Southeastern Power Administration:

GENERAL STATEMENT

Chairman HAYDEN. Secretary Udall is appearing this morning to open his Department's justification of the budget proposals.

We will be glad to hear from you, Mr. Secretary.

Secretary UDALL. Thank you, Mr. Chairman. It is a pleasure to appear before your committee.

I would like my statement to appear completely in the record as I present it, and I will summarize the highlights.

Chairman HAYDEN. That will be fine. That may be done.

Secretary UDALL. Taking into consideration changes since the budget was sent to the Congress, the budget request of the four agencies is $445,922,000. This is an increase of $51,012,843 over the fiscal year 1963. It represents a program increase of $49,389,613 and pay act costs of $1,623,230.

As this committee knows, the expenditures made in this area are an investment in resource development, conservation projects, and, as such, it is my own feeling this is in terms of the longrun good for the country.

This is some of the best money, if not the best money, that is spent and I needn't labor that point with this committee which has handled these appropriations over the years.

NEW-START PROJECTS

We have in the budget several new-start projects. One very important one is the Fryingpan-Arkansas project in Colorado. We have the Arbuckle project in Oklahoma, the Agate Dam and Reservoir in the Rogue River Basin in Oregon, the Spokane Valley project in Washington, and three new participating projects in upper Colorado-Lyman, Wyoming, San Juan-Chama, Colorado-New Mexico, and the Rio Grande project, New Mexico.

Recreational facilities are to be constructed on the Rio Grande project to provide for the heavy use in an area where natural bodies of water are nonexistent. Public safety and sanitation must be substantially improved to avoid potentially serious health and safety problems.

COMPREHENSIVE RIVER BASIN PLANNING

We also have some funds in the bill, Mr. Chairman, for the comprehensive river basin planning in some of the river basins in the West. The President has requested and there is authorizing legislation pending to do a very systematic job of planning our water resources of all basins and, until that legislation is enacted, we will have to continue on a piecemeal basis.

HANFORD PROJECT

I should also like to report to the committee that the Hanford project in the State of Washington will use the waste steam from the plutonium reactor, that the bonds have been sold and the project is going forward. The compromise worked out we think is a very fine

one.

Chairman HAYDEN. That project, then, will proceed?

Secretary UDALL. Yes. It is proceeding and, of course, the project is being built by these Washington public utility districts. Half of the power will be purchased by private and half by public agencies in the area. The contracts have already been signed and the project is moving forward nicely.

Senator ELLENDER. Is private money being used?

Secretary UDALL. Yes. A group of public utility districts in the State of Washington are building the steam generating plant with revenue bond financing.

Senator ELLENDER. Referring to the comprehensive planning that you have just mentioned concerning river basins, would you name them for us?

Secretary UDALL. Well, Senator, the ones that we have identified, mentioned in my statement here, the ones we have money in this legislation relate to Puget Sound, in the State of Washington, Willamette River Basin in Oregon, and the Missouri River and Colorado River Basins.

FUNDS IN MISSOURI RIVER BASIN PLANNING

Senator ELLENDER. I am interested in the Missouri River Basin. I don't remember the amount you are requesting, but I believe it is around $5 million.

Secretary UDALL. No. For the Bureau of Reclamation, as far as they are concerned, this is $522,000 for this year.

Senator ELLENDER. But the whole amount would be in excess of $5 million, wouldn't it?

Secretary UDALL. I think that is probably correct because this is our participation in the comprehensive studies. Of course, we worked with the Corps of Engineers on many of them.

COOPERATION WITH CORPS OF ENGINEERS

Senator ELLENDER. A request has been made by the corps to make similar studies of the same river and I am wondering the extent to which there has been cooperation between your Department and the

corps.

Secretary UDALL. Well, there is cooperation. In fact, we have I think some very good cooperation.

Senator ELLENDER. I know that; but I mean on these particular projects?

Secretary UDALL. I would like Secretary Holum to comment on

that.

Secretary HOLUM. I will be very happy to comment on that, Senator. These plans, both from the point of view of the work that is going to be done and the funds that are requested for these comprehensive river basins, have been worked out in cooperation with the various agencies affected, particularly on the Missouri Basin. There has been the closest possible cooperation between the Bureau of Reclamation and the other agencies of the Department of Interior and the Corps of the Army Engineers both from the point of view of working out the financing required and the type of studies that are to be conducted.

Senator ELLENDER. That wasn't the evidence furnished to me a few weeks ago. I understood from the corps witnesses who asked for