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HIGH PRIORITY FEDERAL ISSUES

Revised March 2000

H.R. 3077 – legislation to facilitate water transfers in San Luis Unit of Central Valley Project

Central Valley Project water contractors have relied on federal water transfers for many years as part of their water resource management strategy. Chronic water supply uncertainty in CVP supplies has pushed these contractors into acquiring non-federal supplemental water through short-and long-term transfers. Likewise, recent federal and state laws have attempted to facilitate water transfers to assist agricultural and urban water users in maintaining reliable water supplies.

In short, water transfers have become a necessity in meeting the diverse water needs of this state, but some constraints still exist precluding the use of certain types of water in specific areas. For example, the San Luis Act of the CVP currently prohibits CA State Water Project water service to lands within the San Luis Unit.

To address this, H.R. 3077 was introduced to amend the Act that authorized construction of the San Luis Unit to facilitate water transfers in the CVP. H.R. 3077 passed the House of Representatives at the end of 1999 and awaits action by the Senate.

Position/Action Item: We urge Senate passage early this year of H.R. 3077, legislation to amend the San Luis Act to allow water transfers.

Trinity River Restoration Program

The Central Valley Project Improvement Act directs the Interior Secretary to complete the Trinity River Flow Study in a manner that insures the development of recommendations based on the best available scientific data, regarding in-stream fishery flow requirements for the Trinity River fishery. The flow study has been completed and recommends an increase in Trinity River flows up to 500,000 acre-feet per year, depending on hydrological conditions. These increased releases will reduce by an additional five-to-10 percent the CVP entitlement for water users on the San Joaquin Valley’s west side, who already are suffering non-sustainable reductions in CVP entitlements.

The Interior Secretary has acknowledged that Trinity River Flow Study implementation must minimize impacts, be balanced and be scientifically supportable.

Position/Action Item: The Trinity River Flow Study recommendation should only be implemented in a phased manner in combination with the CALFED Bay-Delta Program to minimize the water supply impacts on the Central Valley Project.

Calfed Bay-Delta Program Authorization

Prescriptive regulatory actions by governmental agencies continue to negatively impact water supply and reliability, placing California’s agricultural and manufacturing economies at great risk. CALFED cannot succeed unless the gap is closed between anticipated water supplies and water shortages.

CALFED must provide immediate water supply improvements and reliability to CVP agriculture export contractors at levels above those currently available since implementation of the Bay-Delta Accord. Strong commitments to storage and conveyance are critical. Reauthorization of CALFED federal funding must include balanced commitment to ecosystem, water supply and water quality improvements. The 2000-01 federal budget must include funding for study of storage and conveyance facilities.

Position/Action Item: Westlands seeks balanced federal authorization and funding for 2000-01 that contains commitments to ecosystem restoration, water quality and water supply.

Amendments to the Warren Act

Westlands supports legislation to assure surplus water revenues are used to offset operation and maintenance expenses, and to facilitate conveyance of non-federal project water transfers.

Revenues derived from Warren Act contracts and from the sale of surplus water, in which Bureau of Reclamation facilities are utilized, are not applied in a consistent manner by the Interior Secretary in accordance with the Warren Act and Subsection J of the Fact Finders’ Act. Prior to 1993, these revenues were credited to operation, maintenance and repayment. Since 1993, these revenues have not been applied to the project, but rather have been credited to the Reclamation Fund (returned to the Federal Treasury).

Applying surplus revenues to the credit of the project is a fair and sound business practice supportable under current law. Clarifying amendments would lead to proper crediting by the federal government.

Water transfers have been used to develop water supplies to cope with federal CVP water supply deficiencies. In certain cases, use of federal facilities is restricted, thus limiting the capability of federal contractors to access water markets.

Legislation is needed to allow non-Project water to be conveyed through federal facilities, thereby facilitating water transfers.

Position/Action Item: Legislation is needed to amend the Warren Act to provide for proper crediting of these revenues and to facilitate water transfers.

Legislation to Direct the Interior Secretary to Make Refunds Available for Forms "Violations" Under the Reclamation Reform Act

In the last Congress, legislation passed in both the House and the Senate requiring the Interior Secretary to refund overpayments received by the U.S. as a result of Reclamation Reform Act forms "violations." The Bureau of Reclamation lost a court case where the judge determined that Congress did not intend the Bureau to assess monetary penalties or fines for failures to submit the required forms. The Interior Department supports this legislation and would like to make the refunds, but cannot do so without statutory authority.

Position/Action Item: Legislation is needed to direct the Interior Secretary to make these refunds.

CVPIA Implementation

Implementation of the CVP Improvement Act (CVPIA), signed into law in 1992, continues to choke the life out of the Valley’s west side farm families, farm workers and farm communities. Unbalanced implementation of this federal water policy has squeezed all flexibility out of the water delivery system, causing a chronic regulatory drought. Under the stranglehold of the CVPIA, Westlands and federal west side water contractors are being threatened: by the impacts from biological decisions made without the benefit of good science; unattainable contract renewal positions proposed with unrealistic time frames; and the lack of accountability of water releases for fish restoration programs maximizing adverse export impacts without justification.

Federal water contractors have long-supported a healthy Delta ecosystem, investing large sums of money and water for environmental restoration efforts, with the underlying premise that all stakeholders get better together. Balanced implementation is the key and must become the over-riding focus.

Position/Action Item: The Interior Secretary must engage in assuring that the CVPIA is being implemented in a balanced manner, focusing on the needs to address all CVP purposes including flood control, urban and industry, recreation, irrigation, and environmental.