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Show A STACKED COMMITTEE 147 Pursuing the policies it had recommended for national application, the council clearly and forcefully gave its reasons for opposing the Upper Basin project. In summary it said: 163 In the case of the Colorado River Storage Project, the Engineers Joint Council is primarily concerned because of the broad principles and policies involved. The policies initiated or kept effective in the legislation would be tre- mendously influential, if not controlling in their effect upon future projects. The time for a "new look" at the national water policy is now-not after the huge Upper Colorado project and the pertinent policies have crystallized in the enabling legislation. Under the bill, the extent (in dollars) of subsidization of participating irrigation projects is not and would not be fully disclosed. The Colorado River Storage Project bill does not even limit the total of appropriations authorized for the entire group of projects included in the legislation. The Colorado River Storage Project bill provides for basin accounting, which leaves room for the construction of projects which are not economically justifiable. Because of the basin accounting system to be used under the bill, projects which would actually be "in the red" would be included, and would constitute a drain upon the national economy. The Colorado River Storage Project bill embodies a form of the so-called Collbran Formula. This formula calls for payment into the Federal Treasury of interest on all unamortized cost allocated to power, but when that amor- tization is completed, all further power earnings would be used to subsidize irrigation. Meanwhile, the construction and operation of the irrigation projects would be carried on with the result that the irrigation cost would be out- standing, unamortized and without any charge for interest. The irrigation farmers on the project can afford to pay only a minor fraction of the cost. |
