Opening Statement on HR 1837 (Nunes)
House Committee on Natural Resources
February 16, 2012

Mr. Chairman:

We are all aware of the human and economic tragedy that occurred in California’s Central Valley in 2009 and 2010 when hundreds of billions of gallons of contracted water were diverted to the ocean in the name of the Delta Smelt. 

This policy fallowed between a quarter million and a half million acres of some of the most productive farmland in America, threw thousands of hard-working families into unemployment, devastated communities throughout the region and created the spectacle of food lines handing out carrots imported from China in a region which had just a year before produced much of the fruits and vegetables in the United States.

In the 111th Congress, the then-minority Republicans on the sub-committee asked repeatedly for hearings to address this catastrophe to no avail.  Finally, we held an informal field hearing where we heard first hand of the human suffering these policies caused.  Last year, we returned to hold a formal hearing to take testimony on what could be done to correct this disaster. 

As a result of these hearings, Mr. Nunes introduced HR 1837.  The most significant part of this bill restores the “Principles for Agreement on the Bay Delta Standards Between the State of California and the Federal Government,” better known as the Bay Delta Accord and codifies the flows established in that agreement.  The Bay Delta Accord received bi-partisan support and served as the basis for project operations from 1994 until 2007 when the water diversions began. 

In 1992, provisions of the Central Valley Improvement Act imposed a superstructure of regulations and restrictions that have severely limited the ability of a willing seller and a willing buyer to move water from areas of surplus to areas of shortage. 

These voluntary transactions provided for efficient and rapid assignment of water throughout the system.  This bill restores the freedom of exchange on pre-existing agreements between water contractors throughout the system.

The bill also brings transparency and accountability to the Central Valley Project Restoration Fund, which has spent over $800 million in water and ratepayer dollars.

The sub-committee received ample testimony that natural ocean currents and invasive non-native predators such as striped bass pose a far greater threat to native fish populations than the delta pumps.  The currents are beyond our control, but this measure strengthens our ability to control non-native predators that are decimating native endangered fish populations in the Delta.  It also encourages the use of fish hatcheries to economically and dramatically increase native fish populations such as salmon and the Delta Smelt.

It replaces the San Joaquin River Settlement Act that was imposed in 2009 with a workable and vastly less expensive alternative. 

Let me put the current San Joaquin River Settlement Act in perspective.  It will spend more than one billion dollars to achieve the stated goal of establishing a population of 500 salmon below the Friant dam.  That comes to two million dollars per fish. And that’s without accounting for the costs that will be incurred by Central Valley farmers as water that is already in critically short supply is diverted to this project that are estimated to increase the actual cost ten-fold.

Finally, it includes provisions to encourage recycling of environmental water and it removes pricing mechanisms that have discouraged water banking and early re-payment of federal loans. 
 
The sub-committee held two public hearings on this measure – which included twice as many minority witnesses as majority witnesses.

During these hearings, a serious and legitimate concern was expressed that the unique interaction of state and federal jurisdictions posed the risk that restoring the original water agreements could jeopardize senior water rights holders if the state turned to them to replace that water.  

As a result, we began a laborious eight-month process of consulting more than 60 northern California water agencies – in both Democratic and Republican congressional districts -- and the result is an unprecedented consensus reflected in the amendments that I will present in a few minutes.

The sum total of this work broadens the measure to resolve long-standing disputes between Northern and Central California water users and brings the full force of federal law to protect the senior water rights held by Northern California areas of origin and assures greater access to water by the communities throughout the region.

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