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PROPOSED REPORT OF THE ACTING COMMISSIONER OF

RECLAMATION

DEPARTMENT OF THE INTERIOR,

BUREAU OF RECLAMATION,

Washington, D. C., December 14, 1956. The SECRETARY OF THE INTERIOR.

Sir: This is my proposed report on the Greater Wenatchee division of the Chief Joseph Dam project, Washington. It is based on, and includes the accompanying report of our regional director, Boise, Idaho.

The Greater Wenatchee division is in the Columbia River Valley between Moses Coulee on the south and Pateros, Wash., on the north. It comprises seven units which are completely separate land bodies several miles apart, thus requiring independent irrigation systems. There are 10,852 acres of irrigable land in the 7 units, of which 9,357 acres are not now irrigated. All land would be irrigated by pumping from the Columbia River. Under each of the seven plans making up the Greater Wenatchee division, water would be pumped from the river and conveyed through a discharge line to the unit lands. Each unit would be serviced by a closed pipe distribution system.

The regional director recommends authorization at this time for only 4 of the 7 units. These units-Howard Flat, Brays Landing, East, and Moses Coulee-comprise a total of 8,661 acres, of which 7,221 acres are not now irrigated.

Recommendation for authorization of the North Pateros unit was not considered desirable at this time primarily because a major number of landowners are not interested in participating in the irrigation plan at present. Recommendation for authorization of the South Pateros and Antoine Creek units also was not considered proper because they contain a significant portion of Indian-owned land which presents special unresolved problems. Future consideration of the feasibility of these units and their suitability for Federal construction will depend upon prevailing circumstances.

Chief Joseph Dam was authorized in 1946 to be constructed under the supervision of the Corps of Engineers, Department of the Army. At the time of its authorization many of the project sponsors recognized the desirability of a multiple-purpose project to include provisions for irrigation. However, factual data on the potentially irrigated lands had not been studied in sufficient detail to permit authorization at that time of irrigation facilities.

In 1952 the Congress enacted a law (Public Law 577, 82d Cong., July 17, 1952) covering studies of irrigation potential in the general vicinity of Chief Joseph Dam. This law provides in part:

That the Secretary of the Interior is authorized to proceed in relation to the Chief Joseph Dam Project on the Columbia River, Washington, initially authorized by section 1 of the Act of July 24, 1946 (60 Stat. 637), in accordance with

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the provisions of this Act to make a study and report to Congress on means of providing financial and other assistance in the reclamation of arid lands in the general vicinity of the project.

The first of the studies under the provisions of Public Law 577 was on the Foster Creek division, leading to its authorization in 1954 (Public Law 540). Construction funds have been made available and construction has been started on the Foster Creek division.

This report on the Greater Wenatchee division is the second study. Information is presented on the extent and quality of division lands, the water requirements of the seven units and the supply available to them, engineering plans for development of the units and estimates of their costs, the economic justification of the division, and the financial feasibility of the development.

Section 2 of Public Law 577 requires that certain information be provided in reporting on irrigation developments in connection with Chief Joseph Dam. A compilation of the required data for the seven units of the Greater Wenatchee division is presented in the regional director's report. A similar compilation covering only the four units recommended for authorization is attached to this letter.

The land areas making up the Greater Wenatchee division largely occupy high terraces, but include also a lower-lying coulee area of small extent. These lands occur at elevations of about 400 to 750 feet above the level of the Columbia River. The Columbia River would be the source of irrigation water for the units of the Greater Wenatchee division. There is no question as to the adequacy of the supply, and the quality of water is excellent for irrigation. The annual diversion requirement is a fraction of 1 percent of the average annual river flow of approximately 85 million acre-feet at Trinidad at the south end of the division.

Electric power for the pumping plants would be obtained from the Federal power system at a power rate based on the cost of generation at Chief Joseph Dam and transmission by the Bonneville Power Administration.

The units have been analyzed separately in the regional director's report. Each is feasible separately, although there would be some advantage in constructing and operating the four units as a single entity. The information in the following paragraphs presents data for the combination of the four units recommended.

The total cost of the 4 units recommended for authorization is estimated at $8,782,000, consisting of (1) the cost of constructing irrigation facilities,' $8,158,500; (2) capitalized operating costs, $545,000; and (3) the cost of intake screens for fish protection, $78,500. The cost of the fish facilities is nonreimbursable, in accord with Public Law 732, 79th Congress. The remaining cost is reimbursable without interest, and amounts to $8,703,500.

The water users' adjusted-payment capacity is estimated to be $233,480 annually, following the development period. Of this amount, $96,335 must be utilized for the annual operation and maintenance costs, leaving an amortization capacity of $137,145 to apply against the capital cost and capitalized operating costs.

In a 50-year repayment period, all of the reimbursable costs could be recovered. The water users probably could pay about 79 percent of these costs, and the remaining 21 percent beyond the water users' ability to pay could be paid, using surplus power revenues from Chief

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Joseph Dam as provided in Public Law 577. This would require an amount obtained from only approximately 115 days' production at Chief Joseph Dam.

In the absence of an assured replacement fund, a portion of water users' repayment capacity ($24,890) annually has been included in the amount the water users could be expected to repay toward the reimbursable costs.

Economic justification is based on a comparison of benefits with associated costs. Using a 50-year period of analysis, the benefit-cost ratio is 5.39 to i for total irrigation benefits, and 1.76 to 1 for direct irrigation benefits only. On the basis of a 100-year period of analysis, the benefit-cost ratio is 6.59 to 1, using the total irrigation benefit, and 2.15 to 1, using direct benefits only.

The financial information in the foregoing paragraphs and in the attachment is based upon construction costs estimated at July 1955 price levels; operation and maintenance costs are reduced to a long term figure, using procedures specified in current interagency agree

Basing the construction and replacement estimates on October 1956 prices, and assuming operation and maintenance costs on current levels, the development continues to be financially feasible. The cost of constructing facilities at October 1956 levels totals $9,734,800 (compared to $8,237,000 at July 1955 levels). The water users would be able to pay 73 percent of the total construction obligation (compared to 79 percent). Financial aid beyond the water users' ability to repay would amount to $2,740,250 (compared to $1,846,250), or an equivalent of some 171 days of power revenues from Chief Joseph Dam (compared to 115 days).

The Fish and Wildlife Service of this Department has made a general study of the effect of the project on fish and wildlife resources, and has concluded that it would have a slightly adverse effect on fish and wildlife resources. The intakes of the pumping systems will be screened in a manner satisfactory to the State of Washington and to the Fish and Wildlife Service. Measures to protect fish and wildlife resources will be provided in accordance with the provisions of Public Law 732, 79th Congress.

I concur in and adopt the recommendations of the regional director for construction of 4 of the 7 units and deferring action on 3 units.

Subject, of course, to consideration of future comments, I recommend further that you approve and adopt this report as your proposed report on the Greater Wenatchee division of the Chief Joseph Dam project, and that you authorize me, in your behalf, to transmit copies to the States of the Columbia River Basin and to the Secretary of the Army in accordance with requirements of the Flood Control Act of 1944 (58 Stat. 887), to the State of Washington for the views and recommendations of the head of the agency exercising administration over the wildlife resources of the State in accordance with provisions of the act of August 14, 1946 (60 Stat. 1080), and to other interested Federal agencies for their comments. Respectfully,

E. G. NIELSEN,

Acting Commissioner. Approved and adopted January 24, 1957.

FRED G. AANDAHL, Acting Secretary of the Interior.

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[Data required by Public Law 577 (act of July 17, 1952)]

GREATER WENATCHEE DIVISION (Four UNITS) INTEGRATED WITH

CHIEF JOSEPH DAM AND THE FOSTER CREEK Division Section 2 of Public Law 577 requires that certain information be provided in reporting on irrigation developments in connection with Chief Joseph Dam. The required information follows:

(a) The estimated construction cost of Chief Joseph Dam and Reservoir, excluding interest during construction on interest-bearing facilities, including a 16-generator powerplant with an installed capacity of 1,024,000 kilowatts, plus the cost of irrigation facilities for the Foster Creek division and the Greater Wenatchee divisionincluding capitalized operating costs—amounts to $172,845,300.

(6) The cost of $172,845,300 is allocated to the various functions, as follows: Power, $159,956,700; irrigation, $12,792,600; and fish and wildlife, $96,000.

The power allocation is suballocated to commercial power ($158,948,700) and irrigation pumping power ($1,008,000). The irrigation pumping power is made up of $242,000 for Foster Creek division and $766,000 for the Greater Wenatchee division. The fish and wildlife allocation is $17,500 for the Foster Creek division and $78,500 for the Greater Wenatchee division. The irrigation allocation is $4,089,100 for the Foster Creek division and $8,703,500 for the Greater Wenatchee division.

The total allocation to Chief Joseph Dam is $158,948,700; total to Foster Creek division is $4,348,600; and total to Greater Wenatchee division is $9,548,000.

The allocations and suballocations noted above were made by the Bureau of Reclamation in order to comply with the provisions of Public Law 577. The final allocations of the costs of Chief Joseph Dam will be made after consultations between the constructing agency—the Corps of Engineers, Department of the Army-and the Department of the Interior. "Once those allocations have been made, they will be used in subsequent studies, pursuant to Public Law 577.

(c) Annual operating costs, including replacements and the cost of pumping power for the Chief Joseph Dam and Foster Creek division and operating costs and pumping power for the Greater Wenatchee division, are estimated to total $2,337,415. The costs are made up of $2,191,000 for power facilities (the dam), and $146,415 for irrigation facilities. The total for irrigation facilities is made up of $50,080 for the Foster Creek division and $96,335 for the Greater Wenatchee division.

(d) Irrigators on the 2 irrigation divisions could be expected to repay $8,801,550 in 50 years, 69 percent of the total costs allocated to irrigation. Average annual repayment on construction costs would be $176,031 for the 2 divisions, or $13.95 per acre.

Water charges to the irrigators would vary by land classes. Proposed water charges (total, including annual operating costs) are:

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Foster Creek division: Bridgeport Bar unit: 4F lands.

-- per acre.. $23. 00 4H lands.

do...

13. 50 Total annual water charge.

11, 360. 00 Average charge.

- per acre...

17. 98 Brewster Flat unit: All lands...

do.--

24. 00 Total annual charge.

58, 366. 00 Average charge.

- per acre..

24. 00 Bluebottle Flat unit: 4F(1) lands..

-do.--

35. 00 4F(2) lands.

-do...

22. 50 Total annual charge.

19, 240.00 Average charge..

per acre...

29. 38 Greater Wenatchee division: 4F(1) lands

do... 35. 00 4F(2) lands

..do.

22. 50 All general farmlands

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15. 00 Total annual charge.

233, 480.00 Average charge.--

- per acre..

26. 96 Annual water charges for all lands in the Foster Creek division and the Greater Wenatchee division would be $322,446. The average annual charge per acre for construction and operating costs would be $25.55.

(e) The costs allocated to irrigation in excess of the irrigators' ability to repay on the Foster Creek and the Greater Wenatchee divisions, respectively, are $2,082,000 and $1,846,250, totaling $3,928,250. This amount will be returned to the Federal Treasury through surplus power revenues from Chief Joseph Dam powerplant.

(f) The power produced at Chief Joseph Dam will be marketed by Bonneville Power Administration. The rates charged for power will be established by the Bonneville Power Administration and approved by the Federal Power Commission. These rates will return to the Federal Treasury the annual costs of operation, maintenance, and replacements for the powerplant, and amortize the commercial-power investment in 50 years at 22 percent interest.

Power for irrigation pumping will be available from high-voltage facilities of the Bonneville Power Administration at a cost of 1 mill per kilowatt-hour. Stepdown transformation, where provided by the Bonneville Power Administration, will cost another 0.5 mill per kilowatt-hour. This cost is included as a construction item in the estimate. Because the Federal power system is not available to all units of the division, power will be “wheeled” over the facilities of local power distributors to some of the units. Annual operating costs will include an amount to pay these wheeling costs, as well as the 1 mill cost to the Federal power system. The estimated costs to the irrigation areas or units for pumping power are į resented below.

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