102-575 , the Reclamation Wastewater and Groundwater Studies and Facilities Act; 43 U.S.C. At the same time, Administration support for the program has changed from full support prior to enactment in 1992, to the Administration's current position of generally not supporting projects proposed for authorization by project sponsors (primarily municipal water agencies) that have not gone through Reclamation's feasibility process. Responsibility for undertaking the new program—commonly referred to as the Title XVI program—was assigned to Reclamation in the Department of the Interior (DOI). The result of several years' effort in addressing this conflict was the Reclamation Projects Authorization and Adjustment Act of 1992 ( P.L. Status of the Title XVI Program and Projects

			Authorizations

Congress has authorized 33 Title XVI projects (see the Appendix for additional information). These supporting documents state that the program helps Reclamation "meet its mission to manage and develop water and related resources in an economically and environmentally sound manner" (and specifically notes the program's role in assisting Southern California reduce its reliance on Colorado River water); however, the summary of the PART review declares that the water reclamation and reuse activity is "not one of Reclamation's core functions." Because Title XVI projects are municipal water development project and the most recent articulated congressional policy on these types of projects is nearly half a century old, there remains confusion over how to manage the differences of opinion over the appropriate federal role in water reuse projects that are raised between Congress and the Administration, and within Congress. Unlike other areas of water resources management in which the federal role is more prominent (e.g., irrigation water supply, flood damage reduction, and navigation; or supporting wastewater and drinking water treatment investments through revolving loan programs), the federal role in water supply development for M&I uses largely has been secondary to the primary role of state and local governments. Implementation Issues

On the implementation front, what is at issue for Congress is whether the Title XVI program's current implementation inhibits the achievement of congressional interest in water reuse projects. Recent questions and concerns about the implementation of the Title XVI program appear to have increased in part because of the nature of project evaluation and authorization processes and the lack of a clear program funding process that is typical of federal water quality programs; this is demonstrated by OMB's PART review and the Administration's current positions on authorizing new projects and its budget requests. Project Evaluation and Authorization

Under the evaluation process established in Title XVI of P.L. Second, some sponsors have engaged Reclamation in a feasibility study, but have found agency support lacking in recent years. The Administration's request of $10.1 million for Title XVI for FY2007 is 40% less than the FY2006 enacted appropriation of $25.6 million. 5768 and S. 3639 , would replace the existing appraisal and feasibility evaluation process with a more limited technical and financial viability and review process. These priorities range from assisting communities with drought resilience to focusing on projects with innovative and new technologies. For example, it appears from recent testimony that projects sponsors are generally interested in a more streamlined project development process and expanded program appropriations, while the Administration supports a more limited program with long-term objectives focused on federal interests. The challenge for Congress will be how to proceed in the face of divergent positions.
Congress authorized the Department of the Interior (DOI) to undertake a program to provide limited federal financing for water reuse (i.e., planned beneficial use of treated wastewater and impaired surface and groundwaters) in Title XVI of P.L. 102-575—the Reclamation Wastewater and Groundwater Studies Feasibility Act of 1992. Title XVI's implementation by DOI's Bureau of Reclamation has been contentious; many Members of Congress, particularly from water-scarce western states, support both the program and specific projects, but are frustrated by growing backlogs of projects seeking authorization or awaiting appropriations.
The Bush Administration has generally opposed authorizing additional projects, citing the backlogs and noting that the projects proposed for authorization generally do not meet Reclamation's requirements for a feasibility study. At the same time, the Administration's requests for appropriations for Title XVI have been relatively consistent for several years, with the FY2007 request at $10.1 million, albeit nearly half of what Congress has appropriated in recent years. The resulting inertia in implementation has raised congressional interest in possible changes to the program. Options discussed range from clarifying the program's criteria (e.g., focus on areas of most need), to changing the way projects are evaluated (e.g., replacing the requirement for a Reclamation feasibility study with an evaluation of technical and financial viability), to expanding and prioritizing Title XVI appropriations.
Views on how to proceed vary based on perspectives of the proper role of the federal government in water supply, the appropriate priority for the program in the current fiscal environment, the history and mission of the program, and the urgency and need for investment and promotion of water reuse technologies. Title XVI's genesis includes helping Southern California reduce its reliance on Colorado River water. As authorizations for projects in other areas and with other purposes were added, the justification for federal involvement in these projects, which expand municipal water supply, and the long-term goals and planning for the program came under increasing scrutiny, particularly by the Administration. At the same time, the program was increasingly pursued by project sponsors as a route for federal assistance, which was then leveraged for additional support and financing. Several project sponsors have directly pursued congressional authorization outside the Title XVI feasibility study process. It is not clear if this is due to the Administration's resistance to pursue Title XVI projects, or due to a combination of other factors.
In the face of decreasing support from the Administration and mounting dissatisfaction of project sponsors, the 109th Congress has engaged in oversight of the program and authorized only a limited set of additional Title XVI projects. The issue for Congress is whether and how to change the program. The challenge for Congress is that stakeholders' perspectives on how to improve the program are fundamentally different. Project sponsors generally prefer a more streamlined project development process and expanded program appropriations, while the Administration supports a smaller, more focused program with long-term objectives tied to federal interests. This report will be updated as events warrant.