Grace Napolitano: “My amendment to H.R. 3964 is very, very simple. It is an inconvenient truth, however, that it creates a revenue stream…”

“My amendment to H.R. 3964 is very, very simple. It is an inconvenient truth, however, that it creates a revenue stream to the Treasury by eliminating an irrigation subsidy which requires irrigators to pay project debt with interest--in other words, ending free taxpayer subsidy since 1902, which has been in place since reclamation was created. It requires that any new water contracts or renewed contracts must reflect the price of water with interest and repay the debt of the project to only the Treasury with interest. This will be of small assistance to balancing our national debt. When reclamation was established in 1902, it was meant to deliver water to farms with approximately 160 acres. Subsequent congressional action has changed the acreage limitation along with the repayment contract for these projects. So, in 1982, acreage was increased to 960 acres. Congressional action has also made the repayment of project debt interest free for irrigators while municipalities, like my constituents--my water people--and power users pay the required appropriate interest. I wish other State water users were as lucky as these folks. H.R. 3964 removes the role of the Federal Government in protecting environment and public good. That is not good. If we are removing the role of the Federal Government, then we should also remove the Federal subsidy associated with renewed or new water contracts.…”