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<br />Cl7 CALIFORNIA "HATER RESOURCES .1SS0CIATION
<br />
<br />
<br />\ "~" A non.p,of,t, "on-po""on ,/ote.w,de ,:~z:::::~':~o~:e~i::':d to the b%n,ed development of wo/e'
<br />~ ,e,ou"e, 0/ Co'dom,o and the We,t to meet/he "eed, of man ood imwove hi, e"lmnment.
<br />
<br />--1223 EAST BROADWAY, GLENDALE, CALIFORNIA 91205 f. Telephone, 246-0444, ham L.A., 245.2317/3153
<br />
<br />'RESIDENT
<br />F. W. RlISSELL
<br />Alpine, Amador, CalaT)era!,
<br />EI Dorado, ManpOfO,
<br />Mano, Nevada, Placer,
<br />Sierra, Tuolumne Director
<br />VICE PRESIDENTS
<br />JOHN E. DEVITO
<br />Canlm Cona, San
<br />Joaquin, Solano,
<br />Yolo Direc/or
<br />JOSEl'1i E. P....TTIi:N
<br />Blltte., Lar,~cn, P11JT1laJ, Sha,la,
<br />SieNa, Suiter, Yuba Dire,:lor
<br />ROBEEl.T V. PHU.LIP.'i
<br />l."s Allgclc~ Director and
<br />A.'5i.rtllflt TrCCJrorer
<br />JAMES H. TURN!'R
<br />San Francisco Director
<br />SECRETARY-TREASURER
<br />WILLIAM E. MOORE, JR.
<br />L<Jf Ang€!(,JDircclo:>r
<br />ASSISTANT TUASUIEtS
<br />FI\ANCIS HERWOOD
<br />DirecloTut Large
<br />W AIUlEN W. BUTLER
<br />Los AIlgc/e.l' Director
<br />DIIECTOI5
<br />RICHARD D. ANDREWS
<br />Fresno, Madera, Kings, Tulare
<br />DOl:LE F. BOEN
<br />Riverside
<br />JOSEPH P. BOllT
<br />Alameda
<br />ALLE!'>I BOTTORFF'
<br />Ba~"eT$field
<br />VICTOR F. CORSICLU., SIl.
<br />San Benito, Sanla Clara
<br />NATHAN O. FREEDMAN
<br />L,)$Angeles
<br />GEORCE KEIlRlGA.N
<br />SflnDiego
<br />E. HENHY KLoss
<br />." --aml:'llto
<br />JON W, Mn.LER
<br />,C Counlies as Seeger)
<br />STAN PITTMAN
<br />BIINe, Lauen, Plumas,
<br />ShfUta, Sierra, Sillier. Yuba
<br />WILLIAM R. SEEGER
<br />Del Norle, Humboldt, Lake.
<br />Mari'l. Me'ldocino, Napa,
<br />S(lI'Iom<1, Trinity
<br />\\-'ALLACE G. SPlNARSKI
<br />Lancaster .
<br />CURTIS TUNNELL
<br />Santa Barbara, \-'ellturo,
<br />San Luii Obispo
<br />MERWIN WAGNE!\
<br />Orange
<br />DIRECTORS AT LARGE
<br />\\' ,\IU1EN M. DORN
<br />W. F. HERB!':RT
<br />JOSEPH h.NSKN
<br />EOCAR L. KAN(lUS!':
<br />GEORGE A. PATTON
<br />A. S. RUMMELSBURG
<br />PUll.If' F . WALSH
<br />ADVISORY BOARD
<br />HAR\'EY O. Bo\NKS
<br />Bdflwnt
<br />SAMUEL BARLING
<br />Wasco
<br />C. W. BATES
<br />LoHBanos
<br />JOliN BERNARD
<br />Sdn BeTrUlrdillo
<br />FllEDERICK BOLD, JR.
<br />Richllland
<br />RALPH M. BRODY
<br />Fresno
<br />\VILLTo\M C. 8llYANT
<br />8(lkersfield
<br />Jr;Ilo\LD R. BUTCHEIIT
<br />Santa Raqa
<br />ROBERT F. Co\IITER
<br />Imperial
<br />TlLlO T. CmAPPELLI
<br />S(lllora
<br />CARL P. C.OLeMAN
<br />VicI"roillc
<br />K lUGHLIN
<br />5" lIey
<br />lh.....ERT G. CROWLE
<br />Hayward
<br />JOHN D. CROWLEY
<br />San Franciscn
<br />DONALD K. CUnRLIN
<br />San Jose
<br />CHAIII.ES DE BnETTEVlLLE
<br />San Fra'lcuco
<br />E. F. DIBlILE
<br />R,.dlands
<br />RICHARD \V. DrCIU:NSON
<br />Stocklilll
<br />
<br />RESOLUTION
<br />of
<br />CALIFORNIA WATER RESOURCES ASSOCIATION
<br />OPPOSING ESTABLISHMENT OF A 7 PER CENT INTEREST RATE
<br />IN DETERMINING FEASIBILITY OF
<br />FEDERALLY-FINANCED WATER PROJECTS
<br />
<br />The National Water Resources Council has published in the
<br />Federal Register of December 21, 1971 proposed Principles and
<br />Standards for Planning Water and Related Land Resources, which
<br />contemplate the use for calculating water project benefits and
<br />costs of an interest, or discount rate, based on "opportunity
<br />cost, II which roughly approximates the average return from pri-
<br />vate investment and which is estimated at 10 per cent. These
<br />standards set this discount rate initially at 7 per cent for a
<br />five-year period.
<br />
<br />The Army Corps. of Engineers has officially declared that
<br />under a 7 per cent interest rate in determining feasibility of
<br />federal water projects, only 4 of 18 proposed California projects
<br />ranging from Humboldt to San Diego County would qualify, reduc-
<br />ing the current value of such projects from $1.03 billion to
<br />$382.4 million. Under 10 per cent interest, all such projects
<br />would be wiped out.
<br />
<br />The U. S. Bureau of Reclamation has forecast that "justifi-
<br />cation for projects will be more difficult" under the 7 per cent
<br />interest criteria and that some $2 billion in California projects
<br />in doubt would include the $957 million Eastside Project; the
<br />$207 million Cosumnes Project; the $225 million West Sacramento
<br />Canal Project; the $150 million Paskenta-Newville Project; the
<br />$48 million Allen Camp Project and the $405 million English Ridge
<br />Projec t.
<br />
<br />The California Water Resources Association believes that
<br />this proposed 7 per cent interest rate is unfair, inequitable,
<br />and contrary to the public interest because:
<br />
<br />1) This policy of restricting water project construction
<br />conflicts with the Administration's declared objective of
<br />strengthening the economy and reducing unemployment.
<br />
<br />2) It will make impossible construction of many major water
<br />projects needed to meet economic and environmental needs of
<br />California and the West.
<br />
<br />3) It in effect enforCeS a moratorium on planning of future
<br />water projects conceivably to a time when water shortages occur,
<br />leaving inadequate time for needed projects to be built.
<br />
<br />more............ .
<br />
<br />ROBERT DIETZ
<br />Redding
<br />WILLIAM G. DUNN
<br />Cupertino
<br />RODERT T. DURDROW
<br />Sacramento
<br />NAT L. EGGERT
<br />San Diego
<br />JOHN D. FETT
<br />Riverside
<br />CARL FOSSETT),:
<br />Dou;ney
<br />\\'ILLIA~( \V. FRANKLIN
<br />La, Angell'J
<br />JOHN V. FREEMAN
<br />San Luu Obispo
<br />DUANE L. GEOIIGESON
<br />Los Angele.f
<br />JEROMI': B. GILDEIIT
<br />SIJcranltlllto
<br />AI.i'IIED R. GOLZE
<br />Los AngcfeJ
<br />OANILL G. GIIANT
<br />Sanla B(lTbllra
<br />LAUREN W. GRAYSON
<br />Glendale
<br />JOHN S. HARNETT
<br />Oakland
<br />HOWARD H. HARTER
<br />YllbaCil!l
<br />E. TnORNTON IBBETSON
<br />Bellflower
<br />ROBERT J. JASPER
<br />Tehachapi
<br />THOMAS /0.11'01501'1
<br />Bakersfie d
<br />CARL H. KADlli':, SR.
<br />Sacramento
<br />RICIIA.1lJ) W. KARN
<br />San Leandro
<br />HAROLD \V. KENNEDY
<br />PalOdena
<br />JAMES H. KRIEGER
<br />Riverside
<br />H. LOUIS LAKE
<br />Garden GrOlle
<br />ROBERT LEE
<br />Los Angeles
<br />GILBERT W. LINDSAY
<br />LOJ Angeles
<br />HARIlY E. LLOYD
<br />San Francf.tco
<br />JOliN M. LUTHER
<br />Sacramento
<br />FIIANK T. MATTHIAS
<br />Oakland
<br />DENNIS MCCARTHY
<br />Bakersfield
<br />PAUL McKEEHAN
<br />Santa Clara
<br />HOWARJ) A. MILLCR
<br />San Marino
<br />CLYDI.l: N. MooRII:
<br />LOllg Bcach
<br />ORAL L. MOORE
<br />San Franciico
<br />SAMUEL B. NELSON
<br />LOJ Angeles
<br />LOUIS R. NOWELL
<br />Los Angeles
<br />LANGDON W. OWEN
<br />Santa Ana
<br />PAUL E. OWEN
<br />Vcntura
<br />CHAlI.u:s A PEARSON
<br />Ana}leim
<br />WILLIAM S. PETERSON
<br />La! Angcle.f
<br />CHAIU.ES RANDOLPH
<br />Orovil/e
<br />CLEN L. SCIIMIDT
<br />Ventura
<br />M. J. SIlELTON
<br />San Diego
<br />NED A. SMITH
<br />Hanford
<br />HOBERT I. SNYDEll
<br />Lo! Angeles
<br />Wn.LlAM E. \V ARNE
<br />Sacramento
<br />LOW~LL O. \VJ;CKS
<br />Coachclla
<br />ROlll;;f!T M. \VILkINSON
<br />Los Angeles
<br />ALAN J. WILI.I,U.tS
<br />Lus Angel.::,
<br />LLO"lD D. YO\::NT
<br />Redlamu
<br />EXECUTIVE MANAGER
<br />JACK. w. KEATING
<br />PUBLIC RELATIONS
<br />BEN H. SCARPERO
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