[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR 2017 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION ____________________ SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT MICHAEL K. SIMPSON, Idaho, Chairman RODNEY P. FRELINGHUYSEN, New Jersey MARCY KAPTUR, Ohio KEN CALVERT, California PETER J. VISCLOSKY, Indiana CHARLES J. FLEISCHMANN, Tennessee MICHAEL M. HONDA, California JEFF FORTENBERRY, Nebraska LUCILLE ROYBAL-ALLARD, California KAY GRANGER, Texas JAIME HERRERA BEUTLER, Washington DAVID G. VALADAO, California NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mrs. Lowey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. Donna Shahbaz, Angie Giancarlo, Loraine Heckenberg, Perry Yates, and Matthew Anderson Staff Assistants _______________ PART 5 Page Bureau of Reclamation........................................... 1 U.S. Corps of Engineers......................................... 89 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ____________ Printed for the use of the Committee on Appropriations _____________ U.S. GOVERNMENT PUBLISHING OFFICE 20-788 WASHINGTON: 2016 COMMITTEE ON APPROPRIATIONS ---------- HAROLD ROGERS, Kentucky, Chairman RODNEY P. FRELINGHUYSEN, New Jersey NITA M. LOWEY, New York ROBERT B. ADERHOLT, Alabama MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana MICHAEL K. SIMPSON, Idaho JOSE E. SERRANO, New York JOHN ABNEY CULBERSON, Texas ROSA L. DeLAURO, Connecticut ANDER CRENSHAW, Florida DAVID E. PRICE, North Carolina JOHN R. CARTER, Texas LUCILLE ROYBAL-ALLARD, California KEN CALVERT, California SAM FARR, California TOM COLE, Oklahoma CHAKA FATTAH, Pennsylvania MARIO DIAZ-BALART, Florida SANFORD D. BISHOP, Jr., Georgia CHARLES W. DENT, Pennsylvania BARBARA LEE, California TOM GRAVES, Georgia MICHAEL M. HONDA, California KEVIN YODER, Kansas BETTY McCOLLUM, Minnesota STEVE WOMACK, Arkansas STEVE ISRAEL, New York JEFF FORTENBERRY, Nebraska TIM RYAN, Ohio THOMAS J. ROONEY, Florida C. A. DUTCH RUPPERSBERGER, Maryland CHARLES J. FLEISCHMANN, Tennessee DEBBIE WASSERMAN SCHULTZ, Florida JAIME HERRERA BEUTLER, Washington HENRY CUELLAR, Texas DAVID P. JOYCE, Ohio CHELLIE PINGREE, Maine DAVID G. VALADAO, California MIKE QUIGLEY, Illinois ANDY HARRIS, Maryland DEREK KILMER, Washington MARTHA ROBY, Alabama MARK E. AMODEI, Nevada CHRIS STEWART, Utah E. SCOTT RIGELL, Virginia DAVID W. JOLLY, Florida DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi William E. Smith, Clerk and Staff Director (ii) ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR 2017 ---------- Thursday, February 11, 2016. BUREAU OF RECLAMATION WITNESS ESTEVAN R. LOPEZ, COMMISSIONER, BUREAU OF RECLAMATION Mr. Simpson. I would like to call the hearing to order. Good afternoon, everyone. Our hearing today is on the fiscal year 2017 budget request for the Bureau of Reclamation. Our witness is Commissioner of Reclamation, Mr. Estevan Lopez. Mr. Commissioner, welcome back to the subcommittee. Last time you were here you had been on the job for only about two months. I am happy to see that you have not been scared off yet. I look forward to talking with you about the Reclamation's accomplishments over the past year as well as the challenges facing the Bureau of Reclamation. Joining the Commissioner at the witness table is Mr. Robert Wolf, Director of Program and Budget Office. We are happy to a have you join us here as well, Mr. Wolf. Historically the Bureau of Reclamation was instrumental in development of the western United States. The electric power and movement and management of water from municipal, industrial, agricultural uses provided by Reclamation projects allowed citizens to settle new areas, provided industrial support for World War II, and supported broad economic growth. Today the water and power benefits of Reclamation projects are no less important to the economic health of the region and of the Nation as a whole. But the challenges facing Reclamation have changed. Then the challenges were designing and constructing immense infrastructure projects, projects that decades later remain engineering marvels. Now, Reclamation must figure out how to maintain this aging infrastructure necessary to support a still growing population while also addressing the new environmental requirements of new interpretations of old requirements that have increased the amount of water directed toward restoring fish runs and habitat areas. For the past several years Reclamation has had to deal with an uncooperative mother nature as well. And just in case anyone thought that task was too easy, Reclamation must attempt to meet these goals with a budget that has not seen a significant increase in many years. Taken together these circumstances mean it is even more important that we, the executive and legislative branches together resist the pull to overpromise results and that we ensure that the funding provided is directed to the activities that will bring the greatest benefits to the Nation. I look forward to discussing with the Commissioner how the Federal government might address these many concerns. Again I would like to welcome you to the Subcommittee, Commissioner Lopez. Please ensure for the hearing record the questions for the record and any supporting information requested by the Subcommittee are delivered in final form to us no later than 4 weeks from the time you receive them. Members who have additional questions for the record will have until close of business today to provide them to the subcommittee's office. With that I would like to turn to Ms. Kaptur for her opening comments. [The prepared statement of Mr. Simspon follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Kaptur. Thank you, Mr. Chairman, and thank you to our witnesses, Mr. Lopez and Mr. Wolf. We look forward to your testimony and thank you so very much for joining us today. The Bureau of Reclamation is responsible for providing agricultural, municipal, and industrial water supply in the west. Economies, ecosystems, and communities all rely on the availability of clean water. At a time when demand is increasing and many regions have been hard hit by extended drought, the Bureau is being asked more and more to provide solutions to the west's water needs while being good stewards of our natural resources. I hope to hear today how the fiscal year 2017 request reflects this responsibility with a reduced budget. Reclamation's budget request for water and related resources is a 12.8 reduction in the 2016 appropriation. While we are all interested in finding appropriate places to cut, I do have concerns that this reduced request continues the disinvestment in our Nation's water resource infrastructure. Therefore it will be especially important that the Subcommittee understands the specific methodology used to arrive at this particular set of projects and activities. Drought in the western states continues to be an issue. As Senator Feinstein said to me when I want to describe your state, what is happening, what do I say, she said you tell the world we are becoming a desert state. There has been some recent higher than average rainfall and snow pack and we will be interested to hear your comments about how that impacts your operations. Given Reclamation's role as a provider of water I hope we can gain additional understanding of how this drought is impacting Reclamation projects and water deliveries. Reclamation plays a vital role in delivering water to tribes in rural communities that could not otherwise access clean water and I do appreciate that the administration budget continues to meet the Nation's obligation under the Indian Water Rights settlements. Finally, much of the Bureau's infrastructure was built nearly a century ago. In fact, over half of the Bureau's dams are more than 60 years old. It is critical that Reclamation maintain this aging infrastructure and it is incumbent on Reclamation to explain how the budget request provides funding levels that meet the Bureau's responsibility to keep Americans safe while maintaining its dams in proper working order. We are all interested in ensuring that every dollar is spent effectively and efficiently, and I look forward to your testimony today on how Reclamation plans to accomplish this task. Thank you, Mr. Chairman, for the time. Mr. Simpson. Thank you. Mr. Lopez, the floor is yours. Mr. Lopez. Thank you, Chairman Simpson, Ranking Member Kaptur, and members of the subcommittee. It is an honor and a pleasure to appear before you to discuss the President's fiscal year 2017 budget for the Bureau of Reclamation. I appreciate the time and consideration given to reviewing and understanding Reclamation's budget, projects, and programs. I look forward to working collaboratively with you to continue to address the complex issues in the west. I have submitted detailed written testimony for the record. The budget sustains our efforts to deliver water and generate hydropower consistent with applicable Federal and state law. The extreme and prolonged drought affecting the western states adversely impacts our people and costs the Nation billions of dollars. While weather in 2016 is being favorably influenced by the periodic El Nino, 1 year alone will not alleviate all the impacts of a multi-year drought. In this regard we appreciate the additional drought response funding received in 2016. This fiscal year 2017 budget, totaling $1.1 billion, addresses our many priorities by allocating funds to most effectively implement our management responsibilities for water and power infrastructure. I would like to share some insights. The budget supports the Strengthening Tribal Nations initiative through endangered species recovery, rural water projects, and water rights settlement programs. The budget provides $106.2 million for planning and construction associated with Indian water rights settlements, and includes $10.4 million for Reclamation's Native American Affairs Program to support activities with tribes. Rural water projects are funded at $38.1 million, consisting of $18.6 million for the operation and maintenance of completed Tribal systems and $19.5 million for continued construction of authorized projects, several of which benefit Tribes. The budget supports river restoration, providing a total of $135.5 million for projects and programs that directly support the goals of America's Great Outdoors Program through local and basin wide collaboration in watershed partnerships. This includes $27.3 million for the Endangered Species Act recovery programs, $11.8 million for the Trinity River restoration program, and many other activities addressing restoration in the Colorado River, the Middle Rio Grande, the Columbia-Snake Rivers, and Yakima River basins. The budget continues to promote research and development to advance the science and technology that supports best management of the country's natural resources and heritage. This includes $22.8 million for science and technology and $5.8 million for the desalination water purification research program. Scientific discovery, technological breakthroughs, and innovation are vital to responding to the challenges and opportunities of the 21st century. Reclamation's budget includes sponsorship of technology prize competitions to spur innovation and research related to climate adaption and clean energy. $61.5 million is included to fund Reclamation's WaterSMART Program, consisting of collaborative efforts to achieve sustainable water management. Such efforts include Title 16 water recycling, WaterSMART grants, water conservation field services, and other activities designed to support water conservation efforts. Reclamation also continues to develop and implement approaches to climate change adaptation through WaterSMART. Some examples include the Basin Study Program which takes a coordinated approach to assess risks and impacts and to develop landscape-level science and understanding, the Drought Response Program that aims to implement a comprehensive approach to drought planning, and actions to help communities develop long- term resilience strategies, and the Resilient Infrastructure Program, by which we continue to develop and test enhanced decision making criteria for infrastructure investment and will integrate operational efficiencies that are compatible with climate variability adaptation goals. A total of $86.1 million is provided for Reclamation's Safety of Dams Program, which includes $64.5 million to correct identified safety issues, $20.3 million for safety evaluation of existing dams, and $1.3 million to oversee the Department of Interior's Safety of Dams Program. The Central Utah Project Completion Act Office is a departmental office within the Department of Interior that reports directly to the Office of Water and Science. This budget proposes $5.6 million for this program, and includes $1.3 million to be transferred to the Utah Reclamation Mitigation and Conservation Commission. In summary, the budget demonstrates Reclamation's commitment to addressing the water and hydropower demands of the west in a fiscally responsible manner. It continues our emphasis on managing, operating, and maintaining our infrastructure to deliver water and power in an environmentally and economically sound manner. We will continue to work with our customers, States, Tribes, and other stakeholders to effectively manage water resources in 2017 and beyond. This completes my statement and I would be happy to answer any questions. [The prepared statement of Mr. Lopez follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Commissioner. With the consent of my Ranking Member, we have a couple of other chairmen of Subcommittees that need to be at a meeting that starts at 2 o'clock, so I was going to call on them first and let them go. Mr. Frelinghuysen. Mr. Frelinghuysen. Thank you. Thank you, Mr. Chairman. Commissioner, Ranking Member Kaptur mentioned that the history of the Bureau of Reclamation and I am focused on something called the History of Large Federal Dams Planning, Design, and Construction. And let me just read a portion of it. The history of Federal involvement in dam construction goes back to at least to the 1820s when the Army Corps of Engineers built wing dams to improve navigation on the Ohio. This work expanded after the Civil War when Congress authorized the Corps to build storage dams on the upper Mississippi and regulatory dams to aid navigation on the Ohio. In 1902, when the Congress established the Bureau of Reclamation--which you represent and head today--then called the Reclamation Service, the role of a Federal government increased dramatically. And of course today you have a major role. What is your relationship these days with the Army Corps of Engineers? I know that often the focus is on drought, but in reality I would assume is there any interaction between you and the Corps in terms of shared technology, data, things of that nature? Where do you interact, if at all? Mr. Lopez. Thank you for that question. We have extensive interaction with the Corps of Engineers. The Corps of Engineers often dictates the flood control rules by which we operate many of our reservoirs. So we interact closely with them on those things. We have entered into a memorandum of understanding to collaborate on hydropower and increasing hydropower generation and understanding how we need to adapt our hydropower operations in the face of a changing climate. We do some joint projects, an example being Folsom, a dam raise and retrofit of Folsom Dam in California where we are doing that project together. We have designed various phases of it; some of them we have been in charge of, some of them the Corps has been in charge of. Just yesterday we had a coordination meeting--we do quarterly meetings with the Corps on any number of issues, but certainly they are the other big water management agency within the U.S. and we interact with them in any number of ways and in a cooperative and collaborative manner. Mr. Frelinghuysen. So I was unaware, but of course in our neck of the woods on the east coast we deal with an abundance of water, like Hurricane Katrina or Super Storm Sandy. It is a question of what we can do to assure the public that we are ready for the next natural disaster. But I thank you for your work in this area. I think it is good for the Committee to know that there has been the historic collaboration. Thank you, Mr. Chairman. Thank you. Mr. Simpson. Thank you. Mr. Calvert. Mr. Calvert. Thank you, and thank you, Commissioner for coming today. It is good to see you again. I know that you are anticipating that I am going to ask about California water and the problems that we are having in the State of California. Do you feel so far this year that the Bureau has used its discretion and pumped the maximum amount of water possible? Mr. Lopez. Mr. Chairman and representatives, yes, I do. And I know that that is going to get some pushback. So let me explain what I mean. There is an awful lot of water that is flowing in the system this year compared to what we have had in the last few, with the El Nino weather pattern that is out there. Having said that--this being by some measures the fifth year of an ongoing drought, the last 4 years having been extremely dry, some of the species that the Fish and Wildlife Service and the National Marine Fishery Service are called to protect through the Endangered Species Act are at record lows. So they have basically tightened their requirements on what we can pump. We have been coordinating very, very closely to make sure that we maximize how much we can pump within those constraints, but---- Mr. Calvert. Well, saying that--because I have a limited amount of time--I have been told as of today we have pumped less water as of today than we did at the same date last year, in a historic drought. And obviously we have had significant flows of water. As a matter of fact, through December, through the end of January, you have had many time periods where you had 50,000 cubic feet per second flowing through the delta and we were pumping at some points less than 1500 cubic feet per second. And I have talked to a number of people up there and, I know that the smelt is under stress, but there are some farmers that are under stress too in the central valley. I wanted to bring that up. And I know after a long time of pumping it is been capped at 2500 cubic feet per second through the major storm periods. As of today I understand, or tomorrow, you are going to be pumping 5,000 cubic feet per second, which you are allowed under the biological opinion. What kind of assurances that we are going to maintain that 5,000 cubic feet per second? Mr. Lopez. Mr. Chairman and representatives, I cannot give you any assurance in that regard. What we are doing is we are monitoring the situation day-by-day and we are working in close cooperation, collaboration with both the Fish and Wildlife Service and NMFS. They basically set the regulatory limit for that reverse flow on the Old and Middle River that then limits how much we can actually pump out of there. [Mr. Lopez responded further for the record:] In addition we must abide by the requirements of the Biological Opinions. Mr. Calvert. But do you not think that it is kind of unusual that we have pumped less water as of now than we pumped last year and we had a historic drought last year? Mr. Lopez. Mr. Chairman and representatives, I am unaware of whether that is correct or not. [Mr. Lopez responded further for the record:] Unfortunately flow conditions on the San Joaquin River for most of this winter have not been that much better than last year. Given that many of the Delta criteria found in the Biological Opinions are influenced more by San Joaquin River flows than Sacramento River flows, it is not all that surprising that overall winter pumping rates are not that much different. Mr. Calvert. That is what I have been told. Mr. Lopez. I will take your word for it. Mr. Calvert. Maybe if you can for the record get that information to us; we would like to know. Because obviously--I just got off the phone with Scripps, the El Nino expert over there, considered the world expert on this, and of course, you know, we had significant storms in the front part of this year, but he is pessimistic that we are going to have significant wetness over the next number of days. He said he could be wrong, but based upon historic averages it does not look that we are going to get the huge storms that we had hoped to get. And since these flood flows are gone now and we cannot get water back that we have lost--I understand if we had pumped to the 5,000 cubic feet per second we would have had an additional 200,000 acre feet of storage which we do not have. That is gone, there is nothing we can do about that. But in the future--is the breeding cycle for the smelt over now? Is that done? Have they moved further down into the bay? Mr. Lopez. Mr. Chairman and representatives, I believe not. And I think what has really been controlling this has to do with something called the turbidity, how cloudy the water is. If there is a--what they call a turbidity bridge that---- Mr. Calvert. How long is that going to last? I have been hearing about that for the last 6 weeks. Mr. Lopez. It could go for a while. They have been monitoring it---- [Mr. Lopez responded further for the record:] The current delta smelt life stage of primary concern is the larval to juvenile phase. This concern period will depend mostly on water temperatures. Mr. Calvert. Basically all winter long---- Mr. Lopez. What I am told, and I am not an expert in this, but what I am told is that the spawning from these fish happens in the spring, sometime in March or April I think. Mr. Calvert. So basically then we will lose all the water for the season? Mr. Lopez. Not necessarily, but we are---- Mr. Calvert. Possibly. Mr. Lopez. We are operating conservatively as a result of that. Mr. Calvert. So we could have some of the highest flows of water, one of the top three El Ninos of the last 100 years, but yet not be able to use any of that water? Mr. Lopez. Representative, again, we will pump as much as we are able to within the limits that we are constrained to. Mr. Calvert. I know you work with the Corps of Engineers, and they just finished this project that would allow you to have more flexibility in how you operate Folsom Dam. Why can we not pump one gallon for storage for every gallon that you release out of Folsom? If you are going to release water out of there why can we not utilize that for some other purpose other than releasing it down into the river? Mr. Lopez. First of all, Folsom now is I think the only major reservoir within the state that is actually above average for this time of season, and it is now operating into the flood control---- Mr. Calvert. OK. So I am not going to argue with the Corps' determination of whether or not they think they need to do releases, they get nervous if it gets over a certain level and they want to protect Sacramento. I not want to flood our friends in the Capital down there. But why can we not pump some of that water versus none of that water? Mr. Lopez. The restriction or the constraints on our pumping are not based on what we release out of that reservoir or the combination of other reservoirs. It depends oftentimes on what is flowing out of the delta and how that impacts what is called the negative flow in the old and Middle River, the contribution of flow that is coming from the San Joaquin side of the valley. If that ends up being reversed too much, that ends up, apparently, confusing the fish. And that is one of the constraints that is then placed on our ability to pump to our capacity. Mr. Calvert. So right now you are saying that 100 percent of that water has to be sent downstream? Mr. Lopez. The water that has to be released for flood operations, it is simply released out of there. There is an opportunity--in some instances it provides an opportunity for us to pump it once it reaches the delta or where our pumps can pick it up. It is just one of the other contributors into the overall flow in that portion of that delta. [Mr. Lopez responded further for the record:] I believe not. And I think what has really been controlling this has to do with something called the turbidity, how cloudy the water is. Mr. Calvert. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. You are abdicating your own ability to ask questions on this round? Mr. Simpson. I will go around. I will do it last. Ms. Kaptur. All right, thank you very much. Commissioner Lopez, thank you again for your testimony. Let me ask you, looking historically, how atypical is the current dry spell in the West that is impacting your operations? Mr. Lopez. Well, let us talk as of last year because right now it is---- Ms. Kaptur. I am looking over 100 years and there are a lot more people today and animals in California and the Western States than there were when the BOR was established. But I am looking historically, how atypical is the current dry spell? Mr. Lopez. It is extremely atypical. Up until it started raining this rainy season, the last 4 years represented the driest 4 years on record. And if you look back even further through tree ring information it was amongst the driest in the last 1,200 years. It is not exactly the driest period in California. On the Colorado River system they are now into their 16th year of drought. That represents the driest 16 year period on record in the Colorado River system and it is among the driest 16-year periods in 1,200 years, as evaluated by tree ring data. Ms. Kaptur. So based on that statement I would have to assume that every year that goes on becomes more difficult for your operations because there is less water for more people and users. Am I correct? Mr. Lopez. Every year that continues dry certainly creates more challenges. Ms. Kaptur. OK, looking ahead beyond 1 year, does the BOR project an option scenario that informs your decisions on water availability and water use? In other words, if you look 10 years, 5 years, 15 years, do you have projections? If this continues what options you have to exercise down the road? Does that kind of planning scenario exist within the BOR? Mr. Lopez. There are, Representative, and we do those sorts of planning scenarios for each basin that we operate within. Ms. Kaptur. OK. Mr. Lopez. It is not one single scenario for all of reclamations area, but rather we generally look at those things on a basin-by-basin basis. Ms. Kaptur. OK, I know we cannot look to just the worst years, but assuming this continues for another 10 years, what decisions would you be faced with making for the West in each of those regions? Mr. Lopez. So, right now, without a doubt, the most difficult decisions are in California, where there is a growing population. So much of our agriculture is in California, there is tremendous pressure on the environment as we were just talking about. Ms. Kaptur. Excuse me, sir. On the agriculture question, what percent of the water used in California is for agriculture, just approximately? Mr. Lopez. I do not know that number, but I can tell you how much agriculture there is. It is something like 10 million acres of agriculture and we produce something like 60 percent of the vegetables for the Nation out of agriculture and 25 percent of fruits and nuts, I believe. So, it is a huge impact---- Ms. Kaptur. It is over half of the water, is it not, that goes to agriculture? Mr. Lopez. I am pretty sure that probably is. Ms. Kaptur. That is not correct? Mr. Valadao. If you subtract the water that is sent out to the ocean for the environment you can look at it that way, if you want to skew the numbers that direction you can say 50 percent, but of the total amount of water that falls on the state of California, that is not an accurate statement. Mr. Lopez. So if we exclude the water that goes out into the ocean and what we actually use, what we put to use for municipal, industrial, and agricultural uses, agricultural uses amounts to about 75 to 80 percent of those totals and that is generally true West-wide, including in California. Ms. Kaptur. I am just trying to get a feel for it. Mr. Lopez. As has been pointed out, quite a lot of water either flows out into the ocean or is otherwise used for environmental purposes, and that is not accounted for in that calculation. Ms. Kaptur. And finally, Mr. Commissioner, on this round can you comment on the precipitation to date and what is the status of Reclamation reservoirs? As a result of the recent record-level drought, what can you tell us about your reservoirs? Mr. Lopez. So, let me talk about California reservoirs in particular to begin with. The last 4 years of drought have drawn down our reservoirs to record levels and, although we have had a good spring so far and a good winter season in terms of precipitation, snowpack in many instances is 100 percent of historical average upwards to approaching 130 percent of historical averages, yet all of our reservoirs save one are below where they would be at this time of year in a typical year. The one that is not is Folsom Lake--that we were just talking about--and that is just slightly over where it would be at this time of year. Ms. Kaptur. Yield the floor, Mr. Chairman. Mr. Simpson. Mr. Fleischmann. Mr. Fleischmann. Thank you, Mr. Chairman. Commissioner, Mr. Wolf, thank you for being before us today. I represent a district in east Tennessee, so I am very intrigued and interested in what you are talking about, the water in the West, and I thank you for that discussion. I have a question about the Department of Energy and your work with the Department of Energy. They have proposed $25 million for the creation of a new innovation hub to focus on research and development related to desalination. What involvement, I have a two-part question, if any, has Reclamation had to date and what future involvement, if any, is envisioned for Reclamation with respect to DOE's proposal? And my second question, what steps are being taken to ensure that the two agencies are not duplicating work? For instance, which agency will focus on which specific aspects of desalination research? Mr. Lopez. So, I know that we do have some level of collaboration with the Department of Energy and other agencies that have similar responsibilities. The White House has coordinated a lot of roundtables on an issue-by-issue basis relative to desalination in particular. I do not have at the top of my head a very good answer beyond that. I can supplement it for the record, though. Mr. Fleischmann. OK, if you would please provide that to us, thank you. Commissioner Lopez the budget again includes a significant increase for the science and technology program: A 37 percent increase above fiscal year 2016, which was a 70 percent increase above fiscal year 2015. Can you please discuss what specifically this year's increase will accomplish? Mr. Lopez. We will be using our science and technology program to explore things like desalination, things that can reduce the cost, the energy burden of desalination, the membranes used in desalination, all of those sorts of issues, not only for ocean desalination, but brackish groundwater desalination, and the reuse and recycling of otherwise impaired waters. We are looking at hydropower and making that more efficient as well. We are looking at environmental research, how to deal with some of the environmental constraints that we are faced with, so that we can continue to maximize our use of water without being constrained by environmental uses. Things of that nature. Mr. Fleischmann. OK. The subcommittee has long been interested in getting the agencies to plan for more than just 1 year at a time, for instance through the development of a 5- year comprehensive plan. This look at the future is particularly important for programs like reclamations that must balance maintenance of existing assets with the important new investments. Do we know what the agency-wide funding needs will be for the next 5 years? Do you see anything coming that will cause a change in priorities in any way? And my final question will be reclamation's budget has remained relatively flat for decades. How does Reclamation prioritize needs for existing and new investments when developing its budget requests, sir? Mr. Lopez. So, Representative, generally speaking, we look at our aging infrastructure and we prioritize anticipated needs for rehabilitation and rework of aging infrastructure. Much of our infrastructure is now 50 to 100 years old. Some of it is over 100 years old at this point. In terms of our aging infrastructure, we routinely have historically maintained a 5- year look of what our needs are going to be, and that number has ranged from about $2- to 3 billion over the next 5 years generally. We fund that through a variety of sources and that is taken into account in developing our budget. The request actually includes amounts that will support the cost share that our partners provide, including hydropower generation partners. They provide significant amounts of funding towards that. We also have some dam safety monies that are included in keeping up some of that infrastructure. So for infrastructure planning we do take a look at our needs 5 years out. Beyond that there is an increasing interest in Congress to have us just look at aging infrastructure investments from a different perspective. They have asked us to look at it from the perspective of all of our needs, not just in a 5-year window, and we are working to develop that sort of data right now. Much of our infrastructure data has been transferred to some of our partners and we have to take into account their ability to help fund the infrastructure as we generate those plans, so we are working on all of it. Mr. Fleischmann. Thank you, Mr. Chairman. I yield back. Thank you, sir. Mr. Simpson. Mr. Visclosky. Mr. Visclosky. Thank you very much, Mr. Chairman. Commissioner, thank you for being here today. In another life I did a lot of work on CALFED and, given the delay in completing a number of water storage studies, Congress in the fiscal year 2016 act established deadlines to complete these studies. Do you have enough money in your 2017 budget request to meet those congressional deadlines for those studies in CALFED? Mr. Lopez. Mr. Chairman, Representative, thank you for that question. I do believe that we do have enough money in our budget for those purposes. I will say that we start off behind schedule right off the bat. One of the storage studies we were given a deadline for, which was at the end of December of last year, we have not met that deadline, but it was understood, I think, when that deadline was put in there. We have finished the technical work on that study right now. That is the Temperance Flat study. That is the second of five that are called for. It is going through a final administrative review. It will be out to Congress relatively shortly, I believe. Next, we will be going on to the Sites Reservoir and we anticipate that we will be able to get that done in the timeframes that are called for in the budget. Mr. Visclosky. You said you were behind on the first one. Did you reference several different studies in your answer to me? I did not understand. Mr. Lopez. So, there are five studies---- Mr. Visclosky. Five studies. Mr. Lopez [continuing]. That were called for. The first one we have completed. We completed that last year. Mr. Visclosky. So we are down to four? Mr. Lopez. We are down to four. Mr. Visclosky. Got it. Mr. Lopez. The next one, the upper San Joaquin or Temperance Flat, that is the one that was due at the end of December. We are behind on that one. Mr. Visclosky. Of 2015? Mr. Lopez. Of 2015. Mr. Visclosky. OK, and when do you anticipate that will be completed? Mr. Lopez. So, it is undergoing final administrative review. It should be done within the next couple of months is my guess. Mr. Visclosky. Finally completed? Mr. Lopez. And out to Congress. We need to submit that report to Congress. We have already begun working on the following one, which will be Sites Reservoir, and that requires some agreements amongst non-Federal funders before we actually get into the development of some of that study. It is not a Reclamation proposed study--excuse me, not a Reclamation purposed project, so it is anticipated that it will be funded by private funders and the state of California, and we are trying to work through the funding agreement so that we can complete the study on that. We are well on our way toward-- Mr. Visclosky. So, you have a deadline, but what you are saying is you will not make a Federal investment in that project---- Mr. Lopez. That is correct. Mr. Visclosky [continuing]. Because you are still obligated to meet the deadline? And you are suggesting you may have a problem not because of budgetary constraints, but because you are dealing with private parties in the State of California? Mr. Lopez. Mr. Chairman, Representative, I do not think we have a problem with it. Mr. Visclosky. OK. Mr. Lopez. I do think that we have to complete the agreements on how that study will be funded, though. But we are on track to get those agreements done. Mr. Visclosky. And then there are two remaining? Mr. Lopez. And then Los Vaqueros is next after that and we have not begun on that yet and there is---- Mr. Visclosky. And will you, and I do not have the information in front of me, but although you have not begun, will you meet the deadline? Mr. Lopez. I believe we felt like we would. Mr. Visclosky. And if you do not, it is not because of lack of funding? Mr. Lopez. That is correct. Mr. Visclosky. OK, and then you have one more? Mr. Lopez. So, then the final one is B.F. Sisk or it is also known as San Luis Low Point, and all of these are being done sequentially. We are working on them sequentially so that we are not spreading ourselves so thin that we cannot get anything done, and we think that we are on pace to get those completed. Mr. Visclosky. And you would anticipate--and, again, it would not be lack of funding--that you would meet that congressionally mandated deadline for the fifth one? Mr. Lopez. That is correct. Mr. Visclosky. OK. If I could, Mr. Chairman, just on tribal water rights settlement, again talking about deadlines, there are statutory deadlines for completing work under a number of the settlements. My understanding is you have about $106.2 million, you requested for 2017. Is that money adequate to meet those settlement deadlines as well as the statutory deadlines? Mr. Lopez. Mr. Chairman and Representative, yes, we believe it is. So we are working on four settlements right now and we have got some significant mandatory funding that was provided for a few of those settlements and we have got a funding stream that will start up again in 2020 from the Reclamation Water Settlement Fund. So, the budget represents the amounts that we will need this year and for upcoming years to make sure that we fill what we call the ``donut hole'', that money that is needed between the mandatory funding and when this new funding stream kicks in in 2020. But we do think that we have planned things out, including the budgetary aspects, such that we will have enough to complete those settlements. Mr. Visclosky. OK. So, again, it would not be lack of funding. Mr. Lopez. It would not. Mr. Visclosky. And I would hope you would meet the statutory deadlines for those settlements. And if I could just one more, could just put it in perspective because I have to tell you, I am a blank slate when it comes to the negotiations that I assume continue with various tribes. I assume there are multiple negotiations going on and that takes people to do, time and resources. I do not know if I am looking at the right figure, but there is an account of about 10.4 million for a number of issues, including those negotiations. Are those adequate? And let me tell you, and I am just giving you my impression, I have had a lot of unsatisfactory negotiations in my district because they are either unsatisfactory or because they should never have taken that long, and I just want to make sure because things come up that in fairness to the tribes involved it is not a lack of Federal resources to pursue diligently those negotiations that caused that delay. So, again, it would be your position money would not cause a delay in those negotiations or do you need more money for those negotiations? Mr. Lopez. We have actually increased the amount of money that we have gotten. That $10.4 million represents an increase. Last year we got an increase and we requested a larger number this year as well to ensure that we did have enough for this. I have got to qualify this. We are making sure that we manage how many of these negotiations we take on at any one time. Obviously there are an awful lot of tribes that have unsettled water rights that may be interested in beginning those conversations. We are working through those methodically. We are not taking them all on at once, we are taking on a manageable bite, so that we can continue and get through those, but this budget request does represent enough to keep that process moving. Mr. Visclosky. OK. Thank you, Mr. Chairman. Mr. Simpson. Mr. Valadao. Mr. Valadao. Thank you, Chairman Simpson. Commissioner Lopez, thank you for your time, you have taken a lot of time to meet with us over the past few years and I appreciate every effort you have made to try to resolve the situation we have in California. For several years now, Reclamation has been telling us that the severe chronic water supply shortages affecting the Central Valley Project have been the result of drought, not regulation and like Calvert mentioned earlier, however, this year we find that California is going to have an above average winter, and we have so far, and yet it appears that Reclamation is yet again struggling to meet its fundamental contractual and statutory obligations. The likelihood is high that over one million acres of the Nation's most productive farmland will again receive no water from the Central Valley Project. To what, now, do you attribute Reclamation's inability to meet its basic project purposes, that is water for municipal, agriculture, refuge and power purposes? And then the second part of that is, are there present authorities that should be modified or new authorities considered to address Reclamation's inability to meet its project's purposes? Mr. Lopez. Thank you for that question, representative. As I have explained, the last 4 years have brought extreme drought, and it has certainly impacted our ability to meet supply. That impact, even though we are into a relatively wet year, the impact of those last 4 years has extended, in particular, as it relates to the status of the species that are being protected under the biological opinions so those issues are affecting our ability to pump right now, as I told representative Calvert. Mr. Valadao. But back to last year, when you were here, I asked you this basically same question and you attributed it to drought and a lack of water and over even just the last week, we have had inflow as much as 40,000 cubic feet per second. I mean that is 40,000 cubic feet per second of water into the delta and on that day, we pumped around 2,000 cubic feet per second and that was just one day, we had days at 34,000 that we pumped barely over 2,000 and then we got down even in the 30,000 range there were opportunities there that were completely missed and one of the things that we do get is an email, pretty regularly, that tells us we have a very optimistic outlook. The next two days, we are going to see 5,000 or 4,500 and one actually came in today from Dan Murillo, who I think works in the California office, and today he says it will see 5,000 and what is funny about it is it will actually say--it is emailed on the 11th and it will say that on the 10th, that the potential to pump, 4,000 cfs and it did not reach anywhere near 4,000, even though the email is the day after that actual day. It is funny how it never reaches those goals and now they are saying maybe 5,000 but I have a funny feeling that when we actually get the final report of the actual pumping, it is never going to meet those goals as none of these numbers ever have. I mean the highest I have got here is 3,500 and again, we went through a drought and we still are in a drought, you are 100 percent right but we are seeing a lot of water flow out into the ocean and so when we talk about an opportunity to capitalize on that and not allow that water to be wasted, once it is out in the ocean, it is too late. If we invest in desalinization we then go out in to the ocean, grab that water and spend a bunch of money to take salt out of it when we should have just taken that opportunity and prevented that water from going out to the ocean in the first place but we are getting a decent amount of rainfall, we are seeing about 105 to 108 percent. I think the lowest part of the state where we are getting rainfall is about 98 percent, so I would say still a pretty decent amount of rainfall, but as that rain falls, it flows out into the ocean and to say, we are backtracked or backlogged because of the drought or it has not taken effect, that water goes out into the ocean so there is no way that can ever have any positive effect on the last 4 years if it is out in the ocean unless we spend, again, a bunch of money to pull it out of the ocean, desalinization and then pump it somehow to the communities that truly need it so again, are there present authorities that should be modified or new authorities considered to address Reclamation's inability to meet the project's purposes? Mr. Lopez. Well, there are a number of things that are being considered in California under the State's water investment plan that include things like the water fix. Mr. Valadao. The water bond or is there something different? Mr. Lopez. No, the state water plan has things like some of the storage projects that we were just talking about. The tunnels that we are talking about. A whole bunch of specific actions that will make California's water supply more resilient. Mr. Valadao. So in--back to those projects and what was mentioned about the water plan, we are at very low levels in a lot of those reservoirs and I think you said only Folsom was up at about average right now? Mr. Lopez. Right. Mr. Valadao. Through the last year, how much water was released from the reservoirs for temperature control or whatever other reason they might have that the water is released from a reservoir to save a species and then flows out into the ocean and no other opportunity to use that water ever again, do you have a number on how much water was used for those types of purposes that were completely lost, that is no longer in storage so that we can have the storage numbers that we have today? Mr. Lopez. I do not have a number for that---- Mr. Valadao. Can you please get me that number? Mr. Lopez. We can get that. The reason why it is very difficult to get that is because oftentimes for example, last year, we were operating in Shasta to meet temperature needs in the river. However, we were also using that for multiple purposes. We were releasing water and it was being picked up by irrigators downstream of that and in certain instances, we were able to pick that up when it got to the delta and pump it to the south of the delta so on---- Mr. Valadao. I would love to see that information. Mr. Lopez. We will get it. [Mr. Lopez responded for the record:] As of late February 2016, water year 2016 releases from Reclamation's largest Central Valley Project storage reservoir, Lake Shasta on the Sacramento River totaled approximately 1,183,000 acre feet. As of the same date, water year 2016 releases from Folsom Dam on the American River totaled 233,000 acre feet. These releases served multiple purposes, including in-stream flow requirements, water quality, water supply, Delta outflow and salinity management, flood control and power generation. Reclamation's facilities, including the main Central Valley Project reservoirs in California, are specifically authorized for multiple purposes. Water is frequently stored or delivered for dual or simultaneous use for multiple project purposes including, but not limited to, irrigation, municipal, power, recreation, as well as non-ESA fish and wildlife enhancement, so it is often extremely difficult to separate the amount of water that is exclusively dedicated to environmental compliance purposes. It is worth noting that provision of water flow or storage for fish and wildlife purposes can sometimes also be delivered for other beneficial uses. Mr. Valadao. I appreciate that. So the next question. CVPIA sets an ambitious goal to at least double the populations and I apologize for my pronunciations of the anadromous species in the Central Valley of California. This includes the ESA listed salmon, steelhead as well as invasive species like the striped bass. Given that the striped bass are predators of salmon and steelhead and it is still doubling the goal of CVPIA incompatible with the Endangered Species Act and I have actually seen some studies done by water districts there around the delta that show as much as 95 percent--98 percent of delta smelt are consumed by these striped bass. Is it a good idea for us to spend taxpayer resources to protect or add to the population of the striped bass? Mr. Lopez. I was unaware that we were under an obligation to try and double the population of striped bass. That may be incorrect on my part but I thought that those fish increase numbers were intended to be things like anadromous salmon---- Mr. Valadao. Thank you for pronouncing that correctly because I could not. Mr. Lopez. I have got more practice than you do. So, it is not my understanding that we are supposed to be trying to increase the population of those sorts of invasive species. Mr. Valadao. Have you seen and of those studies that show what the striped bass do to the populations of delta smelt and salmon and other species? Mr. Lopez. I have seen them but I have not studied them closely. I have seen some of the studies, in particular as they relate to smelt. I know that there is a big impact on the smelt population. Mr. Valadao. Do you have a number to qualify that big impact? In the studies that I have seen, like I said earlier, about 95 percent of the smelt are consumed by these species and it seems like there is no plan or I have not seen a plan yet to address that. If we are looking at your ability to protect delta smelt from being sucked into the pumps because the delta smelt follow the terrain because they need to protect themselves from predators, why would we not look at the striped bass and address that as an issue to try to protect that species instead of cutting off water to so many communities throughout the state of California. Mr. Lopez. Mr. Chairman and representatives, that is something that may make some sense. Earlier when you asked about authorities that might be appropriate for us, that is generally not something that is within our portfolio. It would be one of the fish agencies that would probably do something like that. Mr. Valadao. All right, thank you. I yield. Mr. Simpson. Ms. Roybal-Allard. Ms. Roybal-Allard. Welcome, Commissioner. The extreme drought that we have been talking about is a real reminder of the need to maximize the use of available resources and it is important for the Federal Government to be an effective partner with state and local governments to wisely use, reuse, and to reclaim water resources and one proven effective tool is the Title XVI program which provides a huge return in water supply and water quality improvement for relatively very little of Federal investment. In determining your budget, how did you measure the current need for Title XVI and waterSMART grant projects and to what extent does the funding level meet the demand in California and other western states? Mr. Lopez. Recognizing that we are in a fiscally constrained environment, we try and make sure that we meet all of our other needs and then we build a budget that will still allow us to invest in the sort of thing that you are talking about. For this year, we are requesting $21.5 million for Title XVI, and that amount will not meet all of the demand. We will put out some opportunity announcements and we will get proposals that will exceed that amount but we prioritize those based on competitive criteria such that we fund the projects that will give us the biggest bang for the buck. Ms. Roybal-Allard. So when you say it is not enough to meet the demand, will it have enough of an impact or is there not even enough to have an impact on what is happening? Mr. Lopez. Representative, it definitely has an impact. $21.5 million has an impact. This is a cost shared program where the Federal Government puts in 25 percent and the non- Federal partner puts in 75 percent, so this is a significant amount of funding towards these sorts of projects when combined with the non-Federal cost sharing portion. Ms. Roybal-Allard. Well could you provide a status update on the implementation of Title XVI and WaterSMART grant projects in California? I have a list of questions. Let me just ask, you probably have to submit them for the record unless you have the answers now. So that would be one is the status update. And then also how many projects have actually been completed? How many are under way and how many have not been initiated and what is the timeline in terms of moving forward with projects that have not yet been initiated. The metropolitan water district plans to work with the Los Angeles sanitation districts to develop the largest recycling project in the Nation. Other than Title XVI, is the Bureau developing long-term plans for Federal incentives or partnerships, including increased financial resources such as grants and loans to make these projects financially feasible. Mr. Lopez. Representative, we have a number of grant programs that will work towards the sort of ends that you are talking about. Certainly, Title XVI is one important one. We have the WaterSMART grant program that is focused on water and energy efficiency grants, that is a 50 percent cost share. We have requested---- Ms. Roybal-Allard. I guess, what I am really asking is that in addition to those two programs, do you have other programs or other plans for creating incentives for these kinds of partnerships? The reason I am asking is the administration has included the WaterSMART program and its priority goals for water conservation and yet the funding levels for Title XVI and smart grants is pretty flat. It does not really reflect the priority of the administration. Mr. Lopez. So we have got some programs to incentivize doing projects. We are not--we do not have a whole bunch of money to fund the programs but we have things like the desalination and water purification research we are looking into the technologies, the science that will make those things more cost effective. We have got the $22.8 million in research and development funding that again is looking to make these things more cost effective and really demonstrate to entities that these are viable means of building their water portfolio but we do not have, in general, given the Federal fiscal constraints, we are not funding projects, actual constructional projects, the way we did historically. Historically we built things like Hoover Dam and things of that nature. That is not the sort of thing that we are doing today. Ms. Roybal-Allard. Well the reason I was asking this question is because water agencies that serve my constituency such as the metropolitan water district are reporting a high demand for water recycling and reuse programs but since there is just an inadequate Federal offset for it so I would urge, in some way for the Bureau to try and align its budget priorities with the stated goals of the administration because I think this could address the serious issue or part of the serious issue that we are dealing with in terms of the drought and what needs to be done. Mr. Lopez. Representative, I should mention also that your point is a good one, without a doubt but our budget represents kind of a prudent budget given the fiscal constraints that we are all operating under, however, recognizing the validity of what you are saying, last year, when we got $100,000,000 for drought response, we allocated $9,000,000 of that toward that Title XVI program, above and beyond what had been in our budget request and $9,000,000 for the WaterSMART program. We also have drought response plans, additional money in those sorts of things. So yes, the point you are making is a good one. Ms. Roybal-Allard. OK, in 2014 and I was pleased that the Bureau, along with the municipal water providers in Arizona, California, Nevada and Colorado implemented the landmark Colorado River system pilot conservation program and, as you know, the Colorado River, often called the lifeline of the Southwest supplies water to more than 40 million people and more than 4 million acres of agricultural land. As early as 2016, what are the drought conditions in the Colorado River and how is the Bureau working with basin states to plan for potential shortages through the programs? Mr. Lopez. So as I mentioned earlier in response to earlier questions, the Colorado River is in its 16th year of drought and this is a drought of historic proportions. You mentioned the system conservation pilot program project. Those were done with funding that was both Federal and non-Federal. I think four municipalities funded 2 million dollars apiece and we contributed 3 million to that first phase. Out of the additional drought monies that we got last year, we allocated $3.5 million for a system conservation pilot projects that we hope to leverage with our non-Federal partners. Ms. Roybal-Allard. OK. Mr. Lopez. And continue that program. That is $3.5 million dollars for the lower Colorado River. That includes the states of Nevada, Arizona and California and we have also allocated $1.5 million for the upper Colorado River for similar projects. Ms. Roybal-Allard. OK, so you are working to continue that pilot program? Mr. Lopez. We are and in addition, in terms of what we are doing to plan for the possibility of shortages--in 2007, we developed a coordinated operating agreement about how Lakes Mead and Powell would be operated in a coordinated fashion. That included agreement amongst the lower basin states as to how shortages would be taken if the reservoir continues to go down--Lake Mead. Ms. Roybal-Allard. OK. Mr. Lopez. We are currently exploring the possibility of whether we need to make that drought contingency plan much more robust and we are having good discussions about that. We are not there yet but we are making progress on it. Ms. Roybal-Allard. OK, thank you. Mr. Simpson. Mr. Honda. Mr. Honda. Thank you, Mr. Chairman and welcome Commissioner. I have a couple of written questions but let me digress from my staff work and just ask you a basic question. The responsibility of water and its management, is that primarily a state's responsibility or is that a Federal responsibility, historically? Mr. Lopez. Representative, I think that has varied from state to state, first of all. In the west, certainly states administer and manage water rights within a state but for many of the big Reclamation projects, we as the Federal Government ended up doing them. These projects were simply too big for states and local entities to take on, so that is the role that we played historically, so the response to your question is that it is a mix of responsibilities, all the way from Federal to state to local and to tribal, all of those levels of government have different responsibilities. Mr. Honda. So the issue of Reclamation, is that a recent phenomenon that we have? Mr. Lopez. Well---- Mr. Honda. Historically. Mr. Lopez. Well Reclamation was--the Bureau of Reclamation or the Reclamation Service was formed in 1902. Mr. Honda. OK. Mr. Lopez. In recognition that many of these projects were simply too large for an individual state or an individual irrigation district to take on and that has been our historical undertaking and I think that Reclamation has largely been responsible for--I do not think it is an exaggeration to say that we have contributed extensively towards the settlement of the west and the development of the west in terms of the availability of that water. Mr. Honda. OK, so in terms of reclamation design, and the desire of different states, let us say California right now, the design of Reclamation, was that basically a state design and then the feds came in and helped or was that a joint project? Mr. Lopez. Are you asking about the Central Valley Project in particular or---- Mr. Honda. We can talk about that one. Mr. Lopez. It is a mix of things. I think the answer to your question is sometimes a state or even an irrigation district began something and then realized that they could not do it and they asked for---- Mr. Honda. OK. Mr. Lopez. For assistance, and we often stepped in and provided that assistance with an overlay of laws. Mr. Honda. But since 1902, with the genesis of the Reclamation bill, Reclamation, was that created, in working with states, was that because of the lack of water or was it because they wanted to be able to manage the water in ways they wanted to benefit from? See, right now, we are in a drought, so we are talking about Reclamation as if it were drought driven. I am asking the question what was the driving force in the old days? Mr. Lopez. The driving force was the development of the West, the building up of the West, the building up of---- Mr. Honda. Without any respect to drought? Mr. Lopez. Well---- Mr. Honda. I am not saying lack of water. Mr. Lopez. Reservoirs, which is what we are known for, Lake Mead behind Hoover Dam there, is capable of---- Mr. Honda. I get that. Mr. Lopez. Holding 25 million acre feet, that is designed exactly to deal with the drought. Mr. Honda. That is flood control or drought? Mr. Lopez. Both. That is mostly drought. We store water when it is plentiful. I just talked about the fact that there have been 16 years of drought. To date in the lower Colorado River, there has not been a shortage, as a result of the water that we have had in those reservoirs. We stored the water, when it was plentiful, and we have been able to expand its use given these times of drought. Unfortunately, in cases like California, there perhaps is not enough storage to be able to do---- Mr. Honda. That storage is dropping precipitously, and yet we are providing the water downstream. The ultimate users of the Colorado River originally does not reach Mexico or the Gulf of Cortez; is that correct? Mr. Lopez. In most years, the Colorado River does not reach the---- Mr. Honda. Correct. So, water management, water control has a history to it in terms of how we want to benefit our own selves. Where I am going with this is how we developed reclamation and how we develop our storage and reuse has been based upon the highest and best use, I guess, but with the onslaught of the drought, which we have experienced in the past but we are experiencing it now in greater numbers, it seems like we are talking about storage and water as if the drought is over. I think folks are not saying the drought is over. I think they are saying we have 100 percent plus snow pack, 100 percent better than average, but the bottom line is still it does not fill our reservoirs and our storage capacities. I just wanted to make a distinction when we talk about, you know, better than average of rainfall versus how we continue to manage our water as one. Two, the infrastructure we have right now, whether it is in Central Valley, whether it is from Owens Valley, or whether it is in L.A., I think it is a hodgepodge of different techniques which may not be sufficient and efficient today. So, the issue of Reclamation in the early basin, they tried to take all the water and send it to the ocean to prevent mud slides and things like that, and now they are looking at reclamation and conservation and reuse. I think looking at redirecting attention, money, and resources needs to be looked at, but I guess my question would be if that is the case, what responsibility do the cities, the state, county, and the feds have in redesigning that so these waters could be captured, reused, and stored? I guess the other question is these run offs, is there a reason why--I guess the question is a lot of the run off goes to the ocean, which I do not think is bad, it is good for everything that is down river, but I think there is a question of how much of that water is being used to store and recharge the ground. Is that a purview of the Bureau of Reclamation, and what are the duties of the local water districts in that effort, too? Mr. Lopez. In certain instances, it is directly in our responsibility, in other instances, there is either a state or local entities that have the infrastructure and the facilities that they might be able to do something with. It is all over the place. It is all over the place, as you correctly point out. It is a hodgepodge of entities that own this infrastructure. It is a hodgepodge of technologies that we use, things like dams for storage, desalination, conservation, all of those things. All of these are tools in a water management portfolio toolbox, and all of them are necessary. Mr. Honda. I am not going to suggest that we limit agriculture. I think we need to continue it. I do think there is a land use issue here that is outside your purview, that policy makers like ourselves have to look at, and that is continuous building in deserts without the presence of water, and I think the administration needs to look at that as a Federal issue working with the states. If water is becoming more and more of a national issue, if not a global issue, I think we need to have a broader national policy relative to water, its management, how we look at water because it is like fuel, you know. We have to have a different look at how we look at fuel and sustainability. Maybe that is the bottom line. I appreciate your work, but I also appreciate the complexity, it seems, of the different entities you have to work with, and your budget seems to be pretty small in my estimation, to address this. That may be music to your ears, but it seems like the policy makers have to rethink what we want and are we willing to pay for it. Thank you, Mr. Chairman. Mr. Simpson. Mr. Fortenberry. Mr. Fortenberry. Thanks, Mr. Chairman. As a part of your portfolio, there are hydropower generation. Can you expand on the options for micro hydropower generation, smaller scale, what are the options available? Is it a growing opportunity? How does the agency intersect with this? I noticed you have a small grant program in this regard, but if you could comment on that, it would be helpful. Mr. Lopez. So, we have things like a lot of our infrastructure portfolio, including, say, canals or conveyance systems for water. Any time a gravity moves the water, there is an opportunity for putting something on there to generate electricity. We have been expanding, including through our research programs, trying to look at all options to generate additional electricity through pipes in canals, things of that nature. Mr. Fortenberry. This is in a development phase, there are some examples that are potentially scalable, can be duplicated across the country? Mr. Lopez. There are. We have---- Mr. Fortenberry. I will give you an example. Along the Missouri River, there is a community who I no longer represent but my district is proximate to them, in that reach of the Missouri, there is a significant elevation drop, and they were exploring the possibility in the bend of how could we capture the dynamics of that gravity fall and generate electricity. This is a community that has had to overcome many, many problems, so they are forward thinking. It is exciting to listen to them think through this. I think the difficulties, the complexities of that are overwhelming for a small community, and that is why I am asking the question. Are there examples out there that could be scalable to similar situations and is this growing, is this an area of your responsibility or your projected mission? Mr. Lopez. There are examples of those sorts of things that I just described. We are looking for ways to promote the increased use of that, including things like lease of power privilege. This is a program that we have where we offer--we provide the water to partners, irrigation districts, for example, we allow somebody that operates our infrastructure to develop hydropower facilities, through a lease of power privilege, we give them an opportunity to lease some of the facilities and actually put a hydropower generator in a canal. Mr. Fortenberry. This is where you have Reclamation projects going on already; right? Mr. Lopez. That is right. Mr. Fortenberry. There is nothing scaled to other options across the country based upon your experience or is there? Mr. Lopez. It is--our projects are where there are Reclamation projects, but it is certainly technology that is transferrable anywhere there is water moving through---- Mr. Fortenberry. Do you have a role, a seat at the table, as the Department of Energy and its sustainable renewable development portfolio, looking at this? I am curious, help me understand it. Mr. Lopez. We have a memorandum of understanding with the Department of Energy and the Corps of Engineers where we are looking at just this sort of thing, how to---- Mr. Fortenberry. This is fairly new there? Mr. Lopez. Our emphasis on it is fairly new; the technology for doing it, it has been around. Mr. Fortenberry. The technology is forever. We used to do this fairly commonly, you can see the water wheels throughout the countryside. It is not complicated, it is just a matter of will, I would assume, and prioritization; is that correct? Mr. Lopez. I think that is correct, and finances. Mr. Fortenberry. You have a grant program for this? Mr. Lopez. We have a water and energy efficiency grant program. That is a competitive based program. I think it is available within Reclamation states. Mr. Fortenberry. OK. Do you have any river restoration grants let in Nebraska? Mr. Lopez. I do not know that we have river restoration grants. We have river restoration partnerships. On the Platte River, we are a partner in the Platte River recovery implementation program. That is a major program on the Platte River. That is actually working quite well. We contribute extensively in collaboration with state and local entities. Mr. Fortenberry. We have a very unique situation, for the benefit of the committee, in Nebraska, in that we have a municipal infrastructure called natural resource districts. They are actually a tax levying district with elected officials who do environmental and conservation work, very long, well established process for doing this. That is probably who you have partnered with on the Platte River recovery set of options. There are other reclamation type projects going on, restoration type projects going on along the Missouri as well. Again, I was curious as to where you might be interacting with those. Mr. Lopez. On almost any river in the areas that we serve, we are involved in these sorts of activities. Almost all of them, with the local water users, the states, the Tribes, whoever has an interest in that resource. Mr. Fortenberry. One more quick question, Mr. Chairman, and then I am done. Can I refer this local community to you? They are actually doing analysis on the potential for hydropower there. Do you have the capacity to take an inquiry from them? Is this the right place in the shop? Mr. Lopez. You can send it to me and I will find the right person in our shop to send it to. I am not the right person but we do have that right person. Mr. Fortenberry. Thank you very much. Mr. Simpson. Thank you, Commissioner. In fiscal year 2012, Reclamation was directed to assemble data on pipeline reliability for a variety types of pipes, and to conduct an analysis of the performance of these types of pipes. More than 4 years later, that analysis is still not done. Can you please provide the committee with an update on the status of that analysis and when will this report be completed and submitted to Congress? Also, in fiscal year 2016, the Consolidated Appropriations Act directed Reclamation to contract with one of the Department of Energy's national laboratories to develop performance data related to zinc coated ductile iron pipe applications in certain soils. What has Reclamation done to date to comply with this directive? Mr. Lopez. Mr. Chairman, first of all, to begin with, the survey that was called was, it took a very long time to find an entity that would take this issue on. We were at the last stages of negotiating a contract when the entity that we were working with decided suddenly they were not interested in doing it. We shifted gears and went back to the old proposals that we had received, and finally in November of last year, we entered into--we signed a contract with the University of Virginia, I think. Mr. Wolf. Virginia Tech. Mr. Lopez. Virginia Tech, to complete that survey. I think that will be completed--is it late this year? I am not sure of the time frame. I will verify the time frame. We are under contract to complete the survey. Secondly, as to working with one of the national labs, we have been in contact with the Department of Energy, letting them know about this language that was in the appropriations bill, and we are working with them to transfer that money to them. The direction that we have gotten is to not try to influence the outcome of that, so we have requested that the Department of Energy actually be the entity that decides what national lab will take that on and oversee that work. Mr. Simpson. Appreciate that. This is the first year Reclamation is requesting funding for phase two grants under their cooperative watershed management program. However, the authorization is for grants up to $1 million. The budget request is for only $1.5 million total for phase two grants. Does Reclamation intend to award only one or two grants, or will there be several grants at amounts well below the authorized level? The authorization for phase two grants seems to envision these grantees will receive funding in multiple years, perhaps without re-competing each year. How does Reclamation intend to implement this aspect of the phase two grants' authorization? Mr. Lopez. Thank you for that question, Mr. Chairman. Up until now, we have been working on phase one of that program. Phase one was simply where we worked with entities to organize themselves into working watershed groups that would then propose projects and that sort of thing. Phase two is where we will help them implement some of those projects. During this current fiscal year, 2016, we are in the process of developing criteria under which we will put out the funding requests for the projects that will come under phase 2. The request that we got for fiscal year 2017 is modest, as you have noted, and we do not intend to just fund one or two large projects. Given that this is a relatively new program, we are going to try to fund multiple relatively small projects, something where the Federal contribution would be something on the order of $100,000, so we can get some experience at this. We are suggesting they apply on a phase-by-phase basis, something they can complete in a year, and then compete again for subsequent phases in subsequent years. Mr. Simpson. Appreciate that. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. Commissioner, several times we have discussed today Lake Mead, and you mentioned Lake Mead and the condition of the Colorado River Basin and so forth. Could you talk about the changing conditions of Lake Mead? Can you add a little additional explanatory note here to the record? Mr. Lopez. Sure. Ms. Kaptur. What has been happening to Lake Mead? Mr. Lopez. So, up until probably the late 1990s anyway, Lake Mead was pretty close to full, and then we started soon after 2000, we started into this prolonged drought. In that time frame, the lake level has continued to drop, but it is a huge reservoir. It holds something like 25 million acre feet. It holds an awful lot of water. It has dropped, I think--one of the more recent statistics I have heard was--it dropped to something like 39 percent of capacity. There is less than half of the available supply there. As it goes down, the concern is it could continue to go down, and all of a sudden be going down very quickly. That is the reason we have been working on some drought contingency plans, something whereby the users would voluntarily agree to reduce their use and slow down the drop in the elevation until such time that the hydrology turns around. Ms. Kaptur. Has it ever been in this condition before? Mr. Lopez. So, it is the lowest since it was filled in the 1930s. It was completed in about 1935 or so. Mr. Simpson. Would the gentlelady yield for just a minute? Ms. Kaptur. I would be happy to yield. Mr. Simpson. Is it totally going down because of the drought or is there increased usage upstream so there is not as much water going in also? Is it a combination of both those things? Mr. Lopez. This year we were getting a very high precipitation and Lakes Mead and Powell--which is upstream of that and also a huge reservoir--both of them were filled in the late 1990's. Since then, as I have said, since 2000, we have been in drought and those have both steadily gone down. Ms. Kaptur. Do you that desalination is inevitable to supply the needs of people and business in the years ahead? Mr. Lopez. I do think that we are going to use that as one part of our water supply portfolio. It is already being used in California and other places. Certainly it is being used around the world, in dry areas around the world. Ms. Kaptur. At what point do we reach a tipping point at the BOR where people say you know what, the system is too risky. If we do not get rain for two years or precipitation for five years, at what point do we have contingency plans and ways of providing water for ongoing activities within your 17 state region? Mr. Lopez. There are contingency plans right now. In virtually all of the systems that we operate, we have contingency plans for droughts. Where we can, we're making them more robust as we learn that the droughts are continuing. Ms. Kaptur. You know, I want to say this for the record, because I am actually a land planner by training. I did that long, for many, many years, long before I ever came to Congress. And within the Department of Agriculture, we have a major publication that was done called Land, Food and People. I have never seen it from the BOR, but maybe it exists. And what it talks about is the relationship between human food consumption and the available land and technologies we have to date to supply a given number of people, both domestically and then globally. And late last quarter, Newsweek had a major article in Newsweek about increasing global population and how we have to accelerate our agricultural technologies in order to meet growing food demand. That did not even involve water. That was just land and people and trying to keep that relationship so that we have enough to feed. And there are many places on the globe today that do not have enough food. But on the water question, it is interesting. I have never seen anything out of the bureau called water, food and people because with more people, you have more animals and you need more production. And it seems to me that the pressures in the dry west are going to continue to grow. I would commend to your attention that really I think important work by the Department of Agriculture. If a similar study, it is an analytical report. If it exists for the BOR, I would love to see it. Mr. Lopez. So Reclamation has a program called the Basin Study Program wherein basin by basin, river basin by river basin, we are analyzing supply and demand, current and projecting out 50 years, projecting what those supply and demands are going to be 50 years out--including the growth, either human growth or agriculture, how it might change, as best we know it. Obviously, these are projections. We also take into account as best we know, climate change. And we have got, we have been doing that. To date, we have funded--I believe it is--24 such plans. And 13 of those are complete. I think three of those thirteen still have not been released. They are under final review. The remainder are works in progress. But next month we will be putting out a Secure Water Act Report that will summarize what we have learned from all of those basin studies to date. Those reports are due every five years and we will have that out next month. And it will give the current knowledge that we have based on what we have learned about from those basin studies, from west wide climate risk assessments and things of that nature. So it is not a report by the title that you have mentioned, but it addresses the issues that you are talking about. Ms. Kaptur. What was interesting on the food report is that we cannot continue to serve an exponentially growing population with the current architecture of production globally. And so we are going to have to perfect our technology in more technologically advanced growing systems to meet the need. In that regard, desalination with the Department of Energy in looking forward, they have proposed a $25 million for the creation of a new innovation hub to focus on research and development related to desalination. What involvement, if any, has Reclamation had to date, and what future involvement is envisioned with respect to DOE's proposal, and what steps are being taken to ensure that the two agencies are not duplicating work. For instance, will each agency focus on specific aspects of desalination research? I cannot see how we get out of this conundrum without desalination. Maybe someone from the west has a different idea. But not at the levels of population growth that we are experiencing and the shortages and with what is going on with climate change. I mean there is a lot that has to change. Mr. Lopez. The Office of Science and Technology is coordinating the efforts of various entities, including ours and the Department of Energy's on these fronts. I cannot give you a lot more detail than that right now, but there is, we are keeping track of what each of us are doing to make sure that we are not duplicating efforts. Ms. Kaptur. All right, thank you. I have one other question on this round. Commissioner, there are several ways to address water supply in times of limited water resource, water efficiency being one and water recycling being another one, and new surface projects. How does your budget propose to balance these and how much is Reclamation proposing to spend on new dam construction, water efficiency and water recycling in the proposed budget? What is the balance there? Mr. Lopez. We are not doing a lot of construction these days on storage projects. What we are doing right now is we are completing a number of storage studies that then we will work with--those storage studies will be presented to Congress and Congress will either authorize them or not and see if they want us to go forward with them. In all instances, we anticipate that if those are going to go forward, we are going to have to find non-Federal partners. In certain instances, as we were talking about earlier in California, for example, the Sites Reservoir, we anticipate that those, the thought even from the local entities is that it will not be a Federal investment, but rather we will provide some of the technical background and expertise and the investment will come from local entities. We are participating in water conservation and water recycling efforts--as I have talked about--in the Title 16 and water smart grants and those sorts of efforts. Those, I can give you numbers for those in our budget, in the $21.5 to $23.5 million for each of those programs, in that range. But our construction budget, as I have said is, we are not doing a lot of new construction. What we are focused on is maintaining the infrastructure portfolio that we do have. Ms. Kaptur. Thank you. You've just been excellent, Thank you. Mr. Simpson. Before I call on Mr. Valadao, let me ask you, and follow up on just that. If non-Federal partners are going to pay for it, do you do the technical expertise and the design, do they then own it? Mr. Lopez. They would own it. Mr. Simpson. They make the decisions of how it is operated and so forth? Mr. Lopez. Oftentimes, in the case of California, it is an extremely complex system. The state owns some, there are local entities that own some, or it is a Federal entity that own some. And all of these rely on the same sources in the Bay Delta, on the reservoirs that are upstream to catch that water, so while an entity may own this, everybody has to work collaboratively with all of those other entities to make this a functional system or it's just going to--nobody can do it alone. Mr. Simpson. OK. Mr. Valadao. Mr. Valadao. Mr. Chairman, I feel like I need to invite everybody out to my part of the country in California. We need to work on the scheduling because every year at this time, we actually have our World Ag Expo, which does not have anything on desalination there, but it has all the dealers talking about and showing off the new developments in agriculture, the latest technologies in drip and things like that. One of the interesting things is that in the last couple of years, the opinions have changed a little bit within some government agencies. For years they said, oh, you need to get more advanced, you need drip, you need sprinklers, all these other types. But now with groundwater being such an issue, I have actually had some agencies send out letters and recommend that we start to flood irrigate again to recharge the groundwater. So it is always interesting how opinions change, and in my short life, I am 38, that I have already seen it start to bounce back a little bit. But my main question is on the fiscal year 2016, the Act included $100,000 in additional funding for western drought response. I would like to hear exactly how Reclamation plans to use this additional funding. And additionally, Reclamation was directed to allocate the additional funding to those activities that would have the most direct, most immediate and largest impact on extending limited water supplies during current drought conditions. What kind of analysis did Reclamation do, use to determine that the selected activities would meet the Congressional directive? Mr. Lopez. I am going to focus my answer primarily on what we have allocated to California but I can get broader if you like. Because California, as you know, was the epicenter. That is where we focused most of our allocations. For the Central Valley Project, out of that $100 million in drought funding, we allocated $37.9 million to that. And here are some of the things that we allocated money to, monitoring for fish, obviously knowing where those fish are is going to impact when we can pump, just what we were talking about earlier. Salinity barriers to keep the salinity from coming in to the Delta and hopefully limit or at least reduce the amount of water that we have to allow to push that salinity out. Last year, as I think you know. Folsom Reservoir dropped to such a level that there was concern that we would not be able to meet the water needs of the downstream communities. So we leased some pumps to make sure that we could do that. We have got some money in there to acquire those pumps permanently. We have got some pump back facilities in the Friant-Kern Canal so that we can move that water up to the canal if we need to. We have got some monies allocated toward refuge water supply. Mr. Valadao. Is that buying water? Mr. Lopez. It is buying water and also conveyances to make sure that what we buy we get to where it is needed more effectively, otherwise we are just losing water. Mr. Valadao. And some water I think was purchased from Westlands Water District and now is owed back. Am I wrong on that? Mr. Lopez. I do not know the specifics of it. What we are focused on right now are some acquisitions that would be of a more permanent nature. Mr. Valadao. OK. Mr. Lopez. And then there is some critical habitat restoration for salmon that we're looking at in Battle Creek area. All of these are kind of contingent--where we would spend the money contingently. We have, in the language that we put in this spending plan, we tried to assure that we left ourselves room to deal with emergent situations. If we know that there is an emergency need for someplace else, we'll be able to reallocate or refocus some of these monies. The analysis that we have, it is largely based on the experience that we have had over the last couple of years. We have known what has been required to be able to operate efficiently and those are where we focused our monies. Mr. Valadao. On those barriers, is this new construction or some sort of--I mean you cannot just build a barrier overnight. Mr. Lopez. It is a riprap barrier across that channel that is installed as the hydrology starts drying up and it is taken out as it starts wetting up again. It is not something that can be left in place. Mr. Valadao. OK. And totally off the wall question here, but I did a flyover with some folks over some of our reservoirs over this past summer. And there were a lot of reservoirs that were obviously very low. But what really stood out to me was, and if anybody has ever been on a boat and used a fish finder, there is a lot of peaks and valleys in the bottom of those reservoirs. At a point in time when reservoirs are so low why would not we have just sent in some trucks and hauled some of that dirt out and increase capacity? It seems like the easiest way to increase storage. Mr. Lopez. The cost of that would be incredible to really make a big dent in increasing the volume that you could make in there. And it would not even be a very quick process, at least for us. We would have to undergo some sort of a NEPA process, even to analyze the effects of trucking materials out of there. When we do a NEPA, we have to analyze all of the effects that we are going to have on the people and the resources in that vicinity. Mr. Valadao. OK. Because there is, I was surprised by how big some of these mountains looked inside of these reservoirs and they take up a lot of space. And you always see opportunities for construction and things like that where dirt is needed to build things up. If it is a road, if it is around the Delta, we always hear about the barriers that are needed in support because they are getting so old and the potential for flooding and things like that. It seems like there is a lot of opportunity for that dirt to be used and there might even be a market for it. It might be something that would work very well for all of us, so maybe it is something we could look into. But that is all I have, so I appreciate your time. Thank you, Chairman. Mr. Lopez. Thank you. Mr. Simpson. Ms. Roybal-Allard. Ms. Roybal-Allard. I just have one follow up question. Commissioner Lopez, you are not able to determine at this time if your budget was going to meet the potential demand for Title 16 monies. Can you tell us whether or not the appropriations in 2015 and 2016 met the demand? Mr. Lopez. So I want to again just say that our budget reflects the reality of the fiscal constraints that we live in. Obviously, if we had more monies, those monies could be used. In 2015 and 2016, you have added additional monies. Congress has seen fit to add some additional monies and we have allocated some additional monies to Title 16. In both instances, I think that the requests for Title 16 money have exceeded the amounts that we have had available to us. We have analyzed those proposals to make sure that we fund the ones that will generate the most bang for the buck. So that's how we have allocated it out. Ms. Roybal-Allard. OK. So even with the increase, it still did not meet demand in the previous years? Mr. Lopez. That is correct. Earlier I was asked about Title 16 projects and I do not have the numbers exactly, but there is something like 53 authorized projects that are out there right now. And each of those has a cap of up to $20 million of Federal funds. I think that there is 11 that are still ongoing. Some of them are--and there is another 11 that I think have been completed. Is that right? Mr. Wolf. I think it's 21 and 21. Mr. Lopez. Twenty-one and 21, excuse me. And then there was 11 that are inactive at this point. So those are the ones that have been authorized. I think we have certainly gotten a lot of questions from entities that are interested in new authorizations to date. Really, what we are doing if anything is just provided feasibility studies, let people know when something like that is feasible. Ms. Roybal-Allard. OK. Thank you. Mr. Simpson. Mr. Honda. Mr. Honda. Again, thank you Mr. Chairman. Earlier I talked about the runoffs and I was just wondering, to capture runoffs like in urban areas, or even in the agricultural areas, are there restrictions from using the runoff to recharge groundwater? Are there steps in order to be able to do that? Because it seems like the bulk of our infrastructure in terms of water management is to create concrete pathways for water to go to the sea and if we want to do capture some of this, are there restrictions that prevent us from using most of the discharge or the runoffs to be used as recharged into groundwater aquifers. Mr. Lopez. So in particular in urban environments, there are regulations as to how runoff should be captured and treated. In urban environments, oftentimes the runoff will have oil or other chemicals mixed into it, often a lot of trash and that sort of thing. So there are processes that have to be met to try and clean up some of that water. I am not sure the requirements on actually being able to use that for recharge. Obviously, any time that you impound any water, whether you want to or not, unless it is a lined impoundment structure, some of that is going to recharge and some of it is going to percolate into the groundwater and be captured. Similarly, in agricultural areas, some of the runoff may have agricultural chemicals in it, fertilizers, pesticides, those sorts of things. Those are much harder to--those are not things that you can simply skim off. But places where you have heavy agriculture and drain systems, the waters that you do collect in those are oftentimes impaired. But similarly they also will percolate into the ground. Mr. Honda. So if we see so much water going out and in California, we divert about 43 million acre feet of water, 34 of that is for agriculture and nine is for urban use. Do we know how much water is being returned to the ocean and do we know--is there any studies where we can recapture just some of that runoff? To recharge the groundwater so the urban areas will be able to depend less on transferred water? Mr. Lopez. So we do have information like that, the quality of that information varies from place to place, perhaps where we understand that, or at least we know much water is going out to the ocean. Most clearly it's right in the Delta, where we try and pump water, and whatever we do not pump it goes out into the ocean, and there are a lot of people tracking just how much is going into the ocean. Mr. Honda. Some of it is pumped to southern California, too? Mr. Lopez. It is. It is water that largely originates in northern California, and then it is then pumped down to southern California. Mr. Honda. But in terms of runoffs in urban areas like L.A., there is a lot of jurisdictions, is there any one study that tell us what these--what is the cost? I guess I am looking for Federal rule in helping the large L.A. Basin to deal with that runoff, because it has an upstream impact to those who, you know, in canal and everything else like that. Mr. Lopez. I am unfamiliar with any study of that nature, but I would be almost--I would almost be certain that the city of L.A., for example, would have a study of that nature because they maintain--as you have noted their flood infrastructure, they know much the water moves through those things. Mr. Honda. Well, it will be multi-jurisdictional, because L.A. city is not the only jurisdiction in the basin. Mr. Lopez. Right. Mr. Honda. Is there a way to--are you saying that we should go L.A. city to get that, or? Mr. Lopez. We may have information on that, I can check to see with at. Mr. Honda. OK. I would appreciate that. [Mr. Lopez responded for the record:] In that study, concept development consisted of identifying and developing stormwater capture options in a collaborative manner with stakeholders and the public. Various adaptation strategies were identified to enhance water supply and address impacts from climate change. The developed concepts were evaluated at the appraisal level and included both enhancements to the existing water conservation and flood infrastructure, as well as new structural and nonstructural alternatives. Capital and operations and maintenance (O&M) costs were developed for each of the four project groups, and the costs were annualized over a 50-year period. The resulting annual cost per acre-foot of stormwater conserved could be used as a preliminary estimate of the cost effectiveness of each project group with respect to water supply. All of the project groups provide multiple benefits apart from just the capture of stormwater. In addition to stormwater conservation, complementary benefits may include, but are not limited to, increased flood risk management, improved water quality, recreation, habitat/connectivity, ecosystem function, and enhancing local climate resiliency. Reclamation is pleased to have been a partner with the Los Angeles County Flood Control District (LACFCD) and our other study partners in this effort. Reclamation works with our local partners to bring our technical expertise to these problems and concerns and works collaboratively with everyone to identify future actions that the local partners may want to implement to solve their water supply problems. There is no intent that Reclamation will continue to be actively involved in any future action based on this study effort. The U.S. Department of the Interior, Bureau of Reclamation (Reclamation) has been working in a collaborative partnership with the Los Angeles County Flood Control District (LACFCD) for the past 3 years to prepare the Los Angeles Basin Stormwater Conservation Study. The purpose of the L.A. Basin Study is to investigate long-range water conservation and flood risk management impacts caused by projected changes in the climate and population in the Los Angeles region. The L.A. Basin Study provides recommendations for potential modifications and changes to the existing regional stormwater capture system, as well as for the development of new facilities and practices, which could help to resolve future water supply and flood risk management issues. The primary focus of the Study is to address the potential of the local stormwater capture system to increase the amount of water captured. One of the component studies of the overall L.A. Basin Study (Task 5, Infrastructure and Operations Concepts Report, dated December 2015) identifies and develops both structural and nonstructural (i.e., plans and policies) concepts to manage stormwater under projected climate conditions for the Los Angeles Basin watersheds, which includes: Los Angeles River, San Gabriel River, South Santa Monica Bay, North Santa Monica Bay, Ballona Creek, Malibu Creek, and Dominguez Channel/Los Angeles Harbor watersheds (Basin Study Watersheds). Mr. Honda. One last question, Mr. Chairman. The canal that goes from the Bay Delta to southern California is a long distanced and it--has there ever been a study as far as the amount of evaporation that occurs on the canal, and capturing that, you know, how much water would be recaptured if we covered it, and how much water will we save? Mr. Lopez. That can help. That canal sends the water to L.A. and San Diego. That is part of state's water system, not ours. However, for all of these systems there are analyses that show how much water has evaporated off of those, and certainly there can be, if they are covered as you are suggesting, that water could be saved, oftentimes it is just a matter of economics. It is expensive to do so. [Mr. Lopez responded for the record:] To the best of our knowledge, there has never been a study done by the Bureau of Reclamation or other Federal agencies addressing the placement of a cover over the California Aqueduct running from the San Luis Reservoir to the points of delivery over the Angeles Mountains to Southern California. The Metropolitan Water District of Southern California has done some work related to covering the exposed areas along the 250 mile Colorado River Aqueduct that runs from Parker Dam located on the Colorado River to the terminal reservoir, Lake Matthews, located in Riverside County, California. Their analysis showed them that the economic costs of covering the aqueduct cost more than the amount of water being saved. Their analysis also showed that the amount of evaporation in their canal was less than the amount of water evaporating from their Diamond Valley Reservoir located near the Town of Hemet, CA. The one other water district that has had some experience in running water through an enclosed aqueduct is the City of Los Angeles Department of Water and Power (DWP). DWP diverts water from the tributaries in the Owens Valley from above the City of Bishop, CA in an enclosed aqueduct from there to the north end of the San Fernando Valley. The entire aqueduct is covered from the point of diversion. We do not know if they have ever estimated the amount of water saved from using an exposed canal, but they have been using the enclosed system from the first day of operation. Mr. Honda. I guess the question would be over long-term is it cheaper to recapture the water and spend the money to recapture it, and have additional water to go down South, as part of a larger strategy. If you have that information, we would like to see that. Mr. Lopez. We will see what we have in that regard. I would mention that I had an occasion to fly over some of L.A.'s water system, and many of their local reservoirs, they have now taken to covering them with plastic balls, to reduce the evaporation off of those, with the same idea in mind. It is not a rigid cover, but it is just sitting on top. Mr. Honda. Sure. Mr. Lopez. And reduce the evaporation. Mr. Honda. Thank you. Thank you Mr. Commissioner. Mr. Simpson. As you can tell we have 4 members from California on this Committee, and consequently when California has a drought, we have a hearing. I appreciate you addressing that. It is obviously a very important issue to the west and to the country, but I want to talk about another little parochial issue here in the State of Idaho--I really want to start the discussion more than expect any answers because this is probably a fairly new discussion with you, and whether you are even aware of the discussions that have been going on in Idaho, yet, I do not know. The State of Idaho is working vigorously to address its water supply issues with the Snake River Basin. The Eastern Snake River Aquifer which is hydrologically connected to the Snake River is Idaho's largest and most strategic aquifer resources, and my Ranking Member, Ms. Kaptur, may be interested to know that it is often compared to Lake Erie in water volume. For the past 6 decades ground water levels in this aquifer have been declining which has impacted surface flows in the Snake River. The surface water users and groundwater users in the Snake River Basin above Miller Dam have entered into an agreement that seeks to stabilize the groundwater levels in the Eastern Snake Plain Aquifer. Under the agreement groundwater users have volunteered to reduce their consumptive uses of water from the aquifer by 240,000-acre feed of roughly 12 percent. The State of Idaho is also committing to funding a managed recharged program that seeks to recharge 250,000-acre feed to the aquifer on an average annual basis. Since the Bureau of Reclamation operates storage reservoirs in the Upper Snake River Basin, I would like to think the Bureau would have a significant interest in this matter. Mr. Commissioner, could you please describe the extent to which reclamation has been involved in aquifer recharge efforts in Idaho generally, and with the significant settlements specifically, and also what could reclamation do, moving forward, to continue to help stabilize the Eastern Snake Plain Aquifer? Do you foresee any obstacles to reclamations involvement besides perhaps time and money to conduct any necessary reviews? Would any activities envision to date require Federal legislation to move forward? I know this is a new subject, but I wanted to get it on the record, because the discussion is going to go forward. I met with a bunch of state legislators, and attorneys and the Attorney General's Office that have been pushing this about three weeks ago when I was in Idaho. They said they had not talked to Reclamation yet. I said, well, you know, before you can, you need to get Reclamation involved in this, and you need to get Bureau of Land and Management involved, because recharge sites would be on BLM land. One of the things that they indicated would have to be addressed is that Reclamation facilities, canals, could only be used for irrigation purposes. That that might have to be amended to allow them to use those facilities for recharge purposes to get water out to the recharge sites. Do you have any comments on that? Mr. Lopez. I do. I do have a little bit of knowledge about this, and I know that, perhaps, even since your water users' meeting--last week I know that our Regional Director, up in that area, Lorri Lee, met with some of those water users, and they are talking about the very issues that you are talking about. There are some things that we can be of assistance with. As you note we have got an interest, in that ground water use impacts surface water supply and our users and our ability to meet our contractual obligations. So we are interested in working with everyone involved in this thing. I think we have the mechanisms by which we could enter into, if necessary, say Warren Act contract such that we could use some of our existing canals and infrastructure to facilitate these sorts of activities, as long as it does not adversely impact our ability to meet our contractual obligations. And this is generally done off-season so, it is possible. Mr. Simpson. Right. Mr. Lopez. Some of the reservoirs that we operate, Palisades in particular, require that we not release water during the winter to assure that there is sufficient water carrying over into the spring. However, when we have been able to project that, the hydrology is such that we are pretty confident it is going to fill again, we have been able to release, and we have been willing to waive those sorts of requirements. Obviously, we do so making sure that any such operations would be consistent with long-term ESA compliance, that sort of thing. We have got a great set of partners to work with out there with Minidoka Irrigation District, and the A & B Irrigation District. We have got a beautiful relationship with them. Some of the canals that would need to be used for this sort of recharge type activities are not ours, so we would have to work with the private entities to arrange for that sort of thing, but we are willing to do so. We have a great relationship with BLM, being a sister agency as well, and I think we could help facilitate those discussions as well. So I think there is plenty of stuff that we can do, and a lot of it is already going on. Mr. Simpson. Well, I appreciate that. It is, as you know, probably better than any of us, that debates between surface water users and groundwater users can sometimes get a little ugly, and in Idaho we started managing the conjunctively, something that California needs to start doing. But it is a difficult issue to address. Ever since we started the adjudication process, the first day I got into politics, the first issue was adjudication. I mean years and years ago. So I appreciate your willingness to work with us, and that is really all I am asking, is a commitment that you will keep working with these individuals to address the concerns. Because I am glad to see that these people are actually trying to cooperate, and find a way to get the aquifer recharged, because otherwise, what you are going to have is some junior water right users that are just cut off, zero. And nobody wants to see that. One other thing; it has been suggested that Reclamation's WaterSMART Grants Program, may be one source to financial assistance. What other activities related to aquifer eligible under the WaterSMART Grants Program, and if so what types of activities are we talking about? Mr. Lopez. So the WaterSMART Grant is intended just to provide efficiencies and conserve water. And we generally do not specify what needs to happen with those things. Rather, the entities that apply for those, they get creative and they put forward a proposal that emphasizes the conservation aspects of their project. If they are successful, we fund 50 percent of the project, and then we just need 50 percent from some non- Federal entity. It could be the water districts, it could be the state, but there is plenty of ways that we could work with individuals on it. Interestingly, we have also got some drought-related planning monies, and those might be usable in that regard too. First off, we want to create drought resiliency plans, and then once projects are identified under those plans, there is an opportunity to fund some of those in subsequent years, so that might be a mechanism as well, because ultimately you are talking about just that--managing these two supplies conjunctively, and creating a plan for future droughts. I think those are options, but this tells me that the drought-funding opportunity announcement was just released yesterday. So that is something that is current, and could be sought after now. The WaterSMART Grants will be, I think those will be out in June, or something like that are they not? Mr. Wolf. Yes. We have already received all the applications for that, so we have sufficient applications to fund it, but we will be doing a new funding app between the announcement and 2017 as well. Mr. Simpson. Got it. Ms. Kaptur. Could I ask a question? Shall I? Mr. Simpson. Sure. Ms. Kaptur. At the same time as those types of grants are released, I assume the community as you serve also have equal access to environmental protection agency grants, and so forth, relating to water. Do they not? Are State Revolving Funds---- Mr. Lopez. They do. There is multiple funding sources that are out there available depending on the type of project that needs to be done. And so one area in California, in particular, we are partnering with the Department of Agriculture on NRCS grants, to promote agricultural efficiencies, that sort of thing. So ours are not the only set of grants that are out there, but ours focus on water conservation and efficiencies. Mr. Simpson. Well, I appreciate your willingness to work with the water users in the State of Idaho in trying to address this. I think they are trying to be responsible, and I am sure they are trying to be responsible and address a problem in a long-term manner, and hopefully solve it, but your involvement and advice is vitally important, and I appreciate all the work you have done in Idaho for a lot of projects. You are a very important agency in the State of Idaho. Mr. Lopez. Thank you, Mr. Chairman. Mr. Simpson. Any other questions? Marcy. Mr. Lopez. Mr. Chairman, I just wanted to say, you asked about our commitment to work with you and Idaho on this, and absolutely you have that commitment. Mr. Simpson. Thank you. Mr. Lopez. I had the pleasure of going up there to the dedication ceremony for the Minidoka Dam, and that was a beautiful setting and a beautiful ceremony, so thank you. Mr. Simpson. Yes. Appreciate it. Ms. Kaptur. Mr. Lopez, I am very impressed with your working knowledge of the instrumentality that you manage. You really did a good job today. Thank you. And, Mr. Wolf, thank you very much as well. I just have to make this comment, Mr. Chairman, because you have been so gracious to me, as someone who does not live in California, and nor in a western state, I just have to say how members live in parallel universes, so many times. And there is no instrumentality. I am envious as I sit here and I listen to the work of the Bureau over 100 years, 200 years, in the west. We in the Great Lakes, have a massive body of fresh water, the largest on the earth, and we have no instrumentality that manages the various entities that are important for us to have clean water, and nor the investments, so bridled to our future. I happen to represent the largest watershed in the Great Lakes, it extends over three states, I do not represent those other states, nor the nation of Canada which also drains into our watershed; and that lack of management is a great obstacle to us. So about a year ago my home community, I just share this because there maybe others listening to hearing today. About a year ago my home community of Toledo had a shut off of water for three days to over half-a-million people, because of toxic algae blooms that were feared to be in the water system. It was unbelievable in a community with only one water intake. And we have not dug our way out of that because we have no management entity, that actually can extend an umbrella over this really vast region, and it is not a perfect situation because of that. You are a great convener; you can bring others to the table. That kind of management instrument does not exist in our region. Secondly, I just want to say over the weekend I spent time in Flint, Michigan, with our colleagues, and Kildee and others, Brenda Lawrence, and so forth, to look at Flint, Michigan, with this tremendous problem of lead in the water, and to see the lack of effective Federal response and because of the lack of effective state response, was very, very troubling to me. A community that has 99,000 people, gigantic infrastructure needs, and no real--a city under emergency control by the state that was mishandled. You know, I look at all that and I am thinking, it is 2016 and we cannot manage fresh water in the Great Lakes. So I sort of listened to you and I look at, you know, what has been to be able done in the west, and I think about the next 100 years in this country, and how we are going to manage our fresh water resource. We are going to have 500 million people by 2050, and we are going to have to figure out how to be much more wise about the way that we manage our assets. And I just put that on the record, because the west is very fortunate to have you, and I am sure you have all these lawsuits and problems and all the rest, but at least you can be more comprehensive. You actually have a map of your watersheds, and you have measurements. Guess what? We do not. And so the ability of the Great Lakes to be a full player is rather messy right now, with all the environmental challenges that we face. So I look at your instrumentality and I am very, very envious, and to see what has been done in the west, and the instrumentalities we have, I believe, are too weak to meet the real need that faces as a country. So thank you for what you have done. And thank you, Mr. Chairman, for allowing me to put that on the record. Mr. Lopez. Thank you. Thank you for your kind words. Mr. Simpson. I understand how that developed over the years, because in the east actually they were trying to get rid of water. They almost had too much, that is why you have riparian water rights, you go into the west, we were trying to conserve everything because we were in an arid desert, and consequently it was an agency that created the infrastructure to do that, and that is why we have prior appropriation water rights, which is entirely different than riparian water rights. Ms. Kaptur. It is true. Mr. Simpson. And it was just the development of the country, but you are right, you need something to oversee this town. I appreciate you being here today, and look forward to working with you on your budget, and making sure we can move this Agency forward, and the job that the American people expect you to do, Congress expects you to do, and you expect to do. So, appreciate it. Mr. Lopez. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Mr. Lopez. Thank you. Mr. Simpson. We are adjourned. [Questions submitted for the record follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Friday, February 26, 2016. UNITED STATES ARMY CORPS OF ENGINEERS WITNESSES JO ELLEN DARCY, ASSISTANT SECRETARY ARMY (CIVIL WORKS), OF THE UNITED STATES ARMY CORPS OF ENGINEERS LIEUTENANT GENERAL THOMAS P. BOSTICK, CHIEF OF ENGINEERS, UNITED STATES ARMY CORPS OF ENGINEERS Mr. Simpson. I would like to call the hearing to order. Good morning, everyone. I would like to dispense with a little bit of administrative business. While he is not here right now, I would like to ask unanimous consent to allow one of our full committee members, Mr. Quigley, to join us on the dais and to ask questions of the witnesses once all subcommittee members have had an opportunity. Without objection, we will proceed with the hearing. We are here today to look at the fiscal year 2017 budget request for the Civil Works Program for the U.S. Army Corps of Engineers. I would like to welcome our witnesses, Assistant Secretary of the Army for Civil Works, Jo-Ellen Darcy, and Commanding General and Chief of Engineers, Lieutenant General Thomas Bostick. Welcome. General Bostick, I understand you are set to retire in May. General Bostick. I am. Mr. Simpson. This likely will be the last time we see you as a witness before our committee. I want to thank you for your service to the Corps, and the Army, and specifically, to the Nation as a whole. You have been Chief of Engineers during some challenging times, but throughout you have remained accessible, professional, and focused on finding solutions. I wish you well in your next endeavors. Secretary Darcy, please do not think your hard work and dedication are not also very much appreciated, they are, but you are not off the hook quite yet, so we may see you again. With a Presidential and a congressional election coming up this year, who knows if any of us are going to be here next year. The Corps' Civil Works Program comprises a wide variety of water resource activities essential to the public safety, economic, and environmental goals of our Nation. This committee works hard each year to build an appropriations bill that supports a robust program, and that will strike a good balance across mission areas. The Fiscal Year 2016 Act provided almost $6 billion to the Corps, including the highest level ever for Harbor Maintenance Trust Fund activities and full use of the estimated annual revenues in the Inland Waterways Trust Funds. Congress clearly recognizes the importance of the Civil Works Program. Unfortunately, the same cannot be said of the Administration. The fiscal year 2017 budget request would slash funding by almost $1.4 billion. This budget is $100 million below even the post-sequestration level in fiscal year 2013, and if enacted, would be the lowest funding level since fiscal year 2004. The President's proposed budget would be the lowest funding levels since fiscal year 2004. No aspect of the Civil Works Program would be spared. All four main project-based accounts would see cuts ranging from 14 to 41 percent; overall flood control and navigation activities would be cut by 27 percent, and 26 percent, respectively, and even the environmental restoration activities would be reduced by 19 percent. The irresponsibility of this budget request makes the Committee's job more difficult, but we will continue our efforts to support a strong Civil Works Program, one that will strengthen the economy, enhance public safety, and promote healthy ecosystems. Again, I would like to welcome our witnesses to the subcommittee. Secretary Darcy, please ensure that the questions for the record and any supporting information requests are submitted to the subcommittee and are delivered in final form to us no later than 4 weeks from the time you receive them. Members who have additional questions for the record will have until close of business Tuesday to provide them to the subcommittee office. With that, I will turn to Ms. Kaptur for her opening comments. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Kaptur. Thank you, Mr. Chairman. We welcome Assistant Secretary Darcy and General Bostick back to your subcommittee. We appreciate you appearing before our subcommittee this morning. General, from myself and our side as you prepare to leave the Corps, I really want to take the opportunity to thank you for all you have done in serving our Nation, and wish you the very, very best in the years ahead. It has been a pleasure to work with you. General Bostick. Thank you very much. Ms. Kaptur. Thank you. The Corps' Civil Works mission builds a stronger and more secure America, while providing great opportunity for job creation, environmental stewardship, and even recreation across our Nation. Federal support of water resource projects creates construction jobs meanwhile, and economic benefits that encourage local business, governments, and individuals to cooperate and make investments in their own communities. You have really helped to build a modern America. This country once aspired to great horizons in the area of civil works and infrastructure. I think of several examples certainly, the Federal highway system, which is not under your jurisdiction, and the dams which provide power in the West, and certainly in my region, the locks and dams that have created the Saint Lawrence Seaway Development Corporation, and has a reciprocal down the Mississippi River corridor. America imagined great in those days. We now have before us a budget request which really slow walks vital improvements in our water infrastructure, and essentially continues a very troubling trend of infrastructure negligence. This is happening in many arenas in our country, and it is not a development I welcome. Last year, Congress supported a nearly $1.3 billion increase for the Corps, and in light of shrinking investments in our Nation, whose population is slated to be 500 million people by 2050, this budget request is disappointing to say the least. We simply have to keep up with a modernizing America. While the Corps of Engineers does life-saving work, which I very much value, I believe more attention must be paid to the policies of the Corps, some of which have not been substantially changed in the last several decades. Two areas come to mind immediately. One is the lack of innovative financing in how we as a nation finance projects. Secondly, how we dispose of the football fields of dredge material that the Corps digs up every year. As a Great Lakes member, I would ask you to address serious and widely held concerns about Great Lakes' dredging needs, which will continue to become more complex in the years ahead with the changing nature of climate, the severe threat of Asian carp to exterminate our freshwater fish populations in the entire Great Lakes system, and a more visionary and sustainable environmental commitment that currently appears to be lacking within the Corps, especially in light of the freshwater crisis due to toxic algal blooms that hit Toledo, Ohio, a year ago. There is a need for innovative cross-agency thinking. Moreover, Great Lakes' ports are critical to the regional and national economy supporting our critical manufacturing base, and we must keep these ports open for business. However, this need not come at the expense of our water security, the safety and quality of our drinking water, or the environmental integrity of this precious unparalleled freshwater ecosystem. I expect that you will speak to these concerns, and I look forward to your discussion today. Thank you, and thank you, Mr. Chairman. Mr. Simpson. Thank you. We are fortunate to have our full committee chairman with us today, Mr. Rogers. Mr. Rogers. The Chairman. Thank you, Mr. Chairman. Welcome, Ms. Darcy, back to the committee. General Bostick, welcome again, and we wish you all the good luck in the new chapter you are about to write in your life. Thank you for serving your country, and we wish you well. The projects managed by the Corps, of course, have a crucial economic impact on many communities across the country, repairing dams on Corps' lakes, protecting communities from flooding, and so on. The Corps plays a central role in ensuring the safety of the places we call home. In my district in Kentucky, the Corps has completed a historic infrastructure repair project on Wolf Creek Dam. You conducted critical flood mitigation projects, enabling tourism and recreational activities on Lake Cumberland. As we have discussed before, the Corps recently prioritized the town of Martin, Kentucky, which for years has lived under the constant threat of flooding. I appreciate the Corps' attention to that most important project and hope that we can continue to work collaboratively to ensure that the citizens of Martin reside on safe ground. Unfortunately, in recent years, much of the good work performed by the Corps has been overshadowed by bureaucratic hurdles and regulatory overreach that are not just slowing economic growth, but are killing jobs across the country. First, you have allowed an overtly partisan White House and the EPA to dictate to you your regulatory agenda, to usurp the authority provided by Congress to the Corps under the Clean Water Act. This administration has been relentlessly targeting coal operations, kowtowing to and coordinating with extreme environmental organizations, both through burdensome new rules and their arguably unlawful enforcement. The effects have been dramatic and devastating, not as strict as in a disaster zone. In the years before this President took office, we had over 15,000 coal miners in the eastern part of my district, supporting their families and their communities with stable, higher paying jobs, living where they wanted to live. Now, we have around 5,000 jobs. We have lost 10,000 in my district alone, laid off, trying to find a job at McDonald's, most unsuccessfully, trying to support the kids, family, mortgages, car payments, and the like. Despite that staggering unemployment and economic depression, this administration continues to march on with its keep-it-in-the-ground strategy with regard to coal. Not only do these policies completely turn these coal communities upside down, they weaken our national economic energy policies by neglecting our most plentiful and reliable natural resource. Time and again, I have seen job creators in my district and around the country struggle to do business under this wrong- headed regulatory regime. They have seen their permit applications left to languish and decisions on their lease modifications needlessly delayed. Each new regulation, each delay of an important permit decision threatens much needed jobs and leads to uncertainty for thousands of others. This is no way to do business. It is no way to grow an economy. As I have said many times before, the Waters of the United States, WOTUS, is a prime example of this backwards, job-killing regulatory overreach strategy. The Corps and the EPA joined forces--no, that is not the right word--the Corps surrendered to the EPA to expand Federal jurisdiction over every so-called ``waterway'' that they could get their hands on, and we are feeling the impact of that regulatory overreach in my district and across the country, trying to expand jurisdiction to a so-called ``stream'' that is neither navigable or running. They are trying to exert jurisdiction over arid--what do you call those out West--the so-called ``former streams''-- arroyos? With no possibility of water. The courts rightly have called you down. You are overreaching your authority time and again and it means nothing to your people. Not only does this rule burden coal companies and farmers and developers and homeowners with hefty compliance costs, but we now know that the administration illegally used taxpayer dollars to try to convince the American people that it was a good idea when it was still under review. This demonstrates a lack of transparency and accountability on the part of these agencies, and an unwillingness to understand how their actions impact real lives and real communities. Both Congress and the courts have fired back against that rule, and I believe it is time for you to move on as well. Second, in addition to destroying coal jobs in Appalachia and elsewhere, I fear the Corps has almost lost sight of its role in economic development and its commitment to its recreation mission. As you know, the local economies in Appalachia are struggling against this onslaught of environmental regulations, people in southern and eastern Kentucky are hard at work trying to replace those jobs, and recreation and tourism is an important part of that effort. Unfortunately, the Corps has put up roadblock after roadblock every time my constituents want to pursue a job- creating opportunity that requires their involvement. I am continually perplexed at the Corps' reluctance to support tourism and recreation on Corps' lakes and rivers when instead they should be fast-tracking every opportunity for development in this economically depressed region. These topics are crucial to struggling economies in rural Appalachia and for coal communities across the country. My hope is that we can set the right priorities in the budget in order to ensure that the Corps is enabling the success of these communities, not holding them back from achieving their potential. I look forward to hearing your testimony so we can try to understand the Corps' plans to address these important issues. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Secretary Darcy, the floor is yours. Ms. Darcy. Good morning. Thank you, Chairman Rogers, and thank you, Chairman Simpson, and distinguished members of the subcommittee. Thank you for the opportunity today to present the President's budget for the Civil Works Program of the Army Corps of Engineers for fiscal year 2017. This year's Civil Works budget reflects the administration's priorities through targeted investments that will reduce the risk of flood impacts in communities, facilitate waterborne transportation, restore significant aquatic ecosystems, generate low-cost renewable hydropower, and support American jobs. It supports a Civil Works Program that relies on a foundation of strong relationships between the Corps and our local communities, which allows us to work together to meet the water resources needs. The budget continues ongoing efforts to provide local communities with technical and planning assistance to enable them to reduce their flood risks, including nonstructural approaches. We are promoting the resilience of communities to respond to the impacts of climate change. We are investing in research, planning, vulnerability assessments, pilot projects and evaluations of the value and performance of nonstructural and natural measures. The budget provides funding to maintain and improve our efforts on sustainability, ensuring that we are doing what we can to efficiently use our available resources and reduce the Corps' carbon footprint. For example, we are increasing renewable electricity consumption, reducing greenhouse gas emissions, and reducing our non-tactical-vehicle petroleum consumption. We are also advancing our sustainability efforts by using innovative financing techniques such as energy savings performance contracts to improve the sustainability of our facilities and projects. We are making important investments to promote the sustainable management of the lands around Corps' facilities by providing funds to update the plans that govern how we manage our facilities and to help combat invasive species. The budget also focuses on maintaining the water resources infrastructure that the Corps owns and manages, and on finding innovative ways to rehabilitate it, hand it over to others, or retire it. Here are some of the funding highlights. The 2017 Civil Works budget provides $4.62 billion in gross discretionary appropriations for the Army Civil Works Program, focusing on investments that will yield high economic and environmental returns, or address a significant risk to public safety. The budget focuses funding on our three major mission areas, including 42 percent to commercial navigation, 26 percent to flood and storm management reduction projects, and 8 percent to aquatic ecosystem restoration. Other practical, effective, and sound investments include allocating $196 million to hydropower, $103 million to clean up sites contaminated during the early years of the Nation's nuclear weapons program, and $200 million for regulatory activities. Overall, the budget funds 33 construction projects, six of them to completion. It also funds 49 feasibility studies, 12 of those to completion. The budget also includes one new construction start, Mud Mountain Dam in Washington State, which is addressing biological opinion-related work. The budget funds inland waterways capital investments at $923 million, of which $33.75 million will be derived from the Inland Waterways Trust Fund. The budget provides $951 million from the Harbor Maintenance Trust Fund to maintain coastal channels and related work, which is the highest amount ever budgeted. The budget also provides $35.5 million for the Levee Safety Program, which will help ensure that all Federal levees are safe and in line with the Federal Emergency Management Administration's standards. This initiative will provide non- Federal entities with access to levee data that will inform them of all these safety issues. The Corps has a diverse set of tools and approaches to working with local communities, whether this means funding projects with our cost-sharing partners or providing planning assistance and technical expertise to help communities make better informed decisions. The 2017 budget continues to contribute to this Nation's environmental restoration, and provides funding to restore several large ecosystems that have been the focus of interagency collaboration. They include $10 million for the California Bay Delta, $66 million for the Chesapeake Bay, $106 million for the Everglades, $15 million in the Great Lakes, and $13 million in the Gulf Coast. Other funded Corps efforts include mitigation of impacts to the fish in the Columbia River Basin and priority work in the Upper Mississippi and Missouri Rivers. Finally, the budget provides $6.5 million for the Corps' Veterans Curation Program, which was started in 2009 with support from the American Recovery and Reinvestment Act. The program offers veterans the opportunity to learn tangible skills and gain experience by rehabilitating and preserving federally owned or administered archeological collections found at Corps' projects. This program's unique training for future employment has meant that 90 percent of its more than 245 graduates have gone on to find permanent employment or return to universities and colleges to continue their education. I look forward to working with this committee to advance the Civil Works Program, and I thank you for your attention this morning. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Secretary. General Bostick. General Bostick. Chairman Rogers and Chairman Simpson, Ranking Member Kaptur, members of this subcommittee, thank you for the opportunity to testify today. I love the Corps of Engineers and the Army, and it has been my great honor and privilege to serve the Nation these past 38 years. First, I would like to thank you for your great support of the Civil Works Program. This subcommittee has been essential to the progress we have made over the years. The details of the 2017 Civil Works' budget are outlined in my written testimony. We also recently submitted the work plan that allocates all of the additional funds that Congress appropriated for the Civil Works Program. The Corps has done its very best to utilize the additional funding in the most responsible and efficient manner to address the outstanding water resource needs of the Nation. Today, I would like to provide an update on our campaign plan and our four goals, and some of my perspectives on the water resource challenges facing our Nation. First, we support national security. We like to talk about the investment in Civil Works' projects, not the costs. It is an investment in the work we do, our economy, and the protections provided to the American people. It is also an investment in our people, and whether they serve in Iraq, Afghanistan, Pakistan, India, or in over 100 countries around the globe, our people are making a difference. As part of our Civil Works' transformation, we continue to improve and modernize the project planning process. Our planning modernization's objective is to manage a risk-informed planning program that delivers timely, cost-effective, and high-quality water resources investment recommendations. Since the inception of Civil Works' transformation in 2008, 59 Chiefs' Reports have been completed with recommendations of over $30 billion in water resource investments. During the first 4 years of Civil Works' transformation, 19 Chiefs' Reports were completed. In the last 4 years, that number is 40, more than doubling our progress. We are on schedule to complete another 12 reports by the end of the fiscal year. While we have made great progress, we can and must continue to improve. Our third campaign goal is reduce disaster risks. The Corps continues to perform extremely well in this area. We had historic floods in 2011, 2015, and continued again in 2016. Because the systems performed as designed, many Americans do not even realize the magnitude of these floods. In addition to the fact that no one died in these events, the return on investment is $45 to every $1 invested in the Mississippi River and Tributaries system. Approximately $234 billion of damages have been prevented because of these investments. Despite these investments, our Nation's infrastructure is aging. The American Society of Civil Engineers rates the Nation's infrastructure at an overall grade of D+. The Corps is managing over $225 billion worth of that infrastructure. Funding across the Federal Government remains very challenging. In order to complete the construction projects that we are currently budgeting, we would require an additional $19.7 billion. With construction funding at just over $1 billion a year, it will take nearly 20 years to complete the current projects. As a nation, we must continue to think creatively and innovatively about how we gain support beyond the Federal Government so that we can complete these projects in a more reasonable time. Finally, our last goal is prepare for tomorrow. This is about our people. In the nearly 4 years I have been in command, I have traveled to all 43 districts and 9 divisions to see the vital work that the Corps is doing at home and abroad. I remain convinced that we have exceptionally skilled and talented people in our organization. I am very proud of the people who serve in the Army Corps of Engineers and our fellow teammates, including the military, civilian, local, Federal, and, of course, our contractors. As we have done for over 240 years, the U.S. Army Corps of Engineers remains focused on engineering solutions for the Nation's toughest challenges. Thank you again for the opportunity today. I look forward to your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for your testimony. General, you pointed out some of the backlog problems that we face in this country and why this committee is so concerned about the budget request that was submitted. I am almost tempted to ask what the original request you submitted to OMB was, but I know you fully support the President's budget, so I will not ask that. Mr. Rogers. The Chairman. The Corps holds the primary authority to issue what is called Section 404 permits under the Clean Water Act, which authorize the discharge of dredge material in mining operations. That so-called ``Section 404 permit application process'' has gone crazy. I do not know whether it is incompetence or an intent to completely shut down mining of coal, whichever, you have done it. Most of it has to do with getting a permit to mine. Now, you are requiring applicants to provide additional copies of the application at a cost of around $500 or so per application. Then you are requiring the applicant to provide multiple copies of their application so they can be sent out by you to environmental groups who are trying to stop the operation, at the expense of the applicant. That is not the America I thought I used to know. You are forcing a person with an economic decision to finance his enemies. How can you do that? Ms. Darcy. Chairman Rogers, the Corps does not require additional copies of permit applications. They require one. I am not sure of the requirement of which you are referring, but it is my understanding that our permit requirements are for one copy of an application. General Bostick. They are also able to submit their permit on email or on a CD. A paper copy is not required. The Chairman. Here is an email from Darvin Messer, Team Leader, U.S. Army Corps of Engineers, Fort Worth District, to a Philip saying ``We need two additional copies of the application for the continuation of the EC FOIA.'' Who is telling the truth, this person or you? General Bostick. I do not know the context of that, but I would be happy to take a look at it and follow up with you. The Chairman. Here is another one from Jim to ``All'' saying the same thing. There is a deadline when people can object to an application, but you have told your people even if the objection comes in after the deadline, we are going to go ahead and honor it anyway. How can you defend that? Ms. Darcy. When there is additional information that is submitted during the consideration of granting of a permit, the information that is submitted is considered. We have a public comment period of 30 days for the initial public comment period of an application. The Chairman. That means nothing. If you file a protest on it 45 days after it has been submitted, well past the deadline, you still honor that, at the expense of the applicant. A letter from Jennifer Walker, Huntington District, to Philip, whoever that is. ``Although the comments came in a bit late, we still have to respond to them,'' it says. It is plain the thing you are working on with the EPA has completely shut down the mining of coal, and, boy, have you been spectacularly successful. I have 10,000 miners in my district alone laid off. They have kids. They have car payments. They have house payments. They have food bills to pay and the like. Now, that is the 404 permit process. Can you look into these issues and get back with us? I really want answers to these questions that I have raised. This is not for TV. This is for real. I am shooting real bullets here. Ms. Darcy. Congressman, we will get back to you on both the duplication for the request for the applications as well as the reviewing of comments that come in after the deadline. The Chairman. Also, add to that list interminable delays in reviewing and issuing permits. It is practically impossible to get a permit to mine through your agency and EPA. I am just very chagrined that the Corps of Engineers has kowtowed to the EPA. You are so afraid of a lawsuit that you let the EPA bully you into doing whatever they want to do. You are welcome to comment. Ms. Darcy. I think your reference is to the Clean Water Act rule that we jointly developed with the Environmental Protection Agency. It was a jointly developed rule with the Army Corps of Engineers, with the Army, EPA and the Administration. The Chairman. I do not have other questions, Mr. Chairman. I yield back. General Bostick. I just wanted to comment on the permits, Chairman. This is a very challenging process. We have been working it very hard, hiring more people and training our folks. We have seen median processing times come down from about 1,500 days to about 70 days between 2014 and 2015. Granted, there are a lot less permits being proposed because of the situation with the coal industry, but we are working vigorously to try to be as efficient as we can in getting those out. The Chairman. Well, there are so few coal companies left. You should have a ball getting them out on time because there are so few of them to review. Thank you. Mr. Simpson. Ms. Kaptur. Ms. Kaptur. I thank you, Mr. Chairman. Let me thank the General and Secretary Darcy for meeting the deadline of the 2015 appropriations bill and producing the report through the Corps of Engineers to Congress on the Western Lake Erie Basin challenge, which is a challenge to the entirety of Lake Erie, the shallowest of the Great Lakes and the southern most of the Great Lakes. I find the report excellent. What I am wondering, General, is based on your current authority, if I were to ask you to come and find a way through the Corps to chair a tristate meeting, perhaps even involving Canada because of the importance of Ontario Province to what is happening in Lake Erie with nutrient runoffs, would you be able to help us pull together a meeting of stakeholders in all three states and including the Province of Ontario? Could you lead that discussion in our part of the country? General Bostick. We would be happy to do that. Ms. Kaptur. I really, really appreciate that. We face quite a complex challenge out there. I thank you very much, and I thank your staff for producing the report, and thank you, Secretary Darcy, also. I know how hard you have pushed to try to help us on this. I wanted to move to the topic of Asian carp that continues to knock on the door of our Great Lakes, threatening our $7 billion fishery. Recently, juvenile fish were found in the U.S. river system, primarily the Mississippi, but not only the Mississippi. They are in the Ohio River now, too. In the Mississippi River systems, some 40 miles upstream of their previous location as they head to Chicago. I am very concerned about the implications of this movement. I personally favor hydrologic separation at the Brandon Road Lock and Dam. I am wondering if you could update us on the status of that project, and your own view of what is happening with this invasion by the Asian carp coming north to literally the largest Great Lakes freshwater fishery that exists. It is quite a deep concern for people in our part of the country. Ms. Darcy. The juvenile carp that you mentioned is a concern, but what we are continuing to do in working with the U.S. Fish and Wildlife Service, as well as jointly with the Illinois DNR and the Michigan DNR, is to continue to monitor for the juveniles. The adult population of the Asian carp have not moved in about 8 years, which is good news. There is a larger amount of juveniles this year. I think part of the reason is because the conditions this past year have been favorable for propagation of the juveniles, which is why we are seeing more this year. We are continuing to especially monitor their movement and their growth. Ms. Kaptur. What do you think is the most significant action the Federal Government in any department or agency has taken to date in order to get rid of them? I was talking to somebody from the Fish and Wildlife Service this week at the Great Lakes meeting that occurred here, and he said, Marcy, that river is tested more, you know, we sample there more. I said sampling is not enough. All you are doing is finding that they are moving further and further north. What department or agency is doing the most to get rid of them? Ms. Darcy. Collaboratively we are doing a lot of research on ways to get rid of them, including complex noise. Is that the right term? Complex noise research means how the fish react to certain noises, whether they will retreat. Our barriers are up and running, and we are researching what other kinds of pesticides and chemicals that could be used and developed to target just Asian carp as opposed to other fishes in the river. The Fish and Wildlife Service has the expertise on the fish, so we are working closely with them as far as monitoring and whether monitoring will continue to show where the fish are. We are also doing research at ERDC Lab in Vicksburg on other ways to combat the fish, whether it is through chemicals or other kinds of barriers, or other kinds of alteration of habitat. All these things are being looked at, in conjunction with the USGS, Fish and Wildlife Service, and, again, our ERDC Lab in Vicksburg. Ms. Kaptur. How many years would it take to have an operational barrier at Brandon Road? Ms. Darcy. We are currently studying that as a result of our GLMRIS report. If it is determined that a barrier at Brandon Road would be a viable alternative, I am not quite sure how long the actual construction would take. General Bostick. The Brandon Road study itself was approved in April 2015, and that is a 46-month study. This is a long- term process. In fiscal 2017, we would look at identifying a tentative selected plan. I think some of the success that has occurred is we have reduced the large adult Asian carp population by 68 percent in the Dresden Pool, the closest pool to the Great Lakes. There are means that we can use to reduce the population, but we cannot eliminate it. We are also concerned about the juvenile fish because they have a greater opportunity to get through the barriers that we have set up. Getting the permanent barrier completed is very important to us. Ms. Kaptur. I am just so upset about this issue. It is hard for those of us from our part of the country to wait. Could I ask, when you said the adults have been gotten rid of, 68 percent, how was that done? Were they fished out? What happened? General Bostick. I do not have the details on that. I can follow up with you on the details. I suspect it was a combination of electrical usage, some fished out, and possibly some were taken out by other means. I will get the specifics on that. I do know it was reduced by 68 percent. Ms. Kaptur. I would appreciate that. Thank you, General, very much. Do I have time for another question? Mr. Simpson. Second round. Ms. Kaptur. Second round. OK. Mr. Simpson. Mr. Frelinghuysen. Mr. Frelinghuysen. Thank you, Mr. Chairman. Welcome, Madam Secretary and General. The decorations on your chest, and may I say the other uniforms in the room, are testimony to some remarkable service, and it is not only here, but it is abroad and it continues, both military and civilian. There was no mention of the Northeast in your remarks. I am not sure who wrote them. I would like to express the fact that I am grateful for the good work of the New York District in light of what happened by Hurricane Sandy, some of the things that were done. My primary focus has been, of course, on the New York-New Jersey Harbor deepening, and may I thank Chairman Simpson for being front and center. The waters were not particularly rough that day, but we had a good time. It is an amazing project. I would like to know very briefly, we are about to cross the finish line, would you affirm that? Ms. Darcy. The project will be completed this summer. Mr. Frelinghuysen. Good. Appreciate it. I think it has been a substantial investment. I am also interested in continuing issues that relate to the Passaic River Mainstem study. Specifically, I would like to focus just for a couple of minutes--as you know, in my congressional district, Madam Secretary, it continues to be subject to dangerous flooding from the Peckman River, a tributary of the Passaic River. The Passaic River in and of itself has all sorts of issues. This study has been on hold for some time. The project was authorized in 2000 with over $5 million spent to date, was marked as a legacy project for further review in 2015. It has been pending before the Corps' leadership for approval to proceed with a locally preferred plan, which has the backing of the state and the local municipalities. The project is critical to those communities. May I say I picked up the project from Congressman Pascrell, and I am just as keenly interested in making sure we proceed. I understand the initial locally preferred plan waiver package was submitted to the New York District in March of last year. Of course, when you are considering a project like this, more information is needed, and there is a lot of back and forth. I know Colonel Caldwell and his predecessors and the staff of the New York District worked with the locals to try to provide answers, but I think an expedited timetable at this point is a reasonable request. Can you tell me where we stand here, since a lot of people in my congressional district want to see this study proceed. Ms. Darcy. Congressman, the Peckman? Mr. Frelinghuysen. Yes. Ms. Darcy. Peckman, not Passaic. Mr. Frelinghuysen. The Peckman is part of the Passaic. Ms. Darcy. I am told that the New York District has some carryover funding on hand to begin the study and develop the LPP. Mr. Frelinghuysen. It will be part of the fiscal year 2017 work plan? Ms. Darcy. It was not included in the 2017 budget because they had carryover funds to be able to begin the study. Mr. Frelinghuysen. It is my understanding that you are here to endorse moving ahead with this locally preferred plan. Ms. Darcy. A request from the Corps needs to come to my office to be reviewed and approved. Mr. Frelinghuysen. Consider it being there. Ms. Darcy. OK. A waiver request will be coming. Mr. Frelinghuysen. I would like to hear favorably. Thank you very much. Thank you, Mr. Chairman. Mr. Simpson. Ms. Roybal-Allard. Ms. Roybal-Allard. Lieutenant General Bostick, let me join my other colleagues in wishing you the very best in your retirement. General Bostick. Thank you. Ms. Roybal-Allard. Secretary Darcy, as you know, the lack of proper operations and maintenance funding for flood control infrastructure in the greater Los Angeles area poses a significant threat to lives and property in the region. Earlier this week, I, along with the rest of the Los Angeles delegation, received a letter from Los Angeles County that discussed these risks at length. What is the current estimated cost for the backlog of deferred maintenance in the Los Angeles County drainage area? Is the level of your current budget request sufficient to eliminate the backlog, and how long would it take to eliminate it? Ms. Darcy. What I can tell you, Congresswoman, is that we have allotted $11.97 million for the L.A. County Drainage District Area Operation and Maintenance in 2016. We also allocated $3.1 million for emergency response to construct the HESCO barriers that were put on the L.A. River in advance of some of the anticipated flooding that was related to El Nino. Ms. Roybal-Allard. Do you believe the amounts that you are quoting are sufficient to eliminate the backlogs? Ms. Darcy. I do not know the backlog number, but I think these numbers as well as the additional $17.447 million in the President's budget for 2017 would be sufficient for the O&M of this project. Ms. Roybal-Allard. The Los Angeles River Project was one of three projects that received pre-construction engineering and design funding in this year's budget request. While I was pleased to see this, I did notice the project only received a $400,000 funding request in spite of being a $1.3 billion project. How did the Corps arrive at this budget request? For example, did the Corps consider total project costs when determining the amount of pre-construction engineering and design funding? Also, is the $400,000 amount sufficient to complete all that is necessary and doable in the first year of pre-construction engineering and design, and if not, how much would be needed? Ms. Darcy. As you say, there is pre-construction engineering and design money for this project in 2016 and 2017. This project is not yet authorized. It needs to be authorized in order to go to construction. The amounts provided here will be efficiently and sufficiently spent in both 2016 and 2017 to do the pre-construction engineering and design. General Bostick. This is just to initiate the design this year, and it would just be the design on the first phase. That is why it is a small amount. As Secretary Darcy said, the project must be authorized to get construction funds. Ms. Roybal-Allard. Do I have time for another question? Mr. Simpson. Yes. Ms. Roybal-Allard. Along with many other drought-stricken communities, my home city of Los Angeles relies on storm water capture use and storage as a critical part of its water supply. For example, the Los Angeles County Department of Public Works, which manages the majority of the Los Angeles County Drainage Area System, has prioritized capturing storm water as an important local water source. During this year's El Nino event, the Corps adjusted operations for southern California projects to maximize capture and storage of storm water for water supply. General Bostick. Yes. We worked very hard throughout California and other States. We learned a couple of years ago in working with our South Pacific Division and working with Whittier Narrows and Prado Dam that we could execute deviations fairly quickly from our water control manuals to maintain more water, and we have continued to look at each of our districts, including the Los Angeles District, to continue the success we have had in that. What we are trying to do now is make sure we operationalize our planning so that the decisions are more routine and very quickly processed. I think we are in a pretty good place as far as what the Corps can do in terms of El Nino support. Ms. Roybal-Allard. Are there any other additional authorities or direction that Congress could provide to give the Corps more operational flexibility to achieve these goals? General Bostick. For the Corps, it is always a balance between flood risk management, water supply, and many other purposes for the water storage. I do not think it is something for which we need additional laws or guidance. It is a question of balancing the needs in the local area to the best that we can. The other area that Secretary Darcy talked about is the research on atmospheric rivers, trying to see if there are better methods for us working with NOAA, Scripps, and other experts on how we identify, early on, the rainfall and then work quickly to try to capture it. The science is part of the future, and then beyond, the balancing of the water control manual needs is the other solution we are working. Ms. Roybal-Allard. Thank you, Mr. Chairman. Mr. Simpson. Mr. Calvert. Mr. Calvert. Thank you, Mr. Chairman. I would just like to add to what Ms. Roybal-Allard said. In Northern California, you all are managing some of the dams. I am going to talk about Folsom Dam really quickly. You are doing releases right now out of Folsom Dam. As you know, we have a significant drought in the State of California, and there are a lot of people that are questioning why the amount of releases that are going on at the present time--we have long-term weather forecasts from Scripps that claim this El Nino is fizzling out. We all pray for a March miracle, but it does not seem that is going to occur. Any drop of water that we can retain, we need. Already reclamation is allowing--just for the record, Mr. Chairman, there has been two to three times more rainfall this year than last year, and yet we have pumped less water this year than last year. I know that is not in your wheelhouse, but I just want to bring that up. These dams that the Corps are operating, we need to make sure no unnecessary releases take place. We understand your flood control is your primary concern, but we need to make sure that water is used and saved as much as possible. We will be keeping a close look on it. Back in my district, Murrieta Creek is a project that is underway. Assistant Secretary Darcy and General, I was happy to see the fiscal year 2016 work plan for the Corps included $200,000 to complete the critical limited re-evaluation report for Murrieta Creek flood protection and ecosystem restoration in my district. As you know, Murrieta Creek is back under construction. We intend to keep it moving through completion. We are currently working with General Toy and Colonel Gibbs back in our area to ensure funding is provided to the Murrieta Creek project to complete the LRR and capture the cost reductions recently identified in the value engineering exercise conducted by the Corps District and the local sponsor. They have said they hope to complete the LRR by October. Can you help ensure that this schedule is met? Ms. Darcy. We will do everything we can to meet that schedule, sir. Mr. Calvert. Ms. Darcy and General, the last significant flood in the project was in 1993, which caused over $21 million in damages to Old Town Temecula and over $75 million in destroyed helicopters over at Camp Pendleton. Those damages could be much greater if the event happend today. We have recently jumped back to construction for our communities with the Corps on the project, which will provide 100-year flood protection for the cities of Murrieta and Temecula, and obviously downstream into San Diego, and Camp Pendleton specifically, whose populations have quadrupled since the project's feasibility study. There are significant numbers of homeowners, businesses, infrastructure which remain vulnerable to flooding, and we need to address this. I would like to do so sooner rather than later, to continue construction and keep the project on schedule. To reduce the threat of flooding, we will need fiscal year 2017 continuing construction funds toward the second reach of the phase two project, and initiate phase three design. Ms. Darcy and General Bostick, can you commit to me that you will work closely with me on the funding to ensure that we stay on schedule in fiscal year 2017? General Bostick. Absolutely, we will work closely with you, and we are working closely with our Los Angeles District. Mr. Calvert. Appreciate it. One last comment. As you know, on the Santa Ana Mainstem, we are coming to the end after, how many years, 30 years, and billions of dollars of expenditure where I think we can see light at the end of the tunnel, and I hope that we continue to work to get the funding that is necessary to finally bring that project to conclusion, and save our friends downstream in Orange County. I appreciate your concern on that, and I yield back. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Mr. Fleischmann. Mr. Fleischmann. Thank you, Mr. Chairman. General Bostick, congratulations on 38 wonderful years of service to the Army Corps of Engineers, to our great Nation. I thank you, sir, very much. General Bostick. Thank you. Mr. Fleischmann. Secretary Darcy, it is great to see you again. For both of you, I remember vividly our very first hearing together, and for the benefit of all, I wanted to talk about what was then my number one legislative priority and what is still today my number one legislative priority. I do not mean to be rhetorical but it is the Chickamauga Lock, the new Chickamauga Lock in Chattanooga. We have worked together. When I first came to Congress, the Inland Waterways Trust Fund was a broken trust fund, with all the funds going to the Olmsted Locks. We worked together, Republicans, Democrats, senators, congressmen, the Corps, to reform that. It is fixed. The Inland Waterways Trust Fund was fixed. After we reformed it, it was underfunded, so we worked to raise diesel user fees to infuse much needed new capital, more revenue into the trust fund. Problems persisted, as you all know. Chickamauga was then fourth after Olmsted and Lower Monongahela, Kentucky, then it was Chickamauga Lock. Fortunately, Congress acted to lock in that priority. Secretary Darcy, last year, after my pleading for funds, our great city of Chattanooga needed some good news, and when you called me and said we were going to get $3 million to restart construction on the new Chickamauga Lock, that was a great day, not only for me, but for our city, which desperately needed some good news. This year in fiscal 2016, we are going to get close to $30 million for the new lock. So that everyone knows, the old existing lock, and the Corps has done a good job in terms of maintenance, but this is an older lock, it is an antiquated lock, a New Deal era lock which has about 300 monitoring devices on it. It is functional, but it has to be replaced. A newer lock was started. It has been about a $185 million investment, then it just stopped. It has been mothballed for about 5 years. I am very excited that we have gotten this process started again. Work is going on at the new Chickamauga Lock. It is much needed. I am a committed advocate for the inland waterways of this Nation. It is a great way to move goods, keep trucks off the road. It is efficient and it is much needed in my region and really all over the country. My concern is that once again the President has not put the Chickamauga Lock, new Chick, in the budget. I know you are going to talk about a funding formula, benefit-cost analysis a little bit, but I want to make my request abundantly clear, that we realize that the new Chickamauga Lock needs to be funded and we have to realize we are going to have workers on the ground, progress being made, and we need to keep this going forward. With that, Madam Secretary, I would like a response to that request. Ms. Darcy. Would we request to continue to work with you on getting funding for this lock? Mr. Fleischmann. Yes. Ms. Darcy. We will continue to work with you to try to get funding for this lock. Mr. Fleischmann. Thank you. With that, I will yield back. General, if you want to add that, but it is so critically important. We can use all types of formulas and we can look at all that. Bottom line, new Chick needs to be built, constructed, and funded. General Bostick. The only thing I would add, and we have talked about it before, is we do manage these priorities on a risk-based, performance-based analysis, which is the benefit- cost ratio. The benefit-cost ratio for Chick lock has decreased. We talked about doing an economic analysis to see if there were changes that might happen. That report is going to be done in July of this year. Initial indications are that there could be more traffic in that particular area, traffic to the degree we had back in the 2000s. It had dropped down. There could be a number of reasons for that. The state of the lock and the unreliability of the lock could be a big factor. We will finish that study in July, and we hope the benefit-cost ratio will be in a better place. Mr. Fleischmann. Thank you. I yield back. Mr. Simpson. Ms. Granger. Ms. Granger. Thank you. Thank you both for being here and for the work you have done. Secretary Darcy, we would love to see you back in Ft. Worth. Thank you for all your help. Specifically, General Bostick, you talked about this in your opening remarks, but we understand that the funds are not there to do some of the things that we have heard today that are so important. Would you identify what you consider the most critical unaddressed water resources requirements that are there but not addressed because of funds, and what priorities have you not been able to address due to the funding constraints? If you said this is what I see as I am leaving all these years of work, what are we not addressing? General Bostick. Thank you for that question. I think overall I would say we need to address this aging infrastructure, and we need to take it on as a Nation. Whether it is a D+, D-, or D, it is still not a good grade. Much of the infrastructure we have, as Representative Fleischmann and others have said, are New Deal era projects, when FDR decided they needed to put America back to work again. Those projects were once the envy of the world. People from all over the world looked at these projects and were amazed at what America did. I was just in China. They spoke about the American progress and wanted to know more. In China, they have a strategy, and you can talk about their economics and how they are funding things, but they have a plan, and their plan is to spend $600 billion on 172 water projects and finish in 7 years. I think, one, we need a strategy, and we are working on a capital investment strategy. We have a levee safety strategy. We have a dam safety strategy. Part of the strategy must be based on time and it has to be based on efficient funding. If you do not have time and efficient funding, then that is not really a strategy. Where we have been successful is in disasters, for example in the area of hurricane storm damage risk reduction after Katrina, after Sandy. We finished those projects in 7 years. We finish things that normally take many years in 7 years. I would say look at our aging infrastructure, set priorities and then fund those priorities. Right now, we have a collection of projects, many, many projects, that we try to sprinkle dollars all across, and not until a crisis do we actually execute as a program. I think part of that process is probably going to continue, but if we could say, ``here are the priorities that this Nation wants to finish'' and then fund those, it might be something like a BRAC--base realignment and closure--for infrastructure, but focused on a small amount of projects that we say we are going to get done. Those are the projects that involve life safety, navigation, and help our economy. Ms. Granger. Thank you very much. Mr. Chairman. Mr. Simpson. Thank you. Mr. Honda. Mr. Honda. Thank you, Mr. Chairman. Welcome, Madam Secretary and General Bostick. I came in late so I just picked up on the information that you are retiring in May, so I just want to congratulate you on your long years of service. General Bostick. Thank you. Mr. Honda. Please understand we all understand the kind of work that the Corps does and how it goes about doing its work. I just heard two words, ``time'' and ``efficient funding.'' I think that is what we have to think about as appropriators, that we have to be able to put out the funding in anticipation of the future. The things that we want, things that we desire for our public safety and for our future, we cannot expect that without appropriate funding and investments for the kinds of things that we dream about for our country and our communities. I just wanted to make that comment. I would like to start with the Upper Berryessa Creek project in my home district. As you know, this project has been a high priority for me, and I have been following very closely. This is one of the two projects that must be completed in order for the BART System, the Bay Area Rapid Transit System, the station to begin operations on time in 2017. I understand the Corps has been working with the State Regional Water Quality Control Board and local partners on the final permitting and issuing a project partnership agreement for the project, but this has not always come smoothly. Can you share with us about the expected time for the issuance of the PPA for this particular project? General Bostick. I do not have the details on that, Congressman, but I can follow up later today. Mr. Honda. It is kind of critical for the opening and the timely opening of the BART station. I know the Corps had to streamline and has been very flexible in looking at the permitting time and everything else. It will be critical. Ms. Darcy. Congressman, I think we are on track with the local sponsor to address the issues with the certification and keep the PPA on track. This project is an important one. It is also one that is funded to completion in the budget. Mr. Honda. Our work with the Regional Water Quality Control Board is being addressed and it is being resolved? Ms. Darcy. Yes, it is. Mr. Honda. That is great. Also, about the South San Francisco Bay shorelines, that study, and I want to also again thank the Corps for your hard work in keeping the shoreline study on schedule and submitting the chiefs' report to Congress on time. Completing that study was a vital step towards managing flood risk and restoring of the ecosystems along the Bay line that borders the cities of Palo Alto, Monte Vista, Santa Clara, San Jose, and up the Bay towards Oakland. I will be working with my colleagues to see that the project is authorized in the next WRDA bill. I wanted to understand that the Corps can initiate pre-construction design while it awaits authorization. Can you share a little bit about that, please? Ms. Darcy. Yes. I think this is one of three projects that received PED funding in the 2016 work plan. Mr. Honda. So? Ms. Darcy. In anticipation of it being authorized soon. Mr. Honda. Great. I guess I can assume our 2016 funding amount will be sufficient resources for the pre-construction activities there. Ms. Darcy. That is what is provided in the 2016 work plan, sir. Mr. Honda. Thank you. General Bostick. The funding is for the completion of the first reach of that project. Mr. Honda. Let me just take a moment and respond to one of your comments, General Bostick. You said atmospheric streams, atmospheric rivers, as it relates to anticipating planning, rainfall and water conservation, and management. Is there a way where your agency and other agencies can get together and write a short paper on how you go about tracking and identifying atmospheric rivers and streams, and the different agencies that need to work together to be able to achieve this information and knowledge so that at the end, the end users, the communities, you have enough information to be able to anticipate what you need to do with the communities and with the Corps. I think a lot of times we isolate different activities as if they were entities unto their own and do not incorporate the different works so that people, policymakers, will understand the interaction of all these things so that we will be able to say we should be spending money in these areas, the research and supporting NOAA, supporting NASA, supporting other entities, so that this information will be at hand and available to be able to work on the issues of water, water storage, management, and research. Is this something where different agencies could get together so we have some instructional paper before us so we can make good fiscal decisions while we sit here? General Bostick. We can absolutely provide that. The research that we are doing is an interagency effort, so we can summarize what that research is and provide it to you. The White House does have an interagency task force that is looking at drought. I visited California and met with their drought experts. It was refreshing to me to hear that they felt like they were working with all the right folks in Washington and obtaining the support they needed. There is still a lot of science that needs to be done on atmospheric rivers. It certainly is not going to be a panacea, but I can provide you the information and demonstrate that we are certainly working together. Mr. Honda. The important part is that it is very plain and very clear who is working together, how much money it costs, the kind of funding that would be necessary for the research and the work that is required in order for us to have that kind of a conclusion. I appreciate that. Thank you. Thank you, Mr. Chairman. Mr. Simpson. Mr. Valadao. Mr. Valadao. Thank you, Chairman. Thank you, Secretary and Lieutenant General. Appreciate your service to our country and hope you enjoy your retirement. Thanks for everything you have done. My question, I would like to echo a little bit of what my colleague, Mr. Calvert, said earlier about water in California and the role that the Corps can play in hopefully conserving as much water as we can to help the communities that desperately need it. In the community I represent, we have seen unemployment numbers in the last few years actually get up to the point of hitting 50 percent. If you saw the San Francisco Chronicle, over the last few months they had a story of folks living in shanty towns, something you would see in a Third World country is happening right here in the United States of America. A lot of that has to do with the resources that are being wasted currently. With these storms that we have gotten over the last few months, we see water continuing to flow into the ocean, and I know again it is not specifically due to the way the agency or the Corps is managing, but you guys do play a role in the overall usage of water, and I hope that you take that into account when you are making decisions. My question is although throughout the year the El Nino weather pattern has brought some much needed rain and snow, drought conditions persist across much of the West and the Southwest, with California seeing the most extreme conditions. What kind of impacts on the Corps' facilities or operations are you seeing as a result of this drought, and will funding requirements of fiscal year 2016 and 2017 be affected? And third, how is the Corps handling requests from local interests to modify the operating procedures of projects with water storage? General Bostick. First, I am also a California resident, so I have family, relatives and a lot of friends that are out there I visit regularly, so I understand some of what you are saying in terms of the impact, and we have seen that in other parts of the country as well. My specific purpose in my last visit was to take a look at drought conditions and what we have done. One of the things we did was grant an emergency permit to the California Department of Water Resources, where they installed an emergency salinity barrier at the Sacramento and San Joaquin Rivers. That was extremely helpful, I think, in keeping freshwater available. Mr. Valadao. That has been installed and in place? General Bostick. Right. Mr. Valadao. This year, and I forget the exact numbers, but I saw a graph yesterday, I think it is triple the amount of water has flown through the delta, yet we've actually pumped less water this year than last. Triple the amount of water moved through the delta and we have been able to capture less than we did last year. The graph is a pretty dramatic example of nothing seems to change and it has not helped. I do not know if this project was supposed to help or could have helped, but right now, it does not look good. General Bostick. Part of what it was doing was to keep the saltwater out, and that was the initiative. They did not keep it up long. They kept it up long enough to protect the salinity content in the water. The other thing we did very quickly was the work on Whittier Narrows and the Prado Dam, and we were able to capture a significant amount of water in both of those events, which led to a significant amount of supply. Beyond that, we are working very closely with the drought experts in California and here in the United States in an interagency way. This is a very, very difficult challenge, as you know. We are doing the best that we can working together. Ms. Darcy. I would just add that we are also looking at our operations, ensuring that we have drought contingency plans for the operations of our projects, not only in California, but around the country. Mr. Valadao. Under Section 404 of the Clean Water Act, the U.S. Army Corps of Engineers can issue general permits that authorize activities that have minimal, individual, and cumulative adverse environmental effects. There are currently 50 different types of these nationwide permits that enable a wide variety of activities, such as residential and industrial developments, utility lines, road crossings, mining activities, wetland, stream restoration activities, among other things. According to the recent Corps and EPA report, there were 32,864 nationwide permits issued in 2014. That means nationwide permits represent nearly two-thirds of all Clean Water Act permits issued by the Corps. How important is the nationwide permit program to the smooth functioning of the Corps' regulatory program, and do individual permits take more time for the Corps to process or require any additional steps? Ms. Darcy. Congressman, I would say that the nationwide permit program is invaluable to the Corps of Engineers. As you say, 33,000 permits last year. Because those permits are for smaller projects, they do take less time than individual permits. We are in the process to re-propose our nationwide permit program by 2017 because it is only a 5-year program. Mr. Valadao. Given the importance of the nationwide program, what are the changes you are considering to make it easier for people to qualify for these permits and avoid costly individual permits? Ms. Darcy. We are currently looking at the next round of these, and we have public comment periods ongoing and we are receiving comments as to either new permits or modifications to the existing requirements of nationwide permits, which would be more valuable for different kinds of operations that, currently, we may not have a nationwide permit for. Mr. Valadao. Next, the National Oceanic and Atmospheric Administration says on the average about 30 to 50 percent annual precipitation on the West Coast occurs in just a few atmospheric river events. Many people believe that better understanding and forecasting can lead to improved operations of our water infrastructure for the purposes of both flood risk reduction and water supply. For the past years, Congress has provided the Corps with additional funding to cooperate with other Federal, State, and local entities on research into atmospheric rivers. Could you please describe for us what the Corps' role is in the ongoing work? General Bostick. In 2015, we received about $2 million to look at atmospheric rivers, and we have worked with NOAA, Scripps, and other entities, within the interagency family, with academia, and with local experts to ensure that we are moving in the right direction. It is really too early to say what these studies are going to produce, as I said before. We have all the right people and the funding is being put to good use. Mr. Valadao. Thank you, and I yield back. Mr. Simpson. Mr. Visclosky. Mr. Visclosky. Thank you very much, Mr. Chairman. Secretary and General, the first thing I would like to do because I think too often we do not thank people who do a very good job in public service. Besides yourself and others in the Corps, in the Chicago District Office that encompasses our portion of the State of Indiana, we just want to draw people's attention to the good work that the District Office does in Chicago under its leadership of Colonel Christopher Drew. Also, we have the deputy project manager, Roy Deda, who will be retiring later this year after--he would hate me for saying this--four decades of public service. Again, I think he just epitomizes the dedication of the people. We have had some very intractable, tough problems. As I describe my district, we do everything but desalinization. The Corps and people like Roy, the Colonel and his past predecessors, have done a very good job, and I am very grateful for that. What I would like to do is turn to P3--the Public-Private Partnership Act. The Congress included in its fiscal year 2016 act specific direction to develop a policy on how proposals for the Public-Private Partnership Act will be considered and how they will be incorporated into the budget. Secretary, what is the status of that policy? Ms. Darcy. Congressman, with our budget, we submitted a report on public-private partnerships policy, and we are currently looking at many different possible projects to be able to come under the umbrella of public-private partnerships. One is in Illinois on the Illinois Waterway. There are others throughout the country. As you know, in the 2016 work plan we proposed funding for the Fargo-Moorhead project for $5 million as an example of a public-private partnership. We continue to look for other opportunities within the program. I do not know if the Chief wants to add anything. Mr. Visclosky. I do understand you had the Fargo-Moorhead project in the budget. I am not sure there is a funding line attached to it. I know it was in the report. I am more concerned about policy, and certainly there was a congressional directive to pick one. The concern I have is we have affluent communities in the United States who have problems, and when you come to P3 partnerships, for example, they potentially have the resources to move up and get coins, if you would, and consideration. I have some communities in the First Congressional District that have huge needs and are poor, but would want to do something to help themselves. My sense is as far as Federal policy is we want to help people across a spectrum. There ought to be some delineated policy that people know in advance if we are going to pursue a public-private partnership, here is the criteria we are going to have to meet. My sense is there is not a clearly delineated policy. I know it is not a simple matter. Every levee the Corps builds is different, but there is a policy as to what generally these levees have to do and what their composition has to be. I am just wondering where we are going during this fiscal year on that policy. I am concerned. Ms. Darcy. Pardon? Mr. Visclosky. I am concerned. General Bostick. If I could just say a little bit here. You would always like to have the policy before you start moving forward in any type of P3 work. This area is so new for the Corps and the Nation that we are going to have to develop the policy almost as we are moving along and learning. We have a number of constraints that keep us from doing public-private partnerships, but we are trying to work with the locals that have aggressively moved forward as in the case of Fargo-Moorhead. We are trying to take that and learn from it, and then work with the Administration and the Congress to decide what really should be the way forward. For example, we have to monetize projects. If we were to monetize levee work, for example, and we were able to garnish those funds, however we cannot keep them at this point. We are not able to ring fence those funds. We could not put out a policy that says this is how we are going to do it. A lot of folks do not even know if this is going to work. I think we are kind of putting our foot in the water with Fargo-Moorhead. We are going to learn a lot from this. We have given some broad guidelines on what to do. I think we will learn a lot from this and we will be able to develop a more clear policy in the way ahead. Mr. Visclosky. I assume the Corps is communicating with other agencies in the Federal Government who may have some experience with these types of projects, understanding again you are in a very unique situation and each project is different. Again, I do think there ought to be some delineation, and I do have great reservations about these projects just because there are communities that have needs and, in many cases, the greatest needs in this country, and they do not have those private resources. And I do not want as we go down this road as you have a policy to have them left behind because we have not clearly delineated there are ways you can still meet the criteria. I would encourage you in that regard. General Bostick. We are working closely with other organizations. I think one great example is Department of Transportation. You can easily see how they monetize a highway and collect taxes and then fund the project. We are having a bit more of a challenge on the inland waterways. We actually do better with hydropower, where you can see there is a monetization of the electricity. I understand your point, Congressman. We have a team that does nothing but public-private partnership work each day. They are aggressively moving out to try to better understand this so we can get guidance out to our team. Ms. Darcy. In developing any policy, I think your point about the ability to pay, for our local sponsors, is something that we need to consider when we develop this policy. They may not have the means and should not be disadvantaged in the P3. Mr. Visclosky. Thank you very much. Thank you, Mr. Chairman. Mr. Simpson. Following up a little bit on Mr. Visclosky's comments or questions, one of the big challenges we face, and I think both of you mentioned it in your opening statements, is the backlog maintenance that we have in this country, and not just on waterways and harbors. If you look at the water and sewer programs within the United States that the EPA funds through STAG grants, we are at about a $700 billion backlog. If you look at the backlog in highways and other things, the backlog maintenance is a real problem. I think you mentioned it would be about 20 years at the rate we are going to address the backlog maintenance that exists today in the Army Corps. General Bostick. This is for the construction projects. Mr. Simpson. Which means we will never address the backlog because it would have gone over the 20 years more than we are paying it down probably. One of the things the committee has struggled with is how do we address that? How do we get to where we are actually reducing the backlog in a variety of different areas? We have held hearings for the P3 program on different ways of financing. The public-private partnerships has a real possibility of being beneficial. The question is, as you do your projects and you list your projects on a cost-benefit analysis, how do P3s fit in with that cost-benefit analysis? Are there special challenges that they have that put them at a disadvantage in fitting in that project or advantage them in fitting in those projects or should there be a separate list of projects that you do and P3 projects that you do? We certainly want to encourage local communities and private partnerships to be involved in this. I think that is a healthy outcome. The private sector has to know that the government is committed to it as well before they are going to commit funds. Are there special challenges to this? General Bostick. There are clearly special challenges that exist. In fact, many of these public-private partnerships probably would not fit into our business rules. In order to understand and create policy in a direction and even a desire to pursue public-private partnerships, we almost have to handle them offline and we have to say there is great benefit in doing these, even though they might not fit in the current business rules that we have. The ability to learn from them would be significant. We could come back to the Congress and the Administration and see if this is something we want to do. I think there are many investors out there that believe they can help, but we have not set the right parameters which would allow them to do that. One area where the Congress has helped in reducing the backlog is de-authorization. We recently turned in about $14 billion of projects recommended for de-authorization, as we were directed to do. That is going to take away some of the backlog. To address the other ones, it is like I said earlier when Representative Granger asked the question, I think part of what we need to do is prioritize some of that backlog and push it all the way to completion. It may be a small handful of projects, but prioritize those, fund them, and get them done in a short period of time, and then work on the next group while we continue with the business rules for the rest of the projects. Ms. Darcy. I think there are some challenges with P3, but I think it is one that we have to look to as far as your question about whether we should look at P3 projects through a different lens than we do when we prioritize the others. Maybe we should. Maybe the benefit that is not traditionally captured from that project might be enhanced by having either a P3 or some other alternative financing mechanism that we do not usually evaluate for. I think being open to the opportunities that private capital can bring into our projects is something that we should embrace and, in my view, have a wider lens on what qualifies. Mr. Simpson. Is there a reason why in following the congressional directive to select a P3 this year, you selected Fargo-Moorhead but did not request anything in the budget request for it? Ms. Darcy. That is true. I think as General Bostick pointed out, this is our first toe in the water on P3, and we want to look forward to what it is we can learn from this one. And hopefully, we will reach success in the initial stages of the $5 million that we put in 2016 and we will be able to see that going forward, and perhaps in a future budgets, we will be able to budget for it. Mr. Simpson. The fiscal year 2017 budget request estimates total annual receipts for the Harbor Maintenance Trust Fund at $1.662 billion, down significantly from the estimated fiscal year 2016 budget of $1.887 billion. Could you please tell us which agency is responsible for developing the estimates of the Harbor Maintenance Trust Fund receipts? How are the estimates developed? What information is used? And could you please discuss why the estimates are so much lower this year than last year, and what factors are the primary drivers of that decrease? Has traffic at our ports dropped or are there specific circumstances at individual ports that have influenced the reduction? I think when they did water, they anticipated a slow and steady increase in the Harbor Maintenance Trust Fund and, of course, all of the advocates for the Harbor Maintenance Trust Fund are apoplectic now, it has gone down this year, the estimate. Ms. Darcy. The estimates are done by Treasury, and they are based on projections as well as the past year's receipts as well as projections for the coming year. As you say, the projections for this year are down, which brings the estimate, I think, back down to $1.5 billion or something like that. Again, Treasury does the estimates, and that is what we base our decisions on. I think part of the reason for the decrease is what is coming in and probably the price of oil. I do not know if you want to add anything, General. Mr. Simpson. You do not really know what the factors are, just decrease in traffic through the ports? Ms. Darcy. Yes, and the reasons for that are partly due to traffic. The Harbor Maintenance Trust Fund is an ad valorem tax. It is based on the value of what is coming in and this has decreased, and part of the reason is the price of oil. Mr. Simpson. Mr. Fortenberry. Mr. Fortenberry. Thank you, Mr. Chairman. I apologize, I am splitting time between two hearings, but thank you all. Good to see you again, Secretary Darcy. I remember fondly our first meeting along the Platte River in an airboat. Thanks for bringing that project to successful completion. I wanted to ask you about the Missouri River Fish and Wildlife Recovery Program. You have a significantly reduced budget request. What does that mean? You are nearing completion of the program or is there some shift in priorities? Ms. Darcy. This year the number is reduced. It is not that we have reached the end of the program. We had always put Intake Dam in Yellowstone, Montana, in that budget line item. I think there was usually $20 million, and currently we are not able to go forward with that project, so that is one of the reasons that line item is decreased. Mr. Fortenberry. You mean just in terms of capacity or delivery of the---- Ms. Darcy. We are unable to go forward with that project because it is currently in litigation. Mr. Fortenberry. I see. OK. I want to follow up on what the chairman was talking about as well. In the testimony you provide alternative financing for public and private partnerships. Would you unpack that a little further? We are actually trying to deal with this in a situation with the VA. There has been some constraints that come out of OMB in terms of the way in which they score private contributions to certain public outcomes, which then become ironically cost prohibitive. It is just a strange and unusual thing. Have you encountered this? Ms. Darcy. Scoring is one of the challenges I should have mentioned, Mr. Chairman, when you were talking about it. Mr. Fortenberry. Is that your nice way of saying you have already talked about this? Ms. Darcy. No. I should have raised it when you asked about challenges. The scoring part of it is a challenge because if the scoring shows a different---- Mr. Fortenberry. OK. How do we fix this? This is really silly. Somebody wants to give you money to help with a project that has some nice benefit-cost ratio, is a public good, and we cannot score it because score is a cost? I do not understand. Ms. Darcy. Sometimes I do not either. When Congressman Visclosky talked about the policy that we need to develop for P3s and alternative financing, that is something that I think we need to address because we have to recognize the value that is brought by the private capital market. Mr. Fortenberry. Who is working on this? Are you working on it? Ms. Darcy. We are working on it within the administration. Mr. Fortenberry. But whom? Again, we have the same problem with the VA. Maybe we ought to put an interagency process together quickly to get with OMB and fix this or tell us what empowering language you need to fix this. This is really an unnecessary holdup of some innovation. General Bostick. I think the challenge that always comes for the country and the administration, and probably for the Congress as well, is that you are committing the United States to a long-term mortgage. The more you do that, the more of these long-term---- Mr. Fortenberry. You can figure out a formula on that, on leasebacks and all that, that have some current value, that has a budget. You can constrain it for a certain period of time unlike traditional financing over 30 years. I get that. In terms of just pure gift, that people want to help fund something because it obviously is going to have some benefit in proximity to them, are you getting entangled up with the inability to accept that? General Bostick. For example, for Miami Harbor, it is one of the five ports that we wanted to dredge in preparation for the Panama Canal expansion. It was part of the ``we-cannot- wait'' strategy, and Miami said we cannot wait either, so they gave us all the money up front in order to dredge that, and it was completed. Mr. Fortenberry. That is a public agency. That is a public entity. I think that is a little different. Anyway, the broader point being we have to figure out some mechanism by which this is made seamless, whereby the scoring, the commitment time perhaps is narrowed, the value, the present value of that expense, if you will, of that commitment to the government is formulated in a consistent manner based upon some hard infrastructure. General Bostick. There are specific areas where I have seen success in my career, the Residential Communities Initiative. Mr. Fortenberry. This is already being done. General Bostick. Public-private partnerships. The other ongoing area is the energy savings performance contracts. Again, that was written in law. We were hugely successful. It is easy to monetize. It is electricity. Whether it is hydropower or whether it is energy savings, solar panels, we are doing that on our installations, and it is public-private partnerships committed for 30 or 40 years. Mr. Fortenberry. These valuation methods have parallels to the projects that you are referencing in terms of alternative financing? General Bostick. They do, except in some cases it is hard to monetize investment in a levee or investment in a lock. We have to figure out how to monetize these projects. We are close on Fargo-Moorhead. I think they have used the tax base in order to monetize the benefits to building better levees, and that is a way to do it. Generally, in the inland waterways and the kind of structure that we normally deal with, it is harder to monetize. Mr. Fortenberry. I am bumping up against this problem, and I am not a public finance expert to be able to help determine formulas that would appropriately address the obligation that is being committed to by the U.S. Government in terms of a present value cost. But to forego these options, we are not calculating the opportunity lost cost, if you will, which is seriously large. General Bostick. We believe we ought to look at it. There is no question we are aggressively moving. Mr. Fortenberry. All right. Thank you, Mr. Chairman. Mr. Simpson. I think the problem that Mr. Fortenberry talks about is because of economists, and the reason we have economists is to make astrology look respectable. Mr. Quigley. Welcome to the committee. Mr. Quigley. Thank you so much for letting me sit in. I appreciate that. I want to join Mr. Visclosky in recognizing the Chicago office for their good work. Obviously, my colleagues in the Chicagoland area, including Senator Durbin and I, are deeply disappointed, a mild expression, in discussion with the McCook Reservoir and the funding there. The history in the Chicagoland area of very damaging flooding was addressed with Deep Tunnel, which is only minor compared to how important McCook-Thornton Reservoirs are. If we want to compare this to projects across the country, I do not know how many states have 5 million people, but there are 5 million people impacted by this not getting done. This was supported by the administration after an extraordinary number of years. One of the Corps' most competitive flood protection projects, and there is no funding for it to continue construction on the McCook Reservoir and the Chicagoland under flow plan in 2017. I have been doing this 7 years, and I have never addressed anyone in committee like this. It is inconceivable how such a top-tier, fully authorized flood protection project, 65 percent complete, and an active Federal construction, a 3-to-1 benefit- cost ratio, it is not just a Democratic project in Chicago, this is bipartisan support and people who are getting flooded really do not care at that point what party they are. It benefits Chicago and 36 suburbs; 1.5 million structures and 5 million people dropped from the budget after years. We are told there is some extraordinary misunderstanding that this is under the mistaken belief that stage two is related to water pollution control. It has been documented by your agency, nationally and locally, that this is about flood protection. It is fully authorized and documented in the Corps' system as such. Again, recommended by the Corps for flood protection. What the heck? Where do we go from here? Ms. Darcy. Congressman, phase one of this project, as you know, has been funded to completion, and in doing so, that will meet the requirements of the consent decree that the city has to meet by December 2017. The second phase of the project, you are correct, is not included in the 2017 budget. The purpose of that second phase of the project is being looked at as possibly being environmental infrastructure, but I will commit to you today that we will relook at this budget request. Mr. Quigley. Is it possible that this could be included in the work plan for the continuation of this construction? I know that takes place in the second phase this year. Ms. Darcy. A 2017 work plan will depend on what the outcome is of this committee's appropriations bill. If there is a 2017 work plan---- Mr. Quigley. Are there any other means that we can look at this again and still not stop this project? There is not a lot of other choices, unfortunately, and it is not anybody in this room's fault that Illinois has not passed a budget, but we brought this to the dance and we are not taking it home. There is virtually no likelihood that there is going to be any local opportunities to pick up the final costs of this. I have been to these projects. They are massive holes in the ground, but we have been lucky so far. We have not had our annual 100-year flood in the Chicagoland area. There is a race to get this done. Looking at this again, what is the time frame in terms of options? Ms. Darcy. I will commit to you that I will look at a time frame that can deliver some options for us to consider. Mr. Quigley. We would appreciate it if you would let us know, as well as the other members from the region, as well as the senators. Ms. Darcy. I will. Mr. Quigley. Again, Mr. Chairman, I want to thank the full committee for giving me this opportunity. Mr. Simpson. Thank you. We are going to have votes here relatively quickly. I think they are doing the Motion to Recommit right now. We will have another round of questions if everybody could keep it short. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. I would like to ask Ms. Darcy and the General about the status of the Cleveland dredging situation, both short and long term. The Ohio EPA has done core sediment samples now from the Cleveland ship channel showing the average bulk phosphorous content is 1.54 times higher in the Cleveland ship channel, sediment in Toledo, and also the state EPA has dredge material that shows the PCB levels in fish in Lake Erie could increase by 10 to 20 percent because of the contaminant levels of the sediment that they have been drawing up. My question is what is the status of port dredging and the dredge disposal in that region, please. Ms. Darcy. In Cleveland Harbor, we will be dredging as much as we can under the Federal standard. As you may be aware, the Federal standard allows for open lake disposal of the sediment for the last mile and a half of the Cuyahoga River in Cleveland. However, the State EPA has not, to my knowledge, to date issued a water quality certification for us to be able to do that. Therefore, the cost of putting those dredged spoils into a CDF, because that is not the Federal standard, would need to be paid for by the local sponsor. Ms. Kaptur. Are there any instances in the country where the Corps has not disposed of dredge material in open water, either fresh or saltwater, due to environmental considerations? Ms. Darcy. That we have not put it in because of environment? Ms. Kaptur. Right. General Bostick. We will have to follow up on that. I really do not know. Ms. Kaptur. All right. Thank you very much. I think this story will continue. We provided over $1.3 billion in additional dollars in last year's budget for the Corps. Do you have any way of assisting local communities that are stretched for local funds? Do you have any examples of that in your prior work? Ms. Darcy. For dredging? Ms. Kaptur. Yes, for dredge disposal. Ms. Darcy. Using Federal dollars to help the local community meet their obligations? Ms. Kaptur. Yes. Ms. Darcy. I do not believe so, but we can check to see if we did. I do not believe that we have. Ms. Kaptur. All right. Do you have any idea on the backlog for authorized Corps' projects in the Great Lakes? And how are you interpreting the language in the authorization bill recently that not less than 10 percent of all navigation funds should be directed to projects located within the Great Lakes Navigation System? Are you meeting the 10 percent requirement? Ms. Darcy. In the Harbor Maintenance Fund? Yes, we are. General Bostick. Yes. Ms. Kaptur. Very good. Thank you. I know Congresswoman Roybal-Allard wishes to ask questions, so I will restrain at this point. Mr. Simpson. Mr. Fleischmann. Mr. Fleischmann. Thank you, Mr. Chairman. In the interest of time, Secretary Darcy, I will go through this, and then I have some follow-up questions. The budget materials make brief mention of a forthcoming proposal to use Inland Waterway Trust Fund dollars to cover a portion of operational and maintenance costs. Can you provide any additional details for us today? Ms. Darcy. Congressman, as you mentioned, that proposal is forthcoming. You are correct, there is a portion of what is being proposed that would be set aside or come out of a vessel fee that would be proposed. This, in my view, is a starting point of a conversation. This committee, the Congress and the American people increased the tax to help with the balance in the trust fund. I think we all know the needs are still great, and we would like to work with this committee in order to come up with a vessel fee or proposal that can help to meet that increased need. This, in my view, is a starting point. Mr. Fleischmann. What cost share is the administration proposing? Ms. Darcy. In the 50-50 cost share? No cost share change. I am hoping we are going to propose to add some additional waterways to those that are currently taxed. I think currently there are 27 waterways, and we might increase that to the 40 in the Inland Waterways System. Mr. Fleischmann. Madam Secretary, would this proposal cover all inland navigation operation and maintenance or just O&M on those projects for which capital improvements are also cost- shared with the trust fund? Ms. Darcy. The details, are forthcoming. I expect it to be on the entire fund, but we can provide you those details and hopefully work with you on trying to enact this proposal this year. Mr. Fleischmann. When can we expect to see the final proposal? Ms. Darcy. Within weeks. Mr. Fleischmann. We look forward to getting that proposal. And with that, Mr. Chairman, I yield back. Mr. Simpson. Ms. Roybal-Allard. Ms. Roybal-Allard. Secretary Darcy, I would like to go back to the point on the backlog and follow up on Chairman Simpson's question. But quite frankly, I was disappointed that you do not know what the backlog and costs are for operations and maintenance for flood control infrastructure in the Los Angeles region, given that it is one of the most densely populated areas and could put a significant number of lives and property at serious risk. Is there any data available to tell us what percentage of L.A. County Drainage Area assets are graded at an acceptable level? Ms. Darcy. I can answer your first question now. Ms. Roybal-Allard. OK. Good. Ms. Darcy. Fifty-five million is the backlog number. I am sorry, the second part of your question was? Ms. Roybal-Allard. It had to do with the costs, if you had any estimate on what the costs would be to complete the backlog. We can wait on that. Let me go back to my other question, and that was if there was data available to tell us what percent of the L.A. County Drainage Area assets are graded at an acceptable level. Ms. Darcy. That is a number that we do not have. You want to know if they are acceptable for flood control? Ms. Roybal-Allard. Yes. One of the reasons for asking this question is it was my understanding or I have been told that there is not even a mechanism for collecting that kind of data. Is that true or not true? If my information is correct, I would urge the Corps to conduct a single comprehensive assessment to measure the acceptable levels of the Los Angeles County Drainage Area System, which I would think would be an important step to address the funding needs of the Los Angeles County Drainage Area. Do you happen to know if there is such a mechanism for collecting that data? Ms. Darcy. I am looking to my experts. Yes. We have operational condition assessments that are done. I assume we have one for L.A., for everything. Ms. Roybal-Allard. You then would be able to give me that information? Ms. Darcy. Yes. Ms. Roybal-Allard. OK. Thank you. Mr. Simpson. Mr. Honda. Mr. Honda. Thank you, Mr. Chairman. There is a project called Upper Guadalupe Flood Protection Project, which is just adjacent to my district. Can you explain to me what the reason is for the delay in that project is? It has been authorized since 1999, I guess. There does not seem to be much progress in that section. General Bostick. We will have to follow up with you on that. We have a number of projects that are authorized, but they are not funded. Generally, that is because of the benefit- cost ratio affecting how it competes. We will follow up specifically on that project. Mr. Honda. In that light, I guess I need to know what role does the water district play and the local cities and counties in that calculation, too? General Bostick. We will provide it to you. Mr. Honda. Thank you. Ms. Darcy. Congressman, could I just add that we will follow up on that part, but I am told that for that project, there is no funding needed for this fiscal year. Mr. Honda. No funding needed? Ms. Darcy. Needed for this fiscal year. I do not know the answer to the second part of your question, so we will follow up. Mr. Honda. It is not needed because there are no funds or it is not needed because you are progressing on that project and moving forward? Ms. Darcy. They have sufficient carryover to be able to continue. It is not that they are not funded, it is they do not need additional funding this year because they have carryover funding from last year. Mr. Honda. Perhaps I can get the answer to the second part, but also more details on the carryover and what part of the project is being worked on. Ms. Darcy. OK. Mr. Honda. Thank you, Mr. Chairman. Mr. Simpson. Mr. Visclosky. Mr. Visclosky. Thank you, Mr. Chairman. General, I was remiss. I have been reminded that this will be your final testimony before the subcommittee. You are lucky. I do congratulate you on your life of service as well very much. General Bostick. I have always enjoyed these hearings. Mr. Honda. Is that a smile or grimace? Mr. Visclosky. A question I have is on what I guess is now called ``emerging harbors.'' And in the water bill of 2014, there was a direction to set aside 10 percent of harbor maintenance in the Great Lakes region, but I think on the coasts as well. There are a lot of communities that have harbors, may not have huge commercial business, from what people expect out of places like Long Beach, for example, but are nevertheless critical economically. There was a 10 percent set-aside, as I am understanding, and since the request for this year is $951 million, I would be correct that $95 million has been set aside for that purpose? General Bostick. Actually, it is a little bit more. Ms. Darcy. It is 10.8 percent this year. Emerging and Great Lakes both had 10 percent, and one of them, I think, emerging harbors, got 10.8 percent or Great Lakes got 10, or vice versa. At least 10. Mr. Visclosky. That has been carved out from the budget request? General Bostick. Yes. Mr. Visclosky. Thank you very much, Mr. Chairman. Mr. Simpson. We have talked a lot about invasive species here, and generally, it is invasive species where the species have been invasive so far. We are trying to do a lot of preventative work in invasive species also, particularly in the Pacific Northwest with the zebra mussels and quagga mussels. There was money put in the budget last year to establish the boat checks, the boat washes and the watercraft inspection stations. How are we coming with that? If the zebra mussels and the quagga mussels get in the Columbia Basin River System, it is going to be a huge economic impact on the Pacific Northwest, and we are trying to keep those out. How are we doing with that directive? Ms. Darcy. We have $10 million in for invasive species in our stewardship program. It is for over 200 projects Corps- wide, and not just for invasive species in the water, but also on land. I do not have a whole lot more detail. General Bostick. We are drafting the implementation guidance now, and it will be completed shortly. Mr. Simpson. The States and Fish and Wildlife Service do some watercraft inspections. It is kind of interesting that Fish and Wildlife a few years ago, or the State of Idaho, found quagga mussels during an inspection on a boat that was coming in. Unfortunately, it was a Fish and Wildlife boat. That was problematic. Ms. Darcy. Oops. Mr. Simpson. It is something that we have to be really careful about, because once they get in, they are there. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. I just had a final question, if I could, on the Soo Locks situation. General Bostick, can you give us an update on the status of any actions the Corps is taking on the Soo Locks? And Secretary Darcy, how would you take into account the destination of a given lock as a Homeland Security critical infrastructure presence in your budgeting process? Would the Corps be constrained by looking at only a national economic development to cost-ratio when you look at projects like the Soo? General Bostick. In November, funding was provided to initiate an economic reevaluation report. That report will help adjust or maintain the current benefit-cost ratio. That is the challenge that we have with this project, the benefit-cost ratio is not where it needs to be. This economic reevaluation will help us better identify the benefits. It is going to take us about 2 years to complete the report. Mr. Visclosky. If the gentlelady will yield, it is going to take 2 more years to complete the review, and you are having problems with the cost-benefit ratio? General Bostick. Benefit-cost ratio. Mr. Visclosky. I had a meeting with a steel executive in the First Congressional District within the last 14 days. If that lock goes--and more steel is produced in my congressional district than any state in the United States of America--there will be no steel produced from my district. I have to tell you, I just find it incredulous that it would take 2 years to determine cost-benefit on a lock that would just close steel manufacturing in the United States of America. General Bostick. It is a very detailed review, but we will go back and see if we can accelerate it. I know the importance of this area. I have visited it myself. Mr. Visclosky. I would encourage all deliberate speed. Ms. Kaptur. I thank the gentleman for his important critical comments here, and that is why I asked in my question how perhaps, Secretary Darcy, you can look at critical Homeland Security infrastructure in this review, in your budgeting process. Ms. Darcy. The Department of Homeland Security has done an evaluation of the lock, I think that is what you are referring to. The calculations used in this economic analysis is not within the usual scope of a Corps of Engineers' analysis. But given the fact of what we have learned from the Department of Homeland Security's assessment, it is something that we need to take a look at and incorporate into the analysis, especially from the side of Homeland Security, in addition to the economics that need to be taken into consideration. Ms. Kaptur. Thank you very much, and I hope that if you need additional legislation, I am sure the steel caucus and other members here would be very interested in securing the proper evaluative guidelines as you move forward. Ms. Darcy. Thank you. Ms. Kaptur. Thank you, Mr. Chairman. Mr. Simpson. Thank you. I thank the members for their attendance and interest in the Army Corps and their budget. As was mentioned during the opening, I have watched this process for years, both here in Congress and in the State house that I served in, and almost every other State house. It seems it is a matter of the way the chief executive is doing business, that they always can mark down budget requests in things that they know Congress is going to plus out because they will not go along with that, so they can fund other things. That happens all the time. It seems like the Army Corps of Engineers and the administration's budget always gets marked down, knowing that Congress is going to plus it back up to where we think it is adequate. We will work very hard on that this year to make sure we have an adequate budget to address the infrastructure needs of this country. Again, I want to thank both of you for your work. You have been exceptionally good to me to work with. When I have brought concerns of other members that come to me to your attention, you both have been more than willing to address those concerns. I appreciate that very much. It makes it much easier for me, and in the long run, it makes it easier for you, also. I appreciate it, and thank you for your work and we look forward to working with you on this year's budget. Ms. Darcy. Mr. Chairman, could I just thank the person to my left here, who I have had the pleasure to serve with for the last 4 years? I am going to miss not having him next to me next time. Mr. Simpson. Yes. Ms. Darcy. He has been a great asset not only to the Corps of Engineers, but to the United States of America. His service has been unprecedented not only for the Corps, but in his 38 years of service. Also, I appreciate having a bigger room, but Angie did not bring the treats today. I am a little disappointed. Mr. Simpson. We kept the treats in the other room. I could not have said it better. Thank you and thank you. The hearing is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] W I T N E S S E S ---------- Page Bostick, Lt. General Thomas P., USA.............................. 107 Darcy, Jo-Ellen.................................................. 97 Lopez, Estevan R................................................. 5