tain preliminary work on a prototype plant. Section 3(c) of H.R. 5334 further directs the Secretary to utilize the water and power marketing agencies of the Federal Government to insure that the plant will be integrated into the water and power systems of the region in which it is located, requirements which are more generally provided for in sections 3(c), (d), and (e) and 4(1) of the Administration proposal. Section 3(e) of the Administration proposal provides for coordination on a broader basis than section 4(e) of H.R. 5334. Section 4.-Secretarial Authority:

Subsection (e)-H.R. 5334 does not provide for disposal of property acquired under the Act and does not enumerate the ways in which property may be acquired.

Section 5.-Prototype Construction and Operation:

Subsection (a)—H.R. 5334 does not provide for participation of other entities in prototype construction and operation. H.R. 7366 limits the Federal financial contribution toward prototype plants.

Section 6.-Report on Prototype Work:

Section 7(b)(2) of H.R. 5334 provides for a roughly equivalent report by December 31, 1975 (instead of June 30, 1976) and requires a recommendation for phaseout of these functions.

Section 7. Interagency Cooperation; Treatment of Information:

H.R. 5334 specifically directs cooperation and coordination with the Environmental Protection Agency to avoid duplication.

Section 8.-Effect on Water Law:

Section 5(f) of H.R. 5334 is identical.

Section 9.-Periodic Reports:

H.R. 5334 makes no provision for periodic reports to the President and the Congress.

Section 10.-Implementing Rules and Regulations:

Section 6 of H.R. 5334 is identical.

Section 11.-Authorized Appropriations; Use of Funds :

The Administration proposal provides for appropriations for fiscal years 1973 through 1977, with an additional 3 years to conclude projects in progress, and an additional year to prepare a final report. Section 7 of H.R. 5334 does not provide the final additional year. H.R. 5334 requires a status report by December 31, 1975, including recommendations for the integration of OSW functions within the programs of the Department of the Interior. H.R. 7366 provides that 2 percent of any one year's research and development monies may be expended in foreign countries for research. H.R. 5334 prohibits such expenditures. Section 12.-Contracting Authority and Liability:

H.R. 5334 contains no comparable provision making the liability of the United States under contracts contingent upon appropriations being available.

Section 13.-Outside Assistance:

Section 7(d) of H.R. 5334 authorizes the Secretary to accept outside financial and other assistance only for studies and surveys. H.R. 7366 permits acceptance of such assistance for the additional purposes of research, construction, maintenance, operation and other activities authorized by the Act. H.R. 5334 does not make any provisions for the return to the public agencies of any unexpended monies and H.R. 5334 does not provide that the receipt of contributed funds shall not be the basis for entering contracts obligating the United States for amounts in excess of such funds unless actual appropriations have been made for such contracts.

Section 14.-Short Title:

Section 9 of H.R. 5334 is identical.

U.S. DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, D.C., January 29, 1971.

Hon. CARL ALBERT,

Speaker of the House of Representatives,
Washington, D.C.

DEAR MR. SPEAKER: Enclosed is a draft of a proposed bill "To authorize appropriations for the Saline Water Conversion Program for fiscal year 1972, and for other purposes".

We recommend that the bill be referred to the appropriate Committee for consideration, and we recommend that it be enacted. This Department's Office of Saline Water (OSW) has made considerable progress in the development of prac

tical, low-cost methods for producing fresh water from saline, brackish, and other mineralized or chemically-charged waters. It has fostered the development of desalting technology and has encouraged water planners and the desalting industry to cooperate in developing viable plans for meeting the Nation's water requirements.

The legislation under which the OSW conducts its program, the Act of July 3, 1952, as amended (42 U.S.C. 1951 et seq.), authorizes "to be appropriated such sums, to remain available until expended, as may be specified in annual appropriation authorization acts." In order to meet fiscal year 1972 program requirements, we propose an appropriation of $27,025,000 to enable the OSW to conduct its research and development program as follows:

I. Research and development operating expenses, $15,675,600;

II. Design, construction, acquisition, modification, operation, and maintenance of saline water conversion test beds and test facilities, $7,385,000;

III. Design, construction, acquisition, modification, operation, and maintenance of saline water conversion modules, $1,425,000; and

IV. Administration and coordination, $2,540,000.

Major changes from the fiscal year 1971 program of $28,677,934, are described as follows.

Research and development operating expenses activity contains a net increase of $495,066. Sizable cutbacks or elimination of effort for 1972 have been made in the materials, crystallization, and electrodialysis research and development programs. Additional emphasis is planned for environmental research and development to assure that measures for protection of the ecology are incorporated in the process developmental program. Also, funds are required for additional equipment involved in further development of distillation processes. Design, construction, acquisition, modification, operation, and maintenance of saline water conversion test beds and test facilities activity reflects an increase of $1,985,000 and includes a request for three additional positions. Two of the three positions are for managerial support at the Roswell, New Mexico and Freeport, Texas facilities. The manager at each of these facilities is the only OSW representative on site. The expanded activities require that the managers be provided assistance in technically coordinating the programs. The third position is for the Wrightsville Beach, North Carolina, Test Facility to assist the physical science technician in responding to the increasing analytical requirements associated with evaluation of new and improved sea water desalting development plants.

Included in the program for this activity in FY 1972 is $2,100,000 for acquisition of two reverse osmosis test beds. Acquisition of a reverse osmosis sea water plant is an essential intermediate step toward the advancement of economical desalting of sea water by this process. Past engineering and economic studies have shown that reverse osmosis is more economical than distillation for desalting sea water in plant sizes up to 5 million gallons per day. The plight of small communities where the population depends upon bottled water for cooking and drinking indicates a need for production plants of this type.

A 500,000 to 750,000 gpd High Product Recovery test bed plant is needed primarily to reduce the volume of brine effluent that must be disposed of without adverse effect on the environment, particularly in inland areas. Recognizing the need for development of high product recovery and high flux membrane plant technology OSW, over the past three years, has devoted significant efforts to develop suitable hardware and system components required for these plants. Evaluation of the technology on a test bed scale is now necessary to confirm pilot plant data prior to scale up to prototype and commercial plants of multimillion gallons per day capacity.

Design, construction, acquisition, modification, operation, and maintenance of saline water conversion modules activity is decreased by $4,170,000. This decrease is attributable to the acquisition cost of the Vertical Tube Evaporator/ Multistage Flash Module that was authorized for fiscal year 1971.

Administration and coordination activity shows an increase of $37,000 and includes a request for two additional positions in the OSW Washington headquarters. These positions are: (1) a project management engineer to assist in planning cooperative programs with other water planning agencies and other field test programs; (2) a budget clerk to assist the budget officer in preparing and managing the OSW budget.

The appropriation authorization requested for FY 1972 reflects two other changes from the FY 1971 authorization. It omits the dollar limitation on foreign expenditures and it provides for a 2 percent overrun in administration and coordination activity.

Deletion of limitation on foreign expenditures.-The FY 1971 authorization limited foreign expenditures to $100,000. Restoration of foreign authority is requested for the continuation of highly promising research grants in the reverse osmosis area to foreign institutions. The FY 1971 funding of this activity is approximately $65,000. Since the enactment of the restriction on foreign expenditures, OSW has not been receiving research proposals from foreign institutions. In the past, OSW has only funded those research proposals that were unique and showed a high degree of promise. Removal of the restriction will help to assure that the United States will obtain the information possessed by foreign research scientists. The exchange of information between this Nation and foreign nations is most decidedly one way, i.e., we provide more information than we receive. Although it is not expected that expenditures for foreign research will be significant, it is hard to estimate precisely what the requirement will be. Reprograming—Administration and Coordination. The administration and coordination activity, approximating 10 percent of the total authorization, must provide for all OSW headquarters costs, of which 90 percent are for personnel. The authorization for this activity in fiscal year 1970, adjusted for the pay increase under Public Law 91-231, exceeded actual charges by less than $10,000. An inordinate degree of control is required throughout the year to assure that no action is taken which might result in overobligation of the authorized funds in this account. As an example of the problem, if personnel employment within the authorized ceiling exceeds the estimate by only one man-year and if sufficient savings cannot be made in the relatively small balance of the funds in other than personnel costs, the OSW may be required to seek congressional relief. A 2 percent reprograming authority (approximately $50,000) appears reasonable. A statement concerning significant environmental impacts of the proposal pursuant to section 102 (2) (C) of the National Environmental Policy Act of 1969 will be forwarded to accompany the bill.

The Office of Management and Budget has advised that this proposed legislation is in accord with the program of the President.

Sincerely yours,

Enclosure:

JAMES R. SMITH,

Assistant Secretary of the Interior.

A BILL To authorize appropriations for the Saline Water Conversion Program for fiscal year 1972, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is authorized to be appropriated to carry out the provisions of the Saline Water Conversion Act (66 Stat. 328), as amended (42 U.S.C. 1951 et seq.), during fiscal year 1972 the sum of $27,025,000 to remain available until expended as follows:

(1) Research and development operating expenses not more than $15,675,000: Provided, That notwithstanding the provisions of section 8 of the Saline Water Conversion Act (66 Stat. 328), as amended (42 U.S.C. 1958), such funds may be obligated for the procurement of research services through contract with institutions or individuals in foreign countries;

(2) Design, construction, acquisition, modification, operation and maintenance of saline water conversion test beds and test facilities, not more than $7,385,000; (3) Design, construction, acquisition, modification, operation and maintenance of saline water conversion modules, not more than $1,425,000; and

(4) Administration and coordination, not more than $2,540,000. Expenditures and obligations under any of such items, may be increased by not more than 10 per centum, except item (4) which may be increased 2 per centum, if such increase is accompanied by an equal decrease in expenditures and obligations under one or more of the other items.

Hon. CARL ALBERT,

U.S. DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, D.C., April 1, 1971.

Speaker of the House of Representatives,

Washington, D.C.

DEAR MR. SPEAKER: There is enclosed a draft bill "To expand and extend the desalting program being conducted by the Secretary of the Interior."

We recommend that the proposed bill be referred to the appropriate committee for consideration and that it be enacted.

With the enactment in 1952 of the Saline Water Act (66 Stat. 328), the Congress recognized the potential crisis that confronted the Nation in the disproportion between the available supply and the increasing demand for water. In that legislation, the Congress declared the policy of "providing for the development of practicable low-cost means of producing from sea water, or from other saline waters, water of a quality suitable for agricultural, industrial, municipal, and other beneficial consumptive uses on a scale sufficient to determine the feasibility of the development of such production and distribution on a large-scale basis, for the purpose of conserving and increasing the water resources of the Nation." The 1952 Act, as amended, authorized annual appropriations for the nurnose of initiating new projects only through fiscal year 1972, with an additional period of five years during which only appropriations to complete such projects could be made. The Federal desalting program will, accordingly, begin to phase out after fiscal year 1972 unless new authority is provided.

In continuing the desalting program, our main objectives will be: (1) to carry forward our basic and applied research and development program, building on the impressive gains in developing desalting systems which have already been made; (2) where desalting technology has been sufficiently developed, to stimulate its application to existing water problems; and (3) to develop large-scale prototype plants to evaluate and demonstrate the viability of desalting as an alternate water source to meet the pressing requirements that will arise in the last quarter of this century for more and better water. The location of such prototype plants will be selected on the basis of water needs and the availability of an entity or entities to participate in the construction and initial operating costs.

This bill would provide new authority for continuing with research and development activities for an additional 5 years, from fiscal years 1973 through 1977, with an additional 3-year period for completing those activities and an additional 1 year for preparing the final report. Periodic reports to the Congress no less frequent than every 2 years would be required. Although the format has been changed, in substance this bill contains the same general authority as present law with the following exceptions.

1. The bill would require the Secretary of the Interior to complete and submit a preliminary report on the feasibility of constructing and onerating large prototype desalting plants in order to verify that large-scal desalting is practicable by the distillation or reverse osmosis processes.

2. By the end of Fiscal year 1976, the Secretary would be required to submit a report to the President and the Congress describing the status of the program authorized by the Act, including recommendations on the future role the Federal Government should play in encouraging the development and application of desalting technology. It is anticipated that information developed during this period would provide the basis for recommendations on the role of desalting in the Western United States Water Plan (Colorado River Basin Project Act of September 30, 1968, 82 Stat. 885).

3. More comprehensive definitions of the terms "pilot plant", "test bed", "module", and "prototype" are provided.

4. The scope of the research and development work on processes for the recovery of commercially valuable byproducts and for the minimization of environmentally harmful effects associated with desalting processes would be expanded.

5. New emphasis would be given to studies, surveys, and analyses that will include the use of desalting technology in comprehensive water resource planning and in other practical applications. Coordination of such studies with studies being conducted under other legislation would be required.

6. The Secretary would be authorized to acquire or dispose of property or rights in compliance with applicable property procurement and disposal laws. No disposal authority is provided in the present legislation except with respect to water and other byproducts of the desalting process. This has impaired the Secretary's flexibility in participating in arrangements with other entities and has created other complications inimical to the purposes of the Act.

7. The Secretary of the Interior would be authorized to continue research to preserve from loss disclosures or discoveries that were not directly related to desalting in the course of authorized research and studies.

8. Cooperation and participation in foreign research, not to exceed 2 percent of the appropriated research and development funds in any fiscal year, would be authorized.

Also enclosed herewith is a sectional analysis of the proposed bill and an environmental impact statement as required by section 102 (2) (C) of the National Environmental Policy Act of 1969.

The Office of Management and Budget has advised that the presentation of this proposed legislation would be consistent with the Administration's objectives. Sincerely yours,

Enclosure:

JAMES R. SMITH, Assistant Secretary of the Interior.

A BILL To expand and extend the desalting program being conducted by the Secretary of the Interior, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of July 3, 1952 (66 Stat. 328), as amended (42 U.S.C. 1951-1598g), is further amended to read as follows: SEC. 1. In view of the increasing shortage of usable water in many parts of the Nation and the importance of finding new sources of supply to meet present and future water needs, it is the policy of the Congress to provide for development and demonstration of practicable means for large-scale production from saline water of low-cost water suitable for municipal, industrial, agricultural or any other beneficial purpose, and for studies and research related thereto. SEC. 2. When used in this Act

(a) "Saline water" shall mean seawater, brackish water, and other mineralized or chemically charged water.

(b) "Desalting" shall mean any process for the reclamation or treatment of saline water of low-cost water suitable for municipal, industrial, agricultural or (c) "Pilot plant" shall mean an experimental unit of up to 100,000 gallons per day capacity, used for early evaluation and development of new or improved desalting processes and also for investigations in areas of supporting research and development to obtain needed technical and engineering data.

(d) "Test bed" shall mean an experimental desalting plant of up to two million gallons per day capacity, used for further evaluation and refinement of selected processes beyond that permitted by a pilot plant.

(e) "Module" shall mean a section or integral portion of a desalting plant which is used initially to confirm new or improved desalting technology on a large scale and the critical design features required for subsequent prototype construction.

(f) "Prototype plant" shall mean a first of a kind water-producing plant of sufficient scale and detail used for complete process verification of pilot plant test bed or modular tested technology and process economics.

SEC. 3. The Secretary of the Interior shall—

(a) conduct or provide for fundamental and applied research and studies to develop the best and most economical desalting processes, including processes for the recovery of commercially valuable byproducts produced during desalting and for the minimization of environmentally harmful effects associated therewith; (b) conduct or provide for engineering and technical development work, including the construction and testing of pilot plants, test beds, modules, or any components thereof, for the purpose of evaluating the research and studies authorized by section 3(a) of this Act and advancing desalting processes and plant designs to the point where they can be demonstrated on a practicable scale;

(c) report to the President and to the Congress his recommendation as to the best opportunity for the early construction of large-scale prototype desalting plants. Plant siting shall consider the need for new water resources in a comprehensive plan for the area selected, plant size and best-suited technology to demonstrate the practicability of construction and operation of large-scale plants for water supply, and the availability of cooperating entity or entities willing to enter into agreements for marketing the water produced;

(d) conduct or provide for studies, surveys, and analyses (i) to determine the potential needs for, and uses of, desalting processes, (ii) to determine the present and prospective costs of reclaiming or treating saline water in various parts of the United States, and (iii) to furnish the technical and economical information