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EXECUTIVE OFFICE OF THE PRESIDENT,

Hon. HENRY M. JACKSON,

BUREAU OF THE BUDGET, Washington, D.C., February 4, 1965.

Chairman, Committee on Interior and Insular Affairs,
U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: This is in response to your request for our views on S. 21, a bill "To provide for the optimum development of the Nation's natural resources through the coordinated planning of water and related land resources, through the establishment of a water resources council and river basin commissions, and by providing financial assistance to the States in order to increase State participation in such planning."

For the reasons set out in the statement on this bill which I am presenting to your committee on behalf of the executive branch and subject to consideration of an amendment recommended in that statement, the Bureau of the Budget urges favorable consideration of S. 21, the enactment of which would be in accord with the program of the President.

Sincerely yours,

ELMER B. STAATS, Deputy Director.

FEDERAL POWER COMMISSION REPORT ON S. 21, 89TH CONGRESS

The proposed legislation, which would be known as the Water Resources Planning Act, declares the policy of Congress to encourage the conservation, development, and utilization of water and related land resources on a comprehensive and coordinated basis with the cooperation of Federal, State, and local governments and others concerned. To implement this policy the bill would create a Water Resources Council composed of the Secretaries of the Interior, Agriculture, the Army, and Health, Education, and Welfare, and the Chairman of the Federal Power Commission as regular members. The Council would be an interagency coordinating group charged with broad responsibilities for formulating, evaluating, and coordinating water resources plans on a national basis. The bill would also provide for the setting up of intergovernmental river basin commissions, composed of representatives of interested State and Federal agencies. These commissions would be responsible for preparing and coordinating regional or area plans. Appropriations of $5 million annually for 10 years would be authorized to assist the States in water and related land resources planning. The desirability of establishing formally an effective coordinating entity in the field of water resources planning and development has been generally recognized in recent years.1 This need has been particularly evident with respect to coordination of Federal and non-Federal development. Establishment of the proposed machinery to facilitate participation by State and local interests should lead to fuller understanding and more effective cooperation between the United States and State and local interests concerned with the development of water and related land resources.

S. 21 would make it possible for the Federal Power Commission, by means of the membership of its Chairman on the proposed Water Resources Council, to bring to bear its long experience in comprehensive planning of water resources projects derived from administration of the Federal Power Act and from participation in planning Federal river development projects under various other acts.

Under the broad provisions of the Federal Power Act the Commission, in addition to licensing non-Federal hydroelectric developments, has over the years studied power possibilities on streams throughout the United States and has accumulated and keeps current a large volume of data on all segments of the power industry, publicly and privately owned, its capacity, operations, requirements, loads, locations, and interconnections. As part of the National Power

1 See the Jan. 17, 1956, report of the Presidential Advisory Committee on Water Resources Policy (H. Doc. 315, 84th Cong., 2d sess.), the June 1955 report on Water Resources and Power submitted by the Commission on Organization of the Executive Branch of the Government (known as the Second Hoover Commission), the June 1955 report and accompanying studies on natural resources and conservation submitted by the Commission on Intergovernmental Relations, and the Jan. 30, 1961, report (S. Rept. 29, 87th Cong., 1st sess.), submitted by the Select Committee on National Water Resources set up pursuant to S. Res. 48 of the 86th Cong.

Survey, recently published by the Commission, a survey of the Nation's hydropower potential was undertaken which emphasized the need for long-range comprehensive plans to harmonize the requirements of all water uses. In connection with other statutory responsibilities, the Commission cooperates with Federal constructing agencies in developing plans for the comprehensive development of river basins; and since 1943 the Commission has been a full member of the Federal Interagency Committee on Water Resources (and its predecessor Committee) established to coordinate the planning and development of river basin projects.

Section 3 of this bill preserves the Commission's licensing and related statutory functions. Section 103 assigns to the Water Resources Council the vitally important function of establishing guiding principles, standards, and procedures for Federal projects. With regular membership on the Water Resources Council provided in section 101, the Commission will be able to continue to fulfill its statutory functions effectively and at the same time contribute to the work of the Council.

S. 21 is substantially similar to S. 1111, 88th Congress, which was passed by the Senate on December 4, 1963, and on which we favorably reported to the House committee on March 23, 1964 (H. Rept. 1877, 88th Cong.). We continue to support this bill and recommend its early enactment.

FEDERAL POWER COMMISSION.

By DAVID S. BLACK, Acting Chairman.

Senator ANDERSON. S. 21, 89th Congress, is identical with S. 1111 of the 88th Congress as that measure was reported favorably to the House of Representatives by the House Interior Committee after it had been considered by our committee and passed by the Senate on December 4, 1963. S. 1111 did not obtain a rule from the House Rules Committee and, therefore, died with the adjournment of the 88th Congress.

Both the Senate and House Interior Committees held comprehensive hearings in the 88th Congress on S. 1111, at which the views of the executive agencies of the Federal Government, those of the States, and those of interested private organizations and individuals were set forth.

I will direct that these hearings on S. 1111 of the 88th Congress be incorporated by reference into the record of these hearings so that the committee and the Congress may have the complete record before it for information and guidance.

Also, the record of these hearings will be kept open for a week to permit inclusion of any new executive agency reports and expressions of views of the States and organizations and individuals.

S. 21 would accomplish three things. It provides for a Federal Water Council composed of the Secretaries of the Interior, Army, Agriculture, and Health, Education, and Welfare, and the Chairman of the Federal Power Commission. This Council has been functioning on an ad hoc basis for 4 years.

The bill also authorizes the establishment of Federal-State river basin planning commissions where and when half the States involved and the Council agree that a commission is desirable. Finally, it authorizes the appropriation of $5 million annually for 10 years to assist State governments in planning for both intrastate and inter

state waters.

The purposes of this planning bill have the vigorous support of the Interstate Conference on Water Problems of the Council of State Governments, the National Reclamation Association, the National Association of Manufacturers, the National Wildlife Federation, the Upper Colorado River Commission, and many other groups.

A House companion measure to S. 21 which, perhaps significantly, carries the number of the old Senate bill, S. 1111, was considered by the House committee on Wednesday in open hearing, and I understand a markup executive session is scheduled for next Wednesday. The two bills are substantially identical, and it is my earnest hope that we can proceed to act on them without delay.

In view of my conviction that the basic issues were thoroughly discussed in the open hearings in the last Congress and my desire for prompt action, I will try to practice what I preach and will not prolong this opening statement. However, I do wish to emphasize one very important point. That is: Federal-State water rights, which has been something of a straw man for a number of years any time a comprehensive bill for joint efforts by the States and Federal Government is considered, are in no way involved in S. 21. I hope very much this diversionary, baseless issue will not be interjected into the consideration of S. 21.

With that injunction, or at least hope, I will bring my comments to a close and ask if any member of the committee wishes to make a statement at this point.

Then I will call upon Mr. Elmer Staats, Deputy Director of the Bureau of the Budget, who will be spokesman for all of the executive agencies of the administration.

STATEMENT OF ELMER B. STAATS, DEPUTY DIRECTOR, BUREAU OF THE BUDGET; ACCOMPANIED BY WESLEY K. SASAKI, ASSISTANT DIVISION CHIEF, RESOURCES AND CIVIL WORKS DIVISION, BUREAU OF THE BUDGET; AND MONTE CANFIELD, JR., BUDGET EXAMINER, RESOURCES AND CIVIL WORKS DIVISION, BUREAU OF THE BUDGET

Mr. STAATS. With me are Mr. Sasaki and Mr. Canfield, who have been working on this matter with me, who will be here to answer questions if I cannot do so.

Mr. Chairman, I have a brief statement that I would like to present and then answer any questions you may have.

Senator ANDERSON. You may proceed.

Mr. STAATS. I wish to thank you for the invitation to discuss with you S. 21, the Water Resources Planning Act. Enactment of this legislation will implement a major recommendation of President Kennedy's 1961 message on natural resources. President Kennedy emphasized his support by recommending similar legislation as part of the administration's 1963 budget, and again in his 1964 budget message. In the 1965 budget, President Johnson committed his administration to support of this legislation and, less than 2 weeks ago, the President reasserted his commitment in his 1966 budget message. He stated:

I am *** again recommending legislation to authorize river basin planning commissions and grants to States for planning the best use of water resources. We are most appreciative of this committee's continuing concern for the proper planning and development of our Nation's water resources. In large measure, it was through the perseverance of this committee

that the divergent views of many groups, all recognizing the benefits of comprehensive and coordinated planning, were molded into S. 1111, the bill which passed the Senate in December 1963. This bill, S. 21, is similar to S. 1111 as passed by the Senate, and incorporates the recommendations of the House committee on S. 1111. It reflects the needs and responsibilities of both Federal and State Governments.

The bill has strong administration support. I hope it will receive early favorable action by the Congress.

The problem areas that confront us in the water resources field are immense and varied. They include flood control, navigation, hydroelectric power, pollution abatement, and water quality control, municipal and industrial water supply, irrigation, recreation, and fish and wildlife conservation.

In general, the overall national water supply is abundant, but it is not distributed equally. Shortages in some sections of the country are becoming critical and tend to restrict economic growth. At the same time, in areas with adequate quantities of water, problems arise because of floods and pollution.

The pollution of our streams and rivers is of grave importance and of particularly deep concern because of the impact of water quality on all water uses. Studies reported in 1961 by the Senate Select Committee on National Water Resources, based on data furnished by the Public Health Service, estimated the need for investment in sewage and industrial waste collection and treatment facilities alone would amount to over $42 billion between 1954 and 1980, and over $81 billion by the year 2000.

The late Senator Robert S. Kerr, chairman of the Senate select committee, summarized the problem succinctly in 1961:1

An ample supply of good quality water is essential to the continued welfare of modern civilization. If the economy of the United States is to continue to grow and prosper, there must be adequate supplies of water * * *.

Thus, our goal must be to develop, manage, and utilize our basic water supply to meet demands as they arise both in quantity and quality. The development of these vital resources is a vast undertaking which is growing larger. Proper development will require the concerted and coordinated action of Federal, State, and local agencies which this bill is designed to facilitate.

The vastness of the task is exemplified by the Federal investment in water resources. Estimated Federal expenditures (including trust funds) in the 1966 budget for natural resources programs are $2.9 billion, about two-thirds of which will be for the construction, maintenance, and operation of water resources projects. The remaining one-third includes Federal expenditures related to forests, minerals, recreation, and fish and wildlife.

The prudent development of our water and related land resources must be based on sound planning. Each project, each plan, must further the most efficient use of water. Each project, each plan, must be critically evaluated in the light of competing demands for this increasingly scarce resource. To attain this will require comprehensive and coordinated planning. The problems of proper water resources planning will not solve themselves.

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As Senator Kerr wrote in 1961:

Formation of a program to meet the Nation's needs must await the preparation of detailed and comprehensive plans for water resources development in each of the river basins.

The select committee recommends that such plans be developed cooperatively by the appropriate Federal and State agencies at the earliest practicable time.

President Kennedy was interested in comprehensive planning, and in October 1961 he asked that the agency heads who would be members of the proposed Water Resources Council concern themselves with the development of appropriate policies and procedures for planning water resources projects.

Since then, the Federal Government has attempted, with success, to coordinate its own efforts in comprehensive planning through an Interdepartmental Staff Committee on Water Resources. In the 1966 budget, funds are requested to carry out river basin studies under this coordinated program. It is a good program, a step in the right direction, but it is not enough.

One method of dealing more effectively with the problem of comprehensive planning is through the establishment of mechanisms which recognize the special and continuing responsibilities of the various levels of government. We have had, in the past, one-time efforts toward comprehensive river basin planning, but a major missing ingredient in these efforts has been the provision for a continuing program. The need to maintain these efforts and to keep them up to date is clear if we are to maximize their usefulness. S. 21 provides for continuing study and updating of river basin plans.

The basic idea of comprehensive river basin planning for Federal, State, and local action has been endorsed for many years. For example, the President's Water Resources Policy Commission in 1950 and the Presidential Advisory Committee on Water Resources Policy in 1955 both supported this concept.

Enactment of S. 21 will put that concept into effect. It is the next step in promoting optimum development of the Nation's water resources. It will recognize, in an appropriate manner, State and interstate interest in the planning process. And it will provide an opportunity for the States to participate in the planning process from its inception, rather than reviewing a plan, in the development of which they played only a small part.

It will, in addition, aid the States in their planning efforts through Federal grants. The bill is the result of consultation and cooperation with many State interests.

Mr. Chairman, so far as we know, this bill now has general support on the part of all Federal agencies, the States, and local govern

ments.

Senator ANDERSON. Since you said that, and since you started by expressing the appreciation for the work of this committee in taking care of the views of many groups, I want to say it wasn't the work half as much of the committee as the committee staff, particularly Ben Stong, until recently a member of the committee staff, and Stewart French, who kept drafting necessary language.

I am pleased that you mentioned that so that we can compliment them, as well as your office. Your office has done great work on this

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