Dixie Project legislation, 1963-1964

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( ( DIXIE PROJECT, UTAH 7 also requires that the project be coordinated with the Cedar City water development program. Section 2 protects downstream water users against impairment of water quality from operation of the Dixie project. It requires that measures be taken to prevent such impairment or that compensation be made therefor. Section 3 requires construction and operation of the project in accordance with Federal reclamation laws. Section 4 requires the establishment of a conservancy district or similar organization before construction of the project can be started. Section 5 provides a formula for determining the interest rate applicable to repayment of project costs allocated to commercial power and to municipal and industrial water supply. The formula is generally the same as that adopted by the Congress and by the executive branch in recent years in connection with all water resources development projects. Language in this section establishes a 50-year repayment period and requires that all reimbursable project costs be repaid within such period, including the irrigation costs. With respect to irrigation repayment, however, a development period is authorized. Section 6 provides authority for appropriate recreation development and for cost sharing in connection with such development. This language conforms H.R. 3279 to language included in H.R. 9032, general legislation which has been recommended by the administra­tion and approved by the committee but has not been enacted. Section 7 makes the use of all water diverted by the project subject to, and control by, the Colorado River compact, the Boulder Canyon Project Act, and the Mexican Water Treaty. Section 8 limits the amount authorized to be appropriated for the construction of the project to $42,700,000. This amount could be adjusted to reflect changes in construction costs. This section also authorizes the appropriation of such sums as may be required for operation and maintenance of the project. COMMITTEE'S CONCLUSIONS AND RECOMMENDATIONS The committee concludes that the Dixie project is physically and economically feasible and that the reimbursable cost can be repaid in accordance with the conservative approach provided in the bill as amended. The committee concluded also that the project is a worthy and urgently needed water resource proposal which should be con­structed at the earliest possible time. The committee therefore recom­mends the enactment of H.R. 3279, as amended. DEPARTMENTAL REPORT The report of the Department of the Interior on this legislation, recommending its enactment and suggesting amendments, is set out hereinafter. The Department's amendments, for the most part, were adopted by the committee. The Department's report sets out a re-analysis of the project on the basis of full repayment from project revenues. This reanalysis shows that full repayment from project revenues can be accomplished, and, therefore, the Department indi­cates no objection to authorization requiring repayment on such basis.