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UPPER PROVO RIVER IMPR.

TOTAL UPPER PROVO AIVER

JORDAN 4-ALPINE 3 ALPINE 2

TOTAL AQUEDUCT SYSTEM

JACOB WELBY P. P.

TOTAL JACOB WELBY

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TOTAL MGI SYSTEM

TOTAL FROM SHEET 1 TOTAL REMAINDER OF BU

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TOTAL

1/ An additional $14,000,000 for earnings to quantity overruns and other modifications will be construction for and are not currently integrated in these numbers.

PREPARED STATEMENT

Senator BURDICK. Mr. Chairman, the Governor of our State asked that his statement be made part of the record.

Chairman HATFIELD. The Governor's statement will be accepted and made a part of the record at this point.

[The statement follows:]

STATEMENT OF GOV. GEORGE SINNER OF NORTH DAKOTA

Mr. Chairman and members of the committee, I am unable to attend your hearing today because of pressing business with the National Governor's Association.

I am meeting today with Congressman George Miller of California, chairman of the House Subcommittee on Water and Power of the Committee on the Interior and Insular Affairs.

It is my understanding that an agreement exists whereby a bill authorizing the Garrison diversion will originate in the House.

RESOLUTION OF DISPUTE WITH LEE IACCOCA

Chairman HATFIELD. The Senator from New Mexico.

Senator DOMENICI. Thank you very much, Mr. Chairman.

Perhaps before I arrived-and I apologize for being late-maybe you asked the Secretary how he and Lee Ioccoca are getting along. [Laughter.]

Have you asked him?

Chairman HATFIELD. That was done privately.

Senator DOMENICI. I also did that this morning. [Laughter.]

Having my last name, I should inquire about this matter. [Laughter.] Chairman HATFIELD. There is a certain camaraderie that you have. Senator DOMENICI. But I decided that I would leave it up to you, Mr. Secretary, and Mr. Iaccoca to solve that problem.

Mr. Secretary, you do look well, so I assume that all is working out? [Laughter.]

Secretary HODEL. As a matter of fact, Senator, I think that we are where we should be and that Mr. Iaccoca will continue to serve as foundation chairman. He will run the celebration on the 4th of July, which is, I think, important for people to understand. There was some misunderstanding as to what was going on. The new chairman of the committee, Armen Avedisian, and he have had a couple of very cordial conversations. They have high mutual respect, and I think the net result will be that the American people, the Department of the Interior, and all of us can be confident that the advisory commission will be able to give independent advice. I think that is a positive thing.

GRAMM-RUDMAN-HOLLINGS REDUCTION

Senator DOMENICI. I haven't had a chance to review your entire statement, and if you don't have these numbers, perhaps you could supply them to the chairman in due course.

It is of more than passing interest to many of us in looking at this coming year to take a close look at the sequestration we expect to occur on March 1. Since March 1 is almost upon us. I guess it is fair to as

sume that the fiscal year 1986 Gramm-Rudman-Hollings mandatory reductions will be achieved.

But even if it is still subject to doubt, I wonder if you have the numbers which would indicate, assuming that the Gramm-Rudman-Hollings across-the-board reduction, as presently interpreted, is ordered for your Department and the Bureau of Reclamation, how your fiscal year 1987 budget submission compares with the fiscal year 1986 adjusted level?

Secretary HODEL. In fact, I am sure that Mr. Duvall and Mr. Klostermeyer have the figures in detail, but in our budget presentation, we have attempted to show the 1986 estimate with the 4.3-percent reduction as a comparison with the 1987 request we have submitted. We can provide that.

[The information follows:]

COMPARISON OF 1986 APPROPRIATION AFTER APPLICATION OF PUBLIC LAW 99-177 AND 1987 REQUEST [In thousands of dollars]

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1 Includes $1,920,000 dependent upon proposed legislation.

Senator DOMENICI. I would appreciate it if you will submit the numbers for all to review. Is the President's fiscal year 1987 budget request up from that level as a starting point?

Secretary HODEL. Yes, the request for the Bureau of Reclamation is an increase over 1986.

Senator DOMENICI. If so, how much?

Secretary HODEL. Our construction budget is up $77.5 million in budget authority over 1986. That is our budget authority request..

It is the 1986 budget authority which was reduced by 4.3 percent which is the base from which we request an increase of $77.5 million in budget authority for 1987. The outlays in 1987 would, in fact, be $65 million less than the 1986 estimate. As you know, in this construction program the budget authority, obligations and outlays can sequence themselves in different fiscal years. We have that in detail by project if you desire.

ANIMAS-LA PLATA PROJECT

Senator DOMENICI. I would appreciate such a response.

I have one question.

Mr. Duvall, with reference to the Bureau of Reclamation, on page 3

of your testimony, you indicate that the Animas-La Plata project in New Mexico and Colorado is a new start. You indicate that the fiscal year 1987 budget also assumes that Colorado and New Mexico will contribute $4.2 million to the Animas-La Plata project in 1987; is that correct?

Mr. DUVALL. That is correct.

Senator DOMENICI. I am very concerned because Congress did require negotiated cost-sharing agreements on the few projects fenced in the fiscal year 1985 supplemental appropriation bill. This was one of those that was fenced, awaiting what was statutorily defined as an "acceptable" cost-sharing agreement to be negotiated with the Secretary. What is New Mexico's share of that $4.2 million, and how did you arrive at what is reasonable?

If you don't have that now, it would be fine with me if you answer it for the record, Secretary Hodel.

Chairman HATFIELD. You may supply that for the record, if you wish. Mr. DUVALL. We don't have the details with us, but we can supply it. [The information follows:]

ANIMAS-LA PLATA PROJECT

Funds are provided in the Fiscal Year 1985 Supplemental Appropriations Act (Public Law 99-88) to begin construction on the Animas La Plata project in New Mexico and Colorado. In addition to the Bureau of Reclamation's funds, the budget assumes that the two States will fund and implement necessary field mapping in fiscal year 1986 and contribute $4.2 million in 1987. The $4.2 million represents the additional amount that would boost the $1 million request to the total capability level of Reclamation to maintain the construction schedule for the project in fiscal year 1987. The fiscal year 1986 funding and implementation of field investigations and the fiscal year 1987 $4.2 million have not yet been agreed to by the project participants. And, inasmuch as negotiations are still underway on the cost-sharing agreement, the total split of the $4.2 million among the two States cannot be determined at this time.

PROJECT COST ESTIMATES

Senator DOMENICI. I would note that, as in many of these projects, the original cost estimates over the last 5 or 6 years have been very high. The revised cost estimates are almost always lower. That holds. true in Animas-La Plata. It is down a substantial amount, approximately $70 million.

But I do note that that reestimate hasn't changed the cost-sharing requirement for the local sponsors, at least as a starting point for what you assume to be reasonable.

Mr. DUVALL. It is my understanding, Senator, that the non-Federal participants in the Animas-La Plata project are in the process of drawing up a proposal to be submitted to the Department of the Interior, to the Secretary, relative to their cost-sharing arrangement.

Senator DOMENICI. Yes, indeed.

Mr. DUVALL. At the time that we came up with the revised cost numbers for the Animas-La Plata project, we left the targeted number of $200 to $300 million of cost sharing alone so as to minimize confusion and to move the project or to keep the project as consistent with nonFederal cost-sharing objectives as we could.

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