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1976/03/11 S151 Reclamation Authorization Act of 1975
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1976/03/11 S151 Reclamation Authorization Act of 1975
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The original documents are located in Box 40, folder "1976/03/11 S151 Reclamation Authorization Act of 1975" of the White House Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Exact duplicates within this folder were not digitized. Digitized from Box 40 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library 3/11/76 ACTION THE WHITE HOUSE Last Day: March 12 WASHINGTON March 10, 1976 statement 1/76 MEMORANDUM FOR THE PRESIDENT FROM: JIM CANNOM X 3/12/76 SUBJECT: S. 151 - Reclamation Authorization Act of 1975 Attached for your consideration is S. 151, sponsored by Senators Hansen and McGee, which authorizes the Secretary of the Interior to undertake four water resource projects. Background This is an omnibus bill covering four separate projects: 1. To construct, operate and maintain the Polecat Bench, Wyoming project ($46 million) 2. To construct, operate and maintain the Pollock- Herreid, South Dakota project ($26 million) 3. To make safety and other modifications to Dickinson Dam, North Dakota ($4 million) 4. To make safety and other modifications to McKay Dam and Reservoir, Oregon ($1.3 million) There would be no immediate budgetary impact, Funding would be required only when included in the budget as new starts. Agency Comments OMB Disapproval Department of Interior Approval Council on Environmental Quality Would concur in disapproval Water Resources Council No comment SEALE YORD JIMBARY 2 Staff Comments and Recommendations Rogers Morton Recommends approval. Max Friedersdorf Recommends approval. "Close call, whether to help our friends with an authorization bill and fight appropriation later if stipulations are not met. This bill is very important to Senators Hatfield and Hansen. I come down on the side of our friends, since there is a good likelihood that a veto would be overridden anyway.' (Tab B) Counsel's Office Recommends veto for reasons stated (Lazarus) by OMB "despite substantial political support by Senator Hansen." Jim Lynn Recommends veto, citing highly undesirable precedents of Federal assumption of safety related costs and approval of projects prior to proper benefit/cost analysis. "This would open the floodgates for a multitude of other uneconomic water resource projects.' " (Tab A) Robert T. Hartmann Recommends approval. Recommendation I recommend disapproval. We should not now set the precent of the Federal taxpayer assuming safety costs that should be paid for by the users, as would be the case in the McKay and Dickinson projects. The Polecat Bench project has not met the requirement of a favorable benefit-cost analysis, and there is no feasibility study to support the favorable consideration of the Pollock-Herreid project. Decision Sign S. 151 at Tab C and issue proposed signing statement, which has been WR7 cleared by Robert T. Hartmann (Tab D). Approve Disapprove Veto S. 151 by signing proposed veto message, which has been cleared by Robert T. Hartmann (Tab E). Approve Disapprove A OF TRE PRESIDENT OFFICE & EXECUTIVE OFFICE OF THE PRESIDENT UNITED OFFICE OF MANAGEMENT AND BUDGET STATE WASHINGTON, D.C. 20503 MAR 8 1976 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill S. 151 - Reclamation Authoriza- tion Act of 1975 Sponsors - Sen. Hansen (R) Wyoming and Sen. McGee (D) Wyoming Last Day for Action March 12, 1976 - Friday Purpose To authorize the Secretary of the Interior to construct, operate and maintain the Polecat Bench, Wyoming project and the Pollock-Herreid unit, South Dakota, both part of the Pick-Sloan Missouri Basin Program and to modify the Dickinson Dam, North Dakota and the McKay Dam and Reservoir, Oregon. Agency Recommendations Office of Management and Budget Disapproval (Veto Mes- sage attached) Department of the Interior Approval (Signing State- ment attached) Council on Environmental Quality Disapproval Department of the Treasury Would concur in dis- approval Water Resources Council No comment Discussion The enrolled bill is an omnibus authorization measure for reclamation projects and programs, comprised of four titles, each of which deals with a separate project originally introduced as an individual bill. LIBRARY in 074338 2 Title I reauthorizes and Title IV authorizes the Secretary of the Interior to construct, operate and maintain the Polecat Bench project, Wyoming, and the Pollock-Herreid unit, South Dakota, respectively. Appropriations of $46 million would be authorized for the Polecat Bench project and $26 million for the Pollock-Herreid unit (plus operation and maintenance costs and authority for adjustments for changes in construction costs). Title II and Title III, respectively, authorize safety and other modifications to Dickinson Dam, North Dakota ($4 million), and to the McKay Dam and Reservoir, Oregon ($1.3 million). In reporting on the separate bills in committee, Interior opposed each of them for the following reasons: -- Polecat Bench and Pollock-Herreid projects. The Department recommended that the first pro- ject be deferred until a new study of the merits of the project based on current conditions and criteria was completed. The original 1972 study indicated that the project did not meet the test of economic feasibility. Interior recommended that the second be deferred until a feasibility report on the unit was reviewed by the Administration. -- Dickinson and McKay projects. The Department recommended that the first project be deferred until receipt of feasibility and safety reports. The second project was opposed as unnecessary. More importantly, the Department opposed provi- sions calling for full payment by the Federal Government of all costs related to increasing the safety of project dams. These provisions could represent a precedent for all cases involving dam safety. In its enrolled bill letter recommending approval of S.151, Interior discusses certain aspects of the four pro- jects at some length. Pertinent excerpts from 3 its letter are as follows: "Since that report /departmental report opposing Polecat Bench/ was completed however economic factors have changed, cropping patterns and values have changed, and the inclusion of municipal and industrial water supply as a project purpose will undoubtedly provide for a more positive analysis of the project." "A recent 1975 Bureau of Reclamation reevaluation for the project shows that the Pollock-Herreid Unit is economically justified and has financial feasibility." (The reevaluation has not been submitted to the Office of Management and Budget for the customary review.) "While we recommend in favor of signing this bill, we continue to assert the objection raised in our earlier reports on this project /Dickinson Dam/, that we are opposed generally to provisions which call for full payment by the Federal Government of the cost of new safety measures, without reimbursement and without consideration of the individual merits of each case. We are opposed to a policy that full payment should be undertaken by the Federal Government in all 'safety of dams' situations involving modifications to federally built dams for safety purposes." "We wish to mention here /in connection with the discussion of the McKay project7, as with the Dickinsom Dam proposal, that we oppose a policy whereby all costs incurred for modifications for safety of dams purposes would be non-reimbursable." More generally, Interior's letter on the enrolled STATE FORD 4 bill states: "There would be no immediate budgetary impact from this proposed action /approval of the bill/. Funding would not be required until such time as the projects may be offered for inclusion in the budget as new construction starts. Even then the appropriation requirements would be spread over the several years of the construction schedule. Furthermore, some portion of the project costs would be repaid by the users of the project services." "Despite our opposing statements on these bills at the time of Congressional hearings, we nevertheless feel that there are definite merits in the proposed projects and, now that Congress has fully considered and enacted these proposals a veto would not be appropriate. Each has strong local support and even stronger official support among State and local officials and in the Congressional delegations.' In its enrolled bill letter, Treasury indicates it would concur in a recommendation for veto on its customary grounds that water resource interest rates provide unwarranted subsidy to water users at the expense of the taxpayers. The funds authorized by this bill are not large, as reclamation projects go, but the bill, in mandating full (and non-reimbursable) Federal responsibility for costs related to dam modifications for safety reasons would constitute a highly undesirable precedent. The National Program of Inspection of Dams has identified some 20,000 potentially hazardous dams out of a total of 49,329, including about 5,500 Federal dams. In addition, Administration support of water resources development projects prior to a favorable benefit-cost analysis and 5 Administration review (as in the case of Polecat Bench and the Pollock-Herreid unit) would also serve as an undesirable precedent. This could open the flood gates for a multitude of other uneconomic water resource projects. In its enrolled bill letter, the Council on Environ- mental Quality cites these latter reasons as well as inadequate environmental impact studies in the area of the projects as the principal basis for its veto recommendation. We do not believe that the arguments for disapproval -- which, of course, provided the basis for initial opposition to the separate bills -- are, in any way, outweighed by the arguments made in the Interior enrolled bill letter. Accordingly, we have prepared the attached proposed veto message for your consideration. In the event you decide not to veto the bill, we recommend that you issue a signing statement which (a) indicates your concern about authorization of projects before the completion and full review of economic feasibility studies, (b) states that you do not intend to seek appropriations for projects that have not yet been demonstrated to be economically feasible, and (c) also notes that you do not intend to fund the safety improvements until both the Army's dam safety study and a review of cost-sharing on water projects are completed. Attached for your consideration is a draft signing statement, an alternative to the one prepared by Interior which addresses only the dam safety issue. James T. Lynn Director Enclosures FORD , LIBRARY DERACT THE WHITE HOUSE WASHINGTON March 10, 1976 MEMORANDUM FOR: JIM CAVANAUGH FROM: MAX L. FRIEDERSDORFA BW SUBJECT: S.151 - Reclamation Authorization Act of 1975 The Office of Legislative Affairs concurs with the agencies that the subject bill be signed (SEE ATTACHED MEMO FROM VERN LOEN) Attachments is THE WHITE HOUSE WASHINGTON March 9, 1976 MEMORANDUM FOR: MAX FRIEDERSDORF FROM: VERN LOEN n SUBJECT: Enrolled bill memo S. 151-Reclamation Authorization Act of 1975 In deciding whether to recommend the President sign or veto this legislation, I would recommend you take into consideration the following factors: Legislative history - S. 151 was passed by voice vote in the Senate on August 1, 1975. H. R. 10537, which expanded the number of projects in the bill, passed the House on January 1, 1976, by a vote of 284-110 with 40 absentees. The Senate then accepted the House bill by voice vote on February 25. An analysis of the House vote is attached. Given the partisanship of an election year, I consider it likely that we would lose 31 of the 110 nay votes and might gain as many as 36 switches from the yea votes for a net gain of 5. Of those not voting, 13 looked like targets to sustain. That would give us a total of 128 votes. Rhodes was among those voting to pass the bill. When consulted about sustaining a veto, he said he probably would vote to sustain, but would be very quiet about it. Michel was among the absentees. The Senate would act first and, if the 17 reclamation state Senators stick together, we start off with a base of 34 votes against us. John Kyl feels it is unlikely that the Senate would sustain. That would build momentum and partisanship for the House vote and charges of another "anti-jobs veto, " even though none of the jobs would be created this year. If the bill were signed, Kyl says we would not have to worry about another package being rushed in behind this one; however, it is likely that they would try to fund these projects in FY77. Signing the bill would be taken by the reclamation community, which is somewhat monolithic, as a friendly gesture and might blunt criticism of the President for his "no new starts" budget policy. -2- Largest of the four projects, Polecat Bench, is an irrigation project strongly backed by Senator Hansen, costing $46 million. The Pollock- Herreid irrigation project, costing $26 million, is strongly pushed by Rep. Jim Abdnor and is located in his best Republican counties. Rep. Mark Andrews says the Dickinson Dam safety project in North Dakota could well burst due to faulty construction. The McKay Dam safety project in Oregon is located in A1 Ullman's district, but would benefit Senators Hatfield and Packwood as well. It's an extremely close call, boiling down to whether we want to help our friends with an authorization bill in a Presidential election year and fight the appropriation later if the stipulations are not met, or do we stand on past established procedures. I come down on the side of our friends since there is a good likelihood that a veto would be overridden anyway. FORD C D STATE OF THE INTERIOR United States Department of the Interior OFFICE OF THE SECRETARY March 3, 1849 WASHINGTON, D.C. 20240 March 1, 1976 Dear Mr. Lynn: This responds to your request for the views of this Department with respect to an enrolled bill, S. 151, "To authorize and modify various Federal reclamation projects and programs, and for other purposes." We recommend in favor of signing the bill. The bill would authorize four separate projects to be undertaken by the Bureau of Reclamation: Polecat Bench, Wyoming; Dickinson Dam, North Dakota; McKay Dam and Reservoir, Oregon; and Pollock-Herreid Unit, South Dakota. Each proposal was initially the subject of a separate bill and each was the subject of a separate report to the Congress by this Department. The total authorized cost for the four projects would be $77.3 million, $46 million of which would be for the Polecat Bench project and $26 million would be for Pollock-Herreid. There would be no immediate budgetary impact from this proposed action. Funding would not be required until such time as the projects may be offered for inclusion in the budget as new construction starts. Even then the appropriation requirements would be spread over the several years of the construction schedule. Furthermore, some portion of the project costs would be repaid by the users of the project services. Polecat Bench, Wyoming S. 151 is similar to H.R. 10537 and H.R. 1500. All three bills would reauthorize the Polecat Bench area of the Shoshone extensions unit as an integral part of the Pick-Sloan Missouri Basin program. The reauthorized project would provide water for irrigation of 19,200 acres of land, a municipal and industrial water supply, and water for conservation and recreation purposes. These bills list the principle features of the project, integrate the project physically and financially with other Federal works authorized REVOLUTION AMERICAN BICENTENNIAL 7776-1976 pursuant to the original authorization, deny for 10 years the delivery of irrigation water from the project for use on surplus agricultural crops, and specify the method under which the interest rates would be computed. S. 151 would additionally require that up to 2,217 acres of public land in the Polecat Bench area be made available, on a preference basis for exchange or amendment, to eligible resident landowners; that repayment contracts for the return of construction costs be based on the water users' ability to repay as determined by the Secretary; that such repayment contracts not exceed 50 years following the permissible development period; and that lands eligible for water held in single ownership be limited to 160 acres of Class I land or the equivalent in other lands. S. 151 authorizes $46,000,000 to be appropriated for construction. A Departmental report on the proposed Polecat Bench Project in 1972, by then Assistant Secretary James R. Smith, recommended against authorization of the project. Since that report was completed however economic factors have changed, cropping patterns and values have changed, and the inclusion of municipal and industrial water supply as a project purpose will undoubtedly provide for a more positive analysis of the project. Dickinson Dam, North Dakota The Dickinson Dam project was formerly proposed as H.R. 8539 and S. 2089 on which the Department submitted reports in October 1975. The proposed project consists of certain modifications to be made to the Dickinson Dam to make additional municipal and industrial water available to the city of Dickinson, North Dakota, and for the purpose of increasing the existing spillway capacity to provide additional safety allowances in light of increased estimates of possible maximum flows. The estimated cost of the project is $4,000,000. The project would also make additional municipal and industrial (M&I) water available to the city of Dickinson, North Dakota. Installation of bascule gates on the existing spillway of Dickinson Dam would increase the conservation storage capacity of Edward Arthur Patterson Lake. The resulting increase in firm water yield in combination with existing M&I supplies would be adequate to meet the needs of the city of Dickinson to about the year 1985. The project would assure the safety of Dickinson Dam from flood occurrences currently estimated to be larger than the existing 2 spillway capacity. The existing spillway capacity is 33,200 cubic feet per second (ft3/s). The currently estimated maximum inflow design flood (IDF) under the most extreme circumstances would have to peak flow of about 106,700 ft³/s. The increased estimates of maximum IDF over those originally anticipated for the dam are the result of improved and updated scientific methodology. The legislative proposal would therefore modify the concrete spillway by the addition of a new and larger grass-covered spillway through the right abutment to provide the needed safety against possible failure. The added spillway would have a capacity of 69,200 ft3/s, which, when combined, with the 29,300 ft3/s remaining in the modified concrete spillway making a total capacity of 98,500 ft³/s, would prevent failure of the dam during the occurrence of an inflow design flood. S. 151 contains no changes from the earlier bills. While we recommend in favor of signing this bill, we continue to assert the objection raised in our earlier reports on this project, that we are opposed generally to provisions which call for full payment by the Federal Government of the cost of new safety measures, without reimburse- ment and without consideration of the individual merits of each case. We are opposed to a policy that full payment should be undertaken by the Federal Government in all "safety of dams" situations involving modifications to federally built dams for safety purposes. McKay Dam and Reservoir, Oregon The McKay Dam Project was originally proposed in H.R. 9649 and S. 2361 and was addressed in reports by this Department on October 29, 1975. The provisions of S. 151 respecting this project are unchanged from the earlier bills. As in the Dickinson Dam proposal this proposal would provide for increasing the capacity of the spillway of the dam for additional safety allowances to account for new and increased estimates of maximum flows. Should the new inflow design flood occur without corrective action the dam embankment and spillway parapet wall would be overtopped and rapid breaching of the dam embankment could occur. The discharge from the dam and reservoir could increase from approximately 20,000 cubic feet per second (ft3/s) under flood conditions to as much as approximately 1,500,000 ft3/s in 1 hour or less if the dam failed. The loss of life and property damage downstream from the dam could be substantial. 3 The proposed modification in the design and structure of the dam would provide a greater factor of safety than was provided by the original design. The spillway capacity would be increased from its present capacity of 10,000 ft3/s to 27,000 ft³/s. Although the reservoir releases would be increased as rapidly as necessary under flood conditions, more time would be available for warning the downstream residents to evacuate. The amount of damage to downstream property and loss of life would be lessened because of the reduction in reservoir releases. McKay Dam was constructed specifically for irrigation. Throughout the years, other incidental benefits, such as flood control, fish and wildlife, and recreation, have accrued. The proposed bill would authorize allocation of existing costs, as well as the costs of the proposed modification, to the reauthorized purposes of the dam i.e., irrigation, flood control, fish and wildlife, and recreation. Appropriations would be authorized in the amount of $1,300,000, with an inflation clause built in. We wish to mention here, as with the Dickinson Dam proposal, that we oppose a policy whereby all costs incurred for modifications for safety of dams purposes would be non-reimbursable. Pollock-Herreid, South Dakota S. 151 is similar to S. 2493 and H.R. 3383, on which the Department reported on October 29, 1975. All three bills are based on a plan to divert water by pumping from the existing Lake Oahe on the Missouri River. The principal purposes of the Pollock-Herreid Unit would be to supply on-farm sprinkler irrigation for 15,000 acres of land and to supply municipal and industrial water to two communities. These bills also contain provisions for fish and wildlife resources. The physical works of the unit would include: the main pumping plant, located at the existing Lake Oahe on the Missouri River, to lift the water into the existing Lake Pocasse; a subimpoundment on Spring Creek, which is a tributary to Lake Oahe, for reregulation; a 24 mile-long system of main canals; a 56 mile-long system of laterals; seven relift pumping plants; 165 miles of collector, surface, and closed pipe drains; and other facilities necessary to the purposes of the unit. 4 S. 151 is distinguished from both S. 2493 and H.R. 3383 by requiring that lands eligible for water held in single ownership be limited to 160 acres of Class I land or the equivalent in other lands, and by authorizing $26,000,000 to be appropriated for construction, rather than $25,000,000 authorized in both S. 2493 and H.R. 3383. A recent 1975 Bureau of Reclamation reevaluation for the project shows that the Pollock-Herreid Unit is economically justified and has financial feasibility. Conclusion Despite our opposing statements on these bills at the time of Congressional hearings, we nevertheless feel that there are definite merits in the proposed projects and, now that Congress has fully considered and enacted these proposals a veto would not be appropriate. Each has strong local support and even stronger official support among State and local officials and in the Congressional delegations. For these reasons we recommend in favor of signing the bill. Sincerely yours, Jack Hoston Assistan$ecretary of the Interior Honorable James T. Lynn Director, Office of Management and Budget Washington, D.C. Enclosure 5 POSSIBLE SIGNING STATEMENT I have signed into law today S. 151, an Act which authorizes and modifies several Federal reclamation projects by the Bureau of Reclamation. The Act authorizes four separate projects to be undertaken by the Bureau of Reclamation: Polecat Bench, Wyoming; Dickinson Dam, North Dakota; McKay Dam and reservoir, Oregon; and Pollock-Herreid Unit, South Dakota. The Act reauthorizes the Polecat Bench area of the Shoshone extensions unit in Wyoming as an integral part of the Pick-Sloan Missouri Basin program. The reauthorized project would provide water for irrigation of 19,200 acres of land, a municipal and industrial water supply, and water for conservation and recreation purposes. The Dickenson Dam project, North Dakota, consists of certain modifications to be made to the Dickinson Dam to make additional municipal and industrial water available to the city of Dickinson, North Dakota, and for the purpose of increasing the existing spillway capacity to provide additional safety allowances in light of increased estimates of possible maximum flows. The McKay Dam project, Oregon, is similar to the Dickinson Dam project in that it will provide for increasing the capacity of the spillway of the dam for safety purposes. The Act will also reauthorize the project for additional project purposes, including flood control, fish and wildlife, and recreation, as well as the existing irrigation function. The Pollock-Herreid project, South Dakota, is based on a plan to divert water by pumping from the existing Lake Oahe on the Missouri River. The principal purposes of the project would be to supply on-farm sprinkler irrigation for 15,000 acres of land and to supply municipal and industrial water to two communities. This Act also contain provisions for fish and wildlife resources. These four projects will make worthwhile contributions to the economic life of the areas where the projects will be built and will help to assure the vitality and stability of their agricultural base. I am therefore pleased to sign the Act into law. One aspect of the Act is of particular concern, however. As authorized by the Act, two of the projects would require work to make dams safe solely at Federal expense. Safety is normally an integral design and operation feature of a Federally constructed dam, to be paid for by project beneficiaries. In approving this bill I am therefore constrained to 2 observe that I do not approve a policy which requires the Federal Government to underwrite the cost of work to improve dam safety in all situations involving modifications to federally built dams. Each case should, in my view, be considered on its merits to determine the most appropriate way to share costs. I believe, however, that it is appropriate at this time to sign this Act into law. 3 EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL ON ENVIRONMENTAL QUALITY 722 JACKSON PLACE, N. W. WASHINGTON, D. C. 20006 MAR 4 1976 MEMORANDUM FOR JAMES M. FREY OFFICE OF MANAGEMENT AND BUDGET ATTN: Ms. Ramsey SUBJECT: Enrolled Bill, S. 151 Thank you for the opportunity to comment on this bill. The Council on Environmental Quality recommends that the President veto the bill, for the following reasons: 1. Title I (Polecat Bench, Wyoming) and Title IV (Pollock- Herreid Unit, South Dakota) would authorize two addi- tional components of the overall Pick-Sloan Missouri Basin Program. The Bureau of Reclamation has not conducted adequate environmental analyses of either of these projects, which may each have serious adverse environmental impacts. The Bureau's own procedures, which require that environmental impact statements be prepared and circulated prior to authorization, would be violated by this bill, which would preclude timely consideration of project impacts and project alternatives as required by NEPA. 2. The Bureau already has in planning or construction phases approximately 20 other units of the Pick- Sloan program. No overall environmental analysis of this program has been done by the Bureau. The cumulative effects of land use changes, water diversions, irrigation return flows, and other consequences of these projects have not been reviewed; Titles I and IV of this bill would compound this problem and might lead to need for expensive remedial measures in the future. 2 3. Sections 104 and 406 of this bill would allow exceptions to the clearly-stated requirements of the 1902 Reclamation Act, which restrict single ownership of lands to be irrigated by federal projects to 160 acres. We recommend that this bill be vetoed for the above reasons. Gaywidman Gary Gary Widman General Counsel OF THE TREASURY BHA DEPARTMENT THE GENERAL COUNSEL OF THE TREASURY WASHINGTON. D.C. 20220 1789 FEB 27 1976 Director, Office of Management and Budget Executive Office of the President Washington, D. C. 20502 Attention: Assistant Director for Legislative Reference Sir: Reference is made to your request for the views of this Department on the enrolled enactment of S. 151, "To authorize and modify various Federal reclamation projects and programs, and for other purposes." The enrolled enactment would authorize construction and reclamation projects at Polecat Bench, Wyoming; Dickinson Dam, North Dakota; McKay Dam and Reservoir, Oregon; and the Pollock-Herreid Unit, South Dakota. The Department of the Interior and the Office of Management and Budget have opposed these projects in reports to the Committees on Interior and Insular Affairs. The interest rate formula provided in sections 106, 203, and 405 of the enrolled enactment is the so-called water resources rate; i.e., the computed average rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for 15 years from date of issue. The water resources interest rate formula produces an arbitrary subsidy interest rate which bears no relationship to current Treasury borrowing costs, and is significantly below the current rate on Government borrowing. The effect of this rate formula is to provide substantial but hidden subsidies to project beneficiaries at the expense of the Nation's taxpayers. Any subsidies determined necessary should be provided in a straight-forward manner, and not be hidden in the interest rate formula. In view of the foregoing, the Department would concur in a recommendation that the enrolled enactment not be approved by the President. Sincerely yours, General Counsel R. Albrecht wrc UNITED STATES WATER RESOURCES COUNCIL SUITE 800 2120 L STREET, N.W. WASHINGTON, D.C. 20037 MAR 1 1976 Mr. James M. Frey Assistant Director for Legislative Reference Office of Management and Budget Washington, D.C. 20503 Dear Mr. Frey: This is in response to your February 26, 1976, enrolled bill request on S. 151, an act to authorize and modify various Federal reclamation projects and programs, and for other purposes. The Water Resources Council has not taken any position on this legislation nor on the proposed projects included therein. As Director of the Council, I would, therefore, have no comment on this particular legislation. Sincerely, Familide Warren D. Fairchild Director MEMBERS: SECRETARIES OF INTERIOR, AGRICULTURE, ARMY, COMMERCE, HOUSING AND URBAN DEVELOPMENT, TRANSPORTATION: ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY; CHAIRMAN, FEDERAL POWER COM- MISSION OBSERVERS: ATTORNEY GENERAL; DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET; CHAIRMEN, AMERICAN REVOLUTION WEDNENNING COUNCIL ON ENVIRONMENTAL QUALITY, TENNESSEE VALLEY AUTHORITY, RIVER BASIN COMMISSIONS, BASIN IN- 1776-1976 TERAGENCY COMMITTEES. 3-8-76 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 MAR 8 1976 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill S. 151 - Reclamation Authoriza- tion Act of 1975 Sponsors - Sen. Hansen (R) Wyoming and Sen. McGee (D) Wyoming Last Day for Action March 12, 1976 - Friday Purpose To authorize the Secretary of the Interior to construct, operate and maintain the Polecat Bench, Wyoming project and the Pollock-Herreid unit, South Dakota, both part of the Pick-Sloan Missouri Basin Program and to modify the Dickinson Dam, North Dakota and the McKay Dam and Reservoir, Oregon. Agency Recommendations Office of Management and Budget Disapproval (Veto Mes- sage attached) Department of the Interior Approval (Signing State- ment attached) Council on Environmental Quality Disapproval Department of the Treasury Would concur in dis- approval Water Resources Council No comment Discussion The enrolled bill is an omnibus authorization measure for reclamation projects and programs, comprised of four titles, each of which deals with a separate project originally introduced as an individual bill. THE WHITE HOUSE MEMORANDUM WASHINGTON LOG NO.: 578 Time: March 9 930am ACTION: George Humphreys CC (for information): Jack Marsh Max Friedersdorf Jim Cavanaugh Ken Lazarus Robert Hartmann FROM THE STAFF SECRETARY DUE: Date: March 10 Time: 300pm SUBJECT: S. 151 - Reclamation Authorization Act of 1975 ACTION REQUESTED: For Necessary-Action For Your Recommendations Prepare Agenda and Brief Draft Reply i. XFor Your Comments Draft Remarks REMARKS: Please return to Judy Johnston, Ground Floor West Wing Counsel's Office recommends veto for the reasons expressed in the OMB memorandum despite substantial political support by Senator Hansen. I have been requested to indicate that Rog Morton recommends sent to approval of the measure and requests that his views be solicited prior to any presentation to the President. Ken Lazarus 3/10/76 PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please telephone the Staff Secretary immediately. U.S Prestment THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 578 Date: March 9 Time: 930am FOR ACTION: George Humphreys cc (for information): Jack Marsh Max Friedersdorf Jim Cavanaugh Ken Lazarus Robert Hartmann FROM THE STAFF SECRETARY DUE: Date: March 10 Time: 300pm SUBJECT: S. 151 Reclamation Authorization Act of 1975 ACTION REQUESTED: For Necessary Action For Your Recommendations Prepare Agenda and Brief Draft Reply XFor Your Comments Draft Remarks REMARKS: Please return to Judy Johnston, Ground Floor West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please K.R. COLE, JR. telephone the Staff Secretary immediately. For the President THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 578 Date: March 9 Time: 930am FOR ACTION: George Humphreys cc (for information): Jack Marsh Max Friedersdorf Jim Cavanaugh Ken Lazarus Robert Hartmann FROM THE STAFF SECRETARY DUE: Date: March 10 Time: 300pm SUBJECT: 3/9-10:25 am S. 151 - Reclamation Authorization Act of 1975 ACTION REQUESTED: For Necessary Action For Your Recommendations Prepare Agenda and Brief Draft Reply XFor Your Comments Draft Remarks REMARKS: Please return to Judy Johnston, Ground Floor West Wing must he usund before Pass bance Recommend approval Draft 0 K ATH PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Gevenauch telephone the Staff Secretary immediately. FOP the President THE WHITE HOUSE WASHINGTON March 9, 1976 MEMORANDUM FOR: MAX FRIEDERSDORF VERN LOEN n FROM: SUBJECT: Enrolled bill memo S. .151-Reclamation Authorization Act of 1975 In deciding whether to recommend the President sign or veto this legislation, I would recommend you take into consideration the following factors: Legislative history - S. 151 was passed by voice vote in the Senate on August 1, 1975. H.R. 10537, which expanded the number of projects in the bill, passed the House on January 1, 1976, by a vote of 284-110 with 40 absentees. The Senate then accepted the House bill by voice vote on February 25. An analysis of the House vote is attached. Given the partisanship of an election year, I consider it likely that we would lose 31 of the 110 nay votes and might gain as many as 36 switches from the yea votes for a net gain of 5. Of those not voting, 13 looked like targets to sustain. That would give us a total of 128 votes. Rhodes was among those voting to pass the bill. When consulted about sustaining a veto, he said he probably would vote to sustain, but would be very quiet about it. Michel was among the absentees. The Senate would act first and, if the 17 reclamation state Senators stick together, we start off with a base of 34 votes against us. John Kyl feels it is unlikely that the Senate would sustain. That would build momentum and partisanship for the House vote and charges of another "anti-jobs veto," even though none of the jobs would be created this year. If the bill were signed, Kyl says we would not have to worry about another package being rushed in behind this one; however, it is likely that they would try to fund these projects in FY77. Signing the bill would be taken by the reclamation community, which is somewhat monolithic, as a friendly gesture and might blunt criticism of the President for his "no new starts" budget policy. -2- Largest of the four projects, Polecat Bench, is an irrigation project strongly backed by Senator Hansen, costing $46 million. The Pollock- Herreid irrigation project, costing $26 million, is strongly pushed by Rep. Jim Abdnor and is located in his best Republican counties. Rep. Mark Andrews says the Dickinson Dam safety project in North Dakota could well burst due to faulty construction. The McKay Dam safety project in Oregon is located in Al Ullman's district, but would benefit Senators Hatfield and Packwood as well. It's an extremely close call, boiling down to whether we want to help our friends with an authorization bill in a Presidential election year and fight the appropriation later if the stipulations are not met, or do we stand on past established procedures. I come down on the side of our friends since there is a good likelihood that a veto would be overridden anyway. TO THE SENATE I return herewith, without my approval, S. 151, "The Reclamation Authorization Act of 1975.' " S. 151 would authorize four separate projects to be undertaken by the Bureau of Reclamation: Polecat Bench, Wyoming; Dickinson Dam, North Dakota; McKay Dam and Reservoir, Oregon; and Pollock-Herreid unit, South Dakota. The bill would reauthorize the Polecat Bench project to provide water for irrigation of 19,200 acres of land, a municipal and industrial water supply, and water for conservation and recreation purposes. The Pollock-Herreid project, South Dakota, is based on a plan to divert water by pumping from the existing Lake Oahe on the Missouri River. The principal purposes of the project would be to supply on-farm sprinkler irri- gation for 15,000 acres of land and to supply municipal and industrial water to two communities. The Dickinson Dam project, North Dakota, would consist of certain modifications to be made to the Dickinson Dam to make additional municipal and industrial water avail- able to the city of Dickinson, North Dakota, and to increase the existing spillway capacity to provide addi- tional safety allowances in light of increased estimates of possible maximum flows. - 2 - The McKay Dam project, Oregon, is similar to the Dickinson Dam project in that it would provide for increasing the capacity of the spillway of the dam for safety purposes. S. 151 would also reauthorize the project for additional purposes, including flood control, fish and wildlife, and recreation, as well as the exist- ing irrigation function. I have disapproved this bill for the following reasons: First, the Polecat Bench project previously failed the test of cost-effectiveness, a test which is applied to other water resource projects generally. To authorize it now, without a current study of its economic feasibility would be a departure from the long-standing policy that only economically justified water resource projects should be undertaken. Second, the Executive Branch has not completed its study of the Pollock-Herreid unit and submitted a report on its feasibility to the Congress. Until such a report is prepared, there is no adequate basis for appraising the merits of this project. Finally, the latter two projects - McKay Dam and Dickinson Dam - would require work to make the dams safe solely at Federal expense. Safety is normally an integral design and operation feature of a federally constructed dam, to be paid for. by project beneficiaries. I cannot - 3 - approve a policy which would require the Federal Govern- ment to underwrite the cost of work to improve dam safety in all situations involving modifications to federally built dams. The general question of Federal dam safety policy will be considered when a congressionally directed report on dam safety now underway by the Department of the Army is completed, and cost-sharing recommendations on water project purposes are made later this year. The Executive Branch set forth these objections to the projects while they were being considered by the Congress. In my judgment they continue to remain valid. Accordingly, I return S. 151 without my approval. THE WHITE HOUSE March , 1976 STATEMENT BY THE PRESIDENT I have today approved S. 151, "The Reclamation Authori- zation Act of 1975. II S. 151 authorizes four separate projects to be under- taken by the Bureau of Reclamation: Polecat Bench, Wyoming; Dickinson Dam, North Dakota; McKay Dam and Reservoir, Oregon; and Pollock-Herreid unit, South Dakota. The bill reauthorizes the Polecat Bench project to provide water for irrigation of 19,200 acres of land, a municipal and industrial water supply, and water for conser- vation and recreation purposes. The Pollock-Herreid project, South Dakota, is based on a plan to divert water by pumping from the existing Lake Oahe on the Missouri River. The principal purposes of the project are to supply on-farm sprinkler irrigation for 15,000 acres of land and to supply municipal and industrial water to two communities. The Dickinson Dam project, North Dakota, consists of certain modifications to be made to the Dickinson Dam to make additional municipal and industrial water available to the city of Dickinson, North Dakota, and to increase the existing spillway capacity to provide additional safety allowances in light of increased estimates of possible maximum flows. - 2 - The McKay Dam project, Oregon, is similar to the Dickinson Dam project in that it provides for increasing the capacity of the spillway of the dam for safety purposes. S. 151 also reauthorizes the project for additional purposes, including flood control, fish and wildlife, and recreation, as well as the existing irrigation function. Although I have signed S. 151, it should be noted that I have several reservations about the bill and my imple- mentation of its provisions will be subject to the following constraints: First, the Polecat Bench project previously failed the test of cost-effectiveness, a test which is applied to other water resource projects generally. This project needs to be re-examined in light of new economic factors to see if it is economically justified. Similarly, the Executive Branch has not completed its study of the Pollock- Herreid unit and submitted a report on its feasibility to the Congress. Until such reports are prepared, there is no adequate basis for appraising the merits of these projects. Accordingly, I will not seek funds for either project until a cost-effectiveness study has been completed and the project is demonstrated to be economically justified. Second, the bill requires work on the latter two projects -- McKay Dam and Dickinson Dam -- solely at Federal expense. Safety is normally an integral design and operation feature of a federally constructed dam, to be paid for by project beneficiaries. - 3 - I do not endorse any policy which requires the Federal Government to pay the entire cost of work to improve dam safety in all situations involving modifications to federally built dams. The general question of Federal policy on the safety of dams will be considered when a congressionally directed report on that subject now underway by the Depart- ment of the Army is completed, and when new cost-sharing recommendations for water projects are made later this year. Therefore, I will not seek any funds for these two project until the study has been completed and the Executive Branch has made its recommendations on cost-sharing for water projects. E Calendar No. 339 "94TH CONGRESS { SENATE REPORT 1st Session No. 94-350 AUTHORIZING CONSTRUCTION OF POLECAT BENCH AREA OF SHOSHONE, WYO. JULY 31, 1975.-Ordered to be printed Mr. CHURCH, from the Committee on Interior and Insular Affairs, submitted the following REPORT [To accompany S.151] The Committee on Interior and Insular Affairs, to which was re- ferred the bill (S. 151) to authorize the Secretary of the Interior to construct, operate and maintain the Polecat Bench area of the Sho- shone extensions unit, Pick-Sloan Missouri Basin program, Wyoming, and for other purposes, having considered the same, reports favorably thereon with amendments and recommends that the bill as amended do pass. The amendments are as follows: 1. On page 2, line 10, added the following sentence to Section 1: For a period of not more than two years after the initial availability of irrigation water up to 2217 acres of public lands in the Polecat Bench area determined to be suitable for settlement purposes shall be made available, on a preference basis for exchange or amendment, to resident landowners on the Heart Mountain Division of the Shoshone Project, who, on or before December 1, 1968, were determined by the Secretary to be eligible for such exchange or amendment of their farm units under provisions of the Act of August 13, 1953 (67 Stat. 566). 2. On page 2, line 15, delete the phrase "Recreation Act (79 Stat. 213) and insert instead the following: "Recreation Act (79 Stat. 213), as amended." 3. On page 2, line 21, add the following sentence to Section 3: Repayment contracts for the return of construction costs allocated to irrigation will be based on the water user's ability to repay as determined by the Secretary of the Interior; 57-010 3 2 Section 5 and the terms of such contracts shall not exceed 50 years Prohibits the delivery of project water to any lands producing a following the permissable development period. "surplus" agricultural commodity for a period of ten years following 4. On page 2, line 22, insert the following language as a new date of enactment. section 4 and renumber the existing Section 4 and subsequent Sections Section 6 accordingly: Provides for the computation of the interest rate of reimbursable Sec. 4. The provisions of the third sentence of Section 46 costs associated with the construction of the features of the Polecat of the Act of May 25, 1926 (44 Stat. 649, 650), and any other Bench area. similar provisions of the Federal reclamation laws as applied Section 7 to the Polecat Bench area of the Shoshone extensions unit are hereby modified to provide that lands held in a single owner- Authorizes appropriation of $46,000,000 for the construction of the ship which may be eligible to receive water from, through, Polecat Bench area facilities and includes provision for changes in or by means of area works shall be limited to one hundred construction costs. and sixty acres of Class I land or the equivalent thereof PURPOSE in other land classes, as determined by the Secretary of the Interior. The purpose of S. 151 which was introduced on January 15, 1975, by the Senators from Wyoming, Mr. Hansen and Mr. McGee, is to author- 5. On page 3, line 19, delete the figure "$40,000,000" and insert in- ize the construction, operation, and maintenance of the Polecat Bench stead the figure: "$46,000,000" area of the Shoshone extensions unit of the Pick-Sloan Missouri Basin 6. Amend the title SO as to read program in extreme northwestern Wyoming which would develop un- A bill to authorize the Secretary of the Interior to con- appropriated natural flows of the Shoshone River for irrigation, struct, operate, and maintain the Polecat Bench area of municipal and industrial water suppply, recreation, and fish and wild- life conservation. the Shoshone extensions unit, Pick-Sloan Missouri Basin program, Wyoming, and for other purposes.". BACKGROUND SECTION-BY-SECTION ANALYSIS OF S. 151 AS AMENDED The construction of the existing Shoshone Project was initiated in 1904 to complete a private development. Closure of the Buffalo Bill Dam was made in 1910. The Shoshone extensions unit was authorized Section 1 for construction as a part of the comprehensive plan for the Missouri Authorizes the Secretary of the Interior to undertake the con- River Basin by the Flood Control Acts of 1944 (58 Stat. 887) and struction, operation and maintenance of the proposed Polecat Bench 1946 (60 Stat. 641). Construction of the unit was not initiated before area of the Shoshone unit, describes the purposes for which the 1964, however, and reauthorization is therefore necessary under the project is to be built, and lists the major features of the project. provisions of the Act of August 14, 1964 (78 Stat. 446). This section also provides for 2,217 acres to be made available on a The present proposal includes only a portion of the original plan preference basis to resident landowners of the adjacent Heart Moun- for the Shoshone extensions unit. The Secretary of-the Interior's feasi- tain Division of the Shoshone Project. bility report was transmitted to the Congress on August 11, 1972. The Section 2 Subcommittee on Energy Research and Water Resources held a hear- Provides that project activities and functions related to the con- ing on S. 151 on April 17, 1975. The Department of the Interior servation and development of fish and wildlife resources and the opposed enactment of the bill recommending in lieu thereof further enhancement of recreation opportunities shall be in accord with the study of the proposed project. Federal Water Project Recreation Act (79 Stat. 213), as amended. DESCRIPTION OF THE PROJECT Section 3 Provides for the physical and financial integration of the Polecat The proposed Polecat Bench area is located in Park County, Wyo- Bench area with the other Federal projects constructed pursuant to ming, along the Shoshone River. The development would provide a the comprehensive plan approved as part of the Flood Control Act full irrigation water supply to 19,200 acres of irrigable lands, a source of 1944 (58 Stat, 887, 891), as amended. In addition, Section 3 provides of municipal and industrial water supply for the neighboring town of for a' fifty year maximum repayment contract for the return of con- Powell, yoming, and provide outdoor recreation and fish and wild- struction costs allocable to irrigation. life conservation. Section 4 Water supplies for the project would be provided from unappro- priated natural flows of the Shoshone River, available storage in the Provides for a. Class I equivalency for ownership of irrigated lands existing Buffalo Bill Reservoir of the Shoshone Project, and return in the Polecat Bench area. S.R. 350 S.R. 350.: 4 5 flows from existing irrigation development. The existing Heart Moun- the Interior in 1970 indicated that the project had a ratio of benefits to tain Canal would deliver water from the Buffalo Bill Reservoir to the costs of 1.68 to 1. Subsequent indexing of construction costs indicates new facilities. that the benefit/cost ratio has decreased. However, increases in the The principal new features of the extension would be the Polecat value of agricultural commodities have tended to offset the rise in as- Canal, a relift pumping plant, the Holden reregulating reservoir, the sociated project costs. Holden Canal, and distribution and drainage systems. Recreation fa- Of the costs allocated to irrigation, local beneficiaries would repay cilities will be provided at Holden Reservoir and fish and wildlife all maintenance costs and $7,392,000 or about 16 percent of the total management will be accommodated in the land acquisition and at the irrigation allocation. The remaining $35,581,000 would be repaid from reservoir. power revenues accruing to the Pick-Sloan Missouri Basin program. Testimony presented to the Subcommittee on Energy Research and The Wyoming Recreation Commission has indicated their willingness Water Resources during the April 17, 1975 hearing indicated that the to comply with the provisions of the Federal Water Project Recrea- Town of Powell, Wyoming, (population approximately 5,000) could tion Act of 1965 in regard to project recreation oriented facilities. utilize approximately 2,700 acre feet of water annually to meet de- mands through the year 2000, Projected project facilities would be COMMITTEE AMENDMENTS able to meet the additional municipal and industrial capacity. The Committee on Interior and Insular Affairs adopted six amend- PROJECT DATA ments. The amendments are set forth in full at the beginning of this report and are explained below. Holden Dam and Reservoir: The first amendment, page 2, line 10 of the original bill, will enable Type: earthfill. the Secretary of the Interior to give a priority to present irrigators on Height: 65 feet. the adjacent Heart Mountain Division of the Shoshone project to proj- Crest length 6,070 feet. ect lands in the Polecat Bench area in order to bring their total hold- Reservoir capacity : 9,900 acre-feet. ings to an economic level. When the Heart Mountain Division was ini- Reservoir area : 640 acres. tially developed, it was anticipated that a second stage would be devel- Distribution System oped at a later date and that irrigators on several inadequately sized Polecat Canal length : 18 miles. units would be able to "round-out" their holdings. The second stage Holden Canal length : 13.3 miles. was never developed and this amendment would permit the "rounding- Laterals total length : 53.9 miles. out" of the inadequate ownerships utilizing lands of the Polecat Bench area. FINANCIAL AND ECONOMIC ANALYSIS The second amendment, page 2, line 15 of the original bill is techni- cal in nature. The total estimated construction cost of the project is $46,240,000 The third amendment, page 2, line 21 of the original bill, will enable based on January, 1975 prices. Assigned costs to reflect the use of the Secretary of the Interior to execute a 50-year repayment contract existing facilities of the Shoshone Project and the Pick-Sloan Missouri with the Polecat Bench Irrigation District. The Department's feasi- Basin program amount to $1,782,000. The costs have been allocated bility report on the project utilizes a 50-year repayment provision and among the project purposes as follows: without the amendment, the Secretary would be limited to a 40-year repayment contract pursuant to the Reclamation Project Act of 1939 Amount Percent (53 Stat. 1187). The fourth amendment, page 2, line 22 of the original bill, adds a Construction costs $46, 240, 000 Assigned costs 1,782,000 new Section 4 providing a class I equivalency for land ownerships in Interest during construction 4,115,000 the Polecat Bench area. This means that the Secretary of the Interior Total 51,577,000 may permit certain ownerships in excess of 160 acres in the area to Less preauthorization costs 560,000 Less project interest 4,020,000 receive project waters. This flexibility is encouraged because of the Costs to be allocated 47,557,000 high altitude of associated project lands and other physical features which may affect related agricultural production. Irrigation 46,973,000 98. 7 Fish and wildlife 322,000 7 The fifth amendment, page 3, line 19 of the original bill, increases Recreation 262,000 .6 the authorization by $6,000,000 to a total of $46,000,000. This reflects Total 47,557,000 100.0 Departmental testimony concerning the actual present estimated costs for construction of the Polecat Bench area facilities. Annual operation, maintenance, and replacement costs are estimated The sixth amendment, to amend the title of S. 151, was adopted to to be $90,000. Average annual benefits are estimated to be $4,200,000. correct a typographical error. The economic analysis presented to the Congress by the Department of S.R. 350 S.R. 350 6 7 COSTS nomic efficiency criteria applied to all other water resources projects. In accordance with Section 252(a) of the Legislative Reorganiza- Accordingly, this Department recommended against authorization of tion Act of 1970 the Committee provides the following estimate of the project during subsequent committee hearings held on the report. costs: No further study or actions have been carried out in connection with S. 151, as reported by the Committee, would authorize the appro- this proposed project since completion of the original study. priation of $46,000,000. The original feasibility study in the Polecat Bench area considered a system of canals, a reservoir, and other structures to furnish water TABULATION OF VOTES CAST IN COMMITTEE supply to irrigate approximately 19,200 acres of lands or about 80 new farm units in northwestern Wyoming. The proposed development Pursuant to Section 133 (b) of the Legislative Reorganization Act would also enhance fish and wildlife resources and provide outdoor of 1946, as amended, the following is a tabulation of votes of the Com- recreational opportunities. The water supply would be provided from mittee during consideration of S. 151. existing storage facilities at the Buffalo Bill Reservoir on the Shoshone S. 151, was ordered favorably reported to the Senate with amend- River. ments, by unanimous voice vote with a quorum present in open public Local interests in the area continue to strongly support the project. session on July 31, 1975. The city of Powell has recently expressed interest in obtaining munici- pal and industrial water supply from the project. EXECUTIVE COMMUNICATIONS Since the report was completed in 1972, costs for constructing public works have risen significantly. Prices of crops that would be grown on The reports of the Department of the Interior and the Office of land irrigated by the proposed Polecat Bench Project have also in- Management and Budget are set forth in full as follows: creased in value. While these factors along with the possible inclusion of municipal and industrial water supply as a project purpose, are U.S. DEPARTMENT OF THE INTERIOR, important and would undoubtedly affect the economic feasibility of the OFFICE OF THE SECRETARY, project, the precise impact of these changes cannot be determined Washington, D.C., April 15, 1975. without the results of a feasibility grade restudy of the project. Hon. HENRY M. JACKSON, In light of the continuing interest by local interests in the State Chairman, Committee on Interior and Insular fairs, of Wyoming regarding approval of this project, this Department U.S. Senate, Washington, D.C. would recommend initiating such a study to determine the merits of the DEAR MR. CHAIRMAN: This responds to your request for the views of project based on current conditions and criteria. Until such a study this Department on S. 151, a bill "To authorize the Secretary of the has been conducted and completed, this Department has no basis for Interior to construct, operate and maintain the Polecat Bench area of amending its earlier position on the proposed project. the Shoshone extension unit, Pick-Sloan Missouri Basin program, The Office of Management and Budget has advised that there is no Wyoming, and for other purposes." objection to the presentation of this report from the standpoint of The bill reauthorizes the Polecat Bench area of the Shoshone exten- the Administration's program. sion unit which had previously been authorized as an integral part of Sincerely yours, the Pick-Sloan Missouri Basin program. The reauthorized project JACK HORTON, would provide irrigation water for 19,200 acres of land, plus municipal Assistant Secretary of the Interior. and industrial water as well as conservation and recreation uses. The needed features of the project are set out in section 1. Section 2 of the bill provides for the conservation and recreational provisions of the EXECUTIVE OFFICE OF THE PRESIDENT, project. Section 3 of the bill integrates the project physically and OFFICE OF MANAGEMENT AND BUDGET, financially with the other Federal works authorized pursuant to the Washington, D.C., April 23, 1975. original authorization for this project. Section 4 of the bill denies for a period of ten years the delivery of irrigation water from the project Hon. HENRY M. JACKSON, for use on surplus agricultural crops. Section 5 of the bill sets the Chairman, Committee on Interior and Insular Affairs, method under which the interest rate for the project will be computed. U.S. Senate, Washington, D.C. Section 6 of the bill authorizes the appropriations for the project. DEAR MR. CHAIRMAN: This is in reply to your request of January 29, Pursuant to Section 9(a) of the Reclamation Act of 1939, a report 1975 for the views of the Office of Management and Budget on S. 151, on a feasibility study of the proposed Polecat Bench Project was trans- a bill "To authorize the Secretary of the Interior to construct, operate mitted to the Congress on August 11, 1972, by then Assistant Secretary and maintain the Polecat Bench area of the Shoshone extension unit, James R. Smith. This report indicated that the Polecat Bench Project Pick-Sloan Missouri Basin program, Wyoming, and for other did not meet the test of economic feasibility based on the national eco- purposes." In its report to your Committee, the Department of the Interior points out that it opposed authorization of the project in 1972 on the S.R. 350 S.R. 350 8 basis of an economic feasibility study completed that year. The De- partment went on to say, however, that in light of certain changes in costs and potential benefits, it would recommend initiating a new study of the merits of the project based on current criteria, but until that study is completed, would have no basis for changing its earlier position. The Office of Management and Budget concurs with the views ex- pressed by the Department, and accordingly, recommends against enactment of S. 151. Sincerely, JAMES M. FREY, Assistant Director for Legislative Reference. S.R. 350 94TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 1st Session No. 94-694 AUTHORIZING AND MODIFYING VARIOUS FEDERAL RECLAMATION PROJECTS AND PROGRAMS, AND FOR OTHER PURPOSES DECEMBER 8, 1975.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. HALEY, from the Committee on Interior and Insular Affairs, submitted the following REPORT [To accompany H.R. 10537] The Committee on Interior and Insular Affairs, to whom was re- ferred the bill (H.R. 10537) To authorize and modify various Federal reclamation projects and programs, and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. ORGANIZATION OF LEGISLATION H.R. 10537,1 entitled the Reclamation Authorization Act of 1975, includes in a single measure all of the authorizing legislation considered during the First Session of the 94th Congress by the Committee on Interior and Insular Affairs. The bill is comprised of four Titles, each of which deals with a separate activity originally introduced as an individual bill. The in- dividually introduced bill provided the vehicle for requesting depart- mental reports and for hearings before the Subcommittee on Water and Power Resources. Thereafter, each measure was discussed and amended as appropriate before being approved for inclusion in the bill reported herein. Each Title will be discussed separately below, except that the sec- tions of this report captioned Costs, Committee Recommendations and Inflationary Impact Assessment will present consolidated information. 1 H.R. 10537 was introduced by Mr. Johnson of California (for himself, Mr. Roncalio, Mr. Andrews of North Dakota, Mr. Abdnor, Mr. Lujan, Mrs. Pettis, Mr. Ullman, Mr. Don H. Clausen, and Mr. Symms). The committee also considered related legislation, as follows H.R. 1500 introduced by Mr. Roncalio; H.R. 8539 introduced by Mr. Andrews of North Dakota; H.R. 9649 introduced by Mr. Ullman; and H.R. 3383 introduced by Mr. Abdnor. 57-006 2 3 TITLE I-POLECAT BENCH, Wro. ECONOMIC AND FINANCIAL ASPECTS OF PROJECT PURPOSE The total estimated construction cost of the facilities authorized by this Title is $46,240,000 based on January 1975 price levels. This sum The purpose of this title is to authorize the Secretary of the In- is ilnclusive of $465,000 previously expended for preauthorization in- terior to construct, operate, and maintain the Polecat Bench area, vestigations-thereby indicating a need for future appropriations in Shoshone Extensions unit, Pick-Sloan Missouri Basin program, Wyo- the amount of $45,775,000. The Committee on Interior and Insular ming. The facilities covered by this title will be a program of the Affairs rounded this amount to $46,000,000 as the limit on authoriza- Bureau of Reclamation and will be subject to the provisions of the tion for appropriations. Federal Reclamation Act (32 Stat. 388) and Acts amendatory thereof The benefits estimated to be created by development of the Polecat and supplementary thereto. Bench area agrregate $4,160,700 annually, as set forth in detail below Irrigation $3,999,000 SETTING AND BACKGROUND Fish and wildlife 22,000 Recreation 20,000 The Polecat Bench area consists of the facilities for delivery and M. & I. water 121,500 distribution of irrigation water to approximately 19,200 acres of un- Less adverse effects (1, 800) developed private and public land in Park County, Wyoming. Mu- The annual economic cost of facilities to be authorized by this title, nicipal and industrial water supply, fish and wildlife conservation and utilizing a discount rate of 57/8 percent, is $3,025,000 and computed as public outdoor recreation are additional purposes of the development follows: and will be benefited by implementation of the plan. Water for the Polecat Bench development will be regulated in Construction cost $46, 240, 000 Less preauthorization costs (465,000) Buffalo Bill Reservoir, a feature of the Shoshone Project, which was Plus: Interest during construction 4,010,000 constructed on the Shoshone River west of Cody, Wyoming, in the early years of this century. Regulatory capacity was provided at that Total economic cost 49,690,000 time for the lands of the Polecat Bench. Adequate capacity has also Annual equivalent of economic construction cost 2,929,000 been provided in the existing Shoshone Canyon Conduit and the Heart Operation and maintenance 90,000 Mountain Canal to convey the water to the limits of the existing Heart Mountain division of the Shoshone project. Total annual cost of foregoing 3,019,000 The facilities authorized by this title will consist of a canal origi- On the basis of the foregoing the Polecat Bench is shown to have a nating at the terminus of the Heart Mountain Canal, two relift pump- ratio of benefits to costs of 1.38. In presenting this ratio the Commit- ing plants, a regulating facility known as Holden Reservoir, laterals, tee on Interior and Insular Affairs expressly accepts the validity of drains and appurtenant facilities. Holden Reservoir will also provide secondary or regional economic effects of irrigated agriculture-and storage for the future municipal needs of the City of Powell, rejects the applicability of sunk-cost in decision making, as well as the Wyoming. utilization of a discount rate higher than the long-term cost of money DESCRIPTION OF PROJECT FACILITIES to the Federal government. The Committee notes that such factors seem to be prevalent in the Executive Branch outlook toward resource Polecat Bench Canal will originate at the terminus of the Heart development but declines to be SO limited in its perspective of the value Mountain Canal, an existing feature of the Shoshone project. It will and merit of this and other resource development investment have an initial capacity of 212 cubic feet per second and will extend opportunities. for a distance of 18 miles, serving irrigable lands enroute, to discharge The construction costs of the Polecat Bench area are tentatively al- into Holden Reservoir. located as follows: Holden Reservoir will be a reregulatory facility with a total con- trolled capacity of 9,900 acre-feet. It will be formed by an earth fill Irrigation $45, 226, 000 Recreation 229,000 dam with a height of 65 feet and a crest length of 6,070 feet. Fish and wildlife 320,000 Holden Canal will originate at Holden Reservoir with an initial M. & I. water capacity of 160 cubic feet per second and extend for a distance of 13.8 Preauthorization costs 465,000 miles. À lateral system aggregating 53.9 miles in length and 22 miles Preauthorization costs are nonreimbursable by statute. The costs al- of pipe and open drains are also planned for the area. Two relift located to irrigation are reimbursable without interest, in accordance pumping plants are required to serve 3,100 acres of land situated with reclamation law and precedent. The water users will repay the above the water surface elevation of Polecat Canal. sum of $7,392,000 in accordance with their computed ability to pay The project plan also will include the development of two land- for a period of 50 years after the permissible development. The re- scaped visitor areas along the shore of Holden Reservoir. They will be maining costs allocated to the irrigation purpose will be returned from equipped with shelter, water and sanitation facilities. net power revenues of the interconnected power system of the Pick- Sloan Missouri River program. 4 5 The relatively modest costs allocated to fish and wildlife enhance- TITLE II-DICKINSON DAM MODIFICATIONS, NORTH DAKOTA ment and recreation will be shared by local agencies in accordance with the cost-sharing precepts of the Federal Water Project Recreation PURPOSE Act (Public Law 89-72). There have not as yet been any costs allocated to municipal and in- The purpose of title II of HR 10537 is to authorize structural modi- dustrial water supply but the Committee expects that such an alloca- fication of Dickinson Dam on the Heart River in the State of North tion will be made during the post-authorization investigation period Dakota. The work to be done will consist of the installation of gates on and that arrangements for repayment of the amount SO allocated will the existing spillway to increase the yield of municipal water from the be accomplished at the interest rate prescribed for the return of reim- reservoir and the construction of an auxiliary spillway deemed neces- bursable costs. sary to protect the dam from overtopping and failure during occur- rence of the spillway design flood. SECTION-BY-SECTION ANALYSIS OF THE TITLE BACKGROUND AND NEED This Title is comprised of seven sections as follows: Section 101 authorizes construction, operation, and maintenance of Dickinson Dam was authorized for construction by the Flood Con- the Polecat Bench area facilities, enumerates purposes of the project, trol Acts of 1944 and 1946. Construction was completed in 1950 and lists the major facilities to be constructed and provides that entrymen thereafter the principal use of the reservoir has been as a source of on the Heart Mountain division of the Shoshone project may have a municipal water supply for the City of Dickinson, North Dakota. This priority in obtaining up to 2,217 acres of land to augment their present city is a major commercial center situated in close proximity to the coal farm units. resources of Western North Dakota. It has sustained a rapid rate of Section 102 invokes the cost-sharing provisions of the Federal Wa- growth and expects an accelerated growth rate as the coal resources are ter Project Recreation Act, as amended (79 Stat. 213) as a guide to the developed to meet growing national energy needs. Enlargement of the development of the fish and wildlife and recreation features of the area. water yield capacity of Dickinson Reservoir affords a means of sup- Section 103 provides that the Polecat Bench area shall be integrated plying the water needed to support the anticipated growth of the city. financially and physically with other Federal works comprising the Since Dickinson Dam was constructed much progress has been made Pick-Sloan Missouri Basin project. This, in a practical sense, provides in the science of estimating likely flood occurrences. It has now been for the use of basin-wide net power revenues to repay irrigation costs determined that the spillway of Dickinson Dam would be inadequate in excess of the repayment ability of the water users. Section 103 also to regulate the amount of flood runoff capable of entering Dickinson provides for irrigation repayment to be accomplished over a period of Reservoir. If and when this runoff occurs, the embankment would be 50 years plus permissible development period. overtopped and the structure would fail quite rapidly. An auxiliary Section 104 authorizes the Secretary to compute and promulgate a spillway is badly needed to prevent such an occurrence. Class I equivalent for inferior land classes thereby enabling settlers of land other than Class I to receive water for more than 160 acres or 320 SECTION-BY-SECTION ANALYSIS acres for man and wife. Section 105 prohibits the delivery of water for the production of Title II is comprised of four sections, as follows certain crops determined by the Secretary of the Agriculture to be Section 201 provides basic authority to the Secretary of the Interior "surplus". Section 106 establishes the formula for computing the interest rate to perform the necessary construction involved in installing gates on the existing spillway and providing a new auxiliary spillway. for the return of interest-bearing reimbursable costs. Section 202 provides for an amendatory repayment contract to ac- Section 107 authorizes appropriations in the amount of $46,000,000 complish return of costs of allocated municipal water supply and also based on price levels as of January 1975 and authorizes appropriations provides that the cost of the auxiliary spillway, required for the safety for operation and maintenance. of Dickinson Dam, shall be nonreimbursable. Section 203 establishes the formula for determination of the interest COSTS rate to be applied to the repayment of municipal water costs. The Committee estimate of Federal cost as required to be stated by Section 204 authorizes appropriations of necessary funds. the Rules of the House is the sum authorized to be appropriated for COSTS this Title-$46,000,000. The Committee estimate of costs associated with enactment of title DEPARTMENTAL REPORTS II is $4 million, the amount authorized to be appropriated. The report of the Department of the Interior on the companion bill H.R. 1500, dated April 15, 1975, appears at the end of this report. 6 7 DEPARTMENTAL REPORTS for safety of dams, flood control and joint costs of recreation and fish The report of the Department of the Interior on HR 8539, a bill and wildlife. The Committee on Interior and Insular Affairs calls related to Title II, is dated October 2, 1975, and appears in its entirety attention to the fact that cost-sharing, as provided by this section, is at the end of this report. in keeping with the precedents established by the Congress for such matters. TITLE III-McKAY DAM, UMATILLA PROJECT, OREGON Section 305 authorizes the Secretary to amend and revise existing irrigation repayment contracts, as needed, to conform such contracts The purpose of title III of HR 10537 is to reauthorize McKay Dam, to the revised cost allocations made pursuant to this title. Umatilla Project, Oregon, to encompass water resource purposes other Section 306 authorizes appropriations in the amount of $1,300,000 than irrigation and to authorize structural modifications to the spill- with which to implement the authority contained in the title. way to protect the dam from failure during occurrence of the spillway design flood. COSTS BACKGROUND AND NEED The Committee estimate of costs associated with enactment of title McKay Dam was constructed in 1927 on McKay Creek about 6 III is $1,300,000-the amount authorized to be appropriated. miles south of Pendleton, Oregon, as a feature of the Umatilla Project. It forms a reservoir with an active storage capacity of 74,000 acre- DEPARTMENTAL REPORTS feet which provides irrigation water to the Stanfield and Westlands Irrigation Districts. The reservoir is a part of the McKay National The report of the Department of the Interior on HR 9649, a com- Wildlife Refuge, an important migratory waterfowl resource of the panion measure to title III is presented in its entirety at the end of this report. area. McKay Creek is a tributary of the Umatilla River and enters that TITLE IV-POLLOCK-HERREID UNIT, SOUTH DAKOTA stream at the City of Pendleton, Oregon. Although none of the cost PURPOSE of this facility is allocated to the flood control purpose, it has been possible through careful operation to provide approximately 6,000 The purpose of this title is to authorize the Secretary of the Interior acre-feet of flood control capacity in the reservoir. to construct, operate and maintain the Pollock-Herreid Unit, South Application of updated techniques for estimation of probable and Dakota Pumping Division, Pick-Sloan Missouri River Basin pro- possible floods indicates that floods are capable of occurrence in the gram, South Dakota. The facilities covered by this title will be a pro- McKay Creek watershed that would exceed the spillway capability of gram of the Bureau of Reclamation and will be subject to the provi- McKay Dam and lead to overtopping and failure of the embankment. sions of the Federal Reclamation Act of 1902 (32 Stat. 388) and Acts Such an event could lead to much loss of life and property on the amendatory thereof and supplementary thereto. flood plain downstream from the dam where the creek traverses the urbanized area of Pendleton. SETTING AND BACKGROUND Modification of the spillway of the existing dam, together with statu- tory authority to operate the reservoir for flood control, are badly The Pollock-Herreid Unit consists of the facilities required for the needed to protect the downstream area from flood damage and from diversion and distribution of irrigation water to approximately 15,000 the consequences of dam failure at this location. acres of privately-owned irrigable land, occupying a river terrace im- mediately east of the Missouri River in Campbell County, South SECTION-BY-SECTION ANALYSIS Dakota. Municipal and industrial water supply and fish and wildlife enhancement are other water resource development purposes that Title III is comprised of six sections to accomplish the purposes set will be benefited by the unit works. forth above. Water from Pollock-Herreid will be diverted from the existing Lake Section 301 authorizes the Secretary of the Interior to reallocate the Oahe, a mainstem reservoir constructed by the Corps of Engineers, costs of McKay Dam and Reservoir to all the water resource purposes Department of the Army, in the late 1950s and early 1960s. A sub- served by the reservoir, including an allocation to safety of dams. The impoundment known as Lake Pocasse has been created on an arm of Committee expects that the entire cost of the structural modifications Lake Oahe and is managed by the Fish and Wildlife Service of the authorized by this title will be allocated to safety of dams. Department of the Interior as a migratory waterfowl refuge. Section 302 authorizes the modifications to the structure. The structures authorized by this title will include a pumping plant Section 303 provides the legislative basis for reservation of reservoir for lifting water from Lake Oahe to Lake Pocasse; a canal extending capacity for control and regulation of flood flows. from the pumping plant to Lake Pocasse; canals, laterals and relift Section 304 establishes cost-sharing criteria for repayment of McKay pumping plants for distribution of the water beyond Lake Pocasse; Dam and Reservoir and specifically provides for Federal responsibility and drainage facilities as required for preserving the arability of the unit lands. 8 9 Existing elements of the Pick-Sloan Missouri River Basin program Preauthorization costs are nonreimbursable by statute. The costs al- were authorized in 1944 and many of such elements have been com- located to irrigation are reimbursable without interest in accordance pleted and placed in service. Oahe Dam and Lake Oahe is but one of with basic Reclamation law and precedent. The water users of the Pol- many such facilities, the development of which for downstream flood lock-Herreid Unit will contract to repay, in accordance with their control, navigation and hydroelectric power production was accom- capacity to pay, the sum of $3,397,000 (plus operation and mainte- plished at great economic sacrifice in terms of inundated river valley nance costs) during 50 years following a permissible development lands within South Dakota. The Oahe Project and companion develop- period. The remaining costs allocated to irrigation will be repaid from ments within the State resulted in the inundation and removal from productivity, and the tax base, of 500,000 acres of the best farm land Sloan Missouri River program. net power revenues of the interconnected power system of the Pick- in the State. Authorization and development of the Pollock-Herreid The costs allocated to fish and wildlife enhancement will be cost- Unit represents a small but significant step in extenuation of these shared by a non-federal public body in accordance with the cost-shar- adverse effects on the economy and social structure of rural South Law 89-72). Municipal and industrial water supply will be repaid in ing precepts of the Federal Water Project Recreation Act (Public Dakota. ECONOMIC AND FINANCIAL ASPECTS OF THE UNIT its entirety at prescribed interest rates. The total cost of the Pollock-Herreid Unit facilities authorized by SECTION-BY-SECTION ANALYSIS this title is $25,940,000 at January 1975 price levels. This sum is in- clusive of $370,000 of preauthorization investigation costs which, al- The Title is comprised of seven sections as follows: though technically a part of the cost of the unit, do not represent future expenditures and therefore should not influence decision making rela- sets forth the purposes of the development, and enumerates the major Section 401 conveys basic authority for development of the project, tive to the development. The "new money" cost involved in economic features of the plan. analysis of the unit is thus established as $25,570,000. Annual opera- Section 402 invokes the cost-sharing precepts of the Federal Water tion, maintenance and replacement costs are estimated at $160,000 and Project of Recreation Act (79 Stat. 213) as a guide to the development interest during construction is $3,207,000. the fish and wildlife features of the Unit. The annual equivalent cost of the Pollock-Herreid Unit is summa- Section 403 provides that the unit shall be an element of the Pick- rized as follows: Construction cost pumping power. share in the basinwide net power revenues and is eligible for project Sloan Missouri River program which means that the unit is eligible to $25,940,000 Less preauthorization investigations 370,000 Section 404 prohibits the delivery of water for the production of New money cost 25,570,000 Plus interest during construction 3,207,000 "surplus". certain crops determined by the Secretary of Agriculture to be Investment cost 28,777,000 Section 405 establishes the formula for establishing the interest Annual equivalent at 5% percent discount rate 1,767,000 bearing costs of the Unit. for computing interest during construction and for return of interest- rate Plus operation and maintenance 160,000 Section 406 provides that the Secretary of the Interior may Annual economic cost 1,927,000 Total estimated annual benefits accruing to the Pollock-Herreid enabling water users to receive service to more than 160 acres, or 320 and promulgate a class 1 equivalent for inferior land classes, compute thereby Unit are summarized as follows: 2 and 3. acres for man and wife, if their farms contain irrigable lands in classes Irrigation $3,346,000 Fish and wildlife 9,000 Section 407 authorizes appropriations in the amount of $26,000,000 Municipal water supply 4,000 tion and maintenance. at January 1975 price levels and authorizes appropriations for opera- Area redevelopment 60,000 COSTS Total 3,419,000 Less adverse effects 9,000 of this Title is $26,000,000. The Committee estimate of Federal costs associated with enactment Annual benefits 3,410,000 The benefit cost ratio, utilizing the foregoing data is 1.77. Costs of DEPARTMENTAL REPORT the Pollock-Herreid Unit are tentatively allocated as follows: Irrigation $25,429,000 The report of the Department of the Interior, on the companion M. & I. water 47,000 Fish and wildlife at the end of this report. bill H.R. 3383, is dated October 29, 1975, and is set forth in its entirety 94,000 Preauthorization investigations 370,000 Total 25,940,000 H. Rept. 94-694 10 11 SUMMARY OF COSTS of the bill provides for the conservation and recreational provisions of the project. Section 3 of the bill integrates the project physically The summary of costs of all Titles of H.R. 10537 is as follows and financially with the other Federal works authorized pursuant to Title I-Polecast Bench, Wyo $46, 000, 000 the original authorization for this project. Section 4 of the bill denies Title II-Dickinson Dam, N. Dak 4,000,000 for a period of ten years the delivery of irrigation water from the Title III-McKay Dam, Oreg 1,300,000 project for use on surplus agricultural crops. Section 5 of the bill sets Title IV-Pollock-Herreid, S. Dak 26,000,000 the method under which the interest rate for the project will be com- Totals 77, 300, 000 puted. Section 6 of the bill authorizes the appropriations for the project. INFLATIONARY IMPACT ASSESSMENT Pursuant to Section 9(a) of the Reclamation Act of 1939, a report on a feasibility study of the proposed Polecat Bench Project was trans- The sums authorized to be appropriated by H.R. 10537 will be sched- mitted to the Congress on August 11, 1972, by then Assistant Secre- uled for expenditure over a period of several years commencing at the tary James R. Smith. This report indicated that the Polecat Bench conclusion of a period of post-authorization planning. The total im- Project did not meet the test of economic feasibility based on the pact of this legislation will extend over a term of as much as 10 years. national economic efficiency criteria applied to all other water re- The existing level of construction activity of the Bureau of Reclama- sources projects. Accordingly, this Department recommended against tion is in the neighborhood of $400,000,000 each year. It can thus be authorization of the project during subsequent committee hearings seen that the average fiscal impact of this legislation, when imple- held on the report. No further study or actions have been carried out mented, is on the order of a 2 percent increase in current funding levels in connection with this proposed project since completion of the for Federal Reclamation construction. original study. The programs authorized by this legislation will be in areas where The original feasibility study in the Polecat Bench area considered the existing economy is not overheated and any economic impact on a system of canals, a reservoir, and other structures to furnish water the local area will be helpful rather than harmful. supply to irrigate approximately 19,200 acres of lands or about 80 new farm units in northwestern Wyoming. The proposed develop- COMMITTEE RECOMMENDATIONS ment would also enhance fish and wildlife resources and provide out- door recreational opportunities. The water supply would be provided The Committee on Interior and Insular Affairs approved H.R. from existing storage facilities at the Buffalo Bill Reservoir on the 10537 by voice vote without dissent and recommends its enactment. Shoshone River. Local interests in the area continue to strongly support the project. CHANGES IN EXISTING LAW The city of Powell has recently expressed interest in obtaining munici- None. pal and industrial water supply from the project. DEPARTMENTAL REPORTS Since the report was completed in 1972, costs for constructing TITLE I public works have risen significantly. Prices of crops that would be grown on land irrigated by the proposed Polecat Bench Project have U.S. DEPARTMENT OF THE INTERIOR, also increased in value. While these factors along with the possible OFFICE OF THE SECRETARY, inclusion of municipal and industrial water supply as a project pur- pose, are important and would undoubtedly affect the economic feasi- Washington, D.C., April 15, 1975. bility of the project, the precise impact of these changes cannot be Hon. JAMES A. HALEY, Chairman, Committee on Interior and Insular Affairs, House of determined without the results of a feasibility grade restudy of the project. Representatives, Washington, D.C. In light of the continuing interest by local interests in the State DEAR MR. CHAIRMAN This responds to your request for the views of Wyoming regarding approval of this project, this Department of this Department on H.R. 1500, a bill "To authorize the Secretary would recommend initiating such a study to determine the merits of of the Interior to construct, operate and maintain the Polecat Bench the project based on current conditions and criteria. Until such a study area of the Shoshone extension unit, Pick-Sloan Missouri Basin Pro- has been conducted and completed, this Department has no basis for gram, Wyoming, and for other purposes." amending its earlier position on the proposed project. The bill reauthorizes the Polecat Bench area of the Shoshone ex- The Office of Management and Budget has advised that there is no tension unit which had previously been authorized as an integral part objection to the presentation of this report from the standpoint of of the Pick-Sloan Missouri Basin program. The reauthorized project the Administration's program. would provide irrigation water for 19,200 acres of land, plus munici- Sincerely yours, pal and industrial water as well as conservation and recreation uses. JACK HORTON, The needed features of the project are set out in section 1. Section 2 Assistant Secretary of the Interior. 12 13 TITLE II 2. The report on the safety feature of the dam has not been ap- U.S. DEPARTMENT OF THE INTERIOR, proved by the Department, nor has the Administration or the Congress OFFICE OF THE SECRETARY, had time to consider it. Although the Administration has not yet Washington, D.C., October 2, 1975. finalized its policy with respect to safety of dams issues, the Depart- Hon. JAMES A. HALEY, ment has heretofore applied a policy whereby legislative action under Chairman, Committee on Interior and Insular Affairs, House of the Safety of Dams program would be considered on a case-by-case Representatives, Washington, D.C. basis, only after full Executive review of study reports on each project. DEAR MR. CHAIRMAN: This is in response to your request for the 3. The proposed modifications are not of such urgency that further views of this Department with respect to a bill, H.R. 8539, "To author- consideration of the issues for a period amounting to a matter of ize modifications to Dickinson Dam, Dickinson Unit, Pick-Sloan weeks would be a serious or unwarranted delay. [Where necessary to Missouri Basin Program, North Dakota, and for other purposes." reduce the risk, the Department would apply interim operating cri- We have reviewed the proposed legislation and recommend against terial, although it does not appear to be required in this case.] its enactment at this time. The Department and the Administration Moreover, the Administration and the Department would oppose are of the view that the legislation is being proposed and considered any provision which calls for full payment by the Federal Government prematurely, and that consideration should be deferred. of the cost of new safety measures, without reimbursement and with- H.R. 8539 proposes that modifications be made to the existing out consideration of the individual merits of each case, and which Dickinson Dam. The purposes of the proposed modifications are: would appear to assume that full payment should be undertaken by 1. To make additional municipal and industrial (M&I) water the Federal Government in all cases involving the Safety of Dams available to the city of Dickinson, North Dakota. Installation of bas- program. In considering the matters of cost and allocation of costs and cule gates on the existing spillway of Dickinson Dam would increase repayment for safety modifications, such factors as the original pur- the conservation storage capacity of Edward Arthur Patterson Lake. pose and uses of the dam, the proposed uses of the dam as modified, the The resulting increase in firm water yield in combination with exist- reasons for the modification, the urgency of the need, the remaining ing M&I supplies would be adequate to meet the needs of the city of life expectancy of the dam, and the financial circumstances of those Dickinson to about the year 1985. benefiting from the dam should be taken into account. 2. To assure the safety of Dickinson Dam from flood occurrences While we feel that this legislation is premature, we are aware that currently estimated to be larger than the existing spillway capacity. other similar proposals are being scheduled for consideration in the The existing spillway capacity is 33,200 cubic feet per second (ft.³/s). near future and we are making every effort to establish a more defini- The currently estimated maximum inflow design flood (IDF) under tive Department and Administration position on Safety and Dams the most extreme circumstances would have a peak flow of about issues in time to fully consider those upcoming proposals. 106,700 ft³/s. The addition of an auxiliary spillway, with a design Dickinson Dam was constructed by the Bureau of Reclamation, capacity of 69,200 ft³/s, in combination with the existing spillway and under the authority of Public Law 80-299 and was completed in 1950. surcharge storage would allow safe passage of the currently estimated Dickinson has grown from a small town in 1910 of 3,700 people to its maximum IDF. The increased estimates of maximum IDF over those present size of about 14,000. By 1950 the city had reached a population originally anticipated for the dam are the result of improved and of 7,500 and had become a hub of business and distribution for much of updated scientific methodology. There are no structural defects in the the western part of North Dakota. In that year it began converting dam. from its limited ground water supply to a surface water system and The total estimated cost, based on January 1974 price levels, of the storage supply from Dickinson Dam. The dam and small reservoir measures included in H.R. 8539 is $3,171,000 including interest during near the city on the Heart River were constructed for the principal construction. Under the terms of the proposed bill, the portion of purpose of providing municipal water, but also included some recrea- the cost relating to increased water supply for the city would be tion, limited irrigation, and incidental flood control. reimbursable with interest. The portion relating to dam safety would The Heart River originates on the semiarid high plains and pro- not be reimbursable. Costs as presently projected include $681,000 for vides limited runoff from about 400 square miles of drainage. While the bascule gates, and $2,490,000 for safety improvements. the runoff varies between flood and drought conditions, the Dickinson The bill is premature for the following reasons: Reservoir yield is too small to insure the municipal supply of the 1. The feasibility report on the modifications for increased capacity present population in a dry year and the yield even in average water is not yet final and has not yet been approved by the Department, years will not supply the increasing water needs. the Administration or the Congress; action on the bill now would If Dickinson grows at a moderate pace it can, by modifving the therefore serve to circumvent and short-circuit proper consideration present water facilities, extend its water supply another decade or of the report as well as the legislative procedures normally followed more, but it should anticipate plans for a long-range solution. for a project of this type, pursuant to authorization of a feasibility The population of the city of Dickinson could increase very rapidly study. if strippable lignite deposits of about 800 million tons, which are lo- cated within 15 miles of the city are developed. If development of the 14 15 tremendous coal deposits in the Northern Great Plains begins to accel- The legislative proposal would therefore modify the concrete spill- erate, the city will rapidly increase beyond the capability of the pres- way by the addition of a new and larger grass-covered spillway ent and improved water sources and require a new and costly through the right abutment to provide the needed safety against alternative. possible failure. The added spillway would have a capacity of 69,200 The short-range plan to extend the city's water supply, which is part ft³/s, which, when combined, with the 29,300 ft³/s remaining in the of the legislative proposal, requires that the original concrete spillway modified concrete spillway making a total capacity of 98,500 ft³/s, for the existing dam, which is 200 feet wide, be gated SO that the water would prevent failure of the dam during the occurrence of an inflow surface can be raised 31/2 feet. This additional storage will provide the design flood. needed water for another decade during which time the trend of future The Office of Management and Budget has advised that there is no growth will become evident. objection to the presentation of this report from the standpoint of One possible long-range solution would be a new dam and reservoir the Administration's program. on Green River about 10 miles east of the city at the Versippi site. Sincerely yours, When the city will require such an alternate can be decided some years JOHN KYL, hence, and other sources should be investigated. Development of the Assistant Secretary of the Interior. Versippi site would be expensive and beyond the city's capability to finance in the immediate future. The short-range solution, modification of the existing spillway, would raise the controlled water surface 31/2 feet, increase the storage TITLE III by 3,493 acre-feet, increase the yield by 900 acre-feet in a critical U.S. DEPARTMENT OF THE INTERIOR, streamflow year to 3,300 acre-feet a year, increase the water surface OFFICE OF THE SECRETARY, by 372 acres to 1,191 acres, and increase the land management area by 243 acres. Washington, D.C., October 29, 1975. Recreation and fish and wildlife benefits would be preserved at Hon. JAMES A. HALEY, present levels. Existing recreation facilities, including boat ramps, Chairman, Committee on Interior and Insular Affairs, House of beaches, roads, day use facilities, and a youth camp would be relocated. Representatives, Washington, D.C. Use of these facilities would be lost temporarily during relocation. DEAR MR. CHAIRMAN: This is in response to your request for the The addition of a wildlife management area would mitigate loss of views of this Department on H.R. 9649, a bill "To reauthorize and habitat in the'area to be flooded. modify McKay Dam, Umatilla Project, Oregon, for multiple func- A further problem exists, however, in that the existing spillway is tions, and for other purposes." inadequate to handle potential floods as currently estimated. Through We have reviewed the proposed legislation and recommend against the utilization of modern meteorological and hydrological techniques, its enactment. plus the additional years of experience in precipitation and flood The proposed bill would authorize the Secretary to increase the studies, we have determined that the maximum inflow design flood is capacity of the spillway as required for the safety of the dam and greater than was estimated when Dickinson Dam was designed and would reauthorize the dam to include expanded project functions, for constructed. flood control, fish and wildlife, and recreation. The safety features When the existing spillway was designed the inflow design flood was are required as a result of new and updated estimates of possible estimated at 40,000 ft³/s. At that time, the design was based on an maximum flood inflows to the reservoir. The storage capacity of the analysis of the recorded runoff resulting from all historic major dam would not be increased, although the usefulness of its current storms in the general area. A peak of 40,000 ft³/s represented the capacity would be firmed up and assured by the safety modifications. highest ever recorded or estimated for the 400 square mile drainage Appropriations would be authorized in the amount of $1,300,000, with area. The new analysis and design assume 13 inches of rainfall in 12 an inflation clause built in. hours over the entire water shed. Therefore, we now judge that the The Administration has advised that it considers the project un- maximum inflow design flood could reach 106,700 ft³/s at Dickinson necessary. This is not a situation involving a structural defect or weak- Dam assuming the most extreme circumstances, and could cause struc- ness in the dam. Rather the only change in safety factors here is the tural failure of the dam which would cause the flood surge through new, increased inflow design flood, which has a low probability of the city to be increased by 30 percent. This flood surge, resulting from occurrence. The position of the Administration is that the expenditure a failure, would occur in a matter of minutes, whereas a flood peak, here is undesirable and unnecessary, and that an adequate margin of without failure, would afford about 9 hours of warning. safety can be achieved through operating procedures. The Adminis- The rainfall of storms which have occurred in the general region, tration recognizes that this may mean substantial reductions in bene- and which could have occurred above Dickinson Dam ranges from fits obtained from the dam and in repayment from the water uses. 12 to 24 inches. In June of 1975 a storm occurring in Ransom County, The Project. The Umatilla Project is located along the Umatilla about 100 miles southeast of Dickinson, had a measured rainfall of and Columbia Rivers in north-central Oregon. McKay Dam, located 20.6 inches. about 6 miles south of Pendleton on McKav Creek (a tributary of the Umatilla River), was constructed by the Bureau of Reclamation dur- 16 17 ing the period 1923-27, at a cost of $2,133,457. The proposal for cor- TITLE IV rective work was recently made as a result of newly developed meteoro- logical techniques and hydrological data. It was determined that U.S. DEPARTMENT OF THE INTERIOR, McKay Dam was incapable of storing or passing safely the updated OFFICE OF THE SECRETARY, inflow design flood. It was also determined that the same margin of Washington, D.C., October 29, 1975. safety could be obtained reserving storage space of 36,000 acre feet Hon. JAMES A. HALEY, (1/2 of capacity) during the storm season until the storm threat passed. Chairman, Committee on Interior and Insular Affairs, House of Rep- Should an inflow design flood occur without corrective action the resentatives, Washington, D.C. dam embankment and spillway parapet wall would be overtopped DEAR MR. CHAIRMAN: This responds to your request for the views and rapid breaching of the dam embankment could occur. The dis- of this Department with respect to H.R. 3383, a bill "To authorize the charge from the dam and reservoir could increase from approximately Secretary of the Interior to construct, operate, and maintain the 20,000 cubic feet per second (ft. 3/s) under flood conditions to as Pollock-Herreid unit, South Dakota pumping division, Pick-Sloan much as approximately 1,500,000 ft. 3/s in 1 hour or less if the dam Missouri Basin program, South Dakota, and for other purposes." failed. The loss of life and property damage downstream from the We have reviewed the proposed legislation and recommend that con- dam could be disastrous. The flood resulting from dam failure would sideration of it be deferred until a feasibility report on the unit is cur- pass through areas ranging from highly developed urban areas to rently reevaluated. agricultural and grazing lands. Residences of over 1,100, commercial H.R. 3383 is based on a plan to divert water by pumping from the developments, public facilities, roads, railroad tracks, bridges, and existing Lake Oahe on the Missouri River. The principal purposes of other improvements in the areas of the Montee addition of Pendleton, the Pollock-Herreid Unit would be to supply on-farm sprinkler irri- Reith and Echo would be inundated by the flood. gation for 15,000 acres of land and to supply municipal and industrial The proposed modification in the design and structure of the dam water to two communities. H.R. 3383 also contains provisions for fish would provide a greater factor of safety than was provided by the and wildlife resources. original design. The spillway capacity would be increased from its The physical works of the unit would include: the main pumping present capacity of 10,000 ft. 3/s to 27,000 ft. 3/s. Although the re- plant, located at the existing Lake Oahe on the Missouri River, to lift servoir releases would be increased as rapidly as necessary under flood the water into the existing Lake Pocasse a subimpoundment on Spring conditions, more time would be available for warning the downstream Creek, which is a tributory to Lake Oahe, for reregulation; a 24 mile- residents to evacuate. The amount of damage to downstream property long system of main canals; a 56 mile-long system of laterals; seven and loss of life would be lessened because of the reduction in reservoir relift pumping plants; 165 miles of collector, surface, and closed pipe releases. drains; and other facilities necessary to the purposes of the unit. McKay Dam was constructed specifically for irrigation. Throughout The cost of the unit is estimated to be $25,570,000 based on January the years, other incidental benefits, such as flood control, fish and wild- 1975 price levels. life, and recreation, have accrued. The proposed bill would authorize A feasibility report on the unit was completed in January of 1968 allocation of existing costs, as well as the costs of the proposed modi- and was transmitted to the Secretary of the Interior on September 16, fication, to the reauthorized purposes of the dam; i.e., irrigation, flood 1971. A reevaluation statement, which updated the feasibility report, control, fish and wildlife, and recreation. was completed in March 1971; and another is expected to be completed A copy of the report entitled "Proposed Alteration of an Existing shortly. Neither the feasibility report nor the updatings have been Structure, Modification of McKay Dam, Umatilla Project, Oregon," approved by the Department nor reviewed and approved by the Ad- dated April 1975 is attached. The report described possibilities for ministration. Action on H.R. 3383 now would serve to circumvent providing irrigation, flood control, fish and wildlife, and recreation proper administrative consideration of the project. and for obtaining appropriate repayment if the project is authorized. In 1971 a 12 page environmental impact statement, pursuant to The estimated cost of the proposed modification is $1,160,000 (based section 102(2) (c) of the National Environmental Policy Act of 1969, upon October 1974 prices), and $1,300,000 at current (July 1975) was drafted for the project. This Office later judged this statement to prices. be insufficient for purposes of the project. Preparation of a new en- An assessment of the environmental impacts of the proposed con- vironmental impact statement is necessary. struction has been completed, and a negative determination (NDN The Fish and Wildlife Service evaluated the proposed project in 75-17 (PN)) was made on June 23, 1975. 1966 and found that it would not seriously degrade fish and wildlife As indicated above, however, the Administration is opposed to the resources. However, nine years have elapsed since that analysis and project as proposed in H.R. 9649. a new appraisal of impacts, addressing current environmental con- The Office of Management and Budget has advised that there is no cerns, is in order. Subsequent to our 1966 detailed report on the Pol- objection to the presentation of this report from the standpoint of the lock-Herreid Unit, the Water Resources Council's Principles and Administration's program. Standards for Planning Water and Related Land Resource Projects Sincerely yours, have been adopted and the Endangered Species Act have been enacted. JOHN KYL, These new planning considerations and laws should be applied to this Assistant Secretary of the Interior. project. 18 The unit will have an agricultural return flow of approximately 14,000 acre-feet. About 5,000 acre-feet will be returned to Lake Pocasse, a National Wildlife Refuge, and the remainder to Oahe Reservoir. We have not defined, at this time, the effects of the return flow on the Pocasse Wildlife Refuge. As mentioned previously, the 1968 Pollock-Herreid report was amended by a 1971 reevaluation. This reevaluation included new costs and benefits. At that time a major change in costs and benefits occurred as a result of a new cropping pattern. The area converted from a predominate wheat and grain area to producing potatoes, offering better yield per acre. Because of this and as the result of increased farm prices for potatoes, the benefit-cost ratio improved despite a new discount rate and higher construction cost. Another reevaluation will be presented shortly, based on 1975 costs and the latest "agriculture normalized prices" developed by the Economic Research Service, De- partment of Agriculture, for the current Water Resources Council. Current costs and benefits and repayment obligations should be clearer at that time. Also undefined is the projects' effects on the water rights of the Indian tribes in the Upper Missouri River Basin. The Office of Management and Budget has advised that there is no objection to the presentation of this report from the standpoint of the Administration's program. Sincerely yours, JOHN KYL, Assistant Secretary of the Interior. S. 151 Rinety-fourth Congress of the United States of America AT THE SECOND SESSION Begun and held at the City of Washington on Monday, the nineteenth day of January, one thousand nine hundred and seventy-six An Act To authorize and modify various Federal reclamation projects and programs, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be known as the Reclamation Authorization Act of 1975. TITLE I POLECAT BENCH, WYOMING SEC. 101. The Polecat Bench area of the Shoshone extensions unit, heretofore authorized as an integral part of the Pick-Sloan Missouri Basin program by the Act of December 22, 1944 (58 Stat. 887, 891), is hereby reauthorized as a part of that project. The construction, operation, and maintenance of the Polecat Bench area for the purposes of providing irrigation water for approximately nineteen thousand two hundred acres of land, municipal and industrial water supply, fish and wildlife conservation and development, public outdoor rec- reation, and other purposes shall be prosecuted by the Secretary of the Interior in accordance with the Federal reclamation laws (Act of June 17, 1902; 32 Stat. 388, and Acts amendatory thereof or supple- mentary thereto). The principal features of the Polecat Bench area shall include the Holden Reservoir, related canals, pumping plants, laterals, drains, and necessary facilities to effect the aforesaid purposes of the area. For a period of not more than two years after the initial availability of irrigation water up to two thousand two hundred and seventeen acres of public lands in the Polecat Bench area determined to be suitable for settlement purposes shall be made available, on a preference basis for exchange or amendment, to resident landowners on the Heart Mountain Division of the Shoshone project, who, on or before December 1, 1968, were determined by the Secretary to be eligible for such exchange or amendment of their farm units under provisions of the Act of August 13, 1953 (67 Stat. 566). SEC. 102. The conservation and development of the fish and wildlife resources and the enhancement of recreation opportunities in con- nection with the Polecat Bench area shall be in accordance with the Federal Water Project Recreation Act (79 Stat. 213), as amended. SEC. 103. The Polecat Bench area of the Shoshone extensions unit shall be integrated physically and financially with the other Federal works constructed under the comprehensive plan approved by section 9 of the Flood Control Act of December 22, 1944 (58 Stat. 887, 891), as amended and supplemented. Repayment contracts for the return of construction costs allocated to irrigation will be based on the water users' ability to repay as determined by the Secretary of the Interior; and the terms of such contracts shall not exceed fifty years following the permissible development period. CORRECTED SHEET S. 151-2 SEC. 104. The provisions of the third sentence of section 46 of the Act of May 25, 1926 (44 Stat. 649, 650), and any other similar pro- visions of Federal reclamation laws as applied to the Polecat Bench area of the Shoshone extensions unit are hereby modified to provide that lands held in a single ownership which may be eligible to receive water from, through, or by means of area works shall be limited to one hundred and sixty acres of class I land or the equivalent thereof in other land classes, as determined by the Secretary of the Interior. SEC. 105. For a period of ten years from the date of enactment of this title no water from the unit authorized by this title shall be delivered to any water user for the production on newly irrigated lands of any basic agricultural commodity, as defined in the Agri- cultural Act of 1949, or any amendment thereof, if the total supply of such commodity for the marketing year in which the bulk of the crop would normally be marketed is in excess of the normal supply as defined in section 301 (b) (10) of the Agricultural Adjustment Act of 1938 (52 Stat. 31, 41), as amended, unless the Secretary of Agriculture calls for an increase in production of such commodity in the interest of national security. SEC. 106. The interest rate used for computing interest during con- struction and interest on the unpaid balance of the reimbursable costs of the Polecat Bench area shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction of the Polecat Bench area is commenced, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for fifteen years from date of issue. SEC. 107. There is hereby authorized to be appropriated for con- struction of the Polecat Bench area of the Shoshone extensions unit the sum of $46,000,000 (January 1975 price levels), plus or minus such amounts, if any, as may be justified by reason of changes in construc- tion costs as indicated by engineering cost indexes applicable to the types of construction involved and, in addition thereto, such sums as may be required for operation and maintenance of the works of said area. TITLE II DICKINSON DAM, NORTH DAKOTA SEC. 201. The Secretary of the Interior is authorized to modify the spillway of Dickinson Dam on the Heart River in the State of North Dakota, to increase conservation storage by installing gates on the existing spillway. The Secretary is also authorized to construct a new spillway to assure the safety of Dickinson Dam from floods currently estimated to be capable of occurrence. SEC. 202. The Secretary is authorized to enter into an amendatory repayment contract with the city of Dickinson, North Dakota, to accomplish the repayment of that portion of the cost of the work authorized herein properly allocable to municipal and industrial water supplies in not to exceed forty years from completion of construction Provided, That the total cost of the new spillway and related works incurred for the safety of the structure shall be nonreimbursable and nonreturnable. CORRECTED CHEET S. 151-3 SEC. 203. The interest rate used for purposes of computing interest during construction and interest on the unpaid balance of the capital costs allocated to interest-bearing features of the works authorized herein shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction is initiated, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for redemption for fifteen years from date of issue. SEC. 204. There is hereby authorized to be appropriated for con- struction of works authorized by this title the sum of $4,000,000 (January 1975 price levels) plus or minus such amounts as may be justified by reason of ordinary fluctuations in construction costs as indicated by engineering cost indexes applicable to the types of con- struction involved herein. TITLE III MC KAY DAM AND RESERVOIR, OREGON SEC. 301. McKay Dam and Reservoir, Umatilla project, Oregon, is hereby reauthorized for the purposes of irrigation, flood control, fish and wildlife, recreation, and safety of dams, and the costs thereof shall be reallocated among these purposes by the Secretary of the Interior (hereinafter referred to as the "Secretary"), in a manner consistent with the provisions of this title. SEC. 302. The Secretary is authorized to perform modifications to the spillway structure at McKay Dam as he determines to be reason- ably required for safety of the dam from failure due to overtopping by potential flood inflows to the reservoir. SEC. 303. Not to exceed six thousand acre-feet of storage capacity in McKay Reservoir shall be allocated for the primary purpose of retaining and regulating flood flows. SEC. 304. Costs incurred in the modification of McKay Dam to insure its safety from failure shall be nonreimbursable and nonreturn- able. All other costs of McKay Dam and Reservoir, heretofore or here- inafter incurred, shall be allocated among the authorized purposes served by the dam and reservoir in accordance with standard cost allocation procedures, and the joint costs allocated to flood control, recreation, and fish and wildlife shall be nonreimbursable. SEC. 305. The Secretary is authorized to enter into amendatory repayment contracts with the Stanfield and Westland Irrigation Districts, or other water users, if appropriate, to secure the return of reimbursable irrigation construction and operation and maintenance costs arising from the modification and reallocation of McKay Dam and Reservoir. SEC. 306. There is hereby authorized to be appropriated for mod- ification of McKay Dam the sum of $1,300,000 (based on July 1975 prices), plus or minus such amounts, if any, as may be justified by reason of changes in construction costs as indicated by engineering cost indexes applicable to the types of construction involved, and, in addition thereto sums as may be required for operation and mainte- nance of McKay Dam and Reservoir. S. 151-4 TITLE IV POLLOCK-HERREID UNIT, SOUTH DAKOTA SEC. 401. The Secretary of the Interior is hereby authorized to con- struct, operate, and maintain in accordance with the Federal reclama- tion laws (Act of June 17, 1902; 32 Stat. 388, and Acts amendatory thereof or supplementary thereto) the Pollock-Herreid unit, South Dakota pumping division, Pick-Sloan Missouri Basin program, South Dakota, for the purposes of providing irrigation water service for approximately fifteen thousand acres of land, municipal and industrial water supply, and fish and wildlife conservation and development. The principal works of the project would include the main pumping plant located at Lake Oahe, the storage reservoir created by the exist- ing Oahe Dam on the Missouri River, to lift water into Lake Pocasse, a subimpoundment on tributary Spring Creek, which would serve as a regulating reservoir; a system of main canals and laterals; relift pumping plants; drains; and the necessary facilities to effect the aforesaid purposes of the area. SEC. 402. The conservation and development of the fish and wildlife resources in connection with the Pollock-Herreid unit shall be in accordance with the provisions of the Federal Water Project Recrea- tion Act (79 Stat. 213) as amended. SEC. 403. The Pollock-Herreid unit shall be integrated physically and financially with the other Federal works constructed under the comprehensive plan approved by section 9 of the Flood Control Act of December 22, 1944 (58 Stat. 887, 891), as amended and supplemented. SEC. 404. For a period of ten years from the date of enactment of this title no water from the unit authorized by this title shall be deliv- ered to any water user for the production on newly irrigated lands of any basic agricultural commodity, as defined in the Agricultural Act of 1949, or any amendment thereof, if the total supply of such a com- modity for the marketing year in which the bulk of the crop would normally be marketed is in excess of the normal supply as defined in section 301 (b) (10) of the Agricultural Adjustment Act of 1938 (52 Stat. 31, 41), as amended, unless the Secretary of Agriculture calls for an increase in production of such commodity in the interest of national security. SEC. 405. The interest rate used for computing interest during construction and interest on the unpaid balance of the interest bearing reimbursable costs of the unit shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction of the unit is commenced, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due or callable for fifteen years from date of issue. SEC. 406. The provisions of the third sentence of section 46 of the Act of May 25, 1926 (44 Stat. 649, 650), and any other similar pro- visions of Federal reclamation laws as applied to the Pollock-Herreid unit, South Dakota pumping division, are hereby modified to provide that lands held in a single ownership which may be eligible to receive water from, through, or by means of unit works shall be limited to one hundred and sixty acres of Class I land or the equivalent thereof in other land classes, as determined by the Secretary of the Interior. S. 151-5 SEC. 407. There is hereby authorized to be appropriated for con- struction of the Pollock-Herreid unit, as authorized in this title, the sum of $26,000,000 (January 1975 price levels), plus or minus such amounts, if any, as may be justified by reason of changes in construc- tion costs as indicated by engineering cost indexes applicable to the types of construction involved herein and, in addition thereto, such sums as may be required for operation and maintenance of the works of said unit. Speaker of the House of Representatives. Vice President of the United States and President of the Senate. FOR IMMEDIATE RELEASE March 11, 1976 Office of the White House Press Secretary THE WHITE HOUSE STATEMENT BY THE PRESIDENT I have today approved S. 151, "The Reclamation Authorization Act of 1975.' S. 151 authorizes four separate projects to be under-- taken by the Bureau of Reclamation: Polecat Bench, Wyoming; Dickinson Dam, North Dakota, McKay Dam and Reservoir, Oregon and Pollock-Herreid unit, South Dakota. The bill reauthorizes the Polecat Bench project to provide water for irrigation of 19,200 acres of land, a municipal and industrial water supply, and water for con- servation and recreation purposes. The Pollock-Herreid project, South Dakota, is based on a plan to divert water by pumping from the existing Lake Oahe on the Missouri River. The principal purposes of the project are to supply on-farm sprinkler irrigation for 15,000 acres of land and to supply municipal and industrial water to two communities. The Dickinson Dam project, North Dakota, consists of certain modifications to be made to the Dickinson Dam to make additional municipal and industrial water available to the city of Dickinson, North Dakota, and to increase the existing spillway capacity to provide additional safety allowances in light of increased estimates of possible maximum flows. The McKay Dam project, Oregon, is similar to the Dickinson Dam project in that it provides for increasing the capacity of the spillway of the dam for safety purposes. S. 151 also reauthorizes the project for additional purposes, including flood control, fish and wildlife, and recreation, as well as the existing irrigation function. Although I have signed S. 151, it should be noted that I have several reservations about the bill and my implemen- tation of its provisions will be subject to the following constraints: First, the Polecat Bench project previously failed the test of cost-effectiveness, a test which is applied to other water resource projects generally. This project needs to be re-examined in light of new economic factors to see if it is economically justified. Similarly, the Executive Branch has not completed its study of the Pollock-Herreid unit and submitted a report on its feasibility to the Congress. Until such reports are prepared, there is no adequate basis for appraising the merits of these projects. Accordingly, I will not seek funds for either project until a cost-effactiveness study has been completed and the proj- ect is demonstrated to be economically justified. more 2 Second, the bill requires work on the latter two projects -- McKay Dam and Dickinson Dam -- solely at Federal expense. Safety is normally an integral design and operation feature of a federally constructed dam, to be paid for by project beneficiaries. I do not endorse any policy which requires the Federal Government to pay the entire cost of work to improve dam safety in all situations involving modifications to federally built dams. The general question of Federal policy on the safety of dams will be considered when a congressionally directed report on that subject now underway by the Depart- ment of the Army is completed, and when new cost-sharing recommendations for water projects are made later this year. Therefore, I will not seek any funds for these two projects until the study has been completed and the Executive Branch has made its recommendations on cost-sharing for water projects. #####