[Congressional Record Volume 142, Number 114 (Tuesday, July 30, 1996)]
[Extensions of Remarks]
[Pages E1404-E1405]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 AN END TO WATER WELFARE AS WE KNOW IT

                                 ______
                                 

                           HON. GEORGE MILLER

                             of california

                    in the house of representatives

                         Tuesday, July 30, 1996

  Mr. MILLER of California. Mr. Speaker, this week I released a report 
from the General Accounting Office that details the failure of the 
Reclamation Program to recover the cost of water projects from 
irrigation water users. This report for the first time sets forth the 
total amount of the taxpayers' money spent to build 133 water projects 
in 17 Western States, and the status of payments received from 
irrigators.
  The record revealed by the GAO is largely one of failed repayment. 
Although these projects have been promoted to the public and to 
Congress as sound investments whose capital will be repaid, an array of 
statutory policies and generous interpretations by the Bureau of 
Reclamation have reduced repayment to a fraction of the cost.
  We have spent $21.8 billion on irrigation-related projects since 
1902. Out of that total, only $7 billion has been attributed to 
irrigators for repayment. And less than $1 billion has been repaid to 
date. Almost half of the irrigators' $7 billion obligation has been 
transferred to project power purchasers, but less than 1 percent of 
that money has been repaid.
  The real message of this report is that the policies of the past have 
failed to recover the taxpayers' investment. Although the vast array of 
subsidies for irrigation were justified during

[[Page E1405]]

the initial period of westward expansion and economic development of 
the West, they cannot be sustained under current budgetary constraints 
to reduce the Federal deficit.
  These projects have done their jobs. The West is settled. The 
projects have produced nearly $200 billion in income for their 
beneficiaries. At a time when Congress has told farmers in other parts 
of the country to give up their heavy diet of Federal subsidies, we 
cannot leave untouched the water subsidies benefiting their 
competitors--Federal irrigation farmers in the West.
  It is time to say, ``Enough is enough.'' Today I am introducing a 
bill to eliminate irrigation subsidies on new Reclamation projects. 
This legislation will have no effect on completed projects, or on 
projects where irrigators have already executed contracts to repay the 
Federal investment. But it will require that water users pay the full 
cost for water from new projects, or new units of existing projects.
  The Congress is about to pass legislation that curtails welfare 
payments after 2 years. I recognize that farmers work hard and provide 
for the Nation. But with all due respect, after nearly 100 years of 
multibillion dollar irrigation subsidies, the time for water welfare 
must come to an end.
  When the taxpayers pay to construct a water supply, project 
beneficiaries should pay back that investment with interest. Doing so 
will encourage the Congress only to fund those projects that make sound 
economic and environmental sense, not those that can survive only with 
massive infusions of Federal taxpayer dollars.
  I hope that other members will join me in promoting fairness for 
farmers and taxpayers, and that my bill will receive an early hearing 
in the Committee on Resources.

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