The Title XVI Water Reuse Program: Implementation and Legislative Issues

Publication Date: October 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Environment

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Abstract:

Congress authorized the Department of the Interior (DOI) to undertake a program to provide limited federal financing for water reuse (i.e., planned beneficial use of treated wastewater and impaired surface and groundwaters) in Title XVI of P.L. 102-575 -- the Reclamation Wastewater and Groundwater Studies Feasibility Act of 1992. Title XVI's implementation by DOI's Bureau of Reclamation has been contentious; many Members of Congress, particularly from water-scarce western states, support both the program and specific projects, but are frustrated by growing backlogs of projects seeking authorization or awaiting appropriations.

The Bush Administration has generally opposed authorizing additional projects, citing the backlogs and noting that the projects proposed for authorization generally do not meet Reclamation's requirements for a feasibility study. At the same time, the Administration's requests for appropriations for Title XVI have been relatively consistent for several years, with the FY2007 request at $10.1 million, albeit nearly half of what Congress has appropriated in recent years. The resulting inertia in implementation has raised congressional interest in possible changes to the program. Options discussed range from clarifying the program's criteria (e.g., focus on areas of most need), to changing the way projects are evaluated (e.g., replacing the requirement for a Reclamation feasibility study with an evaluation of technical and financial viability), to expanding and prioritizing Title XVI appropriations.

Views on how to proceed vary based on perspectives of the proper role of the federal government in water supply, the appropriate priority for the program in the current fiscal environment, the history and mission of the program, and the urgency and need for investment and promotion of water reuse technologies. Title XVI's genesis includes helping Southern California reduce its reliance on Colorado River water. As authorizations for projects in other areas and with other purposes were added, the justification for federal involvement in these projects, which expand municipal water supply, and the long-term goals and planning for the program came under increasing scrutiny, particularly by the Administration. At the same time, the program was increasingly pursued by project sponsors as a route for federal assistance, which was then leveraged for additional support and financing. Several project sponsors have directly pursued congressional authorization outside the Title XVI feasibility study process. It is not clear if this is due to the Administration's resistance to pursue Title XVI projects, or due to a combination of other factors.

In the face of decreasing support from the Administration and mounting dissatisfaction of project sponsors, the 109th Congress has engaged in oversight of the program and authorized only a limited set of additional Title XVI projects. The issue for Congress is whether and how to change the program. The challenge for Congress is that stakeholders' perspectives on how to improve the program are fundamentally different. Project sponsors generally prefer a more streamlined project development process and expanded program appropriations, while the Administration supports a smaller, more focused program with long-term objectives tied to federal interests. This report will be updated as events warrant.