[Congressional Record Volume 144, Number 11 (Thursday, February 12, 1998)]
[Senate]
[Pages S766-S769]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself and Mr. Domenici):
  S. 1662. A bill to authorize the Navajo Indian irrigation project to 
use power allocated to it from the Colorado River storage project for 
on-farm uses; to the Committee on Indian Affairs.


              navajo indian irrigation project legislation

  Mr. BINGAMAN. Mr. President, I rise today to introduce legislation 
that will mean a great deal to the future economic development of the 
Navajo Nation and to the people in the Four Corners Region of New 
Mexico, Arizona, Utah, and Colorado.

  Mr. President, we are truly fortunate today to have one of the lowest 
national unemployment rates in recent memory. Unfortunately, the 
administration's economic juggernaut has not been felt everywhere. 
While national unemployment rates are below five percent, in my state 
of New Mexico, unemployment remains stuck at 8%. According to the 
Bureau of Labor Statistics, New Mexico has the second highest 
unemployment rate in the country, right behind the District of 
Columbia.
  Regrettably, one of the nation's highest unemployment rates is on the 
Navajo Indian Reservation, where unemployment is a staggering 50%. The 
unemployment rate in neighboring San Juan County is 12%, which is more 
than twice the national average. These statistics should be deeply 
troubling to all senators. Clearly, there is no region in this country 
in greater need of targeted economic development. Creating jobs is 
precisely the purpose of the legislation I am introducing today.
  In a nutshell, this bill allows the Navajo Nation's Indian Irrigation 
Project to use a portion of its existing allocation of federal electric 
power to help spur economic development and to create good jobs in the 
region.
  Mr. President, in 1962 Congress authorized the construction and 
operation of the Navajo Indian Irrigation Project. The project has 
blossomed into a 60,000 acre agricultural enterprise growing potatoes, 
beans, alfalfa,

[[Page S767]]

wheat, corn and livestock with annual revenues of $36 million. Today, 
the ``Navajo Pride'' brand name is a hallmark of agricultural quality 
nationwide. The Tribe's own Navajo Agricultural Products Industry 
(NAPI) operates this successful all-Indian project. NAPI has a full-
time staff of 300. The workforce swells to 1,200 during the summer 
growing season.
  In the 1962 legislation, Congress authorized the Bureau of 
Reclamation to reserve eighty-seven megawatts of electric power for use 
by the project. It is clear from the original authorization that the 
primary purpose of the project was to deliver water for the development 
of farming and allied industries. The reserved electric power is 
currently used to pump water to the project and to provide the water 
pressure needed for irrigation. The original plans called for the use 
of gravity-fed irrigation; however, the irrigation method was later 
changed to a more efficient electric-powered center-pivot system. 
Unfortunately, Congress had not foreseen these improvements and did not 
specifically authorize the use of federal power to run irrigation 
sprinklers. In a letter to me dated November 5, 1997, Commissioner 
Martinez of the Bureau of Reclamation stated that Congress had not 
provided the bureau with sufficient authority to allow NAPI to use its 
existing allocation of electric power for anything other than water 
pumping. Congress simply failed to authorize the use of federal power 
to run the sprinklers or for processing of the products grown there.
  The legislation I am introducing would allow NAPI to use its existing 
power allocation to run the project's irrigation sprinklers or 
factories on the reservation that process the agricultural products. 
This legislation does not increase the amount of power allocated to 
NAPI--nobody's allocation of electric power is reduced or affected in 
any way. Moreover, the change would have no cost or other impact on 
taxpayers.
  This legislation is a simple technical change. It clarifies existing 
congressional language. Moreover, because this is an all-Indian project 
established by Congress to benefit the Navajo Nation, this legislation 
does not create a precedent that would apply to any other irrigation 
project.
  This bill has the support of the Bureau of Reclamation. In addition, 
the Republican Governor of the state of New Mexico and the nearby 
cities, counties, and electric utility companies support this change 
because they recognize the economic benefits for the entire Four 
Corners Region. I would particularly like to acknowledge the City of 
Farmington and Republican Mayor Thomas C. Taylor for support of the 
project as reflected in a Memorandum of Understanding between the City 
and NAPI. In addition, the State of New Mexico has supported this 
effort with a grant to study water issues and by permitting the Navajo 
Nation to use state bonding capacity.
  Mr. President, Congress must not delay action to help reduce the 
unacceptable unemployment rates on the Navajo Reservation. This bill is 
an important step toward creating hundreds of year-round jobs and 
spurring economic development in San Juan County and the rest of the 
Four Corners Region. I urge the Chairman of the Energy and Natural 
Resources Committee to schedule a hearing on this worthy legislation at 
the earliest possible date.
  I ask unanimous consent to have a copy of the bill included in the 
Record along with a copy of the Memorandum of Understanding between the 
City of Farmington and the Navajo Agricultural Products Industry. I 
also ask unanimous consent to include in the Record letters supporting 
this legislation from the Bureau of Reclamation; Governor Johnson, the 
Cities of Farmington and Bloomfield, New Mexico; San Juan County, New 
Mexico; and the Navajo Tribal Utility Authority.
  There being no objection, the materials were ordered to be printed in 
the Record, as follows:

                                S. 1662

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FINDINGS.

       Congress finds that--
       (1) the Navajo Indian irrigation project (in this section 
     referred to as the ``irrigation project'') was authorized for 
     construction and operation as a participating project of the 
     Colorado River storage project by the Act of June 13, 1962, 
     Public Law 87-483, pursuant to plans approved by the 
     Secretary of the Interior on October 16, 1957;
       (2) the irrigation project is an all-Indian irrigation 
     project authorized for the primary purpose of delivering 
     water to develop farming and allied industries that benefit 
     the Navajo Nation;
       (3) the Bureau of Reclamation has reserved 87 megawatts of 
     power and associated energy from the Colorado River storage 
     project for current and future use on the irrigation project, 
     but currently not more than 25 megawatts of power is being 
     used because the project is only partially completed; while 
     the initial and subsequent plans and authorizing legislation 
     for the irrigation project allow power to be used to deliver 
     water to the irrigation project by canals and to lift water 
     to heights sufficient to pressurize the sprinkler delivery 
     system, clarification is necessary to approve the use of 
     power for on-farm uses such as for powering center-pivot 
     irrigation systems or for related agricultural industry 
     purposes; and
       (4) the irrigation project is of vital economic importance 
     to the Navajo Nation, and substantial economic development 
     for the Four Corners Region and the Navajo Nation could be 
     realized if a portion of the 87 megawatt power allocation 
     were made available by the Bureau of Reclamation for powering 
     center-pivot irrigation systems and for related agricultural 
     industry purposes.

     SEC. 2. USE OF POWER.

       The first section of the Act of June 13, 1962 (Public Law 
     87-483; 76 Stat. 96) is amended by adding at the end the 
     following: ``The Navajo Indian irrigation project may use its 
     allocation of 87 megawatts of power from the Colorado River 
     storage project for water delivery, on-farm production, and 
     related agricultural industry purposes.''.
                                  ____


     Navajo Agricultural Products Industry and City of Farmington--
                      Memorandum of Understanding

       This Memorandum of Understanding (Agreement), between the 
     Navajo Agricultural Products Industry (NAPI) and the City of 
     Farmington (City), New Mexico, sometimes referred to as the 
     Parties, sets forth the terms and conditions to clarify 
     conflicting interests in delivery of electrical service to 
     the Navajo Agricultural Products Industry.
       Whereas, NAPI seeks the support of the City for the use of 
     Other Priority Use Power for the development of the proposed 
     french fry factory which will require a legislated Change in 
     Purpose; and
       Whereas, the City of Farmington recognizes and agrees with 
     NAPI that the development of the french fry factory will have 
     positive economic impact for the Navajo Nation, the City and 
     San Juan County; that the french fry factory will create over 
     600 jobs; and, that it will require the development of three 
     additional agricultural blocks which will have an important 
     and positive long range influence on the economic development 
     of the region; and
       Whereas, NAPI's General Manager Lorenzo Bates and the 
     City's Mayor Thomas C. Taylor met on November 21, 1997, to 
     resolve outstanding issues which have arisen regarding NAPI's 
     legislative request for a Change in Purpose of NAPI's 
     Colorado River Storage Project (CRSP) Project Use Power 
     allocation.
       Therefore, as a result of the meeting the Parties agree as 
     follows:
       1. NAPI agrees to continue to utilize electric power 
     provided by the City for its center pivots located in the 
     City's service area;
       2. The use and amount of such service to the center pivots 
     shall remain similar to the amount used by NAPI at the 
     signing of this Agreement and shall continue until the City 
     implements customer choice in its service area;
       3. This Agreement will be applicable and bind any person, 
     corporation, or entity which may purchase or acquire through 
     any means the Farmington Electric Utility System (FEUS).
       In consideration of NAPI's promises and covenants, the City 
     agrees as follows:
       1. To support NAPI's request for a legislative Change in 
     Purpose of a remaining portion of their eighty-seven 
     megawatts (87 mW) of CRSP allocation of federal power to be 
     used to supply electricity to the proposed french fry plant;
       2. To provide additional support through letters, 
     communications and action which will facilitate the 
     development of the french fry factory and is not 
     contradictory to policy decisions the City has made; and
       3. To review the FEUS rates for electric service within the 
     next two years and make an effort to offer competitive rates 
     for center pivot operations.
       By this acknowledgment, the Parties agree to abide by the 
     terms of this Agreement.
     Navajo Agricultural Products Industry.
     City of Farmington.
                                  U.S. Department of the Interior,


                                        Bureau of Reclamation,

                                 Washington, DC, November 5, 1997.
     Hon. Jeff Bingaman,
     U.S. Senate, Washington, DC.
       Dear Senator Bingaman: Thank you for your May 8, 1997, 
     letter co-signed by the New Mexico and Arizona Congressional 
     delegation, regarding the use of Federal power for the Navajo 
     Agricultural Products Industry's (NAPI) center pivot 
     irrigation system and industrial uses. The Bureau of 
     Reclamation (Reclamation) has no express authority to

[[Page S768]]

     allow the use of project power for these proposed on-farm 
     uses. Although Reclamation might have implicit authority 
     which would allow for the use of project power in the manner 
     requested, such an interpretation would not be consistent 
     with the past instances of Reclamation practice. While we 
     will continue to review the matter, given the lack of express 
     authority, legislation to resolve the matter conclusively and 
     expeditiously may be appropriate.
       The sale of Federal power from a Reclamation project is 
     governed by general Federal Reclamation law and authorizing 
     acts for specific projects. Reclamation may provide power 
     only for the uses authorized by Congress. Power is sold 
     either as project power at the project,\1\ or for other uses, 
     on or off the project (non-project power). The Navajo Indian 
     Irrigation Project (NIIP) was authorized for construction and 
     operation as a participating project of CRSP by Public Law 
     87-483 passed on June 13, 1962, pursuant to plans approved by 
     the Secretary of the Interior on October 16, 1957. Although 
     NIIP is an Indian irrigation project, it is subject to 
     Federal Reclamation law as provided by Section 4 of the 
     Colorado River Storage Project Act of April 11, 1956. The 
     planning and authorization documents, along with subsequent 
     planning reports, indicate that project power was intended to 
     accommodate delivery of water to the farm by canals and by 
     lifting water to heights sufficient to pressurize the 
     sprinkler irrigation delivery system. No specific indication 
     is made that project power would be available to run center 
     pivot irrigation systems or for on-farm municipal and 
     industrial uses, however, it is clear that the primary 
     purpose of the project is to deliver water for the 
     development of farming and allied industries.
---------------------------------------------------------------------------
     \1\ There are two types of project power, ``project use 
     power'' and ``priority use power.''
---------------------------------------------------------------------------
       Reclamation has reserved 87 Megawatts (MW) of project power 
     from the CRSP for current and future use on the NIIP for 
     authorized purposes. Although as you point out in your May 8, 
     1997, letter, the terms of the 1990 interagency agreement and 
     revisions agreed to by the Western Area Power Administration, 
     Reclamation, and NAPI provide that NAPI can use other 
     Priority Use Power for sprinkler irrigation and industrial 
     uses, specific Congressional authority for such uses does not 
     exist and therefore legislation making such authority clear 
     would be appropriate. As development of NIIP continues, there 
     are increasing opportunities for application of various 
     conservation measures with attendant energy saving. With 
     specific Congressional authorization, we believe that overall 
     power usage, including the proposed on-farm uses can be 
     accommodated within the present 87 MW allocation.
       If you desire to discuss these matters further, please 
     contact Arlo Allen at (801) 524-3612.
           Sincerely,
                                                Eluid L. Martinez,
     Commissioner.
                                  ____

                                           Office of the Governor,


                                                State Capitol,

                                  Santa Fe, NM, February 11, 1998.
     Hon. Jeff Bingaman,
     U.S. Senate, Hart Senate Office Bldg., Washington, DC.

     Hon. Pete V Domenici,
     U.S. Senate, Hart Senate Office Bldg., Washington, DC.
       Dear Senator Bingaman and Senator Domenici: It is with 
     pleasure that I give my support to the Navajo Agricultural 
     Products Industry French Fry Plant. This project offers great 
     opportunities for self-sufficiency and economic development 
     for the Navajo Nation, City of Farmington, San Juan County 
     and the State of New Mexico, as well as the Navajo 
     Agricultural Product Industry. The creation of up to 500 
     plant jobs and another 100 farming jobs will benefit the 
     community and the state. We commend everyone involved for the 
     collaboration between state, federal, local and tribal 
     agencies to make the french fry project a reality.
       The Department of Economic Development has been heavily 
     involved in this project for several years and spearheaded 
     the effort to pass a new law to allow Nations, Tribes and 
     Pueblos access to the New Mexico Finance Authority bonding 
     capacity. I supported and signed into law this piece of 
     legislation. The New Mexico Department of Environment also 
     gave a grant to the Navajo Nation of $200,000 to study water 
     issues for the french fry factory. The funding for the study 
     came through the State Legislature with my full support In 
     1997, the New Mexico Legislature and my administration worked 
     to pass legislation to further assist the Navajo Nation 
     recruit the french fry factory to NAPI.
           Sincerely,
                                                  Gary E. Johnson,
     Governor.
                                  ____

                                               City of Farmington,


                                          Office of the Mayor,

                                Farmington, NM, February 10, 1998.
     Mr. LoRenzo Bates,
     General Manager, Navajo Agricultural Products Industry, 
         Farmington, NM.
       Dear Mr. Bates: Based upon information received from the 
     Navajo Agricultural Products Industry (NAPI), the Navajo 
     Tribal Utility Authority (NTUA) and Senator Bingaman's 
     office, the City of Farmington (City) understands that the 
     location of the proposed french fry plant will straddle the 
     area served by NTUA and the City of Farmington's electric 
     utility. Furthermore, our understanding is that the 
     electricity required for the french fry plant will be 
     provided from resources available to NAPI under the 
     Interagency Agreement among NAPI and the US Department of 
     Interior--Bureau of Indian Affairs and the US Department of 
     Interior--Bureau of Reclamation and the US Department of 
     Energy--Western Area Power Administration, Colorado River 
     Storage Project and that NTUA proposes to build the 
     transmission/distribution system necessary to deliver such 
     resources to NAPI.
       In order for NAPI to have access to the resources under the 
     Agreement referred to above, it is necessary to have 
     legislation introduced which will provide for a change in 
     purpose for the use of the project power. Senator Bingaman's 
     office is intending to introduce that legislation in the 
     Senate during the latter part of February, 1998. The City of 
     Farmington, in accordance with the Memorandum of 
     Understanding between NAPI and the City dated December 10, 
     1997, supports NAPI's request for a legislative Change in 
     Purpose of a remaining portion of the eighty-seven megawatts 
     (87mW) of CRSP allocation of federal power to be used to 
     supply electricity to the proposed french fry plant.
           Sincerely,
                                                 Thomas C. Taylor,
                                                            Mayor.
                                               City of Farmington,


                                          Office of the Mayor,

                                  Farmington, NM, January 8, 1998.
     LoRenzo Bates,
     General Manager, NAPI, Farmington, NM.
       Dear LoRenzo: The City of Farmington supports and 
     encourages the development of the potato processing facility 
     at NAPI. This project has the potential of creating numerous 
     job opportunities for a large, unemployed segment of the 
     population. In the City's application to the Empowerment 
     Zone/Enterprise Community program we attempted to focus on 
     job creation in areas south of our city where residents live 
     far below the poverty standards. This project is the best 
     opportunity for Navajo employment in that area.
           Sincerely,
                                                 Thomas C. Taylor,
     Mayor.
                                  ____



                                           City of Bloomfield,

                                 Bloomfield, NM, February 6, 1998.
     Senator Jeff Bingaman,
     Hart Office Building, Washington, DC.

     RE: Navajo Agricultural Products Industry (NAPI)--Potato 
     Processing Plant

       Dear Senator Bingaman: The City of Bloomfield has been 
     supportive of NAPI since its inception and in particularly 
     supportive of its efforts to develop a ``potato processing 
     plant''. We understand that Legislation is being prepared to 
     allow NAPI to utilize WAPA Power for the plant and other 
     purposes. We therefore, request your support of this 
     Legislation.
       As you are well aware, the Navajo Nation has a 49% 
     unemployment rate on the reservation, therefore we feel that 
     the development of the potato processing plant is of utmost 
     importance to the Navajo Nation, San Juan County and the City 
     of Bloomfield.
       On behalf of myself and the City Council I would like to 
     reaffirm the City's support for what can only be an economic 
     benefit to all the citizens in Northwest New Mexico.
           Sincerely,
                                                       Sam Mohler,
     Mayor.
                                  ____



                                              San Juan County,

                                      Aztec, NM, February 6, 1998.
     Hon. Jeff Bingaman,
     Hart Senate Office Building, Washington, DC.

     Re: Navajo Agriculture Products Industry (NAPI)--Potato 
     Processing Plant

       Dear Senator Bingaman: San Juan County has been supportive 
     of the NAPI's ``Potato Processing Plant'' since its 
     inception. On numerous occasions we have met with Mr. Lorenzo 
     Bates of NAPI and our legislative delegation to attempt to 
     bring this project to fruition.
       The Navajo Nation has a 49% unemployment rate on the 
     Reservation and because of this, we feel that the Potato 
     Processing Plant is of upmost importance to the County.
       On behalf of myself and the San Juan County Commission, I 
     would like to reaffirm the County's support for what I feel 
     will be an economic benefit to all the citizens in San Juan 
     County.
       Please let us know if we can be of further assistance.
           Sincerely,
                                                    Tony Atkinson,
     County Manager.
                                  ____



                              Navajo Tribal Utility Authority,

                             Fort Defiance, AZ, February 10, 1998.
     Hon. Jeff Bingaman,
     U.S. Senate, Hart Senate Office Building, Washington, DC.

     Re: Navajo Indian Irrigation Project On Farm Use of Colorado 
     River Storage Project Power
       Dear Senator Bingaman: The Navajo Tribal Utility Authority, 
     the public agency and enterprise of the Navajo Nation which 
     provides power and energy to consumers within the Navajo 
     Indian Reservation, has been advised of the possibility of 
     legislation which would authorize the use of an existing 
     allocation of 87 megawatts of Colorado River Storage Project 
     Power for certain on farm uses, including center pivot 
     sprinkler irrigation and for processing agricultural products 
     for consumer use.

[[Page S769]]

       The Utility Authority supports the proposed legislation 
     which clarifies the availability of this power for on farm 
     uses. The Navajo Indian Irrigation Project has for many years 
     been delayed in its completion and the allocation of power, 
     originally made on the basis of a flood irrigation 
     arrangement, may not be totally used for many, many years.
       Since the promised benefits for agreement to share water 
     shortages have not materialized as expected, it seems 
     appropriate to suggest that, in some small measure, passage 
     of this legislation would attempt to address the many delays 
     which have consistently plagued the Navajo Indian Irrigation 
     Project.
       The Authority recognizes that the initial allocations of 
     ``project use'' power to the Irrigation Project did not 
     specifically mention sprinkler irrigation by center pivot 
     methods nor the development of municipal or industrial uses 
     on the farm. However, these activities must have been 
     contemplated within the plan for the development of a 110,000 
     acre irrigation farm for the Navajo Nation.
       As the current serving utility for a substantial portion of 
     the Irrigation Project, the Authority supports enactment of 
     the legislation by the Congress.
           Very truly yours,
                                                Malcolm P. Dalton,
     General Manager.

                          ____________________