line facilities as part of the State authorized Feather River project, as the initial unit of the California water plan, with the proposed Federal development of irrigation and other water service for the San Luis unit area as part of the Central Valley project.

It is believed that under the concept here to be set forth, water users in the San Luis unit area will receive equal service to any heretofore proposed. It is further believed that prospective water users of the Feather River project will receive timely and unimpaired service in line with existing and future needs. It is also believed that both the United States and the State of California can develop their respective works with advantage to both; with maximum opportunity for cooperation; with lowest possible costs for each under a practical plan of development; at lowest costs and with earliest deliveries to water users, with increased or more certain water availability.

A basic objective under the concept is immediate construction of facilities to make available surplus water in the delta to areas which need water at the earliest possible moment; followed by a larger construction program which will increase the quantity of water available for movement south on a firm and permanent basis.

In the operation of both projects it may be found that excess capacity or requirements exceeding capacity will exist from time to time, particularly in the early stages of project development. Under the concept here proposed, if the excess capacity of one of the projects coincides with the excess requirements of the other, it will be possible to utilize facilities of the one to the advantage of the other and vice versa.

The sequence of project construction by both the State and the United States could be affected by these factors. Both could cooperate toward meeting the urgent needs of the two service areas.

The State could give high priority to construction of the San Luis Dam, forebay, and aqueduct from San Luis to Kettleman City, while Federal construction of the San Luis pumping plant and other major works required in the San Luis service area, plus distribution facilities in the area, would proceed.

The State would also extend its facilities, as appropriate, for service to other Feather River Project service areas which are in critical need of water. Then, under the State-Federal agreement here envisioned, the available surplus water in the delta could be delivered through the Federal project's facilities as far as the State's San Luis reservoir, and there stored and further conveyed southward through State facilities to be used to meet the most urgent and immediate water needs of south and west San Joaquin Valley, in service areas of both projects. Construction of other project features by both State and Federal agencies would be expected to proceed during this time in line with the buildup of water requirements along the line.

BASIC CONCEPT

The concept proposed and the premises upon which it is based are as follows: (1) The Feather River Dam at Oroville, the San Luis Dam, and other principal features of the Feather River project shall be constructed and operated by the State as now authorized. Financing and completion of the Feather River project shall be assured by authorization of general obligation bonds to be sold only as required by the State's construction program and by making available other funds under appropriate reimbursement policies.

Such other funds may be from special and general funds of the State; from those received from the Federal Government for flood control, fish and wildlife preservation, and recreation, where national interest and policy prevails; and from direct loans or other financial participation by the United States as may be authorized.

(2) The State shall construct, as part of the Feather River project, the Delta Cross Channel, the pumping plant at the Delta near Tracy, the canal from that point to San Luis Reservoir, the San Luis forebay, and the State's pumping plant for delivery of water therefrom to either the San Luis Reservoir or directly to the Feather River project main south canal.

(3) The San Luis Dam and Reservoir, with appropriate forebay, and the main canal southward therefrom shall be State-owned and operated as features of the State authorized Feather River project, with provisions by agreement with the United States, for usefulness to the Federal San Luis unit and other units of the Central Valley project on an appropriate basis.

(4) The San Luis unit, consisting of features proposed by the San Luis report, with exception of the San Luis Reservoir, forebay, and main canal, shall be authorized as a unit of the Central Valley project (which includes the

Trinity unit and other units) and shall be financially and operationally integrated therewith.

(5) The existing excess capacity of the Federal Central Valley project's DeltaMendota Canal and Tracy pumping plant will be used primarily for movement of water from the Delta for proposed Federal San Luis unit purposes.

(6) With the exceptions noted in (4) above, the remainder of the proposed major features of the Federal San Luis unit, which are primarily of specific value only to the San Luis unit service area and are estimated to cost about $160 million, shall be constructed by the United States; as likewise may be the proposed distribution system and other local works to serve the San Luis unit area, which are estimated to cost about $184 million; the latter to be contracted for by local agencies within the San Luis unit's service area.

These major Federal works shall include the pumping plant and other required works in vicinity of the State's San Luis Reservoir to deliver water, moved to the point through the Delta-Mendota Canal, to either the State's San Luis Reservoir for storage, or directly to the State's main canal, for use in the Federal San Luis unit service area.

(7) The Federal Central Valley project will supply or contract for power to operate pumps of the Federal San Luis Unit.

(8) Rights to the use of water, in accordance with State law as required within service areas of the Federal San Luis unit and the State Feather River project, or reasonable assurance that such rights will be forthcoming, shall be established.

CONCEPT OF STATE-FEDERAL AGREEMENT

The concept of State-Federal relationships in the operation of adjoining and connecting State and Federal works under these premises is as follows:

(1) An agreement shall be executed between the United States and the State of California to provide:

(a) The State shall receive through the facilities of the Federal unit water for storage in the State's San Luis Reservoir which will later be conveyed through the State's Feather River project main south canal to points of diversion where it will be received for distribution through federally constructed works, to water users in the San Luis service area. Water similarly provided may also be received directly into the State's Feather River project main south canal for delivery to the headworks of the Federal unit's distribution system. The State shall make an appropriate charge for the service of storage and transmission which shall include all costs involved, including capital costs, on a proportionate use basis consistent with other Feather River project water deliveries.

(b) In the event other facilities of the State Feather River project are of service to the Federal San Luis unit or other units of the Central Valley project, the United States shall pay an appropriate service and/or an appropriate share of operation, maintenance, and replacement costs in connection therewith.

(c) As the counterpart of this provision, in the event facilities of the Federal San Luis unit are of service to the State Feather River project, the State shall pay an appropriate service charge and/or an appropriate share of the operation, maintenance, and replacement costs in connection therewith.

(d) Operation of the Feather River project for water service to areas as presently authorized shall proceed as planned by the State, with due regard in construction and operation of project features to provide for meeting the State's contractual obligation with the United States respecting the Federal San Luis unit.

CONCEPT OF OPERATING PROCEDURES

The two projects will physically operate under the above premises and agreement as follows:

(1) Surplus water from the Sacramento-San Joaquin Rivers delta will be picked up by pumps of both the Central Valley project's Tracy installation and by the Feather River project's Tracy facilities, in proportion to the rights of each and by agreement in accordance with (b) and (c) above.

(2) The surplus water in the delta will be firmed by the Federal Central Valley project and by the State's Feather River project, thus providing additional water for use within service areas of both projects in respective entitled amounts.

(3) Water pumped by Central Valley project's delta pumps will move southward through the Delta-Mendota Canal. That portion destined for use in the San Luis unit will be repumped through the new Federal San Luis unit pump

ing plant to either the State's San Luis Reservoir or the State's main south canal. Losses in storage and transmission of this water shall be properly considered.

(4) Water pumped by the State project's delta pumps will move southward through the State's Delta-San Luis Canal. At San Luis this water will be repumped to either the reservoir for storage and regulation or to the Feather River project main south canal for transmission to the State's Feather River project service areas, with losses in storage and transmission to be properly considered.

EXHIBIT C

[To show the Knowland-Kuchel bill S. 1887, as originally written with amendments to express the "Kern County Concept." Deletions are in linetype, additions are in italic]

[S. 1887, 85th Cong., 2d sess.]

A BILL To authorize the Secretary of the Interior to construct the San Luis unit of the Central Valley project, California, to enter into an agreement with the State of Cali fornia with respect to the financing, construction and operation of such a unit, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the principal purpose of furnishing water for the irrigation of approximately five hundred thousand acres of land in Merced, Fresno, and Kings Counties, California, and as incidents thereto of furnishing water for municipal and domestic use and providing recreation and fish and wildlife benefits, the Secretary of the Interior (hereinafter referred to as the Secretary) is authorized to construct, operate, and maintain the San Luis unit as an integral part of the Central Valley project. The principal engineering features of said unit which may be constructed to permit future expansion, shall be a dam and reservoir at or near the San Luis site, a forebay and afterbay, the San Luis Canal, the Pleasant Valley Canal, and necessary pumping plants and distribution eyetems, drains, channels, levees, flood works, and related facilities shall generally conform to those described in the report of the Department of Interior entitled "San Luis unit, Central Valley Project", California, dated Dec. 17, 1956, with exceptions set forth in this section or as may otherwise be authorized by this Act, and agreed upon by the Secretary and the State of California (hereinafter referred to as the State). The Secretary is authorized to construct, operate and maintain, as the San Luis unit, those engineering features which will provide a water supply to the San Luis unit service area described in said report of Dec. 17, 1956, except the following engineering features which, under the agreement with the State authorized by this Act, are to be constructed, operated, and maintained by the State to furnish a water supply for the San Luis service area and for the service areas of the State Feather River Project, to wit: the San Luis dam, reservoir, forebay, afterbay, and main aqueduct extending southward therefrom in the San Joaquin Valley (hereinafter referred to as the State San Luis works.) In constructing, operating, and maintaining the San Luis unit, the Secretary shall be governed by the Federal Reclamation laws (Act of June 17, 1902, 32 Stat. 388 and Acts amendatory thereof or supplementary thereto) except so far as the provisions thereof are inconsistent with this Act. Construction of the San Luis unit shall not be commenced until the Secretary has secured, or has satisfactory assurances of his ability to secure, all rights to the use of water which are necessary to carry out the purposes of the unit and the terms and conditions of this Act. Water deliveries to the San Luis unit service area shall not be made until there has been physically provided by the State of California acting alone or in co-operation with the United States, or by the United States, or otherwise, such portion of the master drainage outlet and disposal channel for the San Joaquin Valley, as generally outlined in the California Water Plan, Bulletin No. 3, of the California Department of Water Resources, as will serve adequately by connection therewith the drainage system for the San Luis unit mentioned in Sections 4 and 7 of this Act.

SEC. 2. (a) The Secretary is authorized, on behalf of the United States, to negotiate and enter into an agreement with the State of Calfornia (hereinafter referred to as the State) providing generally for coordinated operation and joint use of the facilities of the San Luis unit, in order that the State may, without eest to the United States deliver water in service areas outside the San Luis service area as described in the report of the Department of the Interior, entitled "Son Luis Unit, Central Valley Project" dated December 17, 1956, of the Central Valley Project with the State Feather River Project and particularly for coordinated operation and joint use of the San Luis unit and the State San Luis works in order

that the United States and the State each may most efficiently deliver water to their respective service areas. The Secretary shall not commence construction of the San Luis unit, except for the preparation of designs and specifications and other preliminary work, until the execution of such an agreement between the United States and the State, but if such an agreement has not been executed by May 1, 1958, and if March 1, 1960 this Act and the authority granted hereunder shall be null and void and of no further force or effect unless, after consultation with the Governor of the State, the Secretary determines that the prospects of reaching accord on the terms thereof are not reasonably firm, he may proceed to construet and operate the San Luis unit in accordance with section 1 of this Act. Thereupon the Secretary shall report to the President and the Congress of the United States concerning the state of the negotiations between the United States and the State and request an extension of time for completing the agreement, whereupon this Act and the authority granted hereunder are automatically extended for a period of 120 2 days from the date of said request and, if the agreement is not completed and executed within such period, unless the Congress acts to further extend or amend them this Act, the Act and the authority granted hereunder shall expire and be of no further force or effect. In considering the prospects of reaching accord on the terms of the agreement the Secretary shall give substantial weight to any relevant affirmative action theretofore taken by the State, including the enactment of State legislation authorizing the State to acquire and convey to the United States title to lands to be used for the San Luis unit or assistance given by it in financing Financial Federal design and construction of the unit. The authority conferred upon the Secretary by the first sentence of this section shall not, except as otherwise provided in this section, be construed as a limitation upon the exercise by him of the authority conferred in section 1 of this Aet.

(b) If after the execution of said agreement either party fails to construct or to make available its share of the funds for the construction of the San Luis unit and the State San Luis works in accordance with the agreement, the other party may advance construction funds or proceed with the construction of such portion of the facilities of the San Luis unit and the State San Luis works necessary to deliver water to its service area. Such facilities shall be constructed so as to permit subsequent enlargement by the other party. The party failing to construct or to make funds available in accordance with the agreement as provided in section 3 hereof may do so subsequently and avail itself of the use, operation, and control of facilities in accordance with the provisions of the agreement and this act.

SEC. 3. The agreement between the United States and the State referred to in section 2 of this Act shall provide among other things, that—

(a) the project works and features to be constructed by the Secretary shall be so designed and constructed as to permit either (i) immediate integration and coordinated operation with the State's water projects or (ii) such subsequent enlargement or other modification as may be required for integration and coordinated operation therewith the United States shall construct the San Luis unit and the State shall construct the State San Luis works referred to in Section 2 hereof. The State San Luis works shall be so designed and constructed as to provide the capacities required to serve both the State Feather River Project service areas and the Federal San Luis unit service area;

(b) the State United States shall make available to the Secretary State during the construction period sufficient funds to pay an appropriate the share of the United States, based upon the proportion of total capacities required by it, of the construction costs of any facilities designed and constructed by the State as provided in paragraph (a) above. and in Section 1 of this Act. The State United States contribution shall be made in annual installments, each of which bears approximately the same ratio to total expenditures during that year as the total of the State's United States' share bears to the total cost of the facilities State San Luis works: The State similarly shall make available to the United States funds to pay the share, if any, of the construction costs of those portions of any facilities constructed by the United States as provided in section 1 hereof which might be used by the State;

(c) The State may at any time after approval of its plans by the Secretary for the construction of the State San Luis works as provided in paragraph (a) and Section 1 above and at its own expense enlarge or modify San Luis Dam and Reservoir the State San Luis works and other facilities to be used jointly by the State and the United States to provide additional capacity but

1 Date is tentative.

2 Number of days is tentative.

the performance of such work shall be carried on as not to unreasonably interfere with the operation of the San Luis unit for the purposes set forth in section 1 of this Act;

(d) the United States shall pay annually an appropriate service charge in connection with, and/or an appropriate share to the State the share of the United States, based upon the proportions of total capacities required by it, of the operation, maintenance and replacement costs of these features the State San Luis unit works. which are used or designed to be used jointly by the United States and the State and any other features of the Central Valley projeet which are of service to the State: The State shall pay annually to the United States the share, if any, of the State, based upon the proportions of total capacities required by it, of the operation, maintenance, and replacement costs of those portions of the San Luis unit so used;

(e) upon completion of repayment of these portions of the reimbursable Federal costs of constructing the Central Valley project which are assignable to the San Luis unit, title to the facilities of the San Luis unit shall, upon request of the State, be conveyed to the State: Upon such conveyance, the State shall assume the obligation and responsibility of providing water service to the users of the San Luis unit service area the right of the United States to use the capacities of the State San Luis works shall be based upon the ratio of the total amount advanced by the United States in accordance with subdivision (b) of this section to the total capital costs of such works, provided, however, that in no event shall the right of the United States to the capacity of the State San Luis reservoir exceed 1,000,000 acre feet.

(f) promptly after execution of this agreement between the Secretary and the State, the State shall convey to the United States title to any lands, easements, and rights of way which it then owns and which are required for facilities of the San Luis unit to be used jointly by the United States and the State: The State shall be given eredit for the costs of these lands, easements, and rights-of-way toward its share of the construction cost of the San Luis unit. The State shall likewise be given eredit for any funds advanced by it to the Secretary for preparation of designs and specifications or for any other work in connection with the San Luis unit. each party to the agreement provided hereunder shall receive credit toward its share of the construction costs of the State San Luis works for its costs incurred or funds advanced for lands easements, rights-of-way and for preparation of plans and specifications or for any other work in connection with said State San Luis works;

(g) the United States shall have unrestricted use of such capacities of the works of San Luis unit which are used jointly by the United States and the State as shall be required to carry out the purposes of Section 1 of this Aet. Such unrestricted use shall extend throughout the repayment period and se long thereafter as title to the works remains in the United States;

(h) the State shall have unrestricted use of the remainder of the capacity of San Luis Reservoir and of other jointly used facilities for water service outside the San Luis unit service area solely under the jurisdiction of the State;

(i) the Secretary may turn over to the State the eare, operation, and maintenance of any works of the San Luis unit which are used jointly by the United States and the State at such time and under such conditions as shall be agreed upon by the Secretary and the State;

(g) notwithstanding any provision of this Act or any agreement entered into hereunder transfer of title or of the eare, operation, and maintenance of any works to the State, as hereinbefore provided, any organization which has theretofore entered into a contract with the United States under the Reclamation Project Act of 1939 for a water supply through the works of the San Luis unit and the State San Luis works shall continue to have and to enjoy the same rights which it would have had under its contract with the United States and the provisions of paragraph (4) of section 1 of the Act of July 2, 1956 (70 Stat. 483, 43 U. S. C. 485h-1) in the absence of such transfer, and its enjoyment of such rights shall be without added cost or other detriment arising from such transfer;

(h) if a nonreimbursable allocation to preservation and propagation of fish and wildlife has been made as provided in section 2 of the Act of August 14, 1946 (60 Stat. 1080, 16 U. S. C. 662), the features of the unit to which such allocation is attributable shall, notwithstanding transfer of title or of the care, operation, and maintenance to the State, be operated and