public policy committee august 6, 2020 9:00 am virtual meeting … · 2020-08-06 · jeff gray...

CENTRAL ARIZONA PROJECTPublic Policy CommitteeAugust 6, 2020 9:00 AM

Virtual MeetingThe public may view the meeting at www.capaz.com/board/meetings

FINAL AGENDATimes shown are approximate. Some items may take more or less time than scheduled, or the Chair may

grant requests to hear items in an order other than shown.

1. Consideration of Action to Approve the Minutes of June 4, 2020 Public Policy Committee Cesare2. Report on State Issues that Could Affect CAP and Possible Consideration of a Recommendation that

the Board Take Action on State Issues that Could Impact CAP (Leadership and Public Trust:Relationships Other Stakeholders^) Gray

3. Report on Federal Issues that Could Affect CAP and Possible Consideration of a Recommendationthat the Board Take Action on Federal Issues that Could Impact CAP, including but not limited to S.4228 (Leadership and Public Trust: Relationships Other Stakeholders^) Gray/Ryan Smith, BrownsteinHyattFarberSchreck

4. Public Comment5. Adjourn

^ Linkage to 2016 CAWCD Board of Directors Strategic Plan. In accordance with the Americans with Disabilities Act (ADA), if you need reasonable accommodations due to a disability, please contact the CAP office at (623.869.2333) or TDD (623.869.2183) at least seventytwo (72) hours in advance of the meeting.

Materials have been updated for agenda item 3.

https://www.cap-az.com/board/meetings

https://www.cap-az.com/board/meetings

CENTRAL ARIZONA WATER CONSERVATION DISTRICT Public Policy Committee

June 4, 2020

A meeting of the Public Policy Committee ("Committee") of the Central Arizona Water Conservation District’s ("CAP" or "CAWCD") Board of Directors was called to order by Chair Karen Cesare on 6/4/2020 at 9:07 a.m. The meeting was held virtually and broadcast for the public via livestream.

Committee Members present were: Chair Karen Cesare, Pima County; Jennifer Brown, Maricopa County; and Heather Macre, Maricopa County.

Committee Members not present were: Benjamin W. Graff, Maricopa County; and Jim Hartdegen, Pinal County.

Staff members present were: Ted Cooke, General Manager; Jay Johnson, General Counsel; Bridget Schwartz-Manock, Director, Public Affairs; Jeff Gray, Legislative Affairs Manager; Jessica Newland, Legislative Affairs Analyst; Megan Casey, Public Affairs Management Analyst; and Jenn Miller, Board Support Specialist.

1. CONSIDERATION OF ACTION TO APPROVE THE MINUTES OF MARCH 5, 2020 PUBLICPOLICY COMMITTEE - CESARE

On a motion (Board Member Brown) and a second (Board Member Macre), approved theminutes of the March 5, 2020 Committee meeting. Motion passed.Voting yes: Karen Cesare, Jennifer Brown, Heather A. Macre

2. REPORT ON STATE ISSUES THAT COULD AFFECT CAP AND POSSIBLECONSIDERATION OF A RECOMMENDATION THAT THE BOARD TAKE ACTION ONSTATE ISSUES THAT COULD IMPACT CAP - GRAY

Jeff Gray, Legislative Affairs Manager, gave the Committee an update on state bills, deadlinesand a brief budget update. He also informed the Committee that while the Regular Sessionadjourned sine die on May 26, 2020, the Legislature is expected to reconvene for a specialsession this summer to address COVID-19 and state budget matters.

Mr. Gray gave a status report on bills the Board had previously taken a position on:

SB1113 (mortgaged property; tax statements; information) This bill requires tax statements toseparately list the amount of primary and secondary taxes that is due to each taxing jurisdiction.This bill passed on March 20.

HB2677 (groundwater replenishment reserves) This bill modifies how the CAGRDreplenishment reserve targets are calculated for Active Management Areas within the CAWCD

Public Policy Committee June 4, 2020 Page 2

service area by conforming to how it was calculated in the 2015 CAGRD Plan of Operation. This bill was passed out of committee, but was not third read in the Senate.

HB2787 (water; augmentation authority; special districts) This bill allows domestic water improvement districts to conduct water supply development activities, and to use WIFA monies to do so. Requires that at least $200,000 be allocated to Pinal County Water Augmentation Authority annually. This bill was passed out of the House, but not heard in the Senate.

HB2880 (assured water supply; availability; plats) This bill outlines changes relating to the physical availability of groundwater when renewing or modifying a Designation of Assured Water Supply in the Pinal Active Management Area (AMA). This bill passed out of the House, but was not third read in the Senate.

HB2101 (appropriation; Arizona water protection fund) This bill appropriates funds to the Arizona Water Protection Fund. Mr. Gray noted that while the bill did not get signed by the Governor, $250,000 was included in the FY2021 budget passed in March.

HB2617/SB1145 (temporary irrigation efficiency projects fund) These mirror bills modify the requirements for an irrigation district to qualify for funding from the Temporary Groundwater and Irrigation Efficiency Projects Fund to ensure that San Carlos Irrigation and Drainage District (SCIDD) is eligible to receive funds under the program, since they deliver surface water other than CAP water. This bill was signed by the Governor on February 18.

HB2618/SB1494 (department of water resources; continuation) These mirror bills support the continuation of the Arizona Department of Water Resources. This was signed by the Governor on March 23.

SB1301 (water banking; storage credits; subcontractors) This bill allows for the direct transfer of Arizona Water Banking Authority (AWBA) long-term storage credits to M&I subcontractors for them to perform independent recovery during times of Colorado River shortage when the AWBA is to firm M&I users. This bill passed in the Senate, but was not heard in the House.

HCM2004 (Yuma desalting plant; continued operation) This memorial supports augmentation and conservation through the operation of the Yuma Desalting Plant, if feasible, or a suitable alternative. The memorial passed out of the House, but was not third read in the Senate.

HR2003 (Arizona water professionals; appreciation week) This resolution was read on the House Floor on March 18.

Mr. Gray provided updates on the following bills that CAP has not taken a formal position on. HB2286 (appropriation; wastewater treatment infrastructure) HB2309 (groundwater; waterlogged area exemption; date) HB2595 (S/E: water rights; general adjudications; funding) HB2620 (S/E: law clinic; stream adjudications; appropriation) HB2672 (water rights)

Public Policy Committee June 4, 2020 Page 3

HB2674 (water; substitute acreage) HB2675 (water conservation notice; no abandonment) HCM2009 (floodwater harvesting; study; urging congress) HCR2027 (S/E: support; water management policies)

3. REPORT ON FEDERAL ISSUES THAT COULD AFFECT CAP AND POSSIBLE CONSIDERATION OF A RECOMMENDATION THAT THE BOARD TAKE ACTION ON FEDERAL ISSUES THAT COULD IMPACT CAP - GRAY

Mr. Gray gave the Committee an update on federal issues beginning with several federal COVID-19 related bills that have passed.

Mr. Gray informed the Committee that infrastructure-related legislation continues to be a topic of discussion, whether as a piece in a subsequent COVID-19 economic recovery bills, or a specific infrastructure package. There are several legislative vehicles moving that are germane to the topic. CAP staff is working to prepare a list of potential concepts that are consistent with previous direction and our federal agenda, if opportunities arise in any of these legislative vehicles. CAP will need to coordinate with stakeholders, but initial concepts and areas of focus include Reclamation’s obligation to provide 100kaf of Colorado River water augmentation and conservation under DCP, and any needed infrastructure improvements and investments that support implementation of DCP within Arizona. Staff will continue to keep the committee apprised.

4. PUBLIC COMMENT

None

5. ADJOURN

There being no further business to come before the Committee, the meeting adjourned at 9:37 a.m. ___________________________ Karen Cesare Chair

Legislative Affairs www.CentralArizonaProject.com 623-869-2425

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July 27, 2020

State Update State Revenues As previously reported, in April, the Joint Legislative Budget Committee (JLBC) anticipated the COVID-19 pandemic would result in a $1.1 billion shortfall in state revenues by the end of FY 2021, although they stated that the shortfall estimate could be off by $500 million in either direction (anywhere between $600 million to $1.6 billion). On June 19, JLBC released a budget update with new revenue projections. The new projections show that revenues have not dropped as much as originally expected. The estimated shortfall by the end of FY 2021 is now expected to be anywhere from $0 to $1 billion. To address the potential shortfall, the Legislature has several options to consider, including: rolling the debt into the next fiscal year and resolving the shortfall as part of the budget changes at that time (similar to 2008); withdrawing money from the Rainy Day Fund; utilizing available federal funds to offset the losses; fund transfers; and agency budget reductions. 2020 Primary Election The 2020 primary election day is Tuesday, August 4 and early ballots for the election were mailed out to individuals on the Permanent Early Voting List at the beginning of July. This year, there are several primary elections of note on the state and federal side that CAP staff is tracking and will report the outcomes to the Board.

The following State Legislative Issues Update outlines the status of the Board-approved 2020 Legislative Agenda, as well as other relevant state issues. Legislative Affairs staff comes before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed legislation and rules that may arise during the year. Central Arizona Project Authorities and Operations CAP Position: Monitor legislative and regulatory efforts that could impact CAP’s contractual authorities or directly impact CAP water supplies and operations.

No update to report at this time.

Colorado River Water Supply CAP Position: Continue to support the implementation of the Lower Basin Drought Contingency Plan (DCP), including implementation of the Arizona DCP Plan. Continue to cooperate with Federal, State, Tribal and other stakeholders to support conservation efforts that protect water elevations in Lake Mead.



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Arizona Water Resources CAP Position: Continue to collaborate with elected officials and stakeholders on efforts to address in-state and interstate water resources issues. Monitor legislative efforts that encourage in-state water conservation and augmentation activities.


Multi-Species Conservation Program (MSCP) Funding CAP Position: Support the Arizona Game and Fish Department's efforts to collect and maintain revenues sufficient to continue its annual contribution toward the costs of the MSCP. Monitor legislative and executive proposals that impact dedicated annual state funding of the MSCP.


Funding of State Water Agencies and Commissions CAP Position: Support the efforts of the Arizona Department of Water Resources and the Arizona Water Protection Fund Commission to secure sufficient state General Fund appropriations in order to carry out statutory functions. Monitor legislative actions that propose to use funds available to the Arizona Water Banking Authority Commission for other purposes.


Central Arizona Groundwater Replenishment District (CAGRD) CAP Position: Monitor any proposed CAGRD-related legislation to ensure its operations are not adversely impacted. Increase awareness of CAGRD’s statutory functions, operations, and funding to inform lawmakers of its contribution to Arizona’s water management and economic development.


Agency Rulemaking CAP Position: Continue to monitor state rulemaking and implementation related to energy, air quality, water quality and other issues that may affect CAP operations.


If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Legislative Affairs at 623-869-2425.

7/29/2020

1

YOUR WATER. YOUR FUTURE.

State Legislative UpdatePublic Policy Committee

August 6, 2020

JEFF GRAY, LEGISLATIVE AFFAIRS MANAGER

| PPC STATE UPDATE | 08.06.202

• In April, JLBC estimated a budget shortfall between $600 million and $1.6 billion by the end of FY 2021.

• New forecasts released in June show revenues have not dropped as much as originally expected.

State Revenues

7/29/2020

2

| PPC STATE UPDATE | 08.06.203

• Primary Election: August 4, 2020

• State Races Outcomes

• Federal Races Outcomes

• General Election: November 3, 2020

2020 Elections

KNOW YOUR WATER

Questions?

623-869-2333 | From Tucson 520-579-0046 | Fax 623-869-2332 | CentralArizonaProject.com

Agenda Number 3CONTACT: Bridget Schwartz-Manock

[email protected]

Jeff [email protected]

MEETING DATE: Thursday, August 6, 2020

AGENDA ITEM: Report on Federal Issues that Could Affect CAP and Possible Consideration of a Recommendation that the Board Take Action on Federal Issues that Could Impact CAP, including but not limited to S. 4228 (Leadership and Public Trust: Relationships - Other Stakeholders^) - Gray/Ryan Smith, BrownsteinHyattFarberSchreck

RECOMMENDATION: See attached documents and proposed staff recommendations.

FISCAL IMPLICATIONS: No

Impact on Budget: None

Additional spending authority requested: None

Impact on Reserves: None

Impact on Rates: None

LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: 2016 Board Strategic Plan

Leadership & Public Trust: Relationships – Improve Relationships with Customers and Stakeholders Leadership & Public Trust: CAP Board Leadership – Equip Board Members to Effectively Represent

CAP and its Position Water Supply: Optimize Reliability and Sustainability of CAP Water Supply

PREVIOUS BOARD ACTION/ACTIVITY:November 7, 2019 Public Policy Committee previewed and discussed the draft proposed 2020 Federal

Legislative AgendaDecember 5, 2019 Board adopted 2020 Federal Legislative Agenda

ISSUE SUMMARY/DESCRIPTION:This update reports on and requests guidance on bills being considered by the United States Senate.

See attached documents and issue descriptions.

SUGGESTED MOTION:I move that the Public Policy Committee recommend that the Board adopt a position on the following pending federal legislation of interest to CAP: (staff recommendations in parentheses)

S. 4228 (MONITOR)

ATTACHMENTS:1. Federal Update2. Presentation3. BHFS Memo4. S. 4228


[1]

August 5, 2020

Federal Update Federal Coronavirus Legislation The U.S. House of Representatives passed in mid-May the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, H.R. 6800. The $3 trillion package would, among other things, provide a second round of stimulus checks for each American, provide “hazard pay” to essential workers, expand unemployment benefits, and provide additional aid to local governments. After its passage, Senate Majority Leader Mitch McConnell (R-KY) stated that the bill would not move in the Senate and expressed his desire to observe the impact of existing measures before enacting new legislation. This week, the U.S. Senate formally unveiled their COVID proposal, the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act. The $1 trillion package also provides direct cash payments, extends unemployment benefits at $200/week and caps wages at 70 percent beginning in October. It also includes various tax credits, a second round of Paycheck Protection Program Loans, and employer liability protection. The proposal does not provide new aid to local governments, but instead gives additional time to use the money appropriated for this in March. With both parties now having officially released their proposals, negotiations between the House, Senate, and the Administration will intensify as Congress approaches the August recess.

The following Federal Legislative Issues Update outlines the status of the Board-approved 2020 Legislative Agenda, as well as other relevant federal issues. Legislative Affairs staff comes before the Public Policy Committee on a regular basis to seek guidance and direction on these and other proposed legislation and rules that may arise during the year.

CAP Authorities and Operations CAP Position: Monitor legislative and regulatory efforts that could impact CAP’s contractual authorities or directly impact CAP water supplies and operations.


Colorado River Water Supply CAP Position: Continue to support the implementation of the Lower Basin Drought Contingency Plan (DCP), including support for the Bureau of Reclamation to achieve the goal to conserve up to 100,000 acre-feet per year as part of the DCP. Continue to cooperate with Federal, State, Tribal, and other stakeholders to mitigate potential impacts on the CAP water supply and support water conservation and augmentation activities, such as desalination, weather modification, and water reuse and recycling programs, as well as other programs.

https://www.eenews.net/assets/2020/05/13/document_daily_01.pdf

https://www.finance.senate.gov/imo/media/doc/SFC%20CARES%202.0%20Section-by-Section.pdf


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Continue to support the operation of the Yuma Desalting Plant or suitable alternatives to reduce system losses.

Water-Energy Technology Demonstration and Deployment Act The U.S. Senate Energy and Natural Resources Subcommittee on Water and Power met on July 22 to hear 5 bills (see attached BHFS memo), including S.4228, the Water-Energy Technology Demonstration and Deployment Act, introduced by Sen. Martha McSally (R-AZ). The hearing was informational and a vote was not taken on any of the bills. As part of Chair McSally’s full prepared remarks, she made the following comments as it related to S.4288:

“…The Department of Energy is doing a lot of good work on water technologies. At the same time, the Bureau of Reclamation has programs that support deployment of many of these same tools. Whether it’s water reuse, recycling and desalination, better pumps, or some other technology, my bill will help get the advancements and expertise developed by DOE out of the lab and into the hands of water managers where they are needed now. And doing that is a win all around - it will accelerate commercialization of technology, get a bigger bang for the buck from tax payer dollars being spent by DOE and Reclamation on these solutions, and start producing additional water supplies needed by western communities. S.4288 also establishes a Western Water Resilience Center at one or more Universities in the west. As the Universities in Arizona have shown, our academic institutions can drive innovation that will not only improve water security, but will also spur greater development of a water technology industry in the U.S…”

S. 4288 would establish Western Water Resilience Centers at one or more universities in the West to conduct research on the development, commercialization, and deployment of innovations in water and energy technologies. The bill would also establish a pilot program between the U.S. Departments of Energy and the Interior to provide grant funding for desalination projects in the Upper and Lower Basin. The language for the Lower Basin would allow for an eligible desalination project that:

• is authorized under the Colorado River Basin Salinity Control Act (43 U.S.C. 1571 et seq.); and processes water to remove salt and returns the water to the mainstem of the Colorado River; or

• would provide similar amounts of water to support Colorado River drought contingency operations, consistent with the Colorado River Drought Contingency Plan Authorization Act (Public Law 116–14; 133 Stat. 850), by improving efficiency in deliveries of Colorado River water, consistent with the treaty obligation of the United States to Mexico under the Agreement approving Minute 242 of the International Boundary and Water Commission setting forth a permanent and definitive solution to the international problem of the salinity of the Colorado River, entered into force August 30, 1973 (24 UST 1968; TIAS 7708).

Since the July 22 hearing, Sen. McSally’s office has indicated that they have received feedback from various stakeholders and are open to further discussions on language. CAP

https://www.energy.senate.gov/public/index.cfm/hearings-and-business-meetings?ID=0F6A5B9D-4F61-40B1-9A56-3B07ACD8EFCD

https://www.energy.senate.gov/public/index.cfm?a=files.serve&File_id=15E14981-1396-4B85-867D-F120B73E4231

https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=3ED5B04F-1021-4B90-97DE-9CD7D93DADAB


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staff will continue to analyze the bill and share guidance and feedback with committee staff based on the Aug 6 Public Policy Committee and Board meeting.

CAP Recommended Position: MONITOR

2021 House Appropriations Bills The U.S. House passed its first “minibus” appropriations bill on July 24 (H.R. 7608), which included funding for the U.S. Department of the Interior (DOI), and the Environmental Protection Agency (EPA). The Energy & Water appropriations bill (H.R. 7613), which passed committee on July 13, was not part of the initial minibus package and is expected to be included in the next minibus to be considered the week of July 27. The House report for H.R. 7613 includes language related to the DCP and Pinal County agriculture infrastructure on page 83, as outlined below. This language is similar to report language included in last year’s appropriations package (see January 2020 Public Policy Committee report) with additional reporting requirements to Congress:

Of the additional funding provided under the heading ‘‘Water Conservation and Delivery’’, $40,000,000 shall be for water conservation or infrastructure projects related to the implementation of the agreements authorized by the Colorado River Drought Contingency Plan Authorization Act of 2019 (Public Law 116–14) within states that are parties to those agreements, with priority to infrastructure activities for canal system improvements, reclaimed water reuse facilities, new irrigation wells, and replacement irrigation wells or other measures, programs, and projects that result in conservation of other surface water or groundwater. Reclamation is directed to brief the Committee not later than 180 days after enactment of this Act on the status of carrying out these activities. Not later than 45 days after enactment of this Act, Reclamation shall provide to the Committee a report delineating how the additional funds in this account are to be distributed, in which phase the work is to be accomplished, and an explanation of the criteria and rankings used to justify each allocation.

The Senate is not expected to take up appropriations until after the August recess.

Drought Resiliency and Water Supply Infrastructure Act On July 18, 2019, the Senate Energy and Natural Resources Subcommittee on Water and Power convened a hearing on S. 1932, the Drought Resiliency and Water Supply Infrastructure Act. The bill, introduced in June by Senators Cory Gardner (R-CO), Diane Feinstein (D-CA), Martha McSally (R-AZ), and Kyrsten Sinema (D-AZ) supports water infrastructure in Reclamation states and provides for grant funding for both federally-owned and state-led storage projects. On June 2, 2019, the CAWCD Board voted to monitor the legislation and seek a clarifying amendment, which was included in the introduced bill. On August 1, 2019, the CAWCD Board voted to support the bill. CAWCD submitted a written

https://www.congress.gov/116/crpt/hrpt449/CRPT-116hrpt449.pdf


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statement of support for the bill. Potential revisions are continuing to be discussed to improve chances for support and passage. Stakeholder feedback has been solicited and CAP staff are reviewing draft amendments to determine the impact to CAP, as compared to S. 1932 as introduced. As part of her opening comments during the July 22 U.S. Senate Energy and Natural Resources Subcommittee on Water and Power, Chair McSally commented that:

“…there are a number of bipartisan bills that have already received committee consideration and are awaiting further action. This includes S. 2044 – the bill I introduced with Sen. Sinema to address aging water infrastructure – and S. 1932 that was introduced by Sen. Gardner and cosponsored by Sens. Feinstein, Sinema, Rosen, and myself. Combined together, the consensus provisions from the bills reviewed and reported by this committee can and should form the basis of a water package that we can move this year.”

CAP Position: SUPPORT

Cybersecurity CAP Position: Monitor legislative efforts to address cybersecurity and potential threats to critical infrastructure and vital computer systems.


Central Arizona Project Water Infrastructure CAP Position: Monitor proposals by the Executive and Congress to provide financing opportunities to modernize U.S. infrastructure and determine possible opportunities for CAP.

Infrastructure As noted in the May and June Public Policy Committee reports, given the number of potential avenues for infrastructure legislation to move this year in Congress, CAP staff has been working to prepare a list of potential priorities that can be provided to our federal delegation, as well as parties with whom to coordinate. Of the list of potential items previously listed, the focus has been narrowed to pursue federal infrastructure funding to assist the Bureau of Reclamation with its obligation to provide 100kaf of Colorado River Water augmentation and conservation under DCP. With interim guidance from the Board President and Public Policy Chair, CAP staff developed concept legislative language and held conversations with BOR, ADWR, and representatives from Lower Basin and Upper Basin states to discuss and coordinate on language and efforts. Initial outreach on the concept has also taken place with congressional and committee staff. Once language is finalized and vehicle legislation has been identified, staff will seek final guidance and approval from the Public Policy Committee and Board.


[5]

Water Resources Development Act (WRDA) The Senate Environment and Public Works (EPW) Committee Chair John Barrasso (R-WY) and ranking member Tom Carper (D-DE) introduced two federal bills early this summer: S. 3951, the America's Water Infrastructure Act of 2020 (AWIA) and S. 3950, the Drinking Water Infrastructure Act of 2020 (DWIA). The EPW Committee held a Business Meeting in May to consider the bills, which focus on clean water and municipal delivery type infrastructure. The bills and amendments were favorably reported to the Senate by a vote of 21-0. S. 3951 is also the Senate vehicle for WRDA. WRDA bills authorize water resources studies and projects and set policies for navigation, flood control, hydropower, recreation, water supply and emergency management for the U.S. Army Corps of Engineers. Legislation passed in 2014, 2016 and 2018. The current authorization will expire at the end of 2020. During his opening comments at the EPW Committee, Chairman Barrasso said the two bills will “complement” the recently passed S. 2302 America’s Transportation Infrastructure Act (ATIA). Together the infrastructure bills will be “critical to the recovery of the economy.” The House Transportation and Infrastructure Committee introduced their version of WRDA this month (H.R. 7575), sponsored by Rep. Peter DeFazio (D-OR), which passed the House on July 29 by a voice vote.

Energy Legislation CAP Position: Monitor legislative efforts that may impact CAP operations, including CAP’s ability to secure affordable energy and ensure reliable transmission delivery.

No update to report at this time. Water Quality and Salinity Issues CAP Position: Monitor water quality issues impacting the Colorado River that may affect CAP operations. Support the activities of the Colorado River Basin Salinity Control Forum, including efforts to secure adequate funding and improve water management. Support the efforts of the Lower Colorado River Water Quality Partnership to address water quality issues of the Colorado River.


Indian Water Rights and Settlements CAP Position: Continue to collaborate with Arizona Tribes and other stakeholders on issues related to resolving water rights claims and support opportunities to provide Arizona Tribes with Colorado River decreed water rights greater flexibility to manage their resources. Continue to support legislation necessary and appropriate to enact the Hualapai Tribe water rights settlement.

https://www.epw.senate.gov/public/index.cfm/press-releases-republican?ID=31B1D7D5-415E-42F7-B397-E2AF10B3BF2D


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Hualapai Tribe Water Rights Settlement Act of 2019 On June 26, 2019, the House Natural Resources Subcommittee on Water, Oceans, and Wildlife held a hearing on H.R.2459, Hualapai Tribe Water Rights Settlement Act of 2019, introduced by Rep. Tom O’Halleran (D-AZ-1). The legislation would approve the settlement of water rights claims of the Hualapai Tribe and certain allottees in the State of Arizona, to authorize water project construction. A companion measure (S.1277) was introduced by Sen. Martha McSally (R-AZ) and cosponsored by Sen. Kyrsten Sinema (D-AZ) in the Senate Committee on Indian Affairs. There has been no new progress on the legislation at this time. CAP Position: SUPPORT

Federal Rulemaking CAP Position: Continue to monitor federal rulemaking and implementation related to energy, air quality, water quality, and other issues that may affect CAP operations.


If you have any questions or would like more information regarding any of the issues contained in this report, please contact CAP Legislative Affairs at 623-869-2425.

8/5/2020

1

YOUR WATER. YOUR FUTURE.

Federal Legislative UpdatePublic Policy Committee

August 6, 2020

JEFF GRAY, CAP LEGISLATIVE AFFAIRS MANAGER

RYAN SMITH, BROWNSTEIN HYATT FARBER SCHRECK

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COVID-19 Legislation• Three phases and a supplemental bill have passed Congress and

were signed by the President to date.• U.S. House passed the “HEROES” Act in May.• U.S. Senate introduced the “HEALS” Act in July.• Negotiations between the House, Senate, and the Administration will

intensify as Congress approaches the August recess.

Federal Update

8/5/2020

2

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• As noted in the May and June Public Policy Committee reports, given the number of potential avenues for infrastructure legislation to move this year in Congress, CAP staff has been working to prepare a list of potential priorities that can be provided to our federal delegation, as well as parties with whom to coordinate.

• Of the list of potential items previously listed, the focus has been narrowed to the Bureau of Reclamation’s obligation to provide 100kaf of Colorado River Water augmentation and conservation under DCP.

Infrastructure

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2021 House Appropriations Bills• The U.S. House passed its first “minibus” appropriations bill on July

24 (H.R. 7608).• The Energy & Water appropriations bill (H.R. 7613), which passed

committee on July 13, was not part of the initial minibus package.• H.R. 7613 has report language relevant to DCP and Pinal County

infrastructure.

Colorado River Water Supply

8/5/2020

3

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2021 House Appropriations Bills – H.R. 7613 report language:• Of the additional funding provided under the heading ‘‘Water Conservation and

Delivery’’, $40,000,000 shall be for water conservation or infrastructure projects related to the implementation of the agreements authorized by the Colorado River Drought Contingency Plan Authorization Act of 2019 (Public Law 116–14) within states that are parties to those agreements, with priority to infrastructure activities for canal system improvements, reclaimed water reuse facilities, new irrigation wells, and replacement irrigation wells or other measures, programs, and projects that result in conservation of other surface water or groundwater. Reclamation is directed to brief the Committee not later than 180 days after enactment of this Act on the status of carrying out these activities.

• Not later than 45 days after enactment of this Act, Reclamation shall provide to the Committee a report delineating how the additional funds in this account are to be distributed, in which phase the work is to be accomplished, and an explanation of the criteria and rankings used to justify each allocation.


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S. 4228, Water-Energy Technology Demonstration and Deployment Act• Informational hearing on July 22 in Water and Power Subcommittee.

• Establishes Western Water Resilience Centers at one or more universities in the West to conduct research on the development, commercialization, and deployment of innovations in water and energy technologies.

• Establishes a pilot program between the U.S. Departments of Energy and the Interior to provide grant funding for desalination projects in the Upper and Lower Basin.


8/5/2020

4

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S. 4228, Water-Energy Technology Demonstration and Deployment Act• The Lower Basin project would allow for an eligible desalination project that:

• Is authorized under the Colorado River Basin Salinity Control Act (43 U.S.C. 1571 et seq.); and processes water to remove salt and returns the water to the mainstem of the Colorado River; or

• Would provide similar amounts of water to support Colorado River drought contingency operations, consistent with the Colorado River Drought Contingency Plan Authorization Act (Public Law 116–14; 133 Stat. 850), by improving efficiency in deliveries of Colorado River water, consistent with the treaty obligation of the United States to Mexico under the Agreement approving Minute 242 of the International Boundary and Water Commission setting forth a permanent and definitive solution to the international problem of the salinity of the Colorado River, entered into force August 30, 1973 (24 UST 1968; TIAS 7708).


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S. 4228, Water-Energy Technology Demonstration and Deployment Act• Since the July 22 hearing, Sen. McSally’s office has indicated that they have

received feedback from various stakeholders and are open to further discussions on language. CAP staff will continue to analyze the bill and share guidance and feedback with committee staff based on the Aug 6 Public Policy Committee and Board meeting.

CAP Recommended Position: MONITOR


8/5/2020

5

KNOW YOUR WATER

Questions?

TO: CAWCD Board Members and Ted Cooke, General Manager FR: Ryan Smith, Shareholder Jason Buckner, Shareholder

Bella Sewall Wolitz, Of Counsel Reese Goldsmith, Associate and Policy Advisor

Brownstein Hyatt Farber Schreck CC: Bridget Schwartz-Manock, Director of Public Affairs Jeff Gray, Legislative Affairs Manager DA: July 27, 2020 RE: Federal Legislative Monthly Report ______________________________________________________________________________ July 2020 COVID-19 Federal Response Senate Republicans are expected to roll out a $1 trillion coronavirus relief package this week. The draft package will open negotiations with Democrats that will likely last through August. Last week, Senate Republicans met with the White House to discuss the substance of the relief package. The talks were marked by disagreement over payroll tax cuts and unemployment insurance. The expanded unemployment insurance provided for in the CARES Act and moratorium on evictions will expire on July 31, while unemployment claims still reach record levels. However, internal debates within the Republican party suggest that any unemployment benefit should provide an incentive to get back to work, the lack of which they view as a flaw in the CARES Act. The Senate Republican’s proposed relief bill, with its estimated $1 trillion price tag (compared to the $3 trillion House-passed HEROES Act), is likely to be narrower in focus than the House version, but to include some unemployment provisions and aid for schools. The House passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, H.R. 6800, on May 15, 2020. The bill comes in at just over 1,800 pages, full of Democratic priorities that have been deemed “aspirational” by Leader McConnell, who added that the bill has “no chance of becoming law.” However, the bill is the starting point for negotiations between House Democrats and the Republican-controlled Senate. The month of March 2020 brought an unprecedented response to the global pandemic caused by the novel coronavirus COVID-19. On March 6, an initial $8 billion package (Pub. L. No. 116-123) was signed into law. This measure was intended to provide essential funding for agencies. On March 13, 2020, the President declared a national emergency. Following the declaration, Congress quickly advanced a second package. H.R. 6201, the Families First Coronavirus

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Response Act (FFCRA) (Pub. L. No. 116-127), providing for expanded COVID-19 testing as well as addressing the impact on workers. For businesses with covered employees numbering 500 or less, employees must be given two weeks of paid leave. The measure was signed by the President the evening of March 18. However, economic uncertainty increased as it became clear that social distancing measures would need to be prolonged in order to reduce the spread of the virus. To address the economic impacts of the pandemic, a $2 trillion spending package was created. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. No. 116-136) provides funds to small businesses to retain employees during the pandemic, institutes a number of changes to the tax code, and provides funds to airlines and other distressed industries. Included in the package was also emergency supplemental appropriations for agencies to respond to the pandemic, including $20.6 million for the Bureau of Reclamation. The CARES Act was signed into law on March 27, 2020. As the CARES Act implementation got underway in April, the need for additional government action in response to the pandemic became clear. On April 24, 2020, the President signed into law a supplemental appropriations bill entitled the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) or “CARES 1.5.” The bill included $484 billion in funding for the Paycheck Protection Program (PPP) and the health care industry. Additional legislation, the Paycheck Protection Program Flexibility Act (PPPFA), was signed into law by the President on June 5, 2020. However, the number of coronavirus cases continue to surge at high levels across the U.S., including in Arizona, resulting in calls for more legislative action providing assistance for a longer duration. For instance, Rep. Tom O’Halleran (D-AZ) introduced legislation to extend the coverage of Coronavirus Relief Fund payments allocated under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to tribal governments from December 30, 2020 to December 30, 2022. The next COVID relief bill is expected to include business liability protects, healthcare funding, assistance for small businesses, assistance for schools, and potentially some state and local funding. House Kicks off 2021 Appropriations Process On July 24, the House passed the first appropriations minibus, H.R. 7608, containing H.R. 7608 (State, Foreign Operations), H.R. 7610 (Agriculture, Rural Development), H.R. 7612 (Interior, Environment), and H.R. 7609 (Military Construction, and Veterans Affairs). H.R. 7613, the energy and water appropriations bill, was approved by subcommittee by voice vote on July 7, and approved by the full committee on July 13. The energy and water development bill will be packaged with the next minibus package. The bill’s House report includes language related to the DCP on page 83.

Of the additional funding provided under the heading ‘‘Water Conservation and Delivery’’, $40,000,000 shall be for water conservation or infrastructure projects related to the implementation of the agreements authorized by the Colorado River Drought Contingency Plan Authorization Act of 2019 (Public Law 116–14)

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within states that are parties to those agreements, with priority to infrastructure activities for canal system improvements, reclaimed water reuse facilities, new irrigation wells, and replacement irrigation wells or other measures, programs, and projects that result in conservation of other surface water or groundwater. Reclamation is directed to brief the Committee not later than 180 days after enactment of this Act on the status of carrying out these activities. Not later than 45 days after enactment of this Act, Reclamation shall provide to the Committee a report delineating how the additional funds in this account are to be distributed, in which phase the work is to be accomplished, and an explanation of the criteria and rankings used to justify each allocation.

The next minibus, which will be considered the week of July 27, is entitled, H.R. 7617, the Defense, Commerce, Justice, Science, Energy and Water Development, Financial Services and General Government, Homeland Security, Labor, Health and Human Services, Education, Transportation, Housing, and Urban Development Appropriations Act, 2021. The Senate is not expected to take up appropriations until after the August recess. The Senate is currently drafting additional COVID-19 relief legislation and will likely work on that through the end of July. The timing, paired with electoral politics, make a continuing resolution rather than enactment of appropriations legislation by this Congress, a likely outcome. CAWCD Fiscal Year 2021 Appropriations Testimony Despite the overall cuts requested in the president’s budget request, FY 2021 spending levels for programs impacting CAWCD are not expected to differ significantly from FY 2020 spending levels. Testimony was submitted to Congress in March and April to request

• $2 million for Salinity Control in Fiscal Year 2021 Funding for the Colorado River Basin Salinity Control Program under the Bureau of Land Management’s (BLM) Aquatic Habitat Management sub-activity (formerly known as the Soil, Water and Air Program);

• $10.1 million for the U.S. Bureau of Reclamation’s Salinity Control Basinwide Program for the Colorado River Basin; and

• $13 million in the U.S. Department of Agriculture’s Environmental Quality Incentive Program Financial Assistance (EQIP FA) for the Colorado River Basin Salinity Control Program.

President’s Budget FY 2021 On February 10, the White House released the president’s FY2021 budget. There are cuts to several agencies, including Interior, EPA, and Agriculture. The budget provides $12.7 billion for the Department of the Interior – which constitutes a 13.4% decrease from FY 2020 enacted levels. The EPA was allocated $6.7 billion, a 26.5% decrease, and the Department of Agriculture was allocated $21.8 billion, an 8.2% decrease. However, based on prior practice, these cuts likely will not be enacted into law. The president’s budget proposal is generally more a signal for priority-setting than a template for Congressional action.

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However, each agency has released a budget justification for their programs and it is helpful to see how they are prioritizing funds for these programs. Outlined below are the budget numbers for key programs within the Bureau of Reclamation, Bureau of Land Management, and the Department of Agriculture. DOI FY 2021 Reclamation Budget Justification FY19 Final ($

Mil) FY20 Final ($Mil)

FY21 Budget Request ($Mil)

CO River Basin – CAP 16.12 6.39 6.95 CO River Basin Salinity Control Project, Title I

15.5 14.7 16.2

CO River Basin Salinity Control Project, Title II (Basinwide)

8.0 10.0 6.0

WaterSMART Programs (see itemized below)

108.2 134.25 18.15

FY19 Final

($ Mil) FY20 Final ($Mil)


WaterSMART Grants 34.0 55.0 7.86 Cooperative Watershed Management Program

2.25 2.25 0.25

Basin Studies 5.2 5.2 2.0 Drought Response 9.0 4 2.9 WCFSP 4.2 4.2 2.14 Title XVI 58.6 63.6 3.0 WaterSMART Programs Total 113.25 134.25 18.15 USDA FY 2021 NRCS EQIP Budget Justification FY19 Final

($ Mil) FY20 Final ($Mil)


Environmental Quality Incentives Program

482 472 553

DOI FY 2021 BLM Aquatic Habitat Management sub-activity Budget Justification The budget includes $31.7 million for the Aquatic Habitat Management sub-activity. The budget justification includes the following information:

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WOTUS Revision Finalized On January 23, 2020 the U.S. Environmental Protection Agency (EPA) released a revised rule defining what constitute waters of the United States under federal Clean Water Act (CWA) jurisdiction. The rule, entitled the Navigable Water Protection Rule, clarifies the definition of “waters of the United States.” The rule constitutes the second and final step of the administration’s plan to repeal and replace the controversial 2015 Clean Water Rule that expanded the scope of waters regulated by the federal government compared to the 1986 rule. The revised rule, when it goes into effect, limits federal regulatory and enforcement jurisdiction under the CWA to (1) the territorial seas and traditional navigable waters, (2) perennial and intermittent tributaries to those waters, (3) certain lakes, ponds, and impoundments, and (4) wetlands adjacent to jurisdictional waters. The Navigable Water Protection Rule was published in the Federal Register on April 21, 2020, and will be in effect on June 22, 2020. In addition to describing what is regulated under the rulemaking, the final rule also clarifies what are not “waters of the United States.” The revised rule would remove jurisdiction over a number of bodies of water, including “ephemeral streams,” which are waters that only flow following large precipitation events. Ephemeral streams remain dry when not carrying the resulting stormwater to larger bodies of water. This regulation is expected to dramatically reduce federal CWA jurisdiction in arid states such as Arizona and Nevada. That said, the effort of the new rule to clarify and limit federal jurisdiction may have been impacted by recent Supreme Court action. The U.S. Supreme Court issued on April 23, 2020, a significant and controversial Clean Water Act (“CWA”) decision in County of Maui v. Hawaii Wildlife Fund et al. The issue presented was whether the County of Maui (“County”) requires a Clean Water Act (CWA) discharge permit to dispose of wastewater through groundwater discharge wells where the discharged waters ultimately reach the Pacific Ocean. The Supreme Court, in a 6-3 decision, held that any discharge to groundwater that is the “functional equivalent” of a direct discharge into navigable waters requires a CWA permit. In its decision,

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the rejected the bright line “groundwater doesn’t count” rule sought by the County and the U.S. Environmental Protection Agency (“EPA”). NEPA On July 15, the Council on Environmental Quality (CEQ) released the updated implementing rule for the National Environmental Policy Act (NEPA). The rulemaking process for the update took over three years and was a significant priority for the Trump administration. The NEPA rule rewrite changes regulations that have not been modernized since 1978 and constitutes a major overhaul of the bedrock environmental law. It is aimed at reducing litigation and streamlining environmental reviews infrastructure and energy projects. The new regulation is likely to see multiple court challenges, and is vulnerable to being reversed if the Administration changes next year. Depending on the outcome of the election, the rule may also face challenge under the Congressional Review Act, which allows Congress to invalidate federal agency rulemakings by enacting a joint resolution of disapproval following transmittal of the rule to Congress. In the rewrite, CEQ included a number of revisions listed below. The rule was published in the Federal Register on July 16 and is effective Sept. 14, 2020.

• One Federal Decision: The rule requires joint schedules, a single environmental impact statement (EIS), and in certain instances, a single record of decision (ROD) for EISs involving multiple agencies. This proposal tracks with the 2017 Executive Order 13807: Establishing Discipline and Accountability in the Environmental Review and Permitting Process for Infrastructure Projects, which required agencies to process environmental reviews as One Federal Decision.

• More Categorical Exclusions and FONSIs: The rule emphasizes more frequent uses of

categorical exclusions and findings of no significant impact (FONSI), where appropriate, to reduce paperwork and the necessity for NEPA reviews. Categorical exclusions are actions determined by agencies to be exempt from additional reviews because the category of activity has been previously studied and determined to have no significant impact. Categorical exclusions are typically identified in agency-specific NEPA procedures. A FONSI is a project-specific determination that a certain proposed federal action will not have significant harmful impact on the human environment made following an environmental assessment (EA), which is not as detailed a study as an EIS.

• Robust Scoping: The rule allows for a more robust scoping process and earlier public

input to narrow the analysis of issues to be considered in the final NEPA document.

• Strict Time Limits: The rule sets a one-year time limit for EAs unless otherwise approved by a lead agency senior official. The rule also sets a two-year timeline for EISs unless otherwise approved.

• Expanded Use of Tiering: The rule also encourages agencies to apply the concept of

tiering, which allows for previous EAs and EISs to be incorporated by reference in newly

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prepared NEPA review documents. The new rule eliminates language that was more restrictive of the use of tiering.

• Incorporation by Reference: The rule would allow for documentation from state, tribal

and local governments to be used in environmental reviews rather than requiring the federal government to generate their own analysis where one has already been completed.

• Reasonable Alternatives: The preparation of NEPA documents typically requires the

exploration of alternative actions to the action proposed. Under the rule, reasonable alternatives presented in a NEPA document must be technically and economically feasible.

• Referrals to CEQ: Under the rule, interagency disagreements over the economic costs of

delaying or impeding agency decisions during a NEPA review would provide a basis for referral to CEQ for dispute resolution. The current rule does not list economic cost considerations as a basis for an agency referral to CEQ. Public meetings and hearings during this referral process are eliminated.

• Scope of Environmental Considerations: The rule also states that environmental effects

must be “reasonably foreseeable” and “have a reasonably close causal relationship” to the proposed action. Further, the rule provides that analysis of cumulative effects is not required under NEPA. This provision is intended to narrow the scope of NEPA reviews. This change addresses recent federal judicial decisions that interpret NEPA to require analysis of the cumulative impact of certain major federal actions—such as onshore lease sales—on climate change.

• Public Comment to Preserve a Claim: The rule requires that to preserve issues or

objections raised in comments to a NEPA environmental review, comments must be submitted within the comment period provided and be specific as possible. A summary of these comments will then be incorporated in a final EIS. This provision is intended to limit NEPA litigation involving objections not raised during the public comment period.

Fiscal Year 2020 Government Funding On December 20, 2019, President Trump signed into law a $1.4 trillion FY 2020 federal budget package. The two-bill spending package included all 12 annual appropriations bills for FY 2020. A comprehensive agreement by this date was important as funding for the federal government up until this point had been provided through two Continuing Resolutions (CRs), the most recent of which was set to expire on December 20. The Energy and Water portion of the budget funds the Bureau of Reclamation at $1.66 billion, which is an increase from the $1.55 billion from FY 2019. The Interior and Environment portion of the budget funds the Environmental Protection Agency at $9.057 billion, which represents a $208 million increase over FY 2019. The budget package contains several provisions of interest to CAP, including:

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• Reclamation’s WaterSMART grant program received $55 million in FY 2020 funding, an increase of $21 million from FY 2019.

• Reclamation’s Title XVI water reuse and recycling program saw an increase of $5 million in funding to $63.6 million in FY 2020.

• Reclamation’s salinity control program was appropriated $10 million in FY 2020, a $2 million increase from FY 2019.

• An extension of the enforceability date of the White Mountain Apache Tribe’s settlement through 2023.

• A repeal of a 40% excise tax on certain employer-provided health plans that would have become effective in 2022. This repeal is estimated to prevent a cost increase to CAP of approximately $400,000 had the tax become effective in 2022.

In accordance with usual budget practice, Congress provided report language to inform agencies of how to implement certain provisions of the appropriations bills. This year, this language was contained in joint explanatory statements published by the House Committee on Rules. These explanatory statements maintained report language from when the budget bills passed the committees earlier this year in places where the enacted appropriations are consistent with the previous versions, and added new language as part of the current budget package in places where changes were made meriting explanation. The explanatory statements published by the House Committee on Rules and have the same force as a conference report. On February 3, 2020, the Bureau of Reclamation allocated an additional $433,345,000 in funding appropriated by Congress for FY 2020. The funds were allocated as follows: Rural Water ($117.4 million); Water Conservation and Delivery ($258.1 million); Environmental Restoration or Compliance ($42.5 million); Fish Passage and Fish Screens ($11.4 million); and Facilities Operation, Maintenance, and Rehabilitation ($4.0 million). $124.1 million of the total $258.1 million allocated for Water Conservation and Delivery is provided to the most important West-wide projects for this category, and of that $26 million has been targeted to the Colorado River Basin. Energy & Water Section – Bureau of Reclamation Retained from Senate Report Language: “Drought Contingency Plans.—The Committee commends Reclamation, the Department of Interior, and the seven Colorado River Basin states for completing drought contingency plans to conserve water and reduce risks from ongoing drought for the Upper and Lower Colorado River basins. The completion of these plans mark a major milestone in protecting a critical water source in the western United States. The Committee encourages Reclamation to provide sufficient funding for activities that support these plans.” Explanatory Statement Language: “Of the additional funding provided under the heading of ‘‘Water Conservation and Delivery,’’ $20,000,000 [was $40,000,000 in the original House Report language] shall be for water conservation activities in areas that are experiencing extended drought conditions. These water conservation activities shall include well construction and irrigation related structural or other measures, programs and projects that result in

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conservation of other surface water or groundwater, or improve water system efficiency, resilience, reliability, delivery, and conveyance.” Interior-Environment Section – Salinity Retained from Senate Report Language: “Salinity Control Program.—The Committee supports the Bureau’s Salinity Control Program and the Bureau’s involvement in the Colorado River Salinity Control Forum. The Program should continue the mission of addressing sediment and salt discharges to ensure usable water supplies for downstream users. The Committee directs that the Program be funded and maintained consistent with prior years.” Agriculture Section – U.S. Department of Agriculture Retained from Senate Report Language: “Drought Resilience.—The Committee is particularly concerned about the severe and prolonged drought in the West and applauds the passage of the Colorado River Basin Drought Contingency Plans. The Committee appreciates NRCS’s efforts to increase efficiencies in current water use and expects NRCS to utilize all available opportunities to assist producers, irrigators, and irrigation districts in implementing area-wide plans to address drought resiliency and mitigation in a way that maintains strong rural and agriculture communities and protects our natural resources. In providing this assistance, the Committee further expects the NRCS to prioritize support for implementation of Drought Contingency Plans, agreements, or programs that would conserve surface or ground water, improve drought resiliency, and address current and anticipated conservation needs and severe drought-related resource concerns.” Retained from Senate Report Language: “Innovative Water Conservation.—The Committee recognizes the devastating impacts wrought by severe and prolonged drought across many regions of the country. The Committee notes that the Agriculture Improvement Act of 2018 (Public Law 115–334) made several updates to address water conservation and drought mitigation, including eligibility changes for water conservation and irrigation efficiency practices. NRCS is encouraged to work with eligible entities, including but not limited to producers, States, irrigation districts, and acequias, to help them implement critical innovative drought resiliency and mitigation efforts, which maintain strong rural and agriculture communities while protecting natural resources.” Legislation to Watch Water Infrastructure

• S. 3591, America’s Water Infrastructure Act of 2020: Discussion drafts of this water infrastructure bill were released in late April by Senate Environment and Public Works chair John Barrasso (R-WY) and ranking member Tom Carper (D-DE). On May 6, 2020, the committee approved the measure as amended. The bill provides $17 billion in new federal authorizations for a number of projects – mostly for the Army Corps. Sec.1604 of AWIA 2020 addresses invasive species mitigation and reduction provides $10 million in

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appropriations from FY 2021 through FY 2024 to address invasive species in the Lower Colorado River Basin.

• S. 3590, Drinking Water Infrastructure Act of 2020: Released in conjunction with

AWIA 2020, the Drinking Water Infrastructure Act provides $2.5 billion in new federal authorizations. The measure was approved by the Senate Environment and Public Works Committee along with AWIA 2020 on May 6, 2020. The legislation reauthorizes a number of programs under the Safe Drinking Water Act (SDWA).

• H.R. 7575, Water Resources Development Act: The House version of water resource development legislation was introduced on July 13 by Rep. Peter DeFazio (D-OR). The bill was approved by the House Transportation and Infrastructure Committee by voice vote on July 15. The House legislation mostly focuses on U.S. Army Corps of Engineer projects rather than Reclamation projects.

• H.R. 2, Moving Forward Act: The House infrastructure bill was passed the House on

July 1, by a vote of 233-188. However, the White House has said the president would veto the bill, and Majority Leader Mitch McConnell says it will go nowhere in the Senate. The bill included a number of water infrastructure provisions and provisions related to drought and climate resilience such as the (FUTURE) Drought Resiliency Act and the Desalination Development Act.

• H.R. 7056 - To direct the Secretary of Health and Human Services to award additional funding through the Indian Health Services Sanitation Facilities Construction Program, and for other purposes: This legislation was introduced by Rep. Tom O’Halleran (D-AZ) on May 28, 2020. The bill would award additional funds to the Indian Health Service Sanitation Facilities Construction Program through FY2024. This program provides American Indian and Alaska Native homes and communities with water supply, sewage disposal, and solid waste disposal facilities.

• S. 4168, A bill to require the Secretary of Health and Human Services to award additional funding through the Sanitation Facilities Construction Program of the Indian Health Service, and for other purposes: This legislation was introduced by Sens. Kyrsten Sinema (D-AZ) and Mitt Romney (R-UT) on July 2, 2020. The legislation would boost funding, authorizing up to $1.335 billion, for the Sanitation Facilities Construction Program to support Navajo Nation during COVID-19 pandemic.

Drought Bills

• S. 1932, Drought Resilience and Water Supply Infrastructure Act: S. 1932 was introduced in June 2019 by Senator Cory Gardner (R-CO). The bill would support water infrastructure in Reclamation states and provides for grant funding for both federally-owned and state-led storage projects. On Thursday, July 18, 2019 the Senate Energy and Natural Resources Subcommittee on Water and Power convened a hearing to examine opportunities to increase water storage and conservation through rehabilitation and water supply infrastructure development. The subcommittee received testimony from the

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Department of Interior, water resource organizations and conservation groups regarding S. 1932, as well as the Aquifer Recharge Flexibility Act (S. 1570) and the Water Supply Infrastructure Rehabilitation and Utilization Act (S. 2044). Subcommittee Chair Senator Martha McSally (R-AZ) stated her support for the bill during the hearing. In August 2019, a letter of support for S. 1932 was sent from the CAWCD Board of Directors to the Subcommittee Chair and Ranking Member, and also distributed to the Arizona House delegation. The bill is currently undergoing major revisions to improve chances for bipartisan support and passage.

• S. 1570, Aquifer Recharge Flexibility Act: This bill, introduced by Sen. James Risch

(R-ID), intends to optimize federal water systems and allow for broader state and community access to recharge sites. On September 25, 2019, the Senate Energy and Natural Resources Committee voted to report the bill favorably out of committee by voice vote.

• S. 2044, Water Supply Infrastructure Rehabilitation and Utilization Act: Senator

Martha McSally (R-AZ) introduced this bill in June, prior to it receiving a Senate Energy and Natural Resources Subcommittee on Water and Power hearing in July 2019. This legislation would: (1) establish a Reclamation account to allow operators to fund extraordinary maintenance projects by repaying the costs over a longer period of time with interest; (2) increase transparency and provide greater authority to Congress; and (3) create a pilot program to modernize reservoir operations at existing dams without any new construction. On September 25, 2019, the Senate Energy and Natural Resources Committee voted to report the bill favorably out of committee by voice vote. Senate report number 116-156 has been prepared to accompany the bill. A related bill, H.R.4659, was introduced in the House on October 11, 2019.

• S. 2718, Western Water Security Act of 2019: This bill was introduced on October 28, 2019, and is sponsored by Senator Tom Udall (D-NM). The bill has a companion measure in the House, H.R. 4891, that is sponsored by Rep. Xochitl Torres Small (D-NM). The aim of the bill is focused on encouraging long-term drought adaptation strategies. The legislation would increase funding for the WaterSMART program, among other water infrastructure investments. The bill also includes a program for rural desalination. The bill would also reauthorize and expand the transboundary aquifer assessment program. On January 28, 2020, the House Natural Resources Subcommittee on Water, Oceans, and Wildlife held a legislative hearing on H.R. 4891. On July 22, 2020 the Senate Energy and Natural Resources Subcommittee on Water and Power held a hearing on the bill, along with S. 3811, the Restoration of Essential Conveyance Act; S. 4188, the Water for Tomorrow Act; S. 4189, the Water for Conservation and Farming Act; and S. ____ - Water-Energy Technology Demonstration and Deployment Act.

• S. 4188, Water for Tomorrow Act: This legislation was introduced on July 2, 2020 by Senator Kamala Harris (D-CA). The bill provides for drought preparedness and improved water supply reliability. The legislation was discussed at a hearing of the Senate Energy and Natural Resources Subcommittee on Water and Power on July 22.

https://www.congress.gov/congressional-report/116th-congress/senate-report/156

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• S. 4189, the Water for Conservation and Farming Act: This legislation was introduced by Sen. Ron Wyden (D-OR) on July 2, 2020. The bill also seeks to address drought preparedness and improved water supply reliability. The legislation was discussed at a hearing of the Senate Energy and Natural Resources Subcommittee on Water and Power on July 22.

• S. 4288, Water-Energy Technology Demonstration and Deployment Act: In a July 22, 2020 hearing before the Senate Energy and Natural Resources Subcommittee on Water and Power, Sen. Martha McSally (R-AZ) discussed the legislation. According to Sen. McSally, the legislation would establish Western Water Resilience Centers at one or more universities in the West to help drive innovation and create jobs. Language in the draft legislation would also provide grant funding for desalination projects in the Upper and Lower Basin, with language on the Lower Basin allowing for funding for either the Yuma Desalting Plant or alternative desalination programs that would provide similar amounts of water to support Colorado River drought contingency operations, consistent with the DCP, by improving efficiency in deliveries of Colorado River water, consistent with the water treaty obligations of the United States to Mexico under Minute 242. The activities in this bill would be at least partially funded through funds available to the Department of Energy. Chair McSally said the consensus provisions in the bills before the subcommittee should form the basis of a water package that can move this year.

• H.R. 5217, Water Optimization for the West (WOW) Act: On November 21, 2019, House Republicans introduced their own drought bill. The legislation is sponsored by Rep. Tom McClintock (R-CA) and supported by House Natural Resources Committee Ranking Member Dan Bishop (R-UT). The bill starts with titles that focus on California water management issues, and also has several provisions addressing water issues West-wide. The bill would make the Bureau of Reclamation the lead agency for coordinating all surface water storage project reviews, permits, licenses, or other approvals or decisions and aims to streamline NEPA for water projects. The bill would also transfer Endangered Species Act responsibilities from the Commerce Department to the Department of the Interior. The bill is not bipartisan, and is unlikely to move in the Democratically-controlled House.

• H.R. ____, Furthering Underutilized Technologies and Unleashing Responsible Expenditures for (FUTURE) Drought Resiliency Act (Discussion Draft): In January 2020, Rep. Jared Huffman (D-CA) released a discussion draft of a bill entitled the FUTURE Drought Resiliency Act. The bill seeks to incorporate several strategies to address drought adaption. This comprehensive bill includes modified funding and permitting for infrastructure development, incentivizes improved technologies and data collection, and provides for ecosystem protection and restoration. The bill also would encourage career training for the water industry. The legislation was open for public comment until February 7, 2020. The bill has yet to be introduced and a revised version of the draft following comments has not been released. Provisions of the bill were included in the House infrastructure package, H.R. 2, the Moving Forward Act.

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Water Rights Settlements

• S. 886/H.R. 1904, Indian Water Rights Settlement Extension Act: On July 17, 2019 the Senate Committee on Indian Affairs voted to advance S. 886, the “Indian Water Rights Settlement Extension Act,” to the Senate floor. The bill is sponsored by Senator Tom Udall (D-NM), as well as Senators Heinrich (D-NM) and Cortez Masto (D-NV). Originally the bill would have amended the Omnibus Public Land Management Act of 2009 to make the Reclamation Water Settlements Fund permanent. A substitute amendment was offered by Senator Udall that instead extends the Fund by another ten years (From FY2020-2029 to FY2020-2039). H.R. 1904 is the companion measure in the House. The House bill received a legislative hearing on April 4, 2019, but has not advanced from the committee. The legislation was amended substantively to include pressing water rights settlements, including the Navajo water rights settlement. The Senate passed the measure on June 4, as amended, and passage is needed in the House. The original bill text was completely replaced, and so similar legislation to the original will need to be reintroduced and renumbered.

• H.R. 2459, Hualapai Tribe Water Rights Settlement Act: On May 1, 2019, Rep. Tom O’Halleran (D-AZ-1) introduced H.R.2459, the Hualapai Tribe Water Rights Settlement Act of 2019. The legislation would approve the settlement of water rights claims of the Hualapai Tribe and certain allottees in the State of Arizona, to authorize water project construction. The bill is cosponsored by Arizona delegation Reps. Greg Stanton (D-AZ-9), Ann Kirkpatrick (D-AZ-2), Ruben Gallego (D-AZ-7), Andy Biggs (R-AZ-5), Paul Gosar (R-AZ-4), David Schweikert (R-AZ-6), Debbie Lesko (R-AZ-8). The bill was introduced in the House Natural Resources Subcommittee on Water, Oceans, and Wildlife. On the same day, a companion measure was introduced by Sen. Martha McSally (R-AZ) and cosponsored by Sen. Kyrsten Sinema (D-AZ) in the Senate Committee on Indian Affairs. On June 26, 2019 the House Natural Resources Subcommittee on Water, Oceans and Wildlife held a hearing on the House bill. The administration has indicated it is not supportive of the measure because of cost concerns, and therefore diminished the likelihood of passage. CAWCD submitted a statement of support for the bill to the committee.

Water Quality and Salinity Issues

• H.R. 3723, the Desalination Development Act: On July 11, 2019, Rep. Mike Levin (D-CA) introduced H.R. 3723, the Desalination Development Act. The bill will reportedly address desalination project development and drought resilience. On July 25, 2019, the House Natural Resources Subcommittee on Water, Oceans, and Wildlife held a hearing on the bill. On March 11, 2020, the House Natural Resources Committee held a markup on the bill, which was approved by a vote of 13-10. The bill is cosponsored by Rep. Jared Huffman (D-CA). The bill was included in H.R. 2, the House infrastructure bill entitled the Moving Forward Act.

• H.R. 1497, the Water Quality Protection and Job Creation Act: On October 29, 2019, the House Transportation and Infrastructure Committee approved this bill. The bill is the

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first reauthorization for sewage treatment plant funding since 1987. The bill is sponsored by Rep. Peter DeFazio (D-OR) and has 50 cosponsors – including three Republicans. The bill includes provisions that would:

o amend the Clean Water Act to allow municipal wastewater treatment plants to

obtain 10-year point-source discharge permits (currently there is a five year duration for permits);

o provide $14 billion for the Clean Water State Revolving Fund over five years, with 15% of those funds directed to projects that incorporate green infrastructure and water or energy efficiency projects; and

o reauthorize programs such as sewer overflow and stormwater reuse municipal grants, a pilot program for alternative water source projects, and watershed pilot projects through 2024.

Colorado River

• S. 3670, M.H. Dutch Salmon Greater Gila Wild and Scenic River Act: Introduced on May 7, 2020, by Sens. Tom Udall (D-NM) and Martin Heinrich (D-NM), this bill would designate segments of the Gila and other rivers and tributaries in New Mexico's Gila and San Francisco basins as "wild and scenic." This designation would prevent the construction of dams along the designated segments.

Navajo Generating Station

• H.R. 4318, Providing Recovery Opportunities & Mitigating Industry's Shifting Economics (PROMISE) Act: This bill was introduced by Rep. Tom O’Halleran (D-AZ-1) on September 12, 2019. The bill creates a program entitled the “Significantly Impacted Federal Community Economic Adjustment Program” administered by the Secretary of the Interior “to assist substantially and seriously affected communities, businesses, and workers from the effects of major federally owned, in part or whole, energy infrastructure closures taking place on Federal lands.” The bill provides for:

o a “Community Adjustment And Economic Diversification Program” that will provide assistance funds where a 10 percent match is provided from local, tribal or state agency,

o a directive to work with the Secretary of Labor to established dislocated worker demonstration project under section 169(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3224(c));

o and annual funds, where appropriated, to reflect losses in revenue, the proportion of which declines each of the seven listed award years.

The bill also directs the formation of an interagency committee to work across federal agencies and to create a new Office of Economic Adjustment within the Department of the Interior to administer the program. The bill is also sponsored by Reps. Greg Stanton, (D-AZ-9), Ann Kirkpatrick, (D-AZ-2), and Ruben Gallego (D-AZ-7).

15

Public Lands

• H.R.1957 / S. 3422, the Great American Outdoors Act: On March 9, 2020, Senator Cory Gardner (R-CO) together with 57 bipartisan cosponsors, introduced this legislation which would provide for mandatory appropriations of funds into a “National Parks and Public Land Legacy Restoration Fund” for use for land management agencies, primarily the National Park Service and the Forest Service but with lesser amounts for the Fish and Wildlife Service, BLM, and Bureau of Indian Education, to address deferred maintenance needs. The legislation as introduced provides that for fiscal years 2021 through 2025, the Fund established under this Act should receive up to $1,900,000,000 per year, with funds coming from up to 50% of energy development revenues from oil, gas, coal, or alternative or renewable energy development on Federal land and water that would otherwise be credited to miscellaneous receipts. The legislation passed the Senate on June 17, 2020 and passed the House on July 22, 2020. The measure is expected to be signed by the president.

Healthcare and Labor

• H.R. 3668, Asuncion Valdivia Heat Illness and Fatality Prevention Act: On July 11, 2019, the House Education and Labor Subcommittee on Workforce Protections held a hearing on H.R. 3668, the Asuncion Valdivia Heat Illness and Fatality Prevention Act, titled after a farmworker that died in 2004. H.R. 3668 has 55 co-sponsors including Representatives Raul Grijalva (D-AZ), Ruben Gallego (D-AZ) and Ann Kirkpatrick (D-AZ). The bill mandates the Occupational Safety and Health Administration (OSHA) to adopt a nationwide excessive heat standard for indoor and outdoor workers and outlines minimum requirements the standards must include.

On Tuesday, July 22, members of the Senate Energy and Natural Resources Subcommittee on Water and Power held a hearing to discuss five bills: the Western Water Security Act (S. 2718), the Restoration of Essential Conveyance Act (S. 3811), the Water for Tomorrow Act (S. 4188), the Water for Conservation and Farming Act (S. 4189), and the Water-Energy Technology Demonstration and Deployment Act.

Opening Statements Chair Martha McSally (R-AZ) highlighted the Water-Energy Technology Demonstration and Deployment Act, which would help facilitate the adoption of Department of Energy water management technology by water managers. Additionally, she said the bill would establish Western Water Resilience Centers at one or more universities in the West to help drive innovation and create jobs. Chair McSally said the consensus provisions in the bills before the subcommittee should form the basis of a water package that can move this year. Ranking Member Catherine Cortez Masto (D-NV) said the bills before the subcommittee address a number of issues facing the Bureau of Reclamation, such as drought resiliency, water recycling and reuse, desalination, efficiency and conservation. She briefly described the five bills and said solutions that benefit the environment and water users are the only way to address water management issues. Sen. Tom Udall (D-NM) said the 2000-2018 drought in the Southwest was the second-driest period for the region since 800 C.E. and noted the drought is straining the region’s groundwater resources. He stated the Western Water Security Act is a 21st century solution to water management issues that has broad support, including the support of the entire New Mexico delegation and a broad cross-section of water users and interest groups. *Sen. Dianne Feinstein (D-CA) also made an opening statement, though due to microphone issues her statement was inaudible. Her opening remarks are linked here.

DATE:

TO:

FROM:

July 22, 2020

Central Arizona Water Conservation District

Brownstein Hyatt Farber Schreck

RE: Senate Energy and Natural Resources Subcommittee on Water and Power Hearing: Pending Legislation

https://www.congress.gov/bill/116th-congress/senate-bill/2718






https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=3ED5B04F-1021-4B90-97DE-9CD7D93DADAB

https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=DA094D59-8F5A-4EAF-8CB7-BFB7B992A103

2

Witness Panel Aubrey Bettencourt, Deputy Assistant Secretary for Water and Science at the Department of the Interior said the West is defined by its water challenges, such as drought and flood, subsidence, urban expansion, and groundwater depletion. She noted investment in water infrastructure, water supply, and water quality are top priorities of the Trump administration. She described how the Water Infrastructure Improvements for the Nation (WIIN) Act, the WaterSMART program, and other Bureau of Reclamation programs help the federal government prepare for disasters, repair aging infrastructure, and expand and diversify water supplies through partnerships with stakeholders. Dan Keppen, Executive Director of the Family Farm Alliance said some of the bills before the subcommittee work well for producers and nongovernmental organizations, while others put fish and wildlife conservation over the needs of farmers and ranchers. He said the expansion of eligibility for the WaterSMART program to include nonprofit organizations will increase competition for grants, though he noted S. 4189 addresses some concerns by requiring nonprofits to partner with traditional water entities in order to receive grants. Keppen expressed support for S. 4189, which would provide a 50% cost-share for improving fish passages while maintaining water supply for human use. He stated that S. 4188 is well-intended, noting that section 301 of the bill would help provide more accurate snowpack measurements. With regard to S. 2718, he said New Mexico members of the Family Farm Alliance are supportive of the bill while other members have concerns about using grants to reduce consumptive use of water. He said the organization is supportive of the Water-Energy Technology Demonstration and Deployment Act. Keppen called for additional legislation to address aging water infrastructure and insufficient storage. He also said the water infrastructure provisions under the WIIN Act need to be extended. Joe Whitworth, President of The Freshwater Trust described the mission of The Freshwater Trust, which is to leverage technology to solve legacy water problems. He said simply spending more money on water infrastructure will not solve problems and called for the use of data and technology to make targeted investments that will produce the best results. He described an example of how the organization used data and technology to reduce nitrogen runoff in the Columbia River Basin.

Discussion

Water Management Technology Chair McSally asked Bettencourt to describe the work done by the water sub-cabinet and how the Water-Energy Technology Demonstration and Deployment Act would help facilitate its work. Bettencourt said the sub-cabinet coordinates water management action across agencies and that the bill would help get new technology into the hands of water managers. Chair McSally noted the legislation also creates Western Water Resilience Centers at universities in the West, and asked Bettencourt to explain the benefits of coordination with research universities. Bettencourt said collaboration can leverage the expertise of universities to better target resources for water management.

https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=EB086F17-568F-4BBA-98D2-FFA2B9526975

https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=EB086F17-568F-4BBA-98D2-FFA2B9526975

https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=E6E32B11-120C-486C-A552-08EE0AABDF2D

https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=56D5DDB4-FAFC-4932-AE91-6079677157C8

3

Chair McSally asked Keppen and Whitworth about the challenges faced by the water sector when implementing new technologies. Keppen said additional Department of Energy technology and funding, in conjunction with the Bureau of Reclamation, would be beneficial. Whitworth said federal investment in these technologies would incentivize the market to adopt these technologies and that actions to reduce barriers to entry would be welcome. WaterSMART Grants Sen. Ron Wyden (D-OR) highlighted S. 4189, which would provide tools to expand and improve water infrastructure with a focus on reducing use, protecting fish and wildlife habitats, and more efficient farming practices. He asked Keppen to explain how his bill addresses concerns regarding the expansion of WaterSMART grants to include nonprofit organizations. Keppen said the bill requires nonprofits to partner with authorized water entities and that these partnerships will lead to creative solutions with wide support. Chair McSally asked Bettencourt to explain how the Bureau of Reclamation selects projects for the WaterSMART program and how the agency evaluates multi-benefit projects. Bettencourt said the bureau is looking for projects that best accomplish the goals laid out in the funding notice, noting that multi-benefit projects tend to score higher in the application process. Natural Infrastructure Ranking Member Cortez Masto asked Whitworth about the benefits of investing in natural infrastructure, such as the investments found in S. 4189. Whitworth replied that natural infrastructure is the first and best insurance policy in protecting local economies and ecosystems. Whitworth added that natural infrastructure is a key part of local economic and food supply security, in addition to protecting ecosystems. Ranking Member Cortez Masto asked Whitworth and Keppen what is needed to ensure water supplies are resilient to drought and climate change. Whitworth said natural infrastructure is the underlying insurance policy and said manmade water storage projects need to be constructed in conjunction with natural infrastructure water storage. Keppen said modernizing water storage infrastructure is one way to mitigate the effects of climate change. Other Issues Sen. Wyden asked Whitworth to describe how S. 4189 would help The Freshwater Trust. Whitworth said the prioritization of multi-benefit projects in the grant program established by section 204(b) is a good step forward, though he said some improvement is needed. Chair McSally asked Keppen about the most important aspects of water infrastructure that need attention. Keppen said more attention should be paid to supply enhancement actions, such as fixing aging infrastructure and conveyance facilities and building new storage. Keppen added that more funding is needed for Reclamation’s loan program under the Omnibus Public Land Management Act of 2009. Additionally, Keppen said the Drought Resiliency and Water Supply Infrastructure Act (S. 1932) and the Water Supply Infrastructure Rehabilitation and Utilization Act (S. 2044) should be included in any future water infrastructure package.



4

Ranking Member Cortez Masto asked Bettencourt to clarify her concerns about S. 3811 that were described in her written testimony. Bettencourt said she supports the bill’s emphasis on investment in conveyance projects, though she would like to work with the bill’s author to iron out some concerns.

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116TH CONGRESS 2D SESSION S. ll

To provide for the demonstration and deployment of water-energy

technologies, and for other purposes.

IN THE SENATE OF THE UNITED STATES

llllllllll

Ms. MCSALLY introduced the following bill; which was read twice and referred

to the Committee on llllllllll

A BILL To provide for the demonstration and deployment of water-

energy technologies, and for other purposes.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled, 2

SECTION 1. SHORT TITLE. 3

This Act may be cited as the ‘‘Water-Energy Tech-4

nology Demonstration and Deployment Act’’. 5

SEC. 2. DEFINITIONS. 6

In this Act: 7

(1) CENTER.—The term ‘‘Center’’ means the 8

Western Water Resilience Center established under 9

section 4(a). 10

2

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(2) ELIGIBLE DESALINATION PROJECT.—The 1

term ‘‘eligible desalination project’’ means a desali-2

nation or salinity reduction facility or project— 3

(A) to which the Bureau of Reclamation 4

holds title; 5

(B) that is operated by the Bureau of Rec-6

lamation; or 7

(C) with respect to which the Bureau of 8

Reclamation is providing financial assistance. 9

(3) ELIGIBLE ENERGY EFFICIENCY PROJECT.— 10

The term ‘‘eligible energy efficiency project’’ means 11

the design, study, construction, expansion, upgrade, 12

or capital repair of a water delivery system to reduce 13

energy consumption associated with water delivery. 14

(4) ELIGIBLE REUSE PROJECT.—The term ‘‘eli-15

gible reuse project’’ means a non-Federal water 16

reuse and recycling facility or project that contrib-17

utes water to a region served by 1 or more projects 18

of the Bureau of Reclamation. 19

(5) NATIONAL LABORATORY.—The term ‘‘Na-20

tional Laboratory’’ has the meaning given the term 21

in section 2 of the Energy Policy Act of 2005 (42 22

U.S.C. 15801). 23

(6) PROGRAM.—The term ‘‘program’’ means 24

the pilot program established under section 3(a)(1). 25

3

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(7) RECLAMATION STATE.—The term ‘‘Rec-1

lamation State’’ has the meaning given the term in 2

section 4014 of the Water Infrastructure Improve-3

ments for the Nation Act (43 U.S.C. 390b note; 4

Public Law 114–322). 5

(8) SECRETARY.—The term ‘‘Secretary’’ means 6

the Secretary of the Interior. 7

(9) SELECTED PROJECT.—The term ‘‘selected 8

project’’ means an eligible desalination project, eligi-9

ble reuse project, or eligible energy efficiency project 10

selected for the program under section 3(b). 11

SEC. 3. WATER-ENERGY TECHNOLOGY DEPLOYMENT PILOT 12

PROGRAM. 13

(a) ESTABLISHMENT.— 14

(1) IN GENERAL.—To advance Federal energy- 15

water nexus research, technology development, pol-16

icy, and other goals by combining the resources of 17

the Department of the Interior and Department of 18

Energy, the Secretary, in consultation with the Sec-19

retary of Energy, shall establish within the Bureau 20

of Reclamation a pilot program that provides for the 21

participation of the Secretary of Energy in selected 22

projects, in accordance with paragraph (2). 23

4

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(2) PARTICIPATION OF SECRETARY OF ENERGY 1

IN SELECTED PROJECTS.—The Secretary of Energy 2

shall participate in a selected project by— 3

(A) identifying research and programs at 4

the Department of Energy (including the Na-5

tional Laboratories) applicable to the selected 6

project; 7

(B) contributing funds to carry out the se-8

lected project; or 9

(C) carrying out modeling, planning, de-10

signing, or construction activities with respect 11

to the selected project. 12

(3) AGREEMENT.—The Secretary and the Sec-13

retary of Energy shall enter into an agreement de-14

scribing the responsibilities of the Secretary and the 15

Secretary of Energy, respectively, with respect to, 16

and the sources of funding for, each selected project. 17

(4) REQUIRED CONSULTATION.—The Secretary 18

shall consult with the Secretary of Energy with re-19

spect to any activities carried out by the Secretary 20

of Energy under the program. 21

(b) SELECTION OF PROJECTS FOR PROGRAM.— 22

(1) ELIGIBLE DESALINATION PROJECTS.— 23

(A) IN GENERAL.—The Secretary shall se-24

lect not fewer than 2, but not more than 5, eli-25

5

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gible desalination projects for the program that 1

the Secretary determines would— 2

(i) benefit from the participation of 3

the Secretary of Energy; and 4

(ii) advance the objectives of existing 5

research and development, technology com-6

mercialization, or grant programs being 7

carried out by the Secretary of Energy (in-8

cluding at the National Laboratories) by— 9

(I) lowering energy costs; 10

(II) increasing the amount or ef-11

ficiency of salt removal; 12

(III) reducing salt discharge into 13

waterways; 14

(IV) improving water supply reli-15

ability; or 16

(V) demonstrating a new tech-17

nology or process. 18

(B) INCLUSIONS.—Of the eligible desalina-19

tion projects selected under subparagraph 20

(A)— 21

(i) not less than 1 shall be an eligible 22

desalination project conducted in the upper 23

Colorado River Basin that— 24

6

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(I) is authorized under the Colo-1

rado River Basin Salinity Control Act 2

(43 U.S.C. 1571 et seq.); and 3

(II) uses zero liquid discharge 4

technology to remove naturally occur-5

ring salinity from entering a Colorado 6

River Tributary; and 7

(ii) not less than 1 shall be an eligible 8

desalination project conducted in the lower 9

Colorado River Basin that— 10

(I)(aa) is authorized under the 11

Colorado River Basin Salinity Control 12

Act (43 U.S.C. 1571 et seq.); and 13

(bb) processes water to remove 14

salt and returns the water to the 15

mainstem of the Colorado River; or 16

(II) would provide similar 17

amounts of water to support Colorado 18

River drought contingency operations, 19

consistent with the Colorado River 20

Drought Contingency Plan Authoriza-21

tion Act (Public Law 116–14; 133 22

Stat. 850), by improving efficiency in 23

deliveries of Colorado River water, 24

consistent with the treaty obligation 25

7

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of the United States to Mexico under 1

the Agreement approving Minute 242 2

of the International Boundary and 3

Water Commission setting forth a 4

permanent and definitive solution to 5

the international problem of the salin-6

ity of the Colorado River, entered into 7

force August 30, 1973 (24 UST 8

1968; TIAS 7708). 9

(2) ELIGIBLE ENERGY EFFICIENCY 10

PROJECTS.—The Secretary shall select not more 11

than 5 eligible energy efficiency projects for the pro-12

gram that the Secretary determines would— 13

(A) benefit from the participation of the 14

Secretary of Energy; and 15

(B) advance the objectives of existing re-16

search and development, technology commer-17

cialization, or grant programs being carried out 18

by the Secretary of Energy (including at the 19

National Laboratories) by— 20

(i) improving the efficiency of existing 21

surface or groundwater pumps; 22

(ii) developing or improving a surface 23

water conveyance that reduces surface or 24

groundwater pumping; 25

8

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(iii) reducing energy use needed for 1

water treatment; 2

(iv) demonstrating a new technology 3

or process; or 4

(v) incorporating energy generation 5

into water conveyance systems. 6

(3) ELIGIBLE REUSE PROJECTS.—The Sec-7

retary shall select not more than 5 eligible reuse 8

projects for the program that the Secretary deter-9

mines would— 10

(A) benefit from the participation of the 11

Secretary of Energy; and 12

(B) advance the objectives of existing re-13

search and development, technology commer-14

cialization, or grant programs being carried out 15

by the Secretary of Energy (including at the 16

National Laboratories) by— 17

(i) lowering energy costs; 18

(ii) improving water supply reliability; 19

or 20

(iii) demonstrating— 21

(I) a new technology or process; 22

or 23

(II) a combination of new and ex-24

isting technologies or processes. 25

9

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(4) SUBMISSION OF LIST OF SELECTED 1

PROJECTS.—As soon as practicable after the date of 2

completion of the selection process under paragraphs 3

(1) through (3), the Secretary shall submit a list of 4

the selected projects to— 5

(A) the Secretary of Energy; 6

(B) the Committee on Natural Resources 7

of the House of Representatives; 8

(C) the Committee on Energy and Com-9

merce of the House of Representatives; and 10

(D) the Committee on Energy and Natural 11

Resources of the Senate. 12

(c) FUNDING.— 13

(1) USE OF EXISTING FUNDS.—Out of any 14

amounts made available to the Secretary and the 15

Secretary of Energy that are not otherwise obli-16

gated, the Secretary and the Secretary of Energy, 17

respectively, shall use such sums as are necessary to 18

carry out this section. 19

(2) TREATMENT OF FUNDS CONTRIBUTED BY 20

THE SECRETARY OF ENERGY.—Amounts contributed 21

by the Secretary of Energy to a selected project 22

under paragraph (1) shall be nonreimbursable. 23

(3) TREATMENT OF FUNDS CONTRIBUTED BY 24

SECRETARY.—Amounts contributed by the Secretary 25

10

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to a selected project under paragraph (1) shall be 1

reimbursed in accordance with any applicable con-2

tract or agreement. 3

(d) EFFECT.—Nothing in this section— 4

(1) creates, impairs, alters, or supersedes a 5

Federal or State water right or interstate compact; 6

or 7

(2) affects or modifies any authorized purpose 8

of a selected project. 9

SEC. 4. WESTERN WATER RESILIENCE CENTER. 10

(a) ESTABLISHMENT.—Not later than 180 days after 11

the date of enactment of this Act, the Secretary and the 12

Secretary of Energy shall enter into a partnership with 13

1 or more institutions of higher education to establish a 14

center to conduct research on the development, commer-15

cialization, and deployment of innovations in water and 16

energy technologies, to be known as the ‘‘Western Water 17

Resilience Center’’. 18

(b) AUTHORIZED ACTIVITIES.—The Center shall con-19

duct research on— 20

(1) data collection, modeling, and advanced 21

data analytics of precipitation, runoff, and water re-22

sources at the regional level; 23

11

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(2) the development of technology and systems 1

that improve management and assist in the develop-2

ment of water infrastructure; 3

(3) addressing— 4

(A) Tribal water supply and quality; and 5

(B) any other factors that affect the reli-6

able access of Indian Tribes to water resources; 7

and 8

(4) the establishment of a, or a partnership 9

with an existing, water technology accelerator that— 10

(A) would bring water innovations to mar-11

ket by addressing multiple phases of technology 12

development, including validation, development, 13

startup, and scaling; and 14

(B) has an emphasis on binational collabo-15

ration between the United States and Middle 16

Eastern countries, such as Israel. 17

(c) PRIORITY.—In entering into a partnership under 18

subsection (a), the Secretary and the Secretary of Energy 19

shall give priority to a partnership with an institution of 20

higher education that— 21

(1) has experience conducting research on water 22

scarcity issues; 23

(2) is located in a Reclamation State; 24

12

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(3) has an established background of coordi-1

nating with Indian Tribes on water issues; and 2

(4) is located in a State that has an established 3

presence in Israel for the promotion of trade. 4

public policy committee august 6, 2020 9:00 am virtual meeting … · 2020-08-06 · jeff gray...

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