Order Code RS20569
Updated January 3, 2005
CRS Report for Congress
Received through the CRS Web
Water Resource Issues in the 109th Congress
Betsy A. Cody
Specialist in Natural Resources Policy
Resources, Science, and Industry Division
H. Steven Hughes
Analyst in Natural Resources Policy
Resources, Science, and Industry Division
Summary
Growing population, recurrent drought, and changing public interests have
increased pressure on existing water supplies, resulting in water use conflicts throughout
the country. These conflicts are particularly evident in the West, where population is
expected to increase by 30% in the next 20-25 years and where urban needs often
conflict with agricultural needs, as well as with increased demand for water for
recreation, scenic enjoyment, and to meet endangered species needs. The 109th Congress
is likely to consider numerous water resource bills, including appropriations for the
Bureau of Reclamation and U.S. Army Corps of Engineers for FY2006 and FY2007, a
Water Resources Development Act (WRDA), and various agency policy and program
changes — e.g. operation of federal projects along the Missouri, Upper Mississippi, Rio
Grande, and Colorado Rivers, and oversight of ecosystem restoration for the California
Bay-Delta (CALFED) and the Florida Everglades. Also at issue are the broader
questions of the future role of traditional water resource agencies in an era of changing
public demands, declining budgets, and integrated environmental resource management,
and the potential need or desire for a National Water Commission or periodic
assessments of the Nation’s water resources. This product will be updated annually.
Introduction
Water supply and water resource management issues are becoming increasingly
important as pressure on existing supplies continues to grow. Increasing population and
recurrent drought in many areas, combined with increasing demand for water for
recreation, scenic value, and to meet fish and wildlife needs, have resulted in conflicts
throughout the country, especially in the arid West. Major water resource development
projects (large dams and diversions) traditionally met much of the consumptive demand
for water for the largest single use, irrigated agriculture; however, the financial and
Congressional Research Service ˜ The Library of Congress

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environmental costs have limited such projects for more than two decades.1 Additionally,
water resource development projects for consumptive uses, power generation, and flood
control have been criticized for degrading recreational opportunities, scenic values, and
fish and wildlife habitat. Consequently, considerable public pressure has been focused
on getting water resources agencies to alter project operations or to otherwise mitigate
environmental impacts. Because many of the Nation’s environmental laws were enacted
after major water resource development, water resource agencies such as the U.S. Army
Corps of Engineers (Corps) and the Bureau of Reclamation (Bureau) often find their
project operations in conflict with one or more laws — particularly with the federal
Endangered Species Act (ESA) and Clean Water Act (CWA), and similar state and local
laws and regulations.
In the West, naturally scarce water supplies and increasing urban populations2 have
spawned new debates over water allocation — particularly over water for threatened or
endangered species — and have increased federal-state tensions, since the federal
government has generally deferred to state primacy in intrastate water allocation. Water
marketing and water trading are becoming increasingly accepted, but some federal and
state laws limit this option. Some critics have called for more efficient use of agricultural
water and even transfer of water from agricultural to urban uses. Yet, agricultural users
argue that stable supplies of low-cost water contribute to producing the nation’s food
supply, and therefore provide widespread benefits. Further, discussion of water allocation
is complicated by the labyrinth of water rights, long-term water contracts, and decades of
incremental state and federal law on water use and development. Nonetheless, municipal
water demands will likely play a major role in future allocation or re-allocation decisions.
For example, conflicts such as the current debate over transferring Colorado River water
from the agriculture-based Imperial Irrigation District in southern California to the city
of San Diego may become more common.
Nationwide, threatened and endangered species and general concern over the health
of the nation’s rivers and riparian areas have driven increased attention to river and
watershed restoration efforts. The federal government is involved in several restoration
initiatives ranging from the Florida Everglades to the San Francisco Bay-San
Joaquin/Sacramento Rivers Delta (Bay-Delta).3 Yet, the demand for traditional or new
1 Municipal supplies of water have traditionally been developed locally or regionally, without
federal assistance. Although some municipalities are supplied water from federal facilities, for
decades (especially since the 1970s), the bulk of water-related federal assistance has been
channeled to municipalities through the states for wastewater and drinking water treatment, not
for development of water supplies. For more information on federal water projects and programs,
see CRS Report RL30478, Federally Supported Water Supply and Wastewater Treatment
Programs.
2 The population in the West is projected to increase by 30% in the next 20-25 years. Western
Water Policy Review Advisory Commission, Water in the West: Challenge for the Next Century
(Denver, CO: June, 1998), p. xiii.
3 For more information on federal involvement in Everglades restoration, see CRS Report
RS20702, South Florida Ecosystem Restoration and the Comprehensive Everglades Restoration
Plan. For information on Bay-Delta issues, see CRS Issue Brief IB10019, Western Water
Resource Issues and CRS Report RL31975, CALFED Bay-Delta Program: Overview of
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water supply projects, navigational improvements, flood control projects, and beach and
shoreline protection efforts continues. In fact, both the Everglades and Bay-Delta
restoration efforts include significant water supply components. Controversy over how
much water should be divided among recovering threatened and endangered species,
protecting water quality, and supplying farms, cities, and other uses has been on-going.
Further, widespread drought throughout different parts of the country over the past several
years has spurred new requests for support for developing and ensuring dwindling water
supplies, and new security threats to water infrastructure have placed added pressures on
budgetary resources.
These issues will continue to be debated during consideration of individual project
authorizations, as well as during debate on water resource development legislation and
on FY2006 appropriations for the Bureau and the Corps. Specific issues likely to surface
during the 109th Congress are discussed below. Other general issues that may arise
include federal reserved water rights in relation to federal lands, transfer of water across
federal lands and through federal facilities, Indian water rights settlements, licensing of
non-federal hydro power facilities (i.e., private dams regulated by the Federal Energy
Regulatory Commission (FERC)), and whether to establish a national water commission
to address federal water policy and coordination.
Water Resource Projects
Most of the large dams and water diversion structures in the United States were built
by, or with the assistance of, the Bureau or the Corps. Traditionally, Bureau projects were
designed principally to provide reliable supplies of water for irrigation and some
municipal and industrial uses; Corps projects were designed principally for flood control,
navigation, and power generation. The Bureau currently manages hundreds of storage
reservoirs and diversion dams in 17 western states,4 providing water to approximately 9
million acres of farmland and 31 million people. The Corps’ operations are much more
widespread and diverse, and include several thousand flood control and navigation
projects throughout the country, including 25,000 miles of waterways (with 238
navigation locks), 926 harbors, and 383 dam and reservoir projects (with 75 hydroelectric
plants).
Bureau of Reclamation. Since the early 1900s, the Bureau has constructed and
operated large, multi-purpose water projects; water supplies from these projects have been
primarily for irrigation. Construction authorizations slowed during the 1970s and 1980s
due to several factors. In 1987, the Bureau announced a new mission: environmentally
sensitive water resources management. In the following decade, increased population,
prolonged drought, fiscal constraints, and increased water demands for fish and wildlife,
recreation, and scenic enjoyment resulted in increased pressure to alter operation of many
Bureau projects. Such changes have been controversial, however, as water rights,
contractual obligations, and the potential economic effects of altering project operations
complicate any change in water allocation or project operations.
3 (...continued)
Institutional and Water Use Issues.
4 Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North
Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.

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In contrast to the Corps, there is no tradition of a regularly scheduled authorization
vehicle for Bureau projects. Instead, Bureau projects are generally considered
individually.5 Bureau-related water project and management issues that are likely to be
considered during the 109th Congress include:
! management and oversight of Colorado River water;
! oversight of the Central Valley [California] Project Improvement Act;
! oversight of, and appropriations for, CALFED (Bay-Delta restoration);
! consideration of a West-wide rural water supply program;
! examination of the Bureau’s Title 16 (recycling and reuse) program;
! authorization of individual water recycling and desalination projects; and
! response to drought conditions.
(For information on these, and other active legislative proposals affecting the Bureau
of Reclamation, see CRS Issue Brief IB10019, Western Water Resource Issues in the 109th
Congress.)
A broader issue that often receives attention from Congress is oversight of the
Bureau’s mission and its future role in western water supply and water resource
management generally. As public demands and concerns have changed, so has legislation
affecting the Bureau. Further, many in Congress have questioned the Bureau’s shift in
focus from a water resources development agency to a water resource management
agency. Some have also questioned the increasing number of proposals to fund new rural
water supply projects with high federal cost-share ratios and grants for reclaiming and
reusing water. Critical questions Congress may address include What should be the future
federal role in water resources development and management? Should (or to what extent
should) the federal government develop or augment new supply systems designed
primarily to serve communities/municipalities, or is this a local/regional responsibility?
Who should pay, and how much? Should the Bureau be involved in environmental
mitigation or is this best handled through new institutional arrangements (e.g., CALFED,
Everglades processes) or other existing agencies (e.g., Fish and Wildlife Service and/or
the Environmental Protection Agency)? Should existing projects be revamped or “re-
operated” to accommodate changing demands, and, if so, do new policies and institutions
(state-federal roles) need to be addressed, and again, who should pay?
Corps of Engineers. Congress regularly authorizes and reviews water resources
programs and projects of the Corps in a Water Resources Development Act (WRDA)
and/or the annual Energy and Water Development Appropriations acts. Consideration of
WRDA, which typically has been biennial, is likely in 2005; the last WRDA was enacted
in 2000. WRDA bills were introduced in 2002, 2003, and 2004, but were not enacted.
Passage of these bills reportedly was complicated by debates on authorization of
controversial projects and policies, and whether to change the way the Corps plans for and
evaluates projects. Whether any agreement on changes to Corps’ planning and evaluation
procedures will be made by the 109th Congress may depend in part on the
Administration’s water policy and spending priorities and whether the recommendations
5 However, Congress occasionally passes omnibus bills addressing key Bureau policy changes,
as well as new or revised project and program authorizations, the latest being the Reclamation
Projects Authorization and Adjustment Act of 1992 (P.L. 102-575).

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of outside entities, such as the National Academy of Sciences, serve to promote legislative
consensus or compromise. Consideration of a WRDA in the 109th Congress also is
likely to include debates on both changes to state and local roles in projects and
authorization of high profile projects, such as coastal Louisiana restoration and lock
expansion and ecosystem restoration for the Upper Mississippi River-Illinois Waterway.
Pressure to authorize new projects and to increase funding or modify existing projects is
often intense and could “jumpstart” a WRDA bill early in 2005. For more information
on current WRDA issues, see CRS Issue Brief IB10133, Water Resources Development
Act (WRDA) and Other Army Corps of Engineers Legislation, coordinated by Nicole T.
Carter.

The ramifications of a shift to performance-based budgeting for the Corps —
beginning with the Administration’s FY2005 budget request — has raised concern within
the Congress. The 108th Congress specifically expressed concern about how the shift
contributed to the Administration reducing support for operation and maintenance of
some waterways and a policy of not funding sand renourishment of beach protection
projects after initial sand nourishment. The 109th Congress may provide the Corps
direction in appropriations bills, or via WRDA, on these issues, as well as on security of
Corps facilities, and implementation of Florida Everglades ecosystem restoration.
Congress may also provide direction on agency management issues, such as internal
reorganization, strategic planning, and competitive sourcing efforts, in either a WRDA
or an appropriation bill. For more information on current Corps issues, see CRS Issue
Brief IB10120, Army Corps of Engineers Civil Works Program: Issues for Congress, by
Nicole T. Carter and Pervaze A. Sheikh.
Corps river and reservoir management, in particular, are receiving congressional and
public scrutiny. Rivers provide not only water supply for agriculture and municipalities,
navigation, and flood protection, but also recreational opportunities and natural habitat.
In many cases, Corps facilities and their operation are central to debates over multi-
purpose river management. For example, water resources management by the Corps,
particularly on the Mississippi, Missouri, Columbia and Snake Rivers, remains
controversial and is frequently challenged in the courts. The 109th Congress may choose
to become involved in management through oversight, legislative direction, authorizing
legislation, or appropriations.

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