	Reclamation's Water Reuse (Title XVI) Program

To address growing challenges in western water management, in 1992, Congress directed the Secretary of the Interior to establish a federal water reclamation, recycling, and reuse program to share project costs in the West (Title XVI of P.L. Commonly referred to as Title XVI, the program is administered by the Department of the Interior's (DOI's) Bureau of Reclamation and provides funding for projects in several western states and Hawaii. Program implementation has at times been contentious, with various stakeholders having widely different views of the program and its performance. DOI has taken action in recent years to improve program implementation. At issue for Congress is the degree to which DOI actions are consistent with congressional priorities, whether legislative attention is needed to improve the program, and if so, how it should be changed. One question is whether to authorize additional Title XVI projects; several bills pending before the 111 th Congress (e.g., H.R. 2442 , H.R. Recent Congresses have also held several oversight hearings on the program, its projects, and their funding. The rate of Title XVI project authorizations has outpaced annual appropriations. The program has a $630 million "backlog" of authorized projects awaiting appropriations. The DOI has issued three documents to guide the program's implementation: (1) agency guidelines for preparing, reviewing, and processing Title XVI project proposals, (2) internal "Directives and Standards" to increase the consistency and effectiveness of the program by establishing feasibility study requirements for prospective Title XVI projects, and (3) funding criteria to prioritize project funding. 102-575 , the Reclamation Wastewater and Groundwater Studies and Facilities Act. As shown in Figure 1 , more than two-thirds of the 53 authorized projects are located in California. This concentration reflects the early focus of the program on the Southern California and Colorado River hydrologic region in the original authorization as well as interest in the program in the California. The backlog of authorized projects in 2006 was $354 million; today it is approximately $630 million. Even with stimulus spending discussed below, the Title XVI backlog has grown with the authorization of several new projects in the 111 th Congress. ARRA funds significantly reduced the number of unfunded projects and contributed to the completion of the federal share of multiple projects; however, outstanding authorizations grew to $630 million. Some Members of Congress continue to voice concern over the program's goals and implementation, including costs. With the Administration's FY2011 budget request for a lump sum of $20 million to be allocated using proposed funding criteria, the Administration seems to be trying to accomplish administratively what some programs (e.g., EPA water quality programs) have in statute. Congress appropriates money annually for these programs; however, except for some congressionally designated projects, project funding is not regularly appropriated for each project, as it is for Reclamation and Corps projects. Should projects that have successfully completed projects without Title XVI assistance still be eligible for the authorized federal cost-share (as indicated in the proposal)? Federal Role in Reuse

A broad policy issue related to Title XVI, but not frequently discussed in recent years, is the question of the appropriate federal role in water supply development, particularly for municipal and industrial (M&I) purposes, and particularly the role of Reclamation in this regard. Because Title XVI projects are largely municipal water development projects and the most recent articulated congressional policy on these types of projects is half a century old (under the Water Supply Act of 1958), debate remains in some circles over whether, and if so how, the federal government should fund these activities. Instead, legislative activity has been limited to individual project authorizations and oversight. Or is that already happening as a function of which local governments and sponsors are seeking legislation? Reclamation's new funding criteria and other programmatic actions attempt to answer some of these questions; whether Congress agrees with Reclamation's approach and appropriates the lump sum funding for the Administration to allocate has yet to be decided. Resolution of Title XVI issues will depend on many factors, including to what degree congressional and Administration priorities for the program can be articulated and balanced. It is not clear how many projects may ultimately seek multiple sources of federal funding or already have done so.
Congress authorized the Department of the Interior (DOI) to undertake a program to provide federal financing for water reuse (i.e., planned beneficial use of treated wastewater and impaired surface and groundwater) with passage of the Reclamation Wastewater and Groundwater Studies Feasibility Act of 1992 (Title XVI of P.L. 102-575). The Department of the Interior's implementation of the program by the Bureau of Reclamation at times has been contentious. Many Members of Congress, particularly from water-scarce western states, have supported the program and specific projects. However, with a funding backlog of more than $630 million to complete already authorized projects, several pending authorizations, and ongoing concerns about the appropriate federal role in funding Title XVI facilities, it is not clear what action the 111th Congress will take in its remaining days. Similarly, it is not clear what approach the 112th Congress will take toward the Title XVI program.
Approximately $531 million has been appropriated for Title XVI projects in the West, mostly in California. Of the 53 authorized projects, 42 have received some appropriation. From FY2009 to FY2010, the number of projects that are either complete or have exhausted their authorized federal cost-share rose from 10 to 16. However, the rate of Title XVI project authorizations has outpaced annual appropriations. For example, recent stimulus funding combined with regular appropriations resulted in fewer "unfunded" projects on the books, but the overall funding backlog has grown to approximately $630 million.
At issue for Congress in the short term is whether to authorize new projects and at what level to fund already authorized projects (e.g., H.R. 2442 and H.R. 2522). At issue for the longer term is whether legislative action and oversight is needed to address Title XVI implementation issues, and if so, how to change the program. The Department of the Interior has taken action in recent years to improve the program's implementation. To what degree these actions are consistent with congressional priorities for the program will significantly shape perspectives on whether the program warrants legislative attention in the 112th Congress. Other issues include the future of new project authorizations, given the backlog of authorized projects awaiting appropriations and competing budget priorities, and whether Congress should appropriate lump sum funding to be allocated to projects by the Administration under new funding criteria.
A challenge for Congress is that stakeholders' perspectives on how to manage and improve the program can be fundamentally different. Title XVI authorizations and appropriations have been pursued by many water utilities seeking access to federal funds, which can be leveraged to obtain additional financing. Project sponsors generally are seeking a more streamlined project development process and expanded program appropriations. The Administration appears to support a smaller, more focused program with long-term objectives tied to federal interests, as indicated by funding criteria released by the Administration in October 2010. Others fear the program will overwhelm Reclamation's budget and compete with the upkeep and new authorizations for traditional Reclamation projects.
Views on the Title XVI program and its future also vary based on perspectives on the proper federal role in water supply development, the appropriate priority for the program in the current federal and state fiscal environments, the history and mission of the program, and the urgency and need for investment and promotion of water reuse technologies. The justification for federal involvement in these projects, which expand municipal water supply, and the long-term goals and planning for the program have come under scrutiny and may be at issue in the 112th Congress.