Statement of Bennett W. Raley
Assistant Secretary for Water and Science
U.S. Department of the Interior
Before the U.S. Senate Subcommittee on Water and Power
Concerning S. 1097 A Bill To Authorize the Secretary of the Interior to Implement the CALFED Bay-Delta Program
Madam Chairman, members of the Subcommittee, I appreciate the opportunity to appear before you today to discuss the proposed bill authorizing the Secretary of the Interior to implement the CALFED Bay-Delta Program. S.1097 provides authorization for the Secretary of the Interior and the heads of the participating Federal agencies to carry out implementation of the CALFED Bay-Delta Program as set forth in the Record of Decision. Furthermore, S.1097 would authorize funding, as well as governance and management authorities for a comprehensive, balanced, and timely water management program for California.
I would like to express my sincere appreciation to the Committee for your continued support and commitment to making significant progress with the CALFED Program. I also appreciate the concerns demonstrated by this Committee that progress be made and your efforts in developing the bill being considered here before us today. Your continued willingness to work with the Administration and Department on this matter is of real and continuing importance to us. The current bill addresses many of the concerns raised in previous testimony, and we appreciate the approach the Senate is taking to authorize a clean CALFED bill. While we appreciate the effort and commitment that has gone into this bill, this testimony highlights several outstanding concerns that will need to be addressed for the Administration to support this legislation.
Overview of Progress on California Water Issues
Before addressing S.1097, I would like to briefly focus on
several key California water issues and provide you with an overview of CALFED
accomplishments to date. Virtually every Western state has issues of concern
and controversy demanding our collective attention. The Department of the
Interior has recently initiated Water 2025 which is a commitment to work with
states, tribes, local governments, and the public, within existing resources, to
address the realities of water supply challenges in the West. Water 2025
recognizes crisis management is not an effective solution for addressing
long-term systemic water supply problems. This effort is intended to focus
sustained attention on measures that local communities can be put in place to proactively
anticipate and mitigate the water conflicts we will otherwise inevitably
experience, even in non-drought years. In some areas of the West, communities
are already implementing water banks, voluntary transfers between existing
users, and water conservation measures to address potential water supply crises
in advance.
Colorado River Water Delivery Agreement
A prime example of crisis prevention is the recent conclusion of decades of controversy with the signing of the Colorado River Water Delivery Agreement. On October 16, 2003, Secretary Norton was joined at Hoover Dam by representatives of the seven Colorado River Basin States and the four California water agencies (Imperial Irrigation District, Coachella Valley Water District, the Metropolitan Water District of Southern California and the San Diego County Water Authority), to celebrate this historic agreement that allows for the largest “ag to urban” transfer in the West. This agreement, forged under the Secretary’s leadership resolves important issues that were of significant concern to many in the West and in Congress.
By executing this pact, California will keep its 1929 promise to limit its use of Colorado River water to 4.4 million acre-feet by adopting specific, incremental steps to gradually reduce its use over the next 14 years. This Agreement includes measures that provide water for San Diego and its other growing cities in the southern half of the state, which are dependent on additional water conservation within California’s farming communities. Under recently enacted state legislation, California will develop strategies to address the environmental concerns of the Salton Sea.
The California water management agencies have agreed among themselves as to how California's 4.4 million acre-feet will be allocated within the state. Reaching this agreement benefits not only California, but also the seven states in the Colorado River Basin, allowing them to protect their authorized allocations and meet their future water needs.
The key elements of the deal are:
1. Caps previously unquantified water entitlement of the Imperial Irrigation District (IID) and Coachella Valley Water District.
2. Provides for the conservation and transfer of up to 277,700 acre-feet from IID to the San Diego County Water Authority
3. Resolves longstanding disputes over the beneficial use of Colorado River water.
4. Reinstates the availability of Colorado River surplus water for California and Nevada urban water users, providing for a 14 year gradual reduction to California’s allocated share of Colorado River water (a reduction from 5.2 to 4.4 million acre-feet).
5. Provides water and wheeling arrangements for settlement of the San Luis Rey River Indian Tribes.
This is a historic Agreement that settles longstanding disputes regarding the allocation of Colorado River water within California that have been in dispute since 1931. This Agreement provides several immediate and long-term benefits to the beneficiaries of the Colorado River, such as:
1. The fundamental principal of the Law of the Colorado River is upheld in this Agreement: Legal allocations to each state must be respected and enforced. In the past commentators and others within the Basin have suggested that transfers of additional water from the Upper Basin’s allocation to California would be the best approach to resolve problems associated with California’s overuse of the River. That approach would have been inconsistent with the basic structure and the allocations to each basin as provided in the Colorado River Compact of 1922. The Department does not believe that undermining the certainty of the allocations established over the past century would solve problems within the Basin; rather, such an approach would lead to a prolonged period of uncertainty and instability for all water users within the Basin. As a recent editorial in Utah stated: “By firming up the water-rights issue, California will have to adhere to its fair share of water from the Colorado River.”
2. Through this Agreement, California has taken concrete steps to honor the commitment its legislature made in 1929 to live within an allocation of 4.4 MAF from the Colorado River. As a result, reinstatement of the Interim Surplus Guidelines, will once again allow California to have a grace period to reduce its use to 4.4 MAF. This will allow California to better plan and implement water conservation activities in a manner that avoids adverse impacts to its economy.
3. Reduction in water use by California directly reduces demand on water stored in Colorado River reservoirs – thereby reducing the risk of future shortages on the River. Arizona, with the most junior priority in the lower Basin, is particularly at risk of future shortages, and we are currently experiencing historic drought in the Basin.
4. This Agreement is a resounding endorsement of the role of the Basin States to collectively fashion new approaches to solve issues within the Basin. The success of this Agreement builds on the Seven Basin States’ consensus plan that was ultimately adopted by the Department as the Interim Surplus Guidelines. Secretary Norton chose to live by, and enforce, the deadlines that were agreed to by all seven Basin States. This Agreement honors and respects the agreements and obligations among the states that were incorporated in the Interim Surplus Guidelines.
5. Lastly, bringing Southern California’s water use into alignment with its allocation from the Colorado will also help reduce pressures on supplies from Northern California. As we saw earlier this year, the reduction in available Colorado River supplies to MWD lead to additional transfers from Northern California. The agreements reached on quantification of agricultural allocations in the Colorado River Water Delivery Agreement will provide a framework for additional transfers in the future.
President Bush summarized these benefits in his statement of October 16: “this Agreement allows the Colorado River to meet emerging water needs and provides certainty for the people of the Basin States.”
CALFED
The CALFED Bay-Delta Program is also an example of crisis prevention. The CALFED Program is a response to the water management and ecosystem problems that came so clearly into focus in the drought of 1987 to 1992 experienced within the Bay-Delta system. Furthermore, the historic and ongoing conflicts between water management for supply and fishery protection have given rise to the urgency of the CALFED Program. For more than 7 years the collaborative State-Federal CALFED Program has been searching for the equilibrium among the Delta’s complex problems and stakeholders with divergent interests.
Since Secretary Norton last appeared before the Senate Energy and Natural Resources Committee in July 2001 on the CALFED Program, much has been achieved in California water issues through the implementation of the CALFED Bay-Delta Program. I have attached to my statement a description of the accomplishments the program has achieved in years one through three. A collective investment of approximately $1.925 billion has been made in Years 1 through 3 from numerous Federal, state and local funding sources which has attributed to a vast array of project accomplishments in the program areas of water supply reliability, drinking water quality, levees, ecosystem restoration, watershed, science and oversight and coordination. Of the $1.925 billion, $1,204 million was state funding, $491 million was local funding and $230 million was Federal funding. The Federal investment for all directly related and overlapping programs and projects that contribute to achieving the CALFED ROD objectives within and overlapping the geographic solution area is a total of $600 million.
State Established California Bay-Delta Authority
The California Bay-Delta Authority (CBDA) was established by State legislation enacted in 2002 to provide a permanent State governance structure for the collaborative State-Federal effort that began in 1994. Pursuant to that legislation which was effective January 1, 2003, the CBDA formally assumed responsibility for overseeing State implementation of the CALFED Bay-Delta Program. The legislation calls for the CBDA to sunset on January 1, 2006, unless Federal legislation has been enacted authorizing the participation of appropriate Federal agencies in the CBDA. Currently Federal agencies are participating with the CBDA and have engaged with their State CALFED partner agencies in the first two meetings.
Interior and other Federal agencies involved with CALFED are discussing among themselves and with CBDA how our interaction with this new entity will evolve. As this is a unique intergovernmental arrangement, there are no prototypes to examine and from which to learn. We are proceeding cautiously in our examination of the many legal and institutional issues that have been identified.
The California Bay-Delta Public Advisory Committee Charter was renewed in August under the Federal Advisory Committee Act. The renewal of the Charter allows the Committee to continue to provide recommendations to the Secretary of the Interior, the Governor of California, and the 24 Federal and State CALFED cooperating agencies on Program implementation of the CALFED Bay-Delta Program. Our participation under the MOU has advanced the Program’s implementation through the coordinated planning, scheduling, and budgeting for programs and projects.
Establishment of D.C. Level Federal-Agency Coordination Working Group
The Department of the Interior as the lead Federal Agency for CALFED Program implementation has established a Washington-Level Working Group consisting of a representative liaison from each of the 11 Federal participating agencies. This group will meet on a regular basis to facilitate coordinated support at the Washington level for each of the participating agencies. The group will focus on providing the higher level support and coordination needed by the 11 Federal agencies for Program implementation.
Napa Proposition
The Napa Proposition is a process to develop feasible plans to implement key actions contained in the CALFED ROD. The primary objective of the initial Napa discussions was to develop a proposal for the integration of the State Water Project (SWP) and the Federal Central Valley Project (CVP) in a manner that is consistent with the spirit and intent of the CALFED ROD. The proposition was developed during meetings that were a continuation of an ongoing relationship between the project agencies and their contractors to ensure better coordination of the day-to-day operations of both projects.
The proposition is expected to increase moderately supplies for both projects. By better managing risk, it will allow higher allocations earlier in the year, increasing certainty for both CVP and SWP contractors. Most importantly, the proposition sets the stage for implementation of key CALFED programs, including increasing pumping capacity at the SWP Banks Pumping Plant to 8,500 cfs and continuation of the Environmental Water Account. It also recognizes the fundamental CALFED objective of improving Delta water quality.
I would emphasize that the Napa Proposition is only a recommendation at this time and that no final decisions have been made. This recommendation will be considered through a more formal decision-making process described in the CALFED ROD, including various stakeholders and public review activities.
Integration of Water Planning – CA Water Plan Update, Water 2025 and Bay-Delta Program
The State has just issued a Draft Update of the California Water Plan which proposes a set of water resource actions to meet future water needs. One central theme that is consistent across the Water Plan, Water 2025, and the Bay-Delta Program is the need to pursue regional and local water development as a critical element to help determine priorities and demand. All three programs call for coordinated and integrated planning for determining future projects, approaches, or strategies for addressing future water needs. With respect to Water 2025, Secretary Norton has stated that the CALFED Program is a perfect example of how agencies and stakeholders can effectively work together towards a common goal.
Re-evaluation of Program Budgets & Targets
Since the signing the Bay-Delta Programmatic ROD in 2000, financial conditions have changed, and the implementing Federal and State agencies, as well as Bay-Delta Public Advisory Committee and the CBDA, have concluded that it is time to reassess and develop a strategic plan for the near-term implementation of the Program. The CBDA recently directed its staff to reassess the Program which will include a review of the targets and budgets necessary to meet Program goals specified in the ROD. The reassessment will make recommendations on replacing original monetary targets with performance-oriented targets as they are developed. Careful consideration will also be given to Program implementation that can be fully funded in the current fiscal climate; program implementation must be firmly based upon realistic expectations regarding actual appropriations. Failure to develop affordable CALFED Program components may jeopardize the progress of a balanced CALFED Program
A CALFED Finance Plan is being developed to enable the Program to continue implementation in a balanced manner. The Draft Finance Options Report will develop finance options for each of the CALFED Program elements based on an evaluation of benefits, beneficiaries, and costs. A Final Finance Options Report will propose a final set of finance options, including the institutional structure to implement a finance plan. An Independent Review Panel (8 nationally recognized experts) has been established to review and comment on each of these reports.
Let me now turn to the legislation before us. In order to support the Federal component of the reevaluated Program, it is important that appropriate legislation be enacted to authorize Federal Government participation.
Feinstein Legislation
This legislation represents a comprehensive approach to water issues in California. The bill proposes the commitments made in the 2000 Record of Decision as the road map for implementation of the CALFED Bay-Delta Program and respects past agreements Californians have made by representing compromise language negotiated at great length.
In general, however, the bill addresses a larger authorization package than may be required by the 11 Federal agencies to implement and participate in the Record of Decision actions. Our Federal agencies have been able to rely on over fifty existing authorities (passed by Congress) that continue to enable Federal agency participation. We are submitting for the record a detailed matrix of those existing authorities. The key areas in which additional authorization is necessary are as follows:
Environmental Water Account (EWA) – While the bill provides authority and participation for EWA program activities for the period years 4-7, we believe that the bill should authorize implementation of a long-term EWA in a fashion that supports the vision and flexibility envisioned in the ROD. The establishment and successful operation of a long-term EWA will be one of the most significant accomplishments of CALFED in reducing the conflicts between fisheries and water project operators.
Levee Stability Program - The goal of the Levee System Integrity Program is to provide long-term protection for multiple Delta resources by maintaining and improving the integrity of the extensive Delta levees system. Authorization for feasibility study for risk assessment strategy, Delta Emergency management plan, dredged material reuse on Delta Islands, and best management practices to control and reverse land subsidence is needed as noted in the ROD.
Implement Conveyance Program Elements - Authorization is needed for feasibility studies for the increased pumping to 10,300 cfs at H. O. Banks Pumping Plant, fish screen and intake at Clifton Court, and San Luis Reservoir Low Point Project.
Ecosystem Restoration Program Financial Assistance – Authorization is needed to carry out the Ecosystem Restoration Program activities through the use of grants and cooperative agreements with non-Federal entities
Cross-Cut Appropriation – Finally, Interior supports the concept of a cross-cut appropriation as delineated in the proposed bill which we believe will reduce inefficiencies and further improve Federal agency participation and recognition of implementation requirements. A cross-cut appropriation would more accurately reflect the contributions of the participating Federal agencies and lessen the risk to other Reclamation funded programs and projects in the Western states.
Additional Concerns – The Administration has several specific concerns with the proposed legislation.
- As mentioned, appropriations are unlikely to approach the $880 million envisioned for Stage 1. Balanced progress in the program can only be achieved with a realistic expectation of CALFED appropriations.
- Section 3 (C, iii): While the Administration supports improvements in Water Use Efficiency, this section references two studies that the Administration has not yet cleared. We cannot support legislation that codifies any studies that have not finished Administration review. Similarly, § 3(C, iii, II) directs the Secretary to review any seawater desalination and regional brine line feasibility studies, regardless of the lack of prior Department involvement in those studies. Such studies are generally not conducted with the best interests of the taxpayer in mind, and should under no circumstances be adopted by either the Administration or Congress without being subjected to the same scrutiny that applies to federally-sponsored studies.
- The legislation presumes authorization of storage projects that are only now in the early phases of feasibility studies; if those projects are not pursued beyond the feasibility study stage, for whatever reason, it could indicate that CALFED implementation is out of balance; however, the legislation offers no alternate path for getting implementation back in balance. CALFED should identify alternate paths for achieving the outcomes of the storage component (as well as other components) of the program.
- The Administration is concerned that the bill gives blanket authorization to projects that have not undergone the normal process of Executive Branch review. Completing this review process for all federal projects is crucial to ensure that the projects are in the national interest and appropriately address the problems facing the Bay Delta.
- Section 5 (e) and Section 6 (a) duplicate one another to a large extent; reporting requirements could be integrated and streamlined by requiring a single budget crosscut.
- Section 6 (a): There are Constitutional concerns regarding this section; Congress cannot direct what the President includes in his budget requests. The Department of Justice has provided alternate language that we plan to share with the Committee.
Conclusion
The CALFED Program is truly at a critical juncture. After years of planning, the Program is now moving into the strategic implementation of key program and project activities. This forward momentum has been invigorated recently by the resolution of California’s use of Colorado River water, the Napa Proposition’s recommendations on coordinated operations of the CVP and SWP, and the implementing CALFED agencies’ commitments to re-evaluate the CALFED Program. I strongly believe that re-evaluation of the Program with a focus on developing affordable component actions that create a durable and balanced solution to continuous improvement in water supply, water quality and the environment will best serve the interests of all Californians. These objectives are within our reach.
The Administration is encouraged by the accomplishments to date under the CALFED Program. Your support of the CALFED Program through enactment of pertinent authorizing legislation and associated funding for the participating Federal agencies is fundamental to continuing Federal implementation efforts under the Program. Through Federal, State, and public collaborative implementing efforts, progress has been made in improving water supply reliability and the ecological health of the Bay-Delta Estuary. By working together, we are putting programs into action that I believe will lead to the realization of the long term benefits and expectations of the CALFED Program.
This concludes my testimony. Madam Chairman, I would like to reiterate my appreciation to the Subcommittee and others for continuing to work with the Administration to address the significant water issues facing California. I would be happy to answer any questions.
Attachments:
1. CALFED Accomplishments for Years 1 through 3
2. CALFED Bay-Delta Program Federal Authorities for ROD and Related Activities