Not only do these publicly owned systems serve urban and industrial loads, but also a number of them serve primarily agricultural loads. In fact, several were organized initially and primarily to provide water and power for irrigation.

Therefore, the interest of American Public Power Association in the AuburnFolsom South project is not merely the power that would be generated at that project but includes also the irrigation potential and the other conservation and public purposes served.

AUBURN-FOLSOM SOUTH REPRESENTS FULL DEVELOPMENT

The plan for Auburn-Folsom South represents truly comprehensive development of a river resource. The water which will be impounded by this immense project will irrigate land, generate electricity, provide greater recreational facilities, and serve the domestic water needs of the people in its area. And control of the river, from which the above benefits would be derived, will mean less loss from the rampaging waters which flow annually into the Central Valley.

Recent floods in the Central Valley of California point up the vital need for early authorization and construction of Auburn-Folsom South. According to information provided by the Bureau of Reclamation, had Auburn been constructed prior to the damaging flood which hit northern California in December 1964, its flood-control facilities would have greatly eased the tremendous strain placed on the lower Folsom Dam. In addition, the Bureau stated "it is probable that Auburn Dam, operated in conjunction with Folsom Dam, would have made it possible for the Bureau to have stored for later beneficial use 400,000 acre-feet of the 1.5 million acre-feet of water which passed through Folsom Lake during and immediately after the storm."

The 1964 flood, which caused millions of dollars in property damage, emphasizes the need for Auburn as a bulwark against future floods in the Central Valley. And, though Folsom Dam was sufficient to meet the demands placed on it in 1964, water vitally needed to irrigate crops, serve cities, and generate power, was instead wasted to the sea.

WATER SUPPLY, RECREATION, POWER BENEFITS PROVIDED

Auburn is primarily an irrigation project. The water that fills Auburn's huge reservoir will make available 365,000 acre-feet of water per year for irrigation. This irrigation will not expand production of surplus commodities, but rather will increase the production of those many crops indigenous to the California climate, primarily unsupported and unsubsidized food and fiber.

As an addition to California's fast-growing recreational demands, Auburn will maintain the Folsom reservoir at a desirable level during the tourist season, and thus greatly enhance its value. Auburn itself, if the necessary investments in access are made, will ultimately provide a great deal of recreational value to the people of northern California.

The need for water is an ever-present problem in the arid Southwest; California has embarked an a billion-dollar program to carry water to the population centers below the Tehachapi Mountains. It is also a pressing problem in the area which will be served by Auburn. Municipal and industrial demands are spiraling, and Auburn is designed to offset a share of these demands.

The paying partner to the project-power-will yield 613 million kilowatthours a year. Revenues from sale of these kilowatt-hours will provide $148,855,000 to the Federal Treasury as power's share of the project's cost. These kilowatt-hours will pay $12,012.000 back into the Treasury to cover power's interest during construction. And these kilowatt-hours will pay $56,069,000 into the Federal Treasury to help keep the price of water at a level the family farmer in California can afford to pay. Power then will pay back to the Federal Government, over a 50-year period, nearly 50 percent, or $204,924,000, of the total project costs-50 percent of a project which provides 365,000 acrefeet of water per year to California farmers, an estimated $375,000 a year saving from floods, millions of dollars in recreation value, and a valuable supply of water for cities and industries.'

1 These figures are based on the supplemental report released by the Bureau of Reclamation and are considered by APPA to be extremely conservative, as they are based on the present contract with P.G. & E. and do not consider future modifications of the contract to credit increasing value of the hydropower.

And beyond this, long after the Auburn Dam has been fully amortized, power will continue to provide revenues to the Federal Government, and other benefits to the Nation.

POWER POTENTIAL NEEDED IN CALIFORNIA

The supplemental evalution of the Auburn-Folsom South project provides for considerably more comprehensive development of the American River. Not only is the storage capacity of the project more than doubled-1 million to 2.5 million acre-feet-but also the potential power development is nearly tripled. Whereas original plans called for a total power installation of 155,000 kilowatts, the project now provides for an initial installation of 240,000 kilowatts with an ultimate capacity of 400,000 kilowatts.

California, the Nation's fastest growing State, has an ever-increasing demand for electricity. Not only is this demand going up because of the population explosion, but also higher per-customer usage is promoting greater overall consumption. The experience of the municipal electric utilities in northern California has more than adequately proved that unit costs decrease with an increase in consumption, thus resulting in an ever greater demand. If future demands are to be met, projects like Auburn must be built.

The initial installation of 240,000 kilowatts of capacity would be well suited to the market for Auburn power. The municipal electric systems and irrigation districts need an increasing supply of power. At the same time, the energy bank arrangement with the Pacific Gas & Electric Co. makes it possible for the nongenerating public agencies to purchase firm power from the Bureau of Reclamation while P.G. & E. uses the low-cost hydro to replace more expensive power to meet its ever-increasing peaking demands. In this way preference customers, private power, and the Government profit.

OPTIMUM DESIGN OF ELECTRIC PLANT REQUESTED

With the increasing size of individual thermal electric units, it becomes uneconomic to handle peaking loads with these units. The large-sized steam units can only be operated most efficiently when they are kept at almost constant load close to their maximum capability. In view of this trend in generating unit design, it becomes increasingly important to have units available that are able to carry peaks, i.e. able to pick up load quickly and operate efficiently over a wide range of varying loads. This has always been a typical characteristic of hydroelectric units. Hydro is becoming increasingly valuable as a means of carrying the peak loads, while the large steam generators operate efficiently on base load. Although it is possible to design steam units for peaking, it is extremely costly to do so. On the other hand, changing a hydro unit from base load to peak load design is only a matter of placing additional penstocks in the dam to permit the installation of additional generating capacity as it is required.

Because of the peaking power problem, and because of the growth of the California market for power, the Bureau of Reclamation has wisely made provision for eventual expansion of the Auburn plant to 400,000 kilowatts. Although this will require an initial extra investment of $13.5 million, substantially greater costs will be averted when the additional energy is needed later. The proposed additional $13.5 million is for construction of the necessary appurtenances for future generator installation. When the demand for peaking power reaches the point that installation of an additional 160,000 kilowatts is warranted, the substantially higher costs of facilities installed as an afterthought will be averted. Only the generators will have to be purchased and installed.

BUREAU SHOULD BUILD PROJECT TRANSMISSION

As provided for in authorization bills before the committee, "necessary electric transmission system for interconnection with the Central Valley project power system" should be authorized for Bureau construction. This policy has been applied at other Central Valley Project dams to insure proper integration of generating plans with the Bureau's overall electrical system, and last year the Congress approved Bureau construction of an extra-high voltage transmission line to provide a federally owned and operated interconnection between the Bonneville Power Administration and the Central Valley project, thus giving the Department of the Interior maximum opportunity to pool power from these two Federal systems for optimum advantages to the Government.

45-696-65--11

In considering recreation and fish and wildlife cost allocations in connection with the project, it would seem desirable to take into account the provisions of the legislation currently before the committee to establish uniform standards for treatment of these project purposes. The present proposals, embodied in H.R. 5269 and S. 1229, represent a revision of the standards applied to the AuburnFolsom South project last year.

Interest in this project on the part of the American Public Power Association was reaffirmed at its most recent convention, where the attached resolution was passed unanimously.

RESOLUTION ADOPTED BY 22D ANNUAL CONVENTION, AMERICAN PUBLIC POWER ASSOCIATION, JACKSONVILLE, FLA., MAY 11-14, 1964 RE AUBURN DAM

Whereas the Auburn Dam unit of the Central Valley project in California is now proposed for authorization and such unit will provide much needed power. irrigation, water, and flood control, and whereas congressional hearings held in 1964 show that the project is fully feasible and would have an ultimate capacity of 400,000 kilowatts to create a new block of low-cost energy and to provide power revenues as a "paying partner" for reclamation: Now, therefore, be it Resolved, That the American Public Power Association urges the Congress to authorize the Federal Government to construct and operate Auburn Dam as an integral unit of the Central Valley project of the U.S. Bureau of Reclamation.

Mr. JOHNSON. Mr. Sorensen has been detained in California due to sickness in the family, and he has either mailed his statement or he is on the plane coming here for tomorrow, and if you would keep the record open I would appreciate it so that his statement can be placed in the record. He represents a number of organizations who are vitally interested in this project. (See p. 159.)

is

Mr. Chairman, I want to say for the record that Senator Kuchel very much in support of this project, and he has asked for hearings on the Senate side, which were set for Wednesday and Thursday, on the legislation pending in the other body dealing with the same project, and almost identical language in the bill. He stated that he is in full support of the project, and he wanted it known by the members of this committee that as senior Senator from California that was his position.

Now, Mr. Chairman, I want to thank you personally for setting these hearings and staying with them all day. I know how time consuming it is, and a person's office kind of goes to pot when he sits all day.

We could have had many more witnesses here. We told them at the meeting in California a month ago when there were 200 assembled there and they all gave their views in connection with the project, that we would try to hold down the witnesses to save money and time and effort of coming to Washington and save the committee's time, too, because this has been before the Congress, a full hearing was held last year, and there is very little change other than in the recreation end of the project here, you might say, we are very appreciative of your time and effort.

I want to assure you that the entire State is in support of this project. I was amazed when we had our meeting and 200 showed up there in California that came from every area of the State.

Mr. ROGERS of Texas. I want to thank the gentleman from California for his contribution in helping to bring this out, and to assure him that it has always been the policy of this committee to follow the school of thought that quality of witnesses is much better than quantity of witnesses. We like to follow that, and I am appreciative of

the gentleman's efforts in seeing that this was done because I think it not only helps the members of the committee but it expedites the handling of the legislation immeasurably.

Mr. McFarland, did you have any statement?

Mr. MCFARLAND. Mr. Chairman, with respect to the revenues, of course, the revenues all go into the reclamation fund and will continue to do so until such time as the Central Valley project is actually repaid. So it is a question of additional development and, of course, a matter for Congress to decide as to the disposition of these funds. Mr. ROGERS of Texas. My point was simply to make it a matter of record so there would be no misunderstanding should the matter come up for discusion later on, that there was not any effort at this time to earmark subsequent revenue for any particular purpose.

Mr. BRODY. That is our understanding, Mr. Chairman.

Mr. ROGERS of Texas. Without objection, the record will be kept open for 10 days for the receipt of additional information or documents that may be presented for filing, and they will be received subject to the rules of the committee; that is, subject to the approval of the Chair and the ranking minority member as to whether they are included in the record or in the file.

Are there any further questions? If not, the subcommittee will stand adjourned until 9:45 in the morning.

(Whereupon, at 4:45 p.m. the subcommittee recessed, to reconvene at 9:45 a.m., Tuesday, March 30, 1965.)

(Other material submitted for the record follows:)

STATEMENT SUPPORTING LEGISLATION TO AUTHORIZE AUBURN-FOLSOM SOUTH UNIT OF CENTRAL VALLEY PROJECT BY JAMES E. SORENSEN, CONSULTING ENGINEER AND SECRETARY OF THE CENTRAL VALLEY EAST SIDE PROJECT ASSOCIATION, VISALIA, CALIF.

The Central Valley East Side Project Association supports authorization and construction of the Auburn-Folsom South unit of the Central Valley project. The association supports Auburn-Folsom South unit on two fundamental points:

1. It is a feasible addition to Central Valley project which will deliver needed water to a substantial area of the Central Valley and provide many other benefits; and

2. The proposed enlargement of the Folsom South Canal with the Auburn Dam will provide a step in the program to deliver water to the lands in the proposed east side division.

The water for Auburn-Folsom South unit is available and with construction of Auburn Dam and Folsom South Canal, operated in conjunction with the Folsom Dam and other Central Valley project works, will bring delivery of much-needed supplies into the Sacramento County and San Joaquin County

areas.

Support for Auburn-Folsom South unit has been offered by a large group of agencies, individuals, and groups and it should be noted that many of these came from potential contractors for water.

The provisions calling for assignment of the enlargement costs to Central Valley project deferred use, pending allocation to the east side division, have been endorsed by many of the present long-term Central Valley project contractors for water and power. Such endorsements and support in effect guarantee repayment of the enlargement costs even if the east side division were not to be authorized.

The multipurpose benefits will be of great value, as indicated by the benefit-tocost ratios, to large areas in the Central Valley as well as to the State's economy. Water is needed in the Central Valley for existing uses to preserve the existing economies and Auburn-Folsom South unit would provide much needed assistance.

Continually dropping ground water levels are an indication of overdraft conditions and construction of Auburn-Folsom South unit would be a tremendous advance in meeting present agricultural, domestic, and municipal needs for supplemental water.

Addition of this proposed unit will provide many benefits and the financial data shows that the Central Valley project with Auburn-Folsom South unit will pay all costs allocated within the statutory period and also produce a substantial surplus fund.

In California, we are well underway with a $1.75 billion project which will develop water to meet a portion of our needs. In spite of this project, many other private and local facilities and the present Central Valley project facilities, we are unable to keep pace with the demands for water. With over 17 million people already in California and with a forecast of 25 million in 12 years, we can see no stop to the steadily increasing demand.

Agriculture historically has used the greatest part of the water consumed in the Central Valley but we now have domestic, municipal, and industrial demands increasing rapidly. The need for additional supplemental water effects all segments of our economy.

Much of the present domestic and municipal needs are being met with water supplies originally developed for agricultural uses. The same process will no doubt continue.

Water development works must be staged to meet water demands with allowance for factors such as leadtime for design and construction and available water supplies. We feel consideration of these factors lends support to authorization of Auburn-Folsom South unit.

This association, representing agencies, groups, and individuals in all of the counties from Placer and El Dorado on the north, through Sacramento, San Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, Tulare, and Kern on the south, strongly asks immediate authorization and construction of Auburn-Folsom South unit of the Central Valley project.

RESOLUTION IN SUPPORT OF AUBURN DAM-FOLSOM SOUTH CANAL UNIT

Whereas landowners within the Central California Irrigation District realize the absolute necessity of developing supplemental water for the landowners on the east side of the San Joaquin Valley; and

Whereas existing public agencies and private parties and districts are proceeding as rapidly as possible with the development of water; such development is not keeping pace with the expanding needs for agricultural and domestic water; and

Whereas the proposed Auburn Dam-Folsom South Canal unit, with provisions for enlargement for east side use would be a forward step in providing such needed supplemental water: Now, therefore, be it

Resolved, That the Central California Irrigation District urges the Congress of the United States to authorize and construct the Auburn Dam-Folsom South Canal unit, with provisions for enlargement for east side use, as soon as possible; and be it further

Resolved, That copies of this resolution be forwarded to members of the California congressional delegation, officials of the Department of the Interior and the Bureau of Reclamation.

Passed and adopted this 24th day of March 1965.

Attest:

CERTIFICATE

H. G. FAWCETT, President.

C. W. BATES, Secretary.

I, Charles W. Bates, secretary of the board of directors of the Central California Irrigation District, do certify that the above is a true and correct copy of the minutes of the Central California Irrigation District (extracted) at a regular meeting of the board of directors held March 24, 1965.

Witness my hand and seal this 24th day of March 1965.

[SEAL]

CHARLES W. BATES, Secretary.