We also would suggest some language change to include more clearly that the Secretary of the Interior has the necessary authority to cooperate with State and other agencies who may construct and operate the prototype desalter. Our specific suggested amendments to H.R. 7366 are attached.

In conclusion, we believe that the large-capacity prototype study that is presently underway by the California Department of Water Resources and the Interior Department will afford the best opportunity for the early construction of a prototype desalting plant to satisfy the substantial national commitment as would be authorized and directed by H.R. 5334 and H.R. 7366. The prototype desalter considerations of the bills can more than adequately be met by the California study proceeding into the authorization, design, and construction phases. The plant size and process best suited for advancing technology can be selected. There is likely to be available cooperating, non-Federal entities to operate the plant and provide a water market. A site has been identified. A power supply is available. It is anticipated that environmental considerations can be adequately resolved. There is a need for an additional municipal and industrial water supply in the service area. The Counties of Santa Barbara and San Luis Obispo are looking to the State for augmentation of their water supplies. We therefore respectfully urge enactment of legislation substantially as called for in the bills before you.

(The attachments accompanying Mr. Teerink's prepared statement follow :)

SUGGESTED AMENDMENTS TO H.R. 7366

(1) On page 3, line 22, after the words "the Congress" insert a comma and the words "not later than one year after the date of this Act,";

(2) On page 4, line 5, after the words "agreements for" insert the words "operating the plants and";

(8) On page 7, beginning on line 10, delete the words "Whenever the other participant is a non-Federal agency, the Federal financial contribution shall be limited to 50 per centum of the construction cost and 50 per centum of the operating and maintenance cost during the initial operating period, not to exceed three years following plant acceptance.", and insert the words "The degree of said participation shall be set forth in such authorization.”;

(4) On page 9, line 18, after the words "assistance from" insert the words "or cooperate with";

(5) On page 9, line 19, change the words "to conduct" to "in carrying out"; (6) On page 9, line 20, after the words "to such" insert the word "program" and delete the words "assistance which specify the purpose or purposes for which the assistance is to be used";

(7) On page 10, line 7, after the words "such contracts" change the period to a colon and insert "Provided further, That the Secretary of the Interior is authorized to participate in any prototype feasibility studies or programs being conducted by a Federal or State agency."

Mr. JOHNSON. We thank you, Mr. Teerink, for a very fine statement here.

In your statement you speak about a cooperative agreement. Could you furnish for the record a copy of that cooperative agreement? Mr. TEERINK. Yes, sir; we will.

Mr. JOHNSON. I would ask unanimous consent that it be made a part of the record at this point.

Is there objection?

Hearing none, it is so ordered.

(Copy of the agreement referred to for inclusion in the record follows:)

COOPERATIVE AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE STATE OF CALIFORNIA FOR MUTUAL ASSISTANCE IN THE DEVELOPMENT AND APPLICATION OF DESALTING

This agreement is entered into this seventeenth day of November 1969 pursuant to the Saline Water Conversion Act of July 3, 1952, (66 Stat. 328), as amended (42 U.S.C. 1951, et seq.), and the Cobey-Porter Saline Water Conversion Law, Calif. Stats. 1965, ch. 991 and ch. 993, between the United States of America, hereinafter referred to as the Government, represented by the Director of the Office of Saline Water of the Department of the Interior, hereinafter referred to as the OSW, and the State of California, hereinafter referred to as the State, represented by the Director of the Department of Water Resources, hereinafter referred to as the DWR.

Whereas, the principal function of OSW is to provide for the development of practicable low-cost means for the large-scale production from saline water of water of a quality suitable for municipal, industrial, agricultural, and other beneficial consumptive uses and to conduct, encourage, and promote fundamental scientific research and basic studies to develop the best and most economical processes and methods for converting saline water into water suitable for beneficial consumptive purpose and to find new sources of supply to meet the present and future water needs of the Nation; and

Whereas, to accomplish the above function, it is necessary to undertake desalting feasibility and economic studies to assist in meeting OSW planning requirements for research and development efforts in saline water conversion, to develop the methodology of assessing potential applications of desalting in helping solve future water supply requirements, and to determine present and prospective costs of producing water for beneficial consumptive purposes in various parts of the United States by leading saline water processes as compared with other standard methods; and in these studies and surveys to cooperate with State and local departments, agencies, and instrumentalities; and

Whereas, the State has supported, conducted and has underway a program in the field of desalting involving an extensive review and assessment of its needs for the application of large-scale desalting plants to supplement the fresh water supplies of the State; and

Whereas, the State in connection with its water resources evaluation, has determined that potential supplies of saline water, including sea water, may in the future be desalted to provide a useful supply of water; and

Whereas, the potential of desalting cannot be reliably evaluated for largecapacity production until the technology is proven in the actual construction and operation of a large-scale prototype plant; and

Whereas, the State Legislature has determined that the people of the State have a primary interest in the development of economical desalting to assist in meeting the future water requirements of the State; and

Whereas, at the 1969 Annual Meeting of the Western Governors' Conference, including the State, the Western Governors resolved to cooperate with and encourage the Federal Government in the development and demonstration of large-capacity desalting technology and in assessing sites suitable for the construction and operation of a prototype desalter with a nominal capacity in the order of 30,000 to 50,000 acre-feet per annum ;

Now, therefore, it is mutually agreed that:

The Cooperative efforts Between the United States of America and the State of California relating to saline water conversion are hereby extended subject to the following terms and conditions:

1. The State and OSW shall exchange information on the programs of each relating to water problems in general, and to techniques and economics of desalting in particular.

2. Information exchanged between the State and OSW by correspondence and personal interviews shall include but not necessarily be limited to:

a. Technical information on research and development of improved desalting processes and their actual or potential application.

b. Potential demand for desalted water, present and future, to the extent that such information is available.

c. Technical advice and assistance on items of mutual interest to the extent mutually agreed upon from time to time.

3. The State and OSW shall cooperatively work in the field of research and development, the assessment of potential desalting applications and sites in the State, development of large-scale prototype desalting and evaluation of sites for large-scale desalting plants and test facilities located in the State.

a. Research and development may include specific work pertinent to desalting which is supported by the State through its institutions and participation in specific desalting equipment and facilities and related test work at OSW test centers or other mutually agreeable sites.

b. The assessment of potential applications for desalting within the State would include reconnaissance and engineering feasibility studies of likely applications for desalting in the State to meet municipal industrial, agricultural, and other needs. This assessment would include consideration of such items as costs, plant facility requirements, base load and conjunctive operation, brine disposal, blending, pre- and post-treatment, water quality improvement and related items.

c. Development of a large-scale prototype desalting plant and evaluation studies of sites may be undertaken in view of the DWR and OSW's on-going interest in the construction and operation of such plants.

4. In the event any of the above work is undertaken, separate task agreements for each principal area of work shall be mutually agreed upon in writing. The arrangements shall outline procedures for the conduct of the work including detailed statement of work, financial arrangements, division of work, basis for engineering and cost development, and related aspects, however, no obligation of funds for such further tasks is herein contained and if such an agreement is reached it will be in the form of either a further written agreement between the parties or a written amendment hereto. Separate task agreements will be subject to all applicable laws and regulations of the United States.

5. All information derived from or developed during the performance under this agreement or any separate task undertaken hereunder shall be available, without restriction, to all parties hereto, and the Government and the State shall have the full right to use or publish any report developed or any portion thereof, and authorize others to do so for any of the purposes set forth in the Saline Water Conversion Act or other applicable legislation. Any manuscript approved for publication hereunder shall carry an acknowledgment of support by the Office of Saline Water and the State of California.

6. Public releases shall be made with the concurrence of both parties and, where possible, efforts shall be made to make such releases jointly, or simultaneously by the parties.

7. The State and OSW will be responsible for the salary, transportation and related expenses of its respective representatives.

8. No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this Agreement or to any benefit that may arise hereunder.

9. Civil Rights Act of 1964: The parties agree that work under this Agreement will be conducted in compliance with all requirements imposed by or pursuant to Title VI of the Civil Rights Act of 1964 and 43 Code of Federal Regulations, Part 17.

This agreement shall be effective upon signature by the authorized representative of OSW and the State and shall continue for a term to June 30, 1972, except as the OSW and the State may agree to extend such term.

Mr. JOHNSON. Also I want to thank you for your presentation to us when we were in California studying some of the problems dealing with this particular project as well as others. We appreciated your hospitality and your discussions with us when we were in Sacramento reviewing the California State Water Plan.

Further in your statement, on page 4, you say that you have entered into a contract with the architect-engineering firm of Kaiser Engi

neers. Has the State of California entered into a contract or is it a joint contract with the Office of Saline Water and the State of California? Mr. TEERINK. The contract is with California and Kaiser Engineers. The agreement that we have with OSW provides that we would enter into such an arrangement with an architect-engineering firm. So it is a contract just between Kaiser and the State of California. Mr. JOHNSON. How far would that architect-engineering reconnaissance study go!

Mr. TEERINK. It would be just to the plant. It will not do the conveyance study. We will do that sort of work. They will do the conceptual design to the point where the feasibility type of cost estimate can be prepared. It will not be working drawings, and it will not be the detailed design. That will have to come after authorization for construction. But this will be adequate to do a cost estimate that should be reliable.

Mr. JOHNSON. I was wondering if the responsibility would be in the Office of Saline Water on a cooperative basis with you, if someone actually did design the plant?

Mr. TEERINK. The next step would be the design, the detailed design. And the arrangement that might be worked out at that time is yet to be determined. Whether that would be done by an architectengineering firm with the Federal agency and the State of California participating together, or with the Federal agency, or with the State of California, I am not sure. That is yet to be determined, Mr. Chairman.

Mr. JOHNSON. I presume in the joint agreement between the Office of Saline Water and the State you spell out as to whose responsibility it will be when it comes to design and construction of the prototype plant itself?

Mr. TEERINK. The agreement does not go to the construction, the agreement goes to the feasibility study, which is what is funded now and is underway. And the agreement spells out what our respective roles are for the feasibility study. Our plan would be that as this develops this year that by a year from now we should be at a point where, if the project looks like it has feasibility, we would seek State and Federal authorization for construction. That arrangement, then, would require a separate agreement, or an amendatory agreement.

Mr. JOHNSON. This is when you would come back to the Congress with a recommended project for a large prototype facility to be jointly entered into by the State and Federal Government for design and construction?

Mr. TEERINK. That sort of thing we would like to lay before vou. Mr. JOHNSON. In the operation how far would you suggest the Federal Government go in the operation and maintenance of the facility, if it were put together?

Mr. TEERINK. Well, at this time we think that the Federal interest should continue in the operation for a period of, say, at least 5 years. Because this is the first of a kind, and we think we will need at least that many years of operation to make sure that it is being properly handled. As to which agency, that is vet to be determined, or how the physical operation will be handled. But as you know, we do have-for instance, the San Luis agreement between the State of California and the Bureau of Reclamation provided for the Bureau of Reclamation