maintenance workers throughout the fiscal year. Experience has demonstrated that savings will accrue to the Federal Government from preventive maintenance protection of the multimillion-dollar investment and through prevention of losses in revenue caused by prolonged equipment failure. CONSTRUCTION The House bill makes available $17,920,760 in appropriations and $10,269,290 in contract authorizations. The committee feels that allocation of funds made available to the Bonneville Power Administration should be based on (1) the importance of coordinating major generation and transmission facility schedules to insure the ability of the Bonneville Power Administration to deliver all available power to principal load centers, (2) making funds and authorizations available as required to permit completion of authorized additions as rapidly and economically as possible, and (3) protection of the rights of priority and other customers against discrimination in the methods of service supplied. 230-KILOVOLT SYSTEM The committee recommends the restoration of contract authorization disallowed by the House to a level which will permit adherence to the established construction schedules for bulk transmission lines and will guarantee completion of facilities to match new generators now being installed at the Grand Coulee Dam. REEDSPORT-COOS BAY FACILITY-COOS BAY STATION This is a switching_terminal to provide (1) interconnection with the California-Oregon Power Co. to replace power delivered to Bonneville customers through California-Oregon Power Co. and Mountain States facilities, (2) an ultimate source of loop service to Central Lincoln PUD through interconnection with California-Oregon Power Co. at Coos Bay. This station is not to duplicate existing facilities; it is essential to successfully coordinated operation of power supply sources in southwest Oregon and is approved solely for this reason. BEVERLY PARK-SNOHOMISH CIRCUITS NOS. 1 AND 2 Representatives of the Puget Sound Power & Light Co. and Bonneville Power Administration reported to the committee that the Administration had assumed an implied obligation to purchase the transmission line from Bonneville Power Administration's Snohomish substation to the Beverly Park substation of the Puget Sound Power & Light Co. This line was constructed by Puget Sound Power & Light Co. in 1948. The committee feels that the company has a justifiable claim upon the Government for this reimbursement, but is of the opinion that no other such arrangements should be made by the Administration without prior clearance through normal budgetary channels. The committee also recommends that funds be included in the bill to start work on the second circuit between these two points, since it is informed that the first circuit will be fully loaded in 1949. LEBANON SUBSTATION This switching and delivery substation is at the terminus of a 115-kilovolt transmission line intended to provide construction power for Detroit Dam and to provide a point of delivery to Benton-Lincoln Electric Cooperative. The reasons for the House objection are recognized and the committee feels that approval for the cited specific purposes will so confine the use of funds that the House objections will be met. M'KINLEY-GOLD BEACH LINE Facilities are required to provide adequate power in the coastal area of Curry County and southern Coos County in the State of Oregon. These needs arise from the rapid growth of the lumber industry in this section. This project will consist of a 115,000-volt wood-pole line tapping the California-Oregon Power Co.'s 115,000-volt transmission line at McKinley. The committee recommends for this facility $50,000 in appropriation and $280,000 in contract authorization. In view of the lack of flexibility in construction schedules, the committee feels that actual progress should be checked at intervals of every three months. Accordingly, it is recommended that project progress reports be prepared by the Department and transmitted to this committee through the Budget Bureau at such intervals. IDAHO PANHANDLE (SAND POINT-BONNERS FERRY) In the Supplemental Appropriation Act, 1948, the Congress provided contract authorization of $489,000 for the Idaho Panhandle power transmission facilities. Pursuant to this authorization contracts have been let for materials covering the Sand Point-Bonners Ferry section of this facility. The committee recommends an additional contract authorization of $161,000 for the Sand Point-Bonners Ferry section of the facility. The question of extension of lines in Idaho beyond those presently authorized is not now before this committee. The Senate committee has approved the table of allocations based upon House allowances as submitted by Bonneville Power Administration appearing at page 1540 of the Senate hearings, with the following changes: Adjustments (1) Changes in amounts recommended for use on 230,000-volt facilities to maintain schedules coordinated with installation of new generating capacity (groups I, IA, and IB). (2) Olympia-Shelton-Port Angeles line (item IA-3). (3) Olympia-Shelton line No. 2. (4) Beverly Park-Snohomish circuit No. 1.. (5) Beverly Park-Snohomish circuit No. 2. (6) Forest Grove-McMinnville-Salem line (item IB-9) (7) Canby substation (IB-14).. (8) Spokane-Colville-Spirit line (item IIA-2). (9) Reedsport-Coos Bay facility (IC-3). (10) Cottage Grove-Drain facility (item IC-4). (11) McKinley-Gold Beach interconnection. (13) Columbia-Ellensburg line (item IIC-2). (12) Idaho Panhandle (Sand Point-Bonners Ferry) Recommended adjustments in construction program Recommended increase in operations and maintenance limitation.. Net change from House bill.. ACCOUNTING The committee last year called the Bureau of Reclamation's attention to the need of improving its accounting methods and fiscal controls. While improvement has been made in the past year it is still apparent that a considerable amount still remains to be accomplished. The experience last fall with the Central Valley project vividly indicated the need of increased and more prompt methods of fiscal control. In this connection the committee would like to see further efforts between the Budget, Bureau of Reclamation, and its own staff to work out criteria of such control and methods of accomplishing the same. The committee hopes that the new plan of the Bureau of Reclamation to advise each contractor of the funds available for the year as far as his contract is concerned will produce the same excellent results as with the Corps of Engineers. BUREAU OF RECLAMATION The committee has devoted much time to the consideration of the various projects of the Bureau of Reclamation. The committee realizes that, on one hand, the completion at early dates of multiplepurpose projects is highly desirable because it means increased acres under cultivation and added revenues from the sale of power; on the other hand prices are high, materials of several categories are in scarce supply, efficient labor of the type required is not easily obtained and there are over-all requirements of the fiscal policy to be considered. After carefully weighing all these factors the committee has restored an amount to the various projects that in general brings each one to 10 percent below the budget estimate. CENTRAL VALLEY The committee recognizes that the Central Valley project has since its inception contemplated the construction of transmission lines down the west side of the Sacramento River as well as down the east side from Shasta Dam to the Tracy pumping plant, which lines are an integral part of this multiple-purpose project. ADMINISTRATION AND ENGINEERING The committee in giving consideration to these projects studied the amount of funds necessary for engineering and administration. Exclusive of expenditures in the regional and central offices the percentage of the appropriations proposed devoted to administration and engineering seems unduly high. The committee would expect the percentage not to exceed 8 percent, that any percentage over 10 would be extravagant. Therefore, every effort of the Bureau should be made to bring these expenses in line. Percentages were Central Valley, 15.7 percent; Missouri Valley (phase A), 13.5 percent; and Hungry Horse, 17.5 percent. FORCE ACCOUNT Last year a new policy of limiting force-account construction was adopted. Evidence before the committee indicates that the new policy has worked out well. The testing of the policy during the recent Columbia River floods gave satisfactory evidence of its being sound. Therefore, the committee sees no reason to make a change of any consequence so has substituted the same language as last year except for two minor changes. LIMITATION OF POWER CONTRACT SOLICITATION Although the committee has stricken language from the House version of the bill which had the intent of limiting Bureau activities with respect to obtaining power contracts with customers already adequately supplied, it is in agreement with the objectives set forth by the House in this matter. The Bureau is therefore directed to curb activities of the nature which have given rise to the widespread opinion that its employees have been unduly aggressive in offering the extension of services which are often in direct or implied competition with existing private facilities. MISSOURI RIVER BASIN CEDAR BLUff, kans. H. R. 6705, as received from the House of Representatives, included an item of $3,000,000 for construction on a project at Cedar Bluff, Kans., on the Smoky Hill River in Kansas. Included in the justification for this project was irrigation of 11,500 acres immediately below the Cedar Bluff Dam and supplemental water for approximately 40,000 acres lying below the Kanopolis Dam. At the request of the Bureau of Reclamation, the Kansas State College made a survey and report "on the practicability of irrigating a portion of the Smoky Hill Valley below the Kanopolis Dam." This report was called to the attention of the committee by Senator Reed and salient portions of it were read to the committee. The Kansas State College survey and report calls attention to the fact that the average annual rainfall in the proposed irrigation area is 28 inches and commented "no extensive irrigation projects have been developed in the United States in areas with an average annual precipitation of as much as 28 inches." The estimated cost of the Cedar Bluff Dam is stated at $21,210,650. About 40 percent of this project is assigned to irrigation. On page 1525 of the House hearings, the Bureau of Reclamation reported that "adjusted total construction repayment by irrigation" for the Cedar Bluff project to be $263 per acre. The committee regards this as an intolerable burden upon water users. Report of the Bureau (p. 1524) indicates that "future allocations to flood control, irrigation, and associated purposes" may increase this amount. In all fairness to landowners and water users, the amount of repayment on irrigation projects should be definitely determined and those concerned fully advised as to the financial burdens that will be imposed upon owners and users. Only a very small amount of money has been spent on the Cedar Bluff project up to this time. The committee expects that no further money should be spent until all doubt as to the feasibility and practicability of the project is fully determined. At Senator Reed's suggestion, the committee decided to eliminate the item of $3,000,000 to begin construction this year. The committee, will make further inquiry into this and similar projects and will give further consideration in suitable appropriation bills for 1950. INCREASES AND LIMITATIONS The changes in the amounts of the House bill recommended by the committee are as follows: Office of the Secretary: Salaries The committee recommend an increase of $284,158 to be used as the Secretary may distribute, within the limitations provided in the bill, for the various items set forth in the justifications on the appropriation "Salaries, Office of the Secretary." The budget estimate is in the amount of $1,368,350. The House allowed an appropriation of $965,842. The committee recommend a total appropriation of $1,250,000, which is $118,350 less than the budget estimate. The committee recommend that the following provision inserted in the bill by the House relating to the division of power be amended as indicated: : Provided further, That no part not to exceed $75,000 of this appropriation may be used for the Division of Power under the Office of the Secretary The committee recommend that the provision in the bill relating to personal services in the District of Columbia be amended to include the words "and elsewhere". Office of the Solicitor: Salaries.. The budget estimate is in the amount of $300,000, The House allowed an appropriation of $146,800 as Oil and Gas Division_.. The budget estimate is in the amount of $400,000, and the House allowed an appropriation of $300,000. The committee recommend that this amount be increased by $50,000 to provide a total appropriation of $350,000. The House allowed the full amount of the budget estimate, $175,000, for enforcement of the Connally "Hot Oil" Act, and the committee has approved this amount for the enforcement of this act. The increase recommended is for the other functions carried on by the Oil and Gas Division. $284, 158 29, 775 38, 200 50,000 |