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National Water Resources Association 955 L'Enfant Plaza, North Bldg., S.W. ,Mfd L�: r Mr r q r,;yrIr,j�. 488.0610
JUL 1 2 1984
***In a surprise effort to shore-up p the beleagum Soso Diversion
Project, Sen Mark Andrews negotiated a compromise with the Audobon Society.
This pact should quiet objections to the project, but only after a 12 man
commission appointed by the Secretary of Interior restudies the vast project
and evaluates the economics, engineering, hydrology, environmental concerns,
etc. and submits by Dec 31 , a report of recommended project modifications and
alternatives. Until that report is available, any new construction activities
on the project will be deferred . Since little or no construction work can
occur in North Dakota during the winter, the agreement will cause another one
year delay in the project that already has been delayed for 40 years . The FY
' 85 request of the BuRec for Garrison construction is a substantial $53 . 5M.
Interior is moving quickly to organize the commission so that the extensive
study can be completed as required by years end.
***The House Int & Ins Affairs Comm has approved for floor action HR 4444
to increase the Small Reclamation Project Act authorization by $600M. Action
by the House is not expected until after the July 4 recess.
***A far reaching bill with the potential to provide solutions to some of
the vexing problems surrounding the cost-sharing issue is scheduled to be the
subject of a hearing before the Water and Power Subcomm of the House Int Comm
on Tues , June 26 . The measure is HR 4480, introduced by Rep Charles Pashayan
(CA) and 23 cosponsors . The cosponsors include : Chrm Mo Udall, Rep Chick
Kazen, Chrm of the Water and Power Subcomm, and Rep Kika de la Garza, Chrm of
the House Agri Comm.
Pat O ' Meara, NWRA Exec Vice Pres, participated in a meeting in New York
City on June 18 to discuss the measure with reps of municipal finance depts of
investment firms as well as municipal financial insurance and bond rating
firms . The meeting was hosted by the firm of Smith Barney, Harris Upham &
Co. , which has shown keen interest in the potential of the measure since it
was first introduced in 1981 .
The measure would apply to any water project that could be financed under
programs of the BuRec. It would authorize the Sec of Int to insure the debt,
including interest, of local water authorities which go to the private
financial markets to finance their water projects . The securities sold by the
local water authority would be secured by a lien on the revenues to be
developed by the project plus any other security that the Sec may require.
A premium would be charged for the insurance . The premiums would be
placed in the Water Project Insurance Fund, which would be used to make any
local water authority payments required because of default. Initially the
Water Project Insurance Fund would be financed by an appropriation from the
reclamation fund. Although the debt to finance a project under the Pashayan
Bill would require the payment of interest, and thus be less advantageous than
the traditional interest-free financing of the reclamation program, support
for Mr . Pashayan ' s legislation is growing because of the increasingly
stringent non-federal financing requirements expected in the face of
troublesome federal budget deficits . In addition, there is growing con-
gressional disenchantment with water development projects generally. Con-
sidered in that light, the Pashayan bill may be the only game in town.
NWRA is officially in support of the legislation and Mr. O'Meara will
testify to that effect, together with John Specht (TX) , Sherl Chapman (ID) ,
Fred Nobbe (AZ ) and Bob Will representing the Assn of CA Water Agencies .
***The nomination of Robert Broadbent to be Assistant Secretary of Water
and Science was approved on June 20 , by the Sen Comm on Energy and Natural
Resources , after a one week delay requested by Sen H Metzenbaum (OH ) .
Metzenbaum continues his mischief by placing a "hold" on Senate action until
he receives answers to a new set of questions he has developed.
***The first phase of the House consideration of the Omnibus Public Works
Bill (HR 3678) and the Clean Water Act amendments (HR 3282 ) was concluded on
Mon, June 18, while the House temporarily interrupted its consideration of the
Simpson-Mazzoli Immigration Reform Bill. The next stage will be to consider
1984ebdO�IVENTION,bHYATT That is expected to IX,uARIZONA, NOVEMBER 11-15
841172 , './ 7-/ y�
***The USDA has released a stucy prepared in compliance with -_ate
Reclamation Reform Act which shows the relationship between reclamation and
farm programs . It shows that as a rule, reclamation farmers devote a smaller
portion of their land to price supported crops than non-reclamation farmers.
Reclamation farmers also participate in federal farm programs to a lesser
degree than other farmers . One of the issues dealt with in the study was what
would have been the effect if reclamation farmers had been compelled to
participate in the arm program in 1982. It shows that farmers would have made
about $300 million more. Of that amount, $260 million would have been due to
higher prices for commodities sold and about $40 million would have been due
to a reduction in the costs to farmers for purchased inputs .
In Washington state, more than half of all irrigated acreage receives its
water from bureau projects, whereas in Kansas less than two per cent does.
The report, required by the Reclamation Reform Act, was printed for
"limited distribution" to the research community. It is titled "Production of
Surplus Crops on Irrigated Land Served by the U .S . Bureau of Reclamation. " If
NWRA members show sufficient interest in obtaining copies of the report, we
will have some copies of its reproduced. The report is 81 pages long and
contains a wealth of statistical data on the relationship between reclamation
and farm programs not previously assembled.
***In NWL of Apr 27 , NWRA President George Proctor urged irrigation
districts having problems with the interpretation and application of the rules
and regulations implementing the Reclamation Reform Act to contact us . We
wish to restate that invitation and stress that this is an area in which we
believe NWRA can be of service, but only if we are made aware of the problems.
Example from Oregon: It involves a small reclamation project contract in
which no repayment, as such, is involved. However, the district does have a
water service contract . The district and the Bureau disagree over the
necessity for complying with the reporting requirements of the new law. under
the rules and regulations , the regional director is to make a determination
and the district has the right of appeal to the commissioner. However, under
the Bureau ' s current procedures to assure westwide uniformity in the
application of the rules , decisions are submitted to the commissioner for
decision initially--not on appeal. There is no opportunity for the district
to have any input into the commissioner' s decision, and there is no provision
for an appeal to a higher authority. The question arises as to whether this
is in the spirit of "due process" provided under the final rules .
***A major threat to the financing of the irrigation features of the
Pick-Sloan Project in the Missouri Basin has come too late in the decision of
Chief Judge Warren K Urbom of the Fed Dist Court in NE in the so-called ETSI
Case . Judge Urbom says , in his opinion that power from Oahe Dam is marketed
under Sec 5 of the Flood Control Act of 1944. Hitherto, it has been contended
that the marketing authority is contained in Sec 9 of the Act, which provides
for the power subsidy for irrigation features in Pick-Sloan under the
reclamation laws . NWRA is joining with the Mid-West Electric Consumers Assn
and the North Dakota Water Development Assn in an amicus brief in the case.
***Enrollment for this year ' s Western Water Seminar and Summer Board
Meeting to be held in Jackson is tremendous. So much so that the Virginian is
filled to capacity during July 29-31 . To help those of you who have not made
reservations for lodging the following hotels have agreed to bloc off rooms
UNTIL JULY 1 . You must identify yourself as being an NWRA member to secure
one of these rooms . Tbey are: Executive Best Western 307/733-4340, ask for
Tony; 6-K 307/733-2364, ask for Chris; Wort Hotel 307/733-2190, ask for Linda;
and Cache Creek Motel 307/733-7781, ask for Jim.
The following committee meetings have been scheduled in conjunction with
the Jackson Seminar. Committee members please take note
Resolutions Committee Chrm Tom Choules Tues 7/31 8:30 a.m.
M&I Committee Chrm Harry Griffen Tues 7/31 2 :00 p.m.
Indian Water Claims Committee Chrm Vernahy Tues 7/31 3 :00 p.m.
Room assignments for the committee meetings will be posted at the Virginian.
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