with the additional investments that will be required and the additional uplifting of local economy due to that processing.

For instance, there undoubtedly will be some grapes grown. There will undoubtedly be some small fruits and also some alfalfa. And then, I think the balance of that which is a relatively smaller part of it has to do with the additional investments required in the local community in the way of transportation, and so on. And then, of course, there is the settlement opportunities, not only on the privately owned lands but on the 2,000 acres of Federal lands that will bring in new investments and that part of that settlement opportunity benefit runs about $100,000.

The community benefit-community facility part is quite small. That is $33,000. And that is from additional investments which will take place in the cities of Kennewick and Kiona, and so on; processing. Senator ALLOTT. To what extent have you changed the method of computing benefits? It seems to me, you are getting into a pretty nebulous area when you talk about feasibility and when the indirect and public benefits are on a basis of more than 5 to 4 on the direct irrigation benefits from the project.

Mr. DOMINY. Well, this is a continuing problem that we have, particularly with the Bureau of the Budget, in analyzing our project benefits and costs. Our study on the Columbia Basin project, Senator, is pretty convincing to me. We took 10,000 acres of land that previously was dryfarmed and now is under irrigation and compared it with 10,000 acres of identical land immediately adjacent to it that continued to be dryfarmed and we find that all of the benefits are 17 to 1 in favor of the 10,000 irrigated acres.

Senator JACKSON (now presiding). There are 10,000 acres under irrigation?

Mr. DOMINY. Yes, under irrigation. It is 17 to 1 in State, local, and Federal tax revenue returns, carloadings, postal resets, number of new businesses, in number of new job opportunities. So I think the indirect benefits are in fact there, although they are difficult to measure. They are difficult to prove, but I am sure you appreciate, from your experience with irrigation in Colorado, that there are tremendous indirect benefits when we put these lands into higher intensive use.

Senator ALLOTT. Well, I know there are indirect benefits but I question, and I always have questioned, the advisability of considering these so strongly in a feasibility estimate.

You talk at one place in your statement here about growing feed crops and then you say later it might go into other produce, such as prunes, and

Mr. DOMINY. Specialty crops. I think this will be the history of it. Senator ALLOTT. Specialty crops. Do you think you can justify a $14 a year irrigation cost for feed grains?

Mr. DOMINY. Well, of course, that is a weighted average for all the lands. These are very productive lands. They have a very good outlook for alfalfa hay on the coast, and the market for alfalfa hay in this area has been real good and stays good.

Senator ALLOTT. Do you know what the market is at the present time?

Mr. DOMINY. It is up over $30 a ton at the farm for alfalfa hay and has been consistently running at that level in this area. Most of the dairy farms in the big city areas of Washington do not have any feed base around the dairy. They have to go a long way to get their high protein alfalfa to keep up the production in their herds.

So I think some of this land will probably remain in alfalfa. But a lot of the better lands where they have good air drainage and can avoid any possibility of spring frosts will, I think, go into fruits and specialty crops.

Senator ALLOTT. Well, even at $30 I do not think you can justify the production of alfalfa on a water charge of $14 a year. You might do it for the first 4 or 5 years, but you will not do it after that.

Mr. DOMINY. Well, the existing Kennewick division-they are running a little over 5 tons to the acre on an average of high quality hay, and, of course, not all the lands are in alfalfa. This is a weighted average of cost per acre.

Senator ALLOTT. How old is the Kennewick division?

Mr. DOMINY. It was authorized in 1948 and the first water was delivered in about 1952 or 1953.

Senator ALLOTT. I think that is all, Mr. Chairman.

Senator JACKSON. The Kennewick division, of course, is part of the Yakima project, which is one of the first reclamation projects and one of the first to pay out.

Mr. DOMINY. That is right. The Tieton division of the Yakima project was the first one to pay off its 40-year repayment obligation. Senator JACKSON. Senator Moss?

Senator Moss. This bill is identical, I take it, with the one we had before the committee last session with the exception of tying it into revenues from the Bonneville Power Administration; is that right?

Mr. DOMINY. Yes, the bill needs to be amended to do that, because it is identical with what you passed before.

Senator Moss. It is entirely identical and has not been amended on that point?

Mr. DOMINY. Yes.

Senator JACKSON. That was done prior to the matter relating to the Columbia Basin account. Since then, that matter has been resolved. The bill was simply reintroduced as it passed last session, and it contained the provision tying the power subsidy to McNary Dam, which is no longer necessary.

Mr. DOMINY. That is right.

Senator Moss. I recall that we went into this at some length last time.

I do not have any more questions.
Senator JACKSON. Senator Jordan?

Senator JORDAN. I have no questions, Mr. Chairman. I thought it was a good project before and I think it is a good project now. Mr. DOMINY. The only other thing that needs to be adjusted in the bill, Mr. Chairman, is the cost ceiling because of the indexing up. Senator JACKSON. Right. The October 1966 price figure instead of the previous figure. That is an increase of a little less than $200,000 from the 88th Congress to the 90th.

Mr. DOMINY. Yes, we changed it from 1962. It is a 5-year adjustment because the old figure was clear back on 1962 costs. Senator JACKSON. It is now on October 1966 prices. Mr. DOMINY. We have updated it right to the current time. Senator JACKSON. Senator Hatfield?

Senator HATFIELD. No questions. Senator JACKSON. Any further questions, gentlemen? If not, the communications previously referred to will be inserted at this point. (The communications referred to follow:)

WASHINGTON STATE RECLAMATION ASSOCIATION,

Yakima, Wash., February 16, 1967.

Hon. HENRY M. JACKSON,
Senator from Washington,
Senate Office Building,

Washington, D.C.

DEAR SENATOR JACKSON: As you are well aware, the Washington State Reclamation Association has gone on record by resolution approving and supporting the irrigating of the Kennewick Extension. However, for the benefit of your committee, we wish to reiterate the fact that the Washington State Reclamation Association has gone on record approving the irrigating of 6300 acres of land in the Kennewick Irrigation District, which is commonly known as the Kennewick Extension. This Association has approved by resolution this irrigation project ever since the land owner's committee of the Kennewick Extension was formed and had sought our aid and assistance beginning in 1962.

Sincerely yours,

H. G. WELLS,
Secretary-Treasurer.

SPOKANE CHAMBER OF COMMERCE,

Hon. HENRY M. JACKSON,
Senate Office Building,

Washington, D.C.

Spokane, Wash., January 27, 1967.

DEAR SENATOR JACKSON: The Washington State Reclamation Association strongly supports the authorization of the Kennewick Extension of the Yakima Project, and the Touchet Division of the Walla Walla Project.

Resolutions endorsing the construction of the projects have been adopted at the past two State Association meetings.

The Directors of the Association know that you are supporting legislation for the authorization of the Projects, and wish to offer you their encouragement, as do I as Director of the National Reclamation Association from the State of Washington. If you have any suggestions for our being truly helpful, please let me know. Yours sincerely,

Hon. HENRY M. JACKSON,

L. W. MARKHAM,

General Manager.

KENNEWICK IRRIGATION DISTRICT,

Kennewick, Wash., February 17, 1967.

Chairman, Senate Committee on Interior and Insular Affairs,

Senate Office Building, Washington, D.C.

DEAR SENATOR JACKSON: Was recently informed that a hearing has been set for February 23, 1967, on Senate Bill No. 370.

Our Board of Directors desires to go on record as being in favor of the passage of this bill at an early date.

Enclosed is a copy of Resolution No. 67-2, which was passed by the Board of Directors on February 7, 1967. We wish to have it become a part of the records of the hearing on February 23, 1967.

Sincerely yours,

RESOLUTION NO. 67-2 OF THE KENNEWICK IRRIGATION DISTRICT

Whereas the general plan of irrigation development contemplated in the organization of the Kennewick Irrigation District is one that involved, among other things, the acquisition, construction, reconstruction, improvement and extension of works for the reclamation of lands within the District, and the operation and maintenance of all such works;

Whereas the general plan of development of the "Kennewick Division Extension" determined by the United States Bureau of Reclamation, is the result of extensive and thorough investigation by that Bureau with respect to the available water supply, the character of the soil and its suitability to irrigation, the requisite works for supplying and distributing water and other problems bearing on the feasibility of the project, and, taking these investigations into account, this general plan has been found to be feasible by the Bureau of Reclamation, and the Bureau having recommended Amendment of Act of June 12, 1948 (62 Stat. 382) to accomplish this work: Now, therefore, be it

Resolved, the Board of Directors of Kennewick Irrigation District is in favor of construction of the "Kennewick Division Extension", under the provisions of applicable federal and state laws; and, it is further

Resolved, That the Secretary-Manager be directed to forward copies of this resolution to Honorable Catherine May and Senator Henry M. Jackson.

Passed by the Board of Directors of Kennewick Irrigation District this 7th day of February, 1967.

Senator HENRY M. JACKSON,

ROBERT E. TWEEDT.
CARL W. PETERSEN.
FRANK LAMPSON.

TRI-CITIES CHAMBER OF COMMERCE,

Tri-Cities, Wash., February 13, 1967.

Chairman, Interior and Insular Affairs Committee,

U.S. Senate, Washington, D.C.

DEAR SENATOR JACKSON: The Tri-Cities Chamber of Commerce has unanimously endorsed the Kennewick District Extension of the Yakima Project which is understood to be coming up for hearing on February 23, 1967. Our reasons for endorsement of the project follow:

1. This would bring to fruition the Yakima Project started in 1904 and would add some 6300 acres of irrigation land.

2. This area is particularly suited to the production of soft fruit which would result in high income crop land.

3. The addition of this land under cultivation would provide summer employment for the youth of this area which is sorely needed. Your efforts in behalf of this project are sincerely appreciated and we shall eagerly look forward to its authorization in the not too distant future.

Yours very truly,

Hon. HENRY M. JACKSON,

U.S. Senate, Washington, D.C.

R. L. ELMGREN, President.

SPOKANE, WASH., February 3, 1967.

DEAR SENATOR JACKSON: In the 89th Congress, S. 794 providing for construction of Kennewick division extension works was approved by the Senate but did not pass the House. Thus, the Kennewick extension area remains a "future" project as it has for many-too many-years.

It is my hope that you and Senator Magnuson will reintroduce the measure in the 90th Congress and continue to give it your full support.

I would appreciate knowing if there is any action that I can put forth to help in this endeavor.

Sincerely,

Senator HENRY M. JACKSON,

Senate Office Building, Washington, D.C.

DAVID R. HAMM.

RAYMOND, WASH., January 5, 1967.

DEAR SENATOR JACKSON: During the 89th Congress you, and Senator Magnuson, introduced S. 794 which provided for the construction of the Kennewick division extension of the Yakima Project.

The Bill died in Committee as you well know, we are in hopes that you will consider introducing the bill again in the current session of Congress.

We strongly support the bill, feeling that the economic value to the area is needed.

It seems the long-predicted world food crisis is now beginning.

The State Department's top expert said in a news item to-day, for the first time the United States no longer has enough food surplus to meet all claims made against it.

We think if water would be on this land, it would help in many ways.

Sincerely,

Mrs. ADDIE B. SHAY.

WASHINGTON STATE SENATE,

March 6, 1967.

Hon. HENRY M. JACKSON,
Senate of the United States,

Washington, D.C.

DEAR SENATOR JACKSON: I have the honor to transmit herewith a certified copy of Senate Resolution 1967-24 adopted by the Senate of the State of Washington.

Respectfully yours,

[Enclosure]

SENATE RESOLUTION 1967-24

WARD BOWDEN, Secretary of the Senate.

(By Senators Mike McCormack and Damon R. Canfield)

Whereas construction of the Kennewick extension reclamation project will complete the development of the Yakima Valley's Federal reclamation system; and

Whereas this achievement of turning a desert into one of the Nation's most productive agricultural areas stands as a monument to the pioneers who conceived the project; and

Whereas the 6,800-acre Kennewick extension project will make vital contributions to the agricultural economy of the area; and

Whereas such row crops as sugarbeets, vegetables, alfalfa hay, and fruit crops such as peaches, apricots, cherries, and apples wll be grown on the project, all contributing to the Nation's nutrition and not being crops in any surplus category; and

Whereas the Senate Committee on Interior and Insular Affairs has before it legislation sponsored by Senators Henry M. Jackson and Warren G. Magnuson, authorizing the Kennewick extension project: Now, therefore, be it

Resolved, That the Senate commend Senators Jackson and Magnuson for introducing this authorizing legislation, S. 370, and that the Washington State Senate indicates its full support for the measure and urges its speedy enactment by the Congress; be it further

Resolved, That copies of this resolution be sent to those named above, and Secretary of the Interior Stewart L. Udall; the members of the congressional delegation from Washington State, and the Honorable Wayne N. Aspinall, chairman of the House Committee on Interior and Insular Affairs.

I, Ward Bowden, Secretary of the Senate, do hereby certify this is a true and correct copy of the resolution adopted on March 3, 1967.

WARD BOWDEN, Secretary of the Senate.

Senator JACKSON. That concludes the hearing on the Kennewick extension. We will now turn to other business. (Whereupon the committee turned to other business.)