AZ vs. CA:25 California Exhibits, Vol. XXV; Nos. 7501-7859

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LETTER OF TRANSMITTAL Department of the Interior, Office of the Secretary, Washington 25, D. C, September 16,1948. Hon. Joseph W. Martin, Jr., Speaker of the House oj Representatives. My Dear Mr. Speaker: Pursuant to the Federal reclamation laws (act of June 17, 1902, 32 Stat. 388 and acts amendatory thereof or supplementary thereto), and in response to a request from the Subcommittee on Irrigation and Reclamation of the Senate Committee on Interior and Insular Affairs, I transmit herewith my report and findings on the central Arizona project. The report proposes, subject to the conditions set forth in the report of the Commissioner of Reclamation, dated May 20, 1948, the construction of Bridge Canyon Dam and power plant on the Colorado River above Hoover Dam to develop power which is urgently needed particularly for California and the lower Colorado River Basin, and to provide electric energy for pumping water from Lake Havasu which is created by Parker Dam, for diversion through project works to the highly developed irrigated area in central Arizona. There is urgent need for this water to avert economic stagnation. The proposed construction includes pumping plants, aqueducts, related dams, irrigation and drainage system, powerplants, transmission lines, and incidental works as described in the report. The project has engineering feasibility and the proposed reimbursable costs probably can be repaid in 78 years under the plan outlined. The benefits exceed the cost by 50 to 60 percent. The total estimated cost of the project based upon present prices is $738,408,000 of which $658,096,000 can probably be repaid by power, irrigation and municipal water users, and $80,312,000 would be charged to flood control, the preservation and propagation of fish and wildlife, silt control, recreation, and salinity control. Detailed studies show that operation and maintenance expense can be met from the various sources of project revenue. The establishment of a local agency of the conservancy district type, as provided by recommendation 8 (b) of the regional director's report would make possible the realization of substantial revenue in addition to those shown in the Commissioner's proposed report of January 26, 1948, which I approved on February 5. The ability of the United States to discharge its obligations under its treaty with Mexico for delivery of water to Mexico would not be adversely affected. The 78-year period required for return of the reimbursable costs of the project is considered fully justifiable. If such a project as this is not undertaken, the economy of the heart of Arizona is destined to deteriorate seriously with consequent losses to the State, the region and to the Nation. Those losses would far exceed the costs of the physical works that are necessary to assure continued productivity of the land and the existing values of commerce, industry, and the extensive civilization that already prevail. The requirement for m