGROUND AND NEED FOR LEGISLATION
The communities of Morgan Hill and San Martin in Santa
Clara County, California, have been forced to close wells due
to perchlorate contamination in the groundwater. Perchlorate is
both a naturally occurring and man-made chemical. Most of the
perchlorate manufactured in the United States is used as the
primary ingredient of solid rocket propellant. Perchlorate is
also used in the manufacture of pyrotechnics and roadside
flares. Research indicates that perchlorate interferes with
iodide uptake into the thyroid gland. Since iodide is an
essential component of thyroid hormones, perchlorate disrupts
how the thyroid functions. In adults, the thyroid helps to
regulate metabolism. In children, the thyroid plays a major
role in proper development in addition to metabolism.
Perchlorate has been detected in more than 500 water wells
in Santa Clara County, stemming from a nine-mile long plume of
the chemical in the Llagas Groundwater Subbasin. As a result,
more than 1,000 residences have been supplied with bottled
water. The Santa Clara Valley Water District is working to
address the problem and develop a long-term plan for
remediation of the basin. Near-term solutions, such as point-
of-use drinking water treatment systems and residential
wellhead treatment systems, are being considered.
H.R. 4459 establishes the ``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 up to $25 million in federal funding
to remediate groundwater in the service area of the Santa Clara
Valley Water District. 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. 4459 was introduced by House Resources Committee
Chairman Richard Pombo (R-CA) on May 20, 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 Full
Resources Committee met to mark up the bill. No amendments were
offered and the bill 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 ``Llagas Reclamation
Groundwater Remediation Initiative.''
Section 2. Definitions
This section defines various terms used in the bill.
Section 3. California basins remediation
This section establishes the ``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. An authorization of $25 million would be available to
carry out the purposes of the bill. 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.
The section also states that the bill shall not affect
other federal and State authorities being used for remediation
and protection of the groundwater in the natural watersheds of
the Llagas groundwater subbasin 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.
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 result in increased direct
spending of less than $500,000 per year annually from 2005-
2012.
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.
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. 4459--Llagas Reclamation Groundwater Remediation Initiative
Summary: H.R. 4459 would establish an interest-bearing
account in the Treasury called the California Basins
Groundwater Remediation Fund and would authorize the
appropriation of $25 million to be deposited into the fund. The
bill would authorize the Secretary of the Interior through the
Bureau of Reclamation to use the fund to provide grants to the
Santa Clara Valley Water District for groundwater cleanup
projects in the Llagas watershed in Santa Clara County,
California. H.R. 4459 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. 4459 would cost $20 million
over the 2005-2009 period and an additional $5 million after
that period. Enacting this bill would increase direct spending
by less than $500,000 annually over the 2005-2012 period.
H.R. 4459 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. 4459 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 \1\
Estimated Authorization Level...................................... 5 5 5 5 5
Estimated Outlays.................................................. 2 3 5 5 5
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\1\ Implementing H.R. 4459 also would increase direct spending by less than $500,000 a year.
Basis of estimate
Spending subject to appropriation
For this estimate, CBO assumes that H.R. 4459 will be
enacted near the end of fiscal year 2004 and that the necessary
funds will be appropriated in equal amounts over the 2005-2009
period to the California Basins Groundwater Remediation Fund.
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
the Santa Clara projects would be somewhat slower than
historical federal spending on similar projects. CBO estimates
that implementing this bill would cost $20 million over the
2005-2009 period and an additional $5 million after that
period.
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.
Currently, it is unknown how much of the nonfederal
contributions would be cash and how much would be in-kind
donations. According to the bureau, the total cost of the
project could be at least $40 million, which means that the
nonfederal share could be at least $15 million. Any receipt to
the fund, however, would be offset by equal amounts of direct
spending from the fund over the 2005-2012 period.
In addition, the bill would authorize the bureau to spend
interest earned on the California Basins Groundwater
Remediation Fund. CBO estimates that provision would increase
direct spending by less than $500,000 annually over the 2005-
2012 period.
Intergovernmental and private-sector impact: H.R. 4459
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; 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.