of the Interior to reprogram funding and procedures" in section 2(b) of the
bill, to simply state that the purpose of the Act is to modify the O'Neill Unit.

Furthermore, to clarify the planning process for the modified version of the
project, you may wish to add after "purposes" in line five of page 2 of the
bill in accordance with the plan dated

devised by

(It is our understanding that a coordinating entity will be devising a plan for the modified project. If it is available you may wish to append this plan to the Committee report.)

To incorporate by reference whatever plan you wish to have guide the
modification of the project also relates to the question you asked about
"maintaining the current 3 1/2% interest rate." A check with the Bureau of
Reclamation as to what rates apply to the O'Neill project reveals that a
31/4% discount rate applied to the project when it was being studied and
planned for purposes of the 1972 reauthorization. However, this particular

rate was used only during the planning and justification process and is
separate from the "payback" rate of interest that applies to the reimbursement
of the federal government for various parts of the project. This latter rate

is higher than 3 1/4%, even as to the O'Neill Unit.

Therefore, the only way

you would "lose" the 3 1/4% rate by legislation now is if that legislation

necessitates new planning and costs justifications by the Bureau, which new plans would be based on a higher current discount rate for purposes of performing the usual cost/benefit analysis. It is not clear whether the project has

Congress

In this

been so changed as to necessitate these processes. llowever, Congress can
specify what planning procedures It deems necessary with respect to any parti-
cular project and also can specify that a certain plan is to apply.
case, incorporating a non-Bureau plan with respect to a modification of an
already authorized project arguably could be interpreted as obviating the need
for the usual Bureau procedures in that regard, thereby making the planning
discount rate irrelevant.

As we noted to your staffer, there are various factors to weigh in deciding how much to specify in the bill. Stating clearly that the cost/benefit justification process is not to apply to this modification may create opposition. Describing the project only as a modification and incorporating by reference an outside planning document may result in ambiguity on the issue of justification procedure. Your staffer indicated that support for the compromise, modified project appears to be growing and these extraneous factors may ultimately determine how you wish to phrase the bill on this issue.

Lastly, section 4 of your bill amends section 406 of the 1972 reauthorization to correct an error (an omitted line), but leaves the amount of funds authorized unchanged. In view of the significant changes in the projects' features, you may wish to update this amount.

We hope this information is helpful to you.

PREPARED STATEMENT OF EDWARD ZORINSKY OF NEBRASKA

Senator STENNIS. Senator Zorinsky notified me that he will submit a statement for the record. Without objection the statement of the Senator will be made a part of the record.

[The statement follows:]

STATEMENT OF SENATOR EDWARD ZORINSKY

MR. CHAIRMAN, I WOULD LIKE TO ADDRESS A FLOODING PROBLEM IN WESTCENTRAL NEBRASKA ON AND AROUND THE CONFLUENCE OF THE NORTH AND SOUTH PLATTE

RIVERS.

YOU HAVE RECEIVED TESTIMONY FROM TWO GENTLEMEN, MR. KENT 0. MILLER, GENERAL MANAGER OF THE TWIN PLATTE NATURAL RESOURCES DISTRICT, AND DALE WAHLGREN, PRESIDENT OF THE PLATTE RIVER FLOOD CONTROL ASSOCIATION, BOTH OF WHOM ARE FROM THE PROBLEM AREA AND ARE ACUTELY AWARE OF THE LOCAL PROBLEM. I WILL NOT TRY TO IMPROVE ON THEIR EXPLANATION OF THE SITUATION. IT IS QUITE CLEAR THAT THE PAST FLOODING AND THE THREAT OF FUTURE FLOODING ARE PROBLEMS THAT DESERVE IMMEDIATE CONGRESSIONAL ATTENTION. THE ASSISTANCE THAT MR. MILLER AND MR. WAHLGREN ARE REQUESTING WILL FORM THE BASIS FOR A PROPER SOLUTION, AND CONSISTS OF TWO PARTS.

FIRST, $500,000 WOULD BE APPROPRIATED UNDER SECTION 55, P.L. 93251 AUTHORITY TO PROVIDE TECHNICAL AND ENGINEERING ASSISTANCE TO DEVELOP BANK STABILIZATION MEASURES FOR THE SITES ALONG THE PLATTE IDENTIFIED IN MR. MILLER'S TESTIMONY. SUCH ASSISTANCE WOULD BE INSTRUMENTAL IN HELPING

LOCAL INTERESTS DEVELOP METHODS FOR CONTROLLING EXCESSIVE FLOWS AND
MAINTAINING THE INTEGRITY OF THE RIVERBANKS. SECOND, AUTHORITY UNDER
SECTION 32 OF THE WATER RESOURCES DEVELOPMENT ACT OF 1974 WOULD BE REVIVED
SO AS TO ALLOW DEMONSTRATION FLOOD CONTROL AND BANK STABILIZATION PROJECTS
ALONG THE PLATTE RIVER, INCLUDING THE REGION NEAR THE NORTH PLATTE/SOUTH
PLATTE CONFLUENCE. TAKEN TOGETHER, THESE TWO PROPOSALS WOULD LEAD TO
EFFECTIVE AND INNOVATIVE REMEDIES TO THE SEVERE FLOODING PROBLEMS ALONG THE
PLATTE RIVER.

A MAJOR CONSIDERATION IN TAKING THIS TWO-TIERED APPROACH IS THAT
SOME MEANINGFUL BANK STABILIZATION WORK COULD BE PERFORMED RELATIVELY
QUICKLY. MY UNDERSTANDING IS THAT THE CORPS OF ENGINEERS COULD HAVE ONE OR
TWO PROJECTS IN PLACE THIS YEAR WIH MORE TO FOLLOW IN 1985. ALTHOUGH THESE
MEASURES REALISTICALLY WOULD PROVIDE MINIMAL BENEFIT DURING THIS FLOOD

SEASON, FLOOD MITIGATION ALONG THE PLATTE COULD BE VERY SUBSTANTIAL BY NEXT

SPRING THIS IS IMPORTANT BECAUSE THE GEOLOGICAL, GEOGRAPHICAL, AND

METEOROLOGICAL CHARACTERISTICS OF THE AREA INDICATE THAT THESE FLOODING PROBLEMS WILL BE RECURRING ONES. THE PLATTE DRAINS THE EASTERN SLOPE OF THE ROCKIES AND IS SUBJECT TO THE MOUNTAIN WEATHER CONDITIONS. AGAIN THIS YEAR AS IN 1983, ABOVE-AVERAGE SNOWFALLS AND A LATE SPRING THAW COULD SEND ANOTHER FLOODING TORRENT DOWN THE PLATTE. THE SAME CIRCUMSTANCES, OR WORSE, COULD AND PROBABLY WILL DEVELOP IN SUBSEQUENT YEARS. I URGE THAT WE ACT QUICKLY AND EFFECTIVELY SO THAT RESIDENTS ALONG THE PLATTE ARE NOT HELD HOSTAGE EVERY SPRING BY THE FORCES OF NATURE.

AT THE VERY LEAST, THESE IDEAS PROVIDE A GOOD BEGINNING, THE BASIS FOR A SOLUTION WHICH MAY BE FURTHER SHAPED AND REFINED AS WE BELIEVE NECESSARY. I WILL BE PLEASED TO WORK WITH YOU AND THE DISTINGUISHED MEMBERS OF THE COMMITTEE SO THAT WE MAY ARRIVE AT AN APPROPRIATE

LEGISLATIVE STRATEGY FOR MITIGATING THE EFFECTS OF ANNUAL DAMAGING FLOODS ALONG THE PLATTE RIVER. I WILL APPRECIATE YOUR KIND ATTENTION TO THIS

MATTER.

MR. CHAIRMAN, I WOULD LIKE TO ADDRESS THE NEED FOR FUNDING OF A

WATER PROJECT IN COLORADO, THE NARROWS UNIT.

THE NARROWS UNIT HAS BEEN AUTHORIZED FOR MANY YEARS AS PART OF THE PICK-SLOAN MISSOURI BASIN PROGRAM BUT HAS FAILED TO RECEIVE AN APPROPRIATION TO BEGIN CONSTRUCTION. THE PROJECT IS DESIGNED PRIMARILY TO PROVIDE WATER SUPPLY BENEFITS FOR IRRIGATION AND MUNICIPAL/INDUSTRIAL USES, BUT I AM PARTICULARLY INTERESTED IN ANOTHER BENEFIT FOR DOWNSTREAM RESIDENTS OF BOTH COLORADO AND NEBRASKA--FLOOD CONTROL.

THE REGION OF THE SOUTH PLATTE RIVER FLOWING THROUGH THE DENVER AREA IS CURRENTLY WELL MANAGED BY A SERIES OF ARMY CORPS OF ENGINEERS DAMS. THESE DAMS HAVE PROVIDED EXCELLENT CONTROL OF THE CHARACTERISTICALLY HIGH SNOW MELT RUN-OFFS FROM THE MOUNTAINS UPSTREAM AND SOUTHWEST OF DENVER. THE FLOOD PROTECTION PROVIDED BY THESE CORPS OF ENGINEERS PROJECTS HAS BEEN INVALUABLE TO THE PEOPLE LIVING IN AND IMMEDIATELY DOWNSTREAM OF DENVER.

HOWEVER, THREE RIVERS FEED MOUNTAIN SNOW MELT RUN-OFF INTO THE

SOUTH PLATTE FURTHER DOWNSTREAM WITH NO SUBSTANTIAL CONTROL. THE ST.
VRAIN, BIG THOMPSON, AND CACHE LA POUDRE RIVERS FLOW DIRECTLY INTO THE
SOUTH PLATTE, AND IN YEARS OF AVERAGE SNOW FALL AND TEMPERATURE CONDITIONS
THEY CAN SEND MUCH OF THE SOUTH PLATTE SWELLING BEYOND ITS BANKS. IF
EXCESSIVE WEATHER CONDITIONS PREVAIL, AS THEY HAVE THE PAST TWO YEARS, THE
DOWNSTREAM FLOODING CAN TAKE ON MONUMENTAL PROPORTIONS. FLOODING IN RECENT
YEARS HAS BEEN PARTICULARLY BAD IN NEBRASKA PAST THE CONFLUENCE OF THE
NORTH AND SOUTH PLATTE RIVERS, AND THE LACK OF ADEQUATE FLOOD CONTROL ON
THE COLORADO NECK OF THE SOUTH PLATTE HAS BEEN A MAJOR FACTOR CONTRIBUTING
TO THE PROBLEM.

IT IS ESPECIALLY DISTURBING THAT THE SAME WATER THAT GUSHES

DESTRUCTIVELY DOWN THE RIVER DURING THE SPRING MELT COULD BE USED FOR

CONSTRUCTIVE PURPOSES--IF A STORAGE FACILITY WERE IN PLACE TO CONTAIN THE

RUN-OFF AND DISTRIBUTE THE FLOWS MORE EVENLY THROUGHOUT THE COURSE OF THE YEAR. THIS IS NOT TO SAY THAT THE NARROWS WOULD COMPLETELY CONTROL OR ELIMINATE THE FLOODING PROBLEMS ON THE PLATTE, BUT IT WOULD PLAY AN

IMPORTANT ROLE IN REDUCING THE SEVERITY OF THE PROBLEM WHILE ENHANCING THE WATER SUPPLY IN THE PROJECT AREA AND MAKING THE DOWNSTREAM FLOW MORE

RELIABLE.

THE NARROWS UNIT HAS MET WITH FAVOR IN NEBRASKA AS WELL AS COLORADO THE LEGISLATURE OF NEBRASKA HAS PASSED RESOLUTIONS OF SUPPORT FOR THE PROJECT, AND REPRESENTATIVES OF THE TWIN PLATTE NATURAL RESOURCES DISTRICT HAVE INFORMED ME OF THEIR SUPPORT AS WELL. IT IS MY PLEASURE TO INFORM YOU THAT I, TOO, SUPPORT FUNDING TO BEGIN WORK ON THE NARROWS UNIT, AND I WOULD ASK YOU TO APPROPRIATE FUNDS FOR THIS PURPOSE.