1 Data compiled from project cost schedules prepared during January 1949.

Includes minor contracts, land and rights-of-way, force account, engineering and administration, freight, transportation, rents, services, undistributed costs, obligations not in
cost, and other adjustments.
3 Earnings on contracts awarded prior to fiscal year 1950 reduced $200,000 to compensate for $200,000 obligated carry-over incorporated in cost schedule.

4 Klamath program from cost schedule is $127,000 greater than shown in congressional justifications because revised unobligated carry-over of $410,000 is incorporated in cost schedule. Shoshone program from cost schedule is $39,180 greater than shown in congressional justifications because revised unobligate 1 carry-over of $277,940 is incorporated in cost schedule. • Includes $308,000 contributions for construction.

'Central Valley program from cost schedule is greater than shown in congressional justifications by $2,877,683 because unobligated carry-over is incorporated in cost schedules. Programs and finance program coordination, June 16, 1949.

STATEMENTS SHOWING THE EFFECT OF HOUSE REDUCTION ON CONSTRUCTION PROGRAM 1

The Santa Barbara project is located along the Pacific coastal region of California. It extends a distance of about 30 miles from a point 9 miles west of Goleta to just east of Carpinteria. The project will provide an additional water supply for the irrigation of some 13,000 acres of land now depending upon ground water storage, which is becoming rapidly exhausted, and in addition a complete supply for the irrigation of 16,600 acres now dry farmed or idle.

It will also provide a supplemental water supply for the municipality of Santa Barbara whose present facilities are inadequate for its current needs and ɛnticipated growth. The principal features of the project are the Cachuma Reservoir on the Santa Ynez River, the 6.4-mile-long Tecolote tunnel, about 28 miles of pipe system to carry the water fo the irrigable areas and municipalitiis, pipe distribution systems for the Goleta and Carpinteria water districts, and four regulating reservoirs.

Bids for construction of the Tecolote tunnel were opened March 10, 1949. All bids were rejected and new modified specifications will be issued in the near future. The new specifications will be written in such a manner that the construction risks involved will be reduced, which should result in lower bids.

With the $6,100,000 in the budget estimate, it is planned to initiate construction of the Tecolote tunnel, and construction of the Cachuma Dam, the Lauro Damn, and regulating reservoir, and the Goleta section of the south coast conduit.

Since no major contracts are expected to be in force at the beginning of fiscal year 1950, it is believed that the assumed reduction of 15 percent in construction costs will result in reduced expenditures on contracts yet to be awarded. It is expected that the reduction will not materially affect achieving the work reprogramed for fiscal year 1950.

Anderson Ranch Dam and power plant are features of the Boise project and are located on the south fork of the Boise River about 40 miles southeast of Boise, Idaho. Completion of construction of the project facilities will afford multiple-purpose benefits by providing storage for irrigation, flood control, silt retention, and the generation of 27,000 kilowatts of electric power. Provision is made for the installation at some future date of a third generating unit, thereby increasing the capacity to 40,500 kilowatts. The construction program is planned to accomplish the following objectives:

1. Delivery of a supplemental supply of irrigation water to the 300,000 acres of project lands by July 1, 1950.

2. Generation of 27,000 kilowatts of hydroelectric power for the southern Idaho area by July 1, 1950.

The completion of all construction on the project has been scheduled for fiscal year 1950, with exception of changes at Arrowrock Dam. Construction of the 17-mile, 115-kilovolt transmission line from Anderson Ranch power plant to Mountain Home, Idaho, is included in the fiscal year 1950 program to provide an outlet for power to be generated on the project.

Statements on Lewiston Orchards. Tucumcari, Provo, Kendrick, Riverton, Shoshone, Fort Peck, Gila, All-American Canal, Central Valley, and Columbia Basin projects not included as they appear elsewhere in the hearings.

The continual threat of the occurrence of possible contingencies has necessitated programing of funds as a precaution against emergency conditions. Of particular concern to the project has been the potential huge slide area at the left abutment of Anderson Ranch Dam. The cost of treatment of a slide in this area, if such a slide had occurred, would have reached the magnitude of $1,000,000. The potential slide area, however, has continued to appear entirely stable and it is no longer reasonable to carry this as a contingent budget item. The failure of the slide to materialize and the absence of other contingencies will afford some reduction in the fiscal year 1949 program.

A major portion of the funds scheduled for expenditure during fiscal year 1950 will be required for activities from which no benefits from a construction cost decline will be realized. However, the reduced program in fiscal year 1949 will permit the accomplishment of the approved program for 1950 within the appropriation recommended by the House.

The Payette division, the only remaining authorized unit of the Boise project still in the construction stage, will consist of the multi-purpose Cascade Reservoir and the single-purpose irrigation facilities for serving 52,760 acres in southwestern Idaho. The 700,000 acre-feet capacity reservoir, located about 60 miles to the north, in addition to storing water for Payette division lands, will serve future power and irrigation developments in the Payette, Boise, and Snake River Valleys. By the end of the current fiscal year, Cascade Dam and outlet works will be completed, the 27,000-acre reservoir will be about 58 percent cleared, and 6.5 miles of the relocated State Highway No. 15 finished, leaving 7.5 miles yet to be constructed. Irrigation facilities for the 27,760 acres of gravity lands and 13,000 acres of pump lands are complete and in operation. On the remaining 12,000 acres of pump lands, facilities for an additional 6,000 acres will be essentially completed by June 30, 1949, and construction of laterals for the last 6,000 acres well under way.

A very large percentage of the funds requested for fiscal year 1950 will be needed for payments under contracts in force at the end of the current fiscal year. Engineering and administration, minor contracts to be let in fiscal year 1950, rights-ofway, and other expenses will require only a small part of the funds requested. Our program for fiscal year 1950 provides for full completion of the Payette division of the Boise project. Funds totaling $2,725,000 were requested to accomplish this objective. Should construction costs decline 15 percent in fiscal year 1950, our needs for this project would not decrease accordingly, since such lower costs would not affect our commitments under the existing contracts, but would be reflected in only the small amount of construction not yet under contract. Therefore, regardless of whether construction costs decline 15 percent an appropriation equal to the amount allowed by the House will be insufficient to complete this project in fiscal year 1950 in accordance with our program. An appropriation of this amount would make it necessary for us to request supplemental funds totaling about $400,000, or else postpone that amount of construction until the following year. In the event we elected to do the latter, the reservoir clearing would probably be postponed until the following year. However, the lengthening of the construction period beyond fiscal year 1950 would make it necessary to retain experienced project engineering and other construction personnel, thereby adding appreciably to the administration expenses and the total project costs.

The Palisades project is a multiple-purpose project on the Snake River in eastern Idaho. The principal objective of the proposed development is to provide, through construction of a storage reservoir, a supplemental water supply for approximately 650,000 acres of presently irrigated land and 40,000 acres of new land, lving along the Snake River between American Falls and Idaho Falls. Other benefits to be provided by the project include development of hydroelectric power, flood control, fish and wildlife conservation, and recreation. A storage reservoir of 1,400,000 acre-feet capacity will be created by the construction of the Palisades Dam, about 42 miles east of Idaho Falls.

Water released from storage will flow by gravity through the river channel and existing canals to the presently irrigated lands. Reserved storage space in the existing American Falls Reservoir will provide the basic supply for the new areas to be developed. A power plant having provision for an ultimate installation of 54.000 kilowatts of generating equipment will be constructed in conjunction with the Palisades Dam. An initial power installation of 36,000 kilowatts is proposed under the present program. Power studies now in progress indicate that in order to fully develop the economic potentialities of the site, it will be necessary to increase the capacity of the power plant to 90,000 kilowatts or 120,000 kilowatts at some time in the future. Transmission facilities will be constructed to deliver Palisades power to load centers on the Palisades project and to satisfy certain power requirements on the Minidoka project.

Authorization of the Palisades Dam project in 1941 was made contingent upon the adoption of water-saving methods by water users within the area to be influenced by the storage project. Investigations and negotiations have been conducted since that time, seeking a solution to the complex water supply and water right problems. In order to arrive at a logical and mutually satisfactory agreement with the water users, the negotiations included reassignment of capacity in other Bureau reservoirs in the upper Snake River Basin. We have now received assurances that such water-saving methods will be adopted; general agreement has been reached on allocation of storage capacity in Palisades and the existing reservoirs with nearly all water users; applications are on hand to purchase rights in Palisades Reservoir; and the amount of benefits, allocation of reservoir space, and operating conditions have been agreed upon with cooperating agencies. We believe that the specified prerequisites to construction have been met, and construction of the project is proceeding.

Preconstruction activities on the project to date include investigation surveys, design studies, and erection of temporary housing facilities for personnel to be employed on construction of the project. A contract was awarded on May 13, 1949, for construction of the 51-mile, 115 kilovolt transmission line from the Palisades dam site to Goshen, which will deliver construction power to the dam site during construction of the dam and later will provide the outlet for the power plant. Construction work on the relocation of the Idaho State Highway No. 29 around the reservoir area is being initiated under the $2,000,000 contract authorization granted this project by the Eightieth Congress, and a request for appropriation of funds to liquidate this authorization is now pending before the Bureau of the Budget. Negotiations with the Idaho State Highway Department on the difficult highway relocation problem have recently culminated in a definite engineering plan that is believed to be acceptable to both the State and the Government. It is necessary that this work be commenced before any appreciable start can be made on construction of the dam. Accordingly, the first construction contract for the relocation of the critical 5-mile section of the highway through the dam site will be awarded early in fiscal year 1950.

PROGRAM, FISCAL YEAR 1950

The President's budget requested an appropriation of $205,000 for continuation of preconstruction work in fiscal year 1950. It is now proposed to use these funds in addition to available funds from prior appropriation to pay contract earnings under the State highway relocation contract to be awarded early in fiscal year 1950. A portion of the funds requested will be required to continue construction of the transmission line under contract awarded in fiscal year 1949. The committee's attention is called to the fact that the above procedure constitutes a change in the program from that shown in the budget justification as presented to the House. It is highly necessary that relocation of the State highway proceed at once in view of the requirement that the work must be largely completed prior to construction of the dam, and in view of recent agreement with the Idaho State Highway Department, delay in proceeding with