I am happy to be back home in Colorado. It is so good to see so many old friends again, and to address this Congress as I did several times as Colorado Attorney General.

I like the theme of this convention, "Where there is no vision, the people perish." In the role as water master of the Lower Colorado River, enforcing the law of the river, I also like the second half of that Bible verse, "But he that keepeth the law, happy is he."

I am pleased that President Bush has a vision for the West. It is a bold one and a bright one. We share his vision at the Interior Department.

We have a vision of clear skies and healthy forests; of shining mountains and of gleaming cities. We have a vision of thriving ecologies and thriving economies.

We also have a vision of pro-West policies: A vision of crises being prevented by innovative thinking and long-term planning; of long years of litigation being prevented by cooperative agreements and of federal activities being governed by common-sense legislation.

Prosperity does not - and will not - flow from the federal government. Rather, it comes from the well of human innovation and effort.

We can establish conditions that encourage those efforts to succeed. We can establish policies that make prosperity possible even during difficult years. We can find innovative solutions for difficult questions. We can fulfill federal mandates while honoring private property rights.

It will not be easy. Washington is not always known for its efficiency . . . or its friendliness. On that, I agree with Michael Bloomberg, the business mogul turned New York City Mayor.

During a surprise appearance on the television show, "The Apprentice," last year, one of the apprentices asked him the difference between business and government. Mayor Bloomberg replied, "Business is a dog eat dog world, and government is just the opposite."

But we have made good things happen. One of the reasons that we made a lot of progress on water issues was due to Bennett Raley. Bennett respected the law of the river, and respected the role of states in water allocation. Bennett found ways to resolve problems that had bedeviled water users for decades. I already miss his service.

But we still have the President's vision. The challenges are large and the crises are looming. Populations are growing and water infrastructure is aging. In some basins, already tightened water supplies are further constrained by the well-intended strictures of the Endangered Species Act.

A few years ago, those challenges came to a head in the Klamath Basin in Northern Oregon. To protect endangered fish, we were forced to cut off irrigation water in the Basin. That decision caused turmoil among those whose livelihoods depended on that water.

President Bush's vision is to prevent future Klamaths by careful preparation and long-term planning. We are laying the foundations to fulfill that vision through our Water 2025 Initiative.

WATER 2025

Water 2025 is the centerpiece of our planning. As its name implies, the Initiative looks ahead two decades. As its motto declares, Water 2025 is about "Preventing crises and conflict in the West."

Much of the Initiative is effected through the Challenge Grant program. Challenge grants fund water conservation projects. The challenge grants must be matched by non-federal funds of at least 50 percent.

This past year, there were 19 recipients of challenge grants all across the West. Through cost-sharing, a total of $4 million in federal grants returned almost $30 million in on-the-ground water delivery system improvements.

The grants demonstrate innovative ideas. They included creating new water markets or water banks; automating water delivery systems and installing measuring devices.

There were 2 recipients of Challenge Grants in Colorado. One went toward testing materials for lining the Jackson Gulch Inlet Canal, not far from Durango. The other helped install flow measuring devices throughout the Lower South Platte Water Conservancy District.

But there is much more to do. Water 2025 is showing successes in the short-term. Last year, I stood out in the blazing Phoenix sun as we announced Arizona grant recipients.

I was especially impressed by the proposal from the Gila Gravity Main Canal Board near Yuma, Arizona, which will make canal improvements to conserve water and improve efficiency. They will line canals and install a complex metering and headgate control system that provides more precise measurement of water flow. As a result, they will save about 45,000 acre-feet of water every year.

From the federal perspective, that's a lot to show for an investment of less than ½ million $. Water 2025 should reduce, and possibly even prevent, some of the crises and chronic conflicts that chronic water shortage can cause.

This year, we have $10 million for the Challenge Grants - over twice as much funding. In a tight budget climate, with lots of competing demands, an expansion like this indicates how enthusiastic we are about the effectiveness Water 2025.

This year we received 118 Water 2025 project proposals, even more than last year. They represent almost $100 million in water delivery system improvements across the West. Choosing which projects to fund will not be easy, with so many impressive proposals.

RESOLVING CONFLICTS

The Water 2025 goal of preventing conflicts in the future means we have to resolve some long-standing conflicts today. We must, since a growing and prosperous West will continue to add increased pressure on our limited water supplies.

We have been working diligently on lots of these disputes. We are achieving the possible - and sometimes even the improbable.

Black Canyon of the Gunnison

We reached a water agreement on the Black Canyon of the Gunnison which meets both the needs of the National Park and the West Slope water users.

From my experience as an attorney handling water rights issues for both federal and state governments, I knew that wasteful multi-year and multi-million-dollar battles often wage over abstract issues of federal versus state jurisdiction, when differences about on-the-ground water needs might not be that large.

For the Black Canyon National Park, we were well on the way to an enormous battle when I took office. In the last few days of the Clinton Administration, the U.S. attorney for Colorado filed an enormous federal reserved water claim for the Black Canyon. This filing resulted in over 350 parties joining in with court filings of their own.

Our approach has been different. We sought to look beyond what label should be on the water right and see if the park's needs could be met through the state water system. The cooperative agreement we worked out with the state of Colorado demonstrated that we can work together in partnership to meet the needs of the stakeholders in the park and in local communities.

Although some environmental groups contend it is not enough, the agreement provides a vast amount of water for the park. We are seeking, on average, flows of more than 500,000 acre-feet per year. But we are doing it using, in part, the authorities of the Colorado Water Conservation Board. The agreement allows both flood flows to scour the canyon and protect its ecosystem, while addressing human needs including the Aspinall project's allocation.

As Eric Wilkinson, Chairman of the Colorado Water Conservation Board said on the day the agreement was signed, "The State of Colorado has often said that the federal government should work with the State of Colorado to work together to accomplish mutual needs. And I think this is a shining example of that happening."

Great Sand Dunes

We took a similar approach at Great Sand Dunes National Park. A more cooperative approach to obtaining water rights was set in place by Congress in the Great Sand Dunes National Park and Preserve Act of 2000. The Act authorized expansion of the Great Sand Dunes National Monument with the purchase of the Baca Ranch.

The legislation was strongly supported by the State of Colorado, the Colorado delegation to Congress, and water users. They saw the establishment of the National Park as the best means of protecting the unique dunes ecosystem.

Even more, as virtually everyone in this room knows, this legislation resolved nearly two decades of one of the bloodiest water fights in Colorado history, the AWDI attempt to export groundwater from the San Luis Valley.

I went to the San Luis Valley to argue against the AWDI proposal when I was attorney general of Colorado. Never - before or since - have I seen a local community so united about an issue.

That illustrated the emotion that can surround water issues, when people perceive their livelihoods, and their very way of life, are at stake

I had a rare feeling of seeing a war finally reach a peace treaty when I stood at the Great Sand Dunes last fall to designate it the 58th National Park.

In partnership with the Nature Conservancy, we completed purchase of the Baca Ranch, which enabled me to upgrade the monument to a park, as well as create Colorado's largest wildlife refuge.

The enabling legislation explicitly disclaimed the existence of a federal-reserved water right for the park. Instead, the designation of the park effected an appropriation of the ground water necessary to guard the park's resources and ecosystem.

This past December 30th, the United States filed an application in the Colorado Water Court seeking confirmation of that appropriation.

Before this filing was made, we worked closely with the Colorado state government and water users to obtain their support for the Park's water needs.

While the enabling legislative authority was unique, this type of broad partnership is undoubtedly the best way to address our water needs.

Gila River

Unresolved Indian water rights claims also cause uncertainty that can lead to conflicts in the future. In Colorado, we are pressing forward with construction of the Animas-La Plata project, which settles claims by the Southern Utes and Ute Mountain Utes.

This past fall, Congress passed the largest Indian Water rights settlement in U.S. history - the Gila River Indian Community Water Rights Settlement Act, which President Bush signed into law.

The legislation provides a settlement of long-outstanding operational and financial issues on the Central Arizona project. As a result, all users on the Central Arizona Project will be able to know who has specific rights to specific amounts of Central Arizona Project water.

Colorado River

I can't discuss the importance of settling disputes without mentioning the Colorado River.

In 2003, we resolved a 75-year conflict through the Colorado Water Delivery Agreement. Reaching the agreement required years of difficult negotiations. But success crowned those efforts. Negotiators produced the long-sought quantification that enables California to meet the needs of its citizens in a manner that respects the rights of the other Colorado Basin States.

We were able to bask in the glow of our historic accomplishment for about 3 nanoseconds before we started focusing on how the Colorado River Basin States address the continuing drought.

We would all like to see the drought's end. Current projections for this year's runoff are optimistic, thanks to the snow that has already accumulated. But we saw similar projections last year. Those literally evaporated in the unusually warm spring.

We dare not plan on favorable rains or snows. The weather is far too fickle. The drought has lasted far too long. One wet year will not make up for many dry ones. So even as we pray for rain, we must continue to plan for drought.

I trust that the Basin states will continue to work with us on drought mitigation strategies. Time is of the essence.

If the drought continues, we will move ahead with formal plans to reduce water deliveries in the Lower Basin. I hope we will not have to do so without a consensus plan.

Last month, the Department publicly urged the seven Colorado River Basin states to submit a plan for Department consideration by this April. We continue to believe that the Basin's citizens are best served when all seven states speak with one voice.

The Denver Post doesn't always agree with me. But I am glad that they see the light on this. In a recent editorial titled, "Right move on West's Water," the Post opined that the consensus plan is needed to, "prevent chaos if the drought that's haunted the West for five years doesn't loosen its grip."

They are correct. The alternative to state-driven compromise is years of litigation. But again and again, we have proved that the institutions and people of the Colorado River Basin are capable of meeting great challenges.

This present drought is no different. With planning and cooperation, and hopefully more rain and snow, we will make it through.

ENDANGERED SPECIES

I can't talk about the long term future of water in the West without discussing endangered species.

Species under the Act should do more than survive. They should thrive. They should recover and rebound in such numbers that they are removed from the endangered species list.

A balance can be found between the needs of threatened species and the rights of citizens. Preventative conservation efforts can forestall years of litigation; cooperative solutions can be found without court battles; short-term crisis management can be replaced by long years of certainty.

Thriving communities and thriving ecosystems should be able to coexist.

One clear example of the Bush Administration approach is the landowner incentive program. The President's Landowner Incentive Program brings landowners in as partners. They receive positive incentives for protecting endangered species and restoring habitat, while being allowed to use their lands.

It is important to reward those who are making their best efforts to factor wildlife conservation into their development plans. This is neither a new nor a partisan concept.

Last month, we took action that reinstates our ability to issue permits with "No Surprises" assurances.

The No Surprises rule has been a remarkably effective and popular tool for resolving development versus conservation conflicts. It ensures that a developer who prepares a habitat conservation plan that includes agreed-upon conservation measures will not later be required to pay added expenses if further conservation measures for those species unexpectedly become necessary.

The ESA might otherwise penalize those who improve habitat for an endangered bird. Many more birds may flock to the property, suddenly making use even more restricted.

This program is clearly working. Since 1994, when No Surprises Assurances were established, the number of approved Habitat Conservation Plans has grown to 473. These Plans cover activities on more than 40 million acres of land and aide conservation of 590 species.

Let me address a few specific species that are important to the West.

Sage Grouse

The sage grouse is one of the great successes of our cooperative vision. Not long ago, it was feared by many - probably a few of you - that the sage grouse would become the spotted owl of the Intermountain West. The estimated costs of its potential listing made many policy-makers pause.

Then they acted. The leaders of the 11 Western states with sage grouse populations came together in an unprecedented voluntary conservation effort to ensure that the sage grouse would not simply survive, but thrive.

Everyone who was willing and able came to the table - ranchers, farmers and state and federal land managers. Tribes came together, as did power companies and even Canadian provinces.

Much of the effort focused on almost 8 million acres of private lands - more than 500 private landowners are working to preserve the sage grouse.

Their actions are expected to reverse a decades-long decline in sage grouse populations. Sage grouse numbers have stabilized, and could be on the rebound.

As a result of those conservation efforts, the sage grouse was not listed under the Endangered Species Act. Earlier this month, Steve Williams, the Director of the Fish and Wildlife Service, followed the studied advice of service biologists and decided that the listing of the sage grouse was not warranted.

Those efforts must continue. The recent decision is not an end to sage grouse conservation, but rather the beginning of a new cooperative and voluntary effort.

Lower Colo

A good example of cooperative conservation involves the Southwestern Willow Flycatcher. The Flycatcher's breeding habitat is usually near areas of open water. In the past, Flycatchers have moved into temporary habitat that grows in the bottom of reservoirs when water levels are low. Then problems develop when droughts and reservoirs fill as they inevitably do.

Obviously, this is a big concern as we, hopefully, emerge from drought.

The Lower Colorado Multi-Species Conservation Plan will establish over 4,000 acres of permanent habitat in the same area along the Lower Colorado River, specifically for Southwestern Willow Flycatcher breeding habitat.

By establishing and protecting habitat along the river, the Flycatcher will have breeding habitat available-regardless of if reservoirs are high or low. This approach provides certainty for the Flycatcher and for those who rely on water stored in the Colorado River reservoirs.

The Lower Colorado Multi-Species Conservation Program is one of our most ambitious conservation projects designed to protect endangered and threatened species.

The Program is of unprecedented scope - 50 years - and it covers the entire lower Colorado River from Lake Mead to the Mexican border, including the states of Arizona, California and Nevada.

Additional areas will be enhanced and protected for other species. All together, six endangered species will benefit. So will twenty sensitive species.

Upper Colorado

Two programs are continuing to provide certainty to water users and assist in species recovery in the Upper Colorado Basin.

The San Juan River Basin Recovery Implementation Program and the Upper Colorado River Endangered Fish Recovery Implementation Program are continuing to enable water development to proceed in compliance with the Endangered Species Act.

The programs are engaged in the hard, day-to-day work of recovering endangered species. They provide Endangered Species Act compliance for more than 800 water projects. Amazingly, no lawsuits have been filed on Endangered Species Act compliance on any of those water projects.

The Upper Colorado program has become a national model for recovering endangered species while addressing the demand for water development to support growing western communities.

Just last week, the Upper Colorado River Endangered Fish Recovery Program announced the signing of a forty-year water management plan in the Yampa River Basin.

Prebles mouse

The Prebles Jumping Mouse demonstrates how we are reaching toward that goal. Westerners faced significant consequences when the species was listed as threatened under the Endangered Species Act.

When first listed, ranchers had to change the way they did things and infrastructure projects were delayed. More consternation was caused by recent studies that raised new questions about the status of this species.

Those reviews and revisions are an essential part of the scientific process, just as listening to those who might be affected by changes in species status is an essential part of the policymaking process.

We have done both. About two-and-a-half years ago, the Fish and Wildlife Service issued special rules which broadened the definition of incidental take of the mouse. Those 4(d) rules gave greater leeway to those who depend on the land, whether for controlling rodents, farming, or exercising their existing water rights.

Since then, we have continued to listen, we have continued to study. Today, we reached another point of decision on the Prebles Jumping Mouse.

I heard from Judge Craig Manson just an hour ago. The Service today has decided that a petition to de-list the Prebles meadow jumping mouse is warranted. As a result, the Service today is commencing the process to remove the Prebles jumping mouse from the list of threatened species.

This decision was reached based on peer-reviewed science done here in Colorado. Dr. Rob Roy Ramey of the Denver Museum of Nature and Science was the principal researcher.

This latest scientific information indicates that the Prebles mouse is not a separate subspecies. The petition to de-list was filed by Coloradoans for Water Conservation and Development and the State of Wyoming.

Notice of our proposed de-listing of the Prebles Jumping Mouse has gone to the federal register today. The Fish and Wildlife Service is planning a telephone conference call this afternoon to describe the decision in more detail.

This decision is just the start of the process. The Fish and Wildlife service must take public comment and consider any other science that may be available. As before, landowners like you should have an opportunity to respond. We will continue to listen and study. This decision shows the successes that cooperative consultation can bring.

On the legislative front, discussions are beginning about whether the ESA should be updated and modernized.

It is too early to predict which direction - if any - that reforms will take. But I can tell you that we will listen. We will study. We will carefully examine proposals from Congress to strengthen and improve the Endangered Species Act.

Americans have always looked to the West with hope. They should do so now in this new term of the administration.

President Bush and I believe that the future of the West is bright. It will not be easy to turn the vision into reality. But it is possible.

Progress can be made. Innovative solutions can be found.

We need your involvement as we pursue a shared vision for the West. We welcome your comments and your concerns.

Keep planning, keep reaching. Together, we can find ways to meet the water needs of the West.