COST TRENDS Reclamation construction costs increased about 7.5 percent during 1955. Part of this increase is attributed to construction wage rates, which are up about 4 percent from a year ago. The balance of the increase is due to material and equipment price rises and to some degree by decreased bidding interest on the part of contractors. The average number of bidders per construction schedule dropped from 8 in 1954 to 5.8 in 1955, and this has had a slight effect pricewise on construction work. The outlook for 1956 is for slowly but steadily increasing construction costs, probably at about the same rate as during calendar year 1955. RECLAMATION FUND A major source of funds for the reclamation program is the reclamation fund established by the act of June 17, 1902. Into this fund are deposited all revenues received from Bureau operations, except from Hoover, Fort Peck, and Eklutna powerplants. By appropriation, Congress draws from the reclamation fund each year sufficient moneys to finance nearly all the general investigations and operation and maintenance appropriations, all of the general administration item, and a substantial part of the construction item. In 1957 about half our total financing would be from the reclamation fund. I appreciate the opportunity to appear before this committee. I are at your disposal. My staff and GENERAL INVESTIGATIONS Mr. DEXHEIMER. We are asking, in effect, for a very slight increase in our "General investigations." We are requesting a total of $5,680,000 to take care of increased planning work that we think is essential to the proper development of the water resources of the West. CONSTRUCTION AND REHABILITATION We are asking $150,900,000 for construction and rehabilitation, slightly more than the fiscal year 1956 appropriation. This is largely for continuation of projects under construction including a few new features on some of these projects which are needed for orderly development. OPERATION AND MAINTENANCE Our "Operation and maintenance" is largely a matter of operating and maintaining our existing facilities, most of which have been turned over to water users, but the balance of which we are, for one reason or another, still required to operate. The total operation and maintenance appropriation required is $27,267,000. That is $2,500,000 more than the appropriation for 1956. The increase is almost entirely due to taking care of additional facilities which are going into operation for the first time in the fiscal year. GENERAL ADMINISTRATIVE EXPENSES For "General administrative expenses" we are requesting $3,942,000 which is just 4%1⁄2 percent higher than the $3,600,000 plus the supplemental appropriation request of $170,000 to take care of the cost of pay increases in the present fiscal year. These expenses are nonreimbursable. They are to finance the nonproject administrative expenses which we cannot charge to projects directly for repayment. That is all. Mr. RILEY. Thank you, sir. RIO GRANDE AND GULF BASINS GENERAL INVESTIGATIONS, BUREAU OF RECLAMATION We will pass on to "General investigations." We will put pages 3 to 8 in the record at this point. (The matter referred to follows:) Reconnaissance. In response to requests from local groups, $32,000 has been scheduled under this activity in fiscal year 1956 for reconnaissance surveys of the Fort Stockton and Red Bluff projects. The local groups are advancing one-half of the cost of the studies which are to be completed by the end of the year. Basin surveys.-The cost programs of $124,600 for fiscal year 1956 and $125,000 for fiscal year 1957 for this activity will be utilized to continue planning on a basinwide study for the optimum utilization of the very limited water supply in the Pecos River Basin. The report is scheduled for completion in fiscal year 1959. Project investigations.—A major portion of the fiscal year 1956 cost program of $843,016 will be used to continue work on development of an overall plan for the utilization of the waters of the Gulf Basin streams now wasting into the Gulf of Mexico. Planning will also be under way on several divisions of the Lower Rio Grande rehabilitation project to develop plans for rehabilitating the irrigation and drainage facilities. In addition, feasibility reports are scheduled for completion on the San Angelo, San Juan-Chama, and San Luis projects. The Lower Rio Grande rehabilitation studies are being partially financed with contributed funds. In fiscal year 1957, the principal item of work in the cost program of $1,039,500 will be a continuation of planning on the large Gulf Basin project. The rehabilitation studies on the Lower Rio Grande rehabilitation project will be completed and a small amount of planning will be under way on the San Juan-Chama and San Luis Valley projects to refine the plans and undertake any necessary work arising from efforts to obtain authorization. The program of $19,000 in fiscal year 1956 and $53,000 in fiscal year 1957 will permit a resumption of studies of means of reducing the high-water losses in the Rio Grande River Channel and of modifying the project distribution system through the city of El Paso, Tex., in the interest of public health and safety. JUSTIFICATION The Pecos River Basin, like most other areas in New Mexico, has been plagued by a long series of dry years, increasing demands on a very limited water supply, and repeated shortages for irrigation purposes. It is faced with increasing shortages due to the increasing demands and the encroachment of nonbeneficial uses on the limited water supply. The water problems of this basin are as complex as any to be found in the State, making it urgent that any proposed water development project be evaluated in the light of optimum basin development. The only exception is the case of water salvage projects, such as proposed for the McMillan Delta area, which are an essential element in any basin plan that might be formulated. In spite of the urgent need of such an evaluation, individual agencies are proposing single-purpose projects which disregard the needs of other purposes and which, if authorized, promise to preclude the optimum development possible in the basin. The basinwide investigation should be made as soon as possible in order to point out the total potentiality and deter the construction of ill-conceived projects that will hamper orderly development at a later time. The State of Texas has only recently begun to realize the inadequate and piecemeal development of the water resources of the Gulf Basin project to date which, if continued, will always be a severe handicap to the development of the vast potential of its land and mineral resources. Expanding State and National economies have increasing need for Texas products requiring great quantities of water to process. The State has no preconceived, Statewide, water-use plan into which Federal funds have been, or can be, channeled with an awareness of local and national needs that can be satisfied by water projects of magnitude. This has precluded development of the water and land resource potentialities of the Gulf basin in the most economical and desirable manner. The scheduled investigations are necessary to facilitate formulation of such a plan and development of those potentialities in the interest of the Nation, State, and concerned local areas. It is essential that they be prosecuted at the maximum practicable speed in order that construction of the presently authorized developments may proceed with assurance that such construction is appropriate and construction of the additional developments needed to satisfy the growing demands for water may be accomplished sufficiently early as to minimize the retardation of the economic growth of the Gulf basins which is certain to occur if adequate, reasonably priced water supplies are not made available. The investigations during fiscal year 1957 are also essential to insure that the Federal interest in development of the water and land resources of the Gulf basin are properly inegrated with the activities of State and other interests. All of the lower Rio Grande Valley irrigation districts now face the fact that hereinafter they can utilize but 58 percent of the Rio Grande water stored in Falcon Dam-the remaining portion going by treaty to Mexico, which country is now able to utilize its share of the Rio Grande yield. In view of the reduced United States share, as opposed to the waters available in former years, water savings have assumed a higher importance than heretofore. If the valley is to continue to utilize the acreage irrigated in the past (approximately 600,000 acres), this can only be accomplished if more effective and efficient utilization is made of the waters now available to the United States side. Preliminary surveys indicate that better distribution systems in the various valley irrigation districts may possibly save up to 30 percent of the water presently diverted by the districts from the river. Drainage programs are required to enable more effective utilization of the available land and water inasmuch as severe crop losses are suffered from excessively high water tables and pondage of surplus surface water. Schedule of general investigations program, fiscal years 1966 and 1957--Rio Grande and Gulf Basin A reconnaissance study to be started and completed in Reconnaissance study for the possible rehabilitation of an $56, 000 Investigation now under way to establish a basin plan for optimum utilization of a very limited water supply which is being further depleted by increasing demands for water, nonbeneficial consumption along the river, and high channel losses. Report to be completed in fiscal year 1958. Schedule of general investigations program, fiscal years 1956 and 1957-Rio Grande and Gulf Basin-Continued Investigation in progress jointly financed by the Govern- Feasibility study now underway and to be completed in San Angelo project. 91, 035 60, 035 31,000 San Juan-Chama project... Colorado-New 1,067, 786 963, 786 64, 000 20,000 |