Eluid L. Martinez

Commissioner, Bureau of Reclamation

Statement on H.R.3595

before the

House Resources Subcommittee on Water and Power

February 10, 2000

In one of my first acts as Commissioner of the Bureau of Reclamation (Reclamation), I established in 1996 an independent review team, comprised of representatives from the Association of Dam Safety Officials, to assess the Department of the Interior's dam safety program. It was the first outside review of Reclamation's program in two decades. In 1997, the team released a comprehensive and independent report. The report found that the Bureau of Reclamation has "an effective Dam Safety Program" overseen by "highly competent" staff using "state-of-the-art technical standards and expertise." Reclamations ability to respond to dam safety issues and to take preventative, corrective actions to reduce the public risks under the authority of the Reclamation Safety of Dams Act was a critical component of this favorable peer review. The team made a number of recommendations in Reclamation's program, and we have taken steps to implement them. Among them, we now have an officer who audits and oversees the dam safety program, but is independent of the dam safety staff. Outside experts annually review Reclamation's dam safety activities to ensure that the program has adequate policies and procedures in place to address public safety issues.

BACKGROUND

In its 100 year history, Reclamation has only had one dam failure -- Teton Dam -- that resulted in loss of life and damage to property. Teton Dam toppled in 1976 during initial filling, due to a design and construction deficiency.

After Teton, Reclamation instituted a dam safety program. Congress enacted the Reclamation Safety of Dams Act in 1978 (Public Law 95-578) to preserve the structural safety of Reclamation dams and facilities. In 1984, Congress adopted amendments (Public Law 98-404) instituting a 15 percent non-Federal cost share requirement for modifications made as a result of new hydrologic or seismic information or changes in the state-of-the-art technology. Public Law 95-578 authorized $100 million and Public Law 98-404 increased the authorized cost ceiling an additional $650 million, indexed for inflation. The 1984 Amendments also directed Reclamation to submit to Congress prior to taking corrective actions a report on any modifications expected to exceed $750,000 in actual construction costs.

As of September 30, 1999 approximately $173.4 million remained in budget authority for the dam safety program. Reclamation anticipates that all remaining authorization ceiling will be committed this year to fund new and ongoing projects.

ONGOING WORK

Public Law 95-578 and Public Law 98-404, along with Federal Guidelines for Dam Safety and the Department manual, guide Reclamation's dam safety efforts. Reclamation carries out both a Safety of Dams program and undertakes operation and maintenance efforts. In this regard, Reclamation's top priorities are to protect public safety and deliver water and power to its customers without disruption.

Reclamation's facilities are monitored regularly. Each dam annually receives a field inspection where operating personnel review a detailed check list to verify that the facilities are working properly. Reclamation and the operating organization regularly monitor dam instrumentation and transmit information on the conditions at dams to Denver where Reclamation dam safety staff conduct additional analysis. Every three years, all dams are examined to ensure that appropriate operations and maintenance occur at the facilities. Every six years all dams undergo a comprehensive review. The comprehensive review evaluates the adequacy of the original design and construction, structural performance and the risks associated with normal operation and undergo extreme flood and seismic conditions. Reclamation also carries out on an ongoing basis state of the art reanalysis of issues identified due to new seismic or hydrologic information, or identified through operations, monitoring or examinations.

There are 358 dams and dikes located at 248 water projects in Reclamation's inventory. The dam safety program helps to ensure the safety and reliability of these facilities. Approximately 50 percent of Reclamation's dams were built between 1900 and 1950 and approximately 90 percent of the dams were built before current state-of-the-art design and construction practices. Considering the age of Reclamation dams, the ongoing monitoring, facility reviews, analysis, investigations, and emergency management are critical components of the dam safety program. We are proud of our dam safety work but we also realize we cannot take safety for granted.

H.R. 3595

H.R. 3595 would make four primary changes in the existing program. I would like to highlight them.

First, the bill would increase by $380 million (indexed for inflation) the authorized cost ceiling for the Reclamation Safety of Dams Act. Reclamation anticipates that this funding level will provide Reclamation with authority to carry out safety of dams activities through approximately Fiscal Years 2006- 2008, based on current projected funding needs for safety of dams modifications. If annual obligations are required at a faster rate to meet identified needs, the ceiling would be expended sooner.

Second, the bill would charge interest on the modification project costs allocated for irrigation purposes, without regard to the water users' ability to pay, and without assistance from power revenues. Currently, any irrigation share of safety modification costs is repaid interest-free, which often means the Federal government recovers less than15 percent of its investment when the time value of money is considered. The change H.R. 3595 proposes would apply the same repayment terms to irrigation that are now used for power and municipal and industrial water supply costs. Not only would this change increase non-Federal cost sharing, but it would enable Reclamation to more quickly implement needed safety measures, as irrigation ability-to-pay analyses are often time-consuming and contentious.

Third, the legislation would reduce from 60 legislative days to 30 calendar days the time that a safety of dams modification report must lie before Congress before Reclamation can obligate funds for dam safety construction. Here again, the proposed change would enable Reclamation to begin important corrective actions more promptly. There has never been an incident when the Congress has moved to halt a modification during the 60 legislative day requirement. However, there have been instances as in the case of Como Dam in Montana, Ochoco Dam in Oregon, and Bradbury Dam in California when the Congress has had to enact a special provision allowing Reclamation to commence safety of dams work before the 60-day legislative requirement expired.

Finally, the bill would increase from $750,000 to $1.2 million the obligation threshold amount for actual construction that triggers when the Bureau of Reclamation must send a safety of dams modification report to Congress for review. This change would adjust the threshold for inflation since 1984 and thus allow Reclamation to initiate independently the modifications of the size and scope contemplated in the 1984 amendments.

CONCLUSION

Since 1978 when Congress first created the Safety of Dams program we have carried out 51 risk reduction corrective actions and five more are currently underway. Reclamation has implemented these corrective actions to protect public safety at the lowest cost.

Depending on budget and need, Reclamation plans to initiate safety of dams modifications at the following facilities in the near future: Horsetooth Dam, Colorado; Clear Lake Dam, Oregon; Pineview Dam, Utah; Deer Creek Dam, Utah; Salmon Lake Dam, Oregon; Wickiup Dam, Oregon; Grassy Lake Dam, Idaho; Keechelus Dam, Washington, and Warm Springs Dam, Oregon. We anticipate we will need additional budget authority for this work. H.R. 3595 would provide the additional authority and make other program improvements.

In summary, Mr. Chairman, the Administration strongly supports H.R. 3595 and urges enactment in the 106^th Congress. I would be pleased to answer any questions you may have.