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,O{J.2.5,:,! --'-;"\"-'.-'!h-,.r,Iilf'l"'{'P'~o;t"""~ as a federal project or, alternatively, as a revenue bond-financed state project." "Even the staunchest advocates of a state water project agree that the most logical and the most economical method of bringing water into central Arizona counties and providing exchange water agreements to satisfy the needs of other water- short counties of our state is through a federal project," said Representative Lyman. "The various past legislatures of Arizona have repeatedly endorsed this position and have given their unanimous bipartisan support to our congressional delegation in Washington. Yet, after more than 40 years of both congres- sional consideration and Supreme Court proceedings, we saw last fall the frustration of our hopes just, as victory was in sight. We are all painfully aware of the factors which contributed to our defeat." Mr. Lyman said there was "tremendous sympathy" for Arizona's cause. There also was a realization, he said, that all reclamation in the United States was on "dead' center" until the CAP impasse could be resolved. Arizona must emerge with it bill which did not dilute her basic river rights, he said, and if that did not materialize, "we must-of necessity-be prepared . to construct the Central Arizona Project as a state venture." Encouraging Budget Item A small encouraging note was heard, meanwhile, in Wash- ington. President Johnson's new budget proposal included $700,000 for. planning and survey work on CAP, and Congress- man Udall saw it ;:IS a sign that the project still had adminis, tration support. "It was included on the assumption that the project eventually will be authorized by the Congress," he said. It quickly became a certainty, however, that the ne,w year would see no lessening of Sierra Club opposition to any project- federal or state-which called for dams in the Grand Canyon. On January 30 the club filed a 75-page petition with the Federal Power Commission asking permission to inte-rvenein opposition to the licensing of Marble Canyon Dam. It contended that the dam would be a "poor economic investment." The same amount of power, said the petition, could be provided by a nuclear plant in the vicinity of Phoenix at less than 80 per cent of Marble's cost. The club also asked permission to submit evidence on the ":ldverse effects" that the dHm would have on Marble Gorge and Grand Canyon National Park. A New Administration Plan On February 2 Secretary Udall unveiled a new adminis- tration plan for Lower Colorado River development. It would authorize the Central Arizona Project without the two long- disputed dnms. For electricity to pump the water into central Arizona, the gove,rnment would spend $80 to $100 million to -40- '.~~~g;:.-~"