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Western States Water Council Full Council Minutes Washington, D.C. . March 29,20061 . John testified yesterday before the Senate on their FY2007 budget, "We can get all our work done. We don't have any 'critical' unfunded maintenance." With respect to the St. Mary/Milk River Project he said they still think they've got some time." He reported the President's request includes $14.5 million for the Water 2025 Initiative; and $39.6 million for security needs, with water user reimbursement, guards and patrols, etc. For the past years, security costs have been a nonreimbursable project cost. Reclamation has evaluated all its facilities. Five were determined to be critical with 24/7 security. In FY2006, $10 million in security costs will be reimbursable, rising to $18.9 million FY2007, mostly from power revenues. John mentioned other budget figures, including $69 million for dam safety, and $23.7 million for the Middle Rio Grande. He stated it is a "good budget for us." Regarding rural water issues, he noted South Dakota has a lot going on. "We can't get enough money." He said Reclamation needs new authority to address necessary engineering and design work for project rehabilitation. One proposed bill, S. 895, would provide federal loan guarantee authority under Title II to help private entities get money for rehabilitation work, which otherwise is reimbursable on an annual basis, like operation and maintenance costs. "S. 895, we need it." Previous authorities and money for project rehabilitation and betterment, small project loans, drainage and minor construction are all gone. He mentioned many "Title 16" water reuse and related projects in California [and elsewhere] have been authorized without proper feasibility studies, which isn't the way to do legislation. Water . reuse works may be the best alternative for some states where water is short. Reclamation is looking at wastewater as the "next or last river to tap." He observed that drought conditions this year reflect the opposite from last year, with the Northwest wet and the Southwest dry. Phoenix has gone 143 days with no rain. Pecos River runoff is 4- 10% of average, and flows in the Middle Rio Grande are bad. "We have to deal with it." Title I of the Reclamation States Emergency Drought Relief Act expired last year. Title II doesn't expire and authorizes planning grants. There is $475,000 this year. "The worst time to plan is when you're in a drought." With respect to the Bridging-the-Headgate Partnership, he noted the federal agencies seem to be fighting among themselves, but he added that the Bureau is "committed to work with you" and the Natural Resources Conservation Service (NRCS). John described Water 2025 as a way to get ahead of drought, conserve water ahead of time as we go in to an era of exploding populations everywhere in West. We can't just make money available to protect irrigators rights, but need to make water available for the next use, buying time to develop the next big project. However, the federal government can't pay for all of it. We will have a "quiltwork" of projects in the future. Water 2025 has $5 million for FY2006 which is all earmarked. The Administration has delivered to the Congress a 2025 draft bill to formally authorize the program. He gave a 2025 report update from last fall, stating that $14.5 million in "Challenge Grants" had been made leveraging $60-$65 million in projects that will produce 200,000-250,000 acre feet of water. He closed with a farmer's famous quote: "Have Faith in God and U.S. Reclamation!" . 8