RE: S. 188 "Water Conservation and Quality Incentives Act"
Introduction
Thank you for the opportunity to testify today. I am Jan Lee, Executive Director of the Oregon Water Resources Congress. OWRC represents water suppliers in Oregon, those who operator reservoirs and delivery systems for non-potable water. The majority of the water is for agricultural supply, but we also represent some cities, counties and ports who supply water for other than domestic or human consumption. Our association has represented water interests in Oregon since its formation in 1912. I am also Vice President of the Western Coalition of Arid States (WESTCAS).
Need for S. 188
We strongly support S. 188 as an additional tool for enhancing water quality in Oregon. There are over 1300 Oregon stream segments listed on the 303(d) TMDL (total maximum daily load) exceedance list approved by EPA. The majority of these streams are listed based on the need to meet a lower temperature standard (64 degrees statewide) to protect cold-water fish habitat. A significant portion of Oregon streams are either listed under the Endangered Species Act (ESA) or are being considered for listing in the near future. With the convergence of the ESA and the CWA (Clean Water Act), the need to reduce water temperatures for habitat protection will be the focus of challenge to water suppliers and water users and to Oregon's future growth and economy.
Oregon's 303(d) TMDL list for the year 1998:
1,067 streams and rivers listed
32 lakes listed
1,168 stream segments listed
A total of 13, 892 stream miles, not including lakes
The nation has witnessed success with the point-source program as the result of funding that has now exceeded $96 billion. We have not committed that level of funding toward reducing non-point sources for water pollution. If we can invest resources in reducing non-point sources in a similar fashion with the same kind of incentive programs, both point source and non-point source water users will benefit, as well as our prized Northwest fishery resource.
SRF Funding Capability
Currently Oregon receives the following SRF (State Revolving Fund) monies distributed by the Environmental Protection Agency (EPA).
Clean Water State Revolving Fund, Oregon Department of Environmental
Quality (water pollution control facilities)
$12-15 million approximately annually
Safe Drinking Water Revolving Loan Program, Oregon Health Division
$12 million approximately annually
Neither of these loan programs currently provide funding for local governments supplying agricultural water supply to participate at the state level and no loans have been granted for such purposes.
The Clean Water State Revolving Fund provides money for wastewater facility infrastructure. While the federal program may allow more flexibility, the state program does not accommodate the needs of local government borrowers who are not investing in wastewater infrastructure. If the legislation before the committee is passed, it will clearly indicate that conservation and water quality projects, in addition to municipal wastewater infrastructure, are projects for which SRF funding can be expended. This will then enable Oregon to draft rules that puts these projects on equal footing with infrastructure projects. With the passage of S. 188, innovative water quality projects can move forward through Oregon's loan program.
There are requests totaling over $250 million for wastewater/sewer infrastructure projects. The longer term need identified by Oregon in 1996 was approximately $1.63 billion by the year 2010. Since Oregon receives an average of about $13 million annually from EPA for the wastewater program, there is in essence a line that has formed that will require 2 decades to complete before any of the other projects are addressed.
In the drinking water project program, there is currently $10.5 million which has not been committed to projects in Oregon. Recently EPA sent a letter indicating the $10.5 million may be called back by EPA if not used. The state has the ability to move the $10.5 to the wastewater program but would only do that as the very last resort prior to EPA pulling the funding.
These examples show that it is almost impossible at the state level to access SRF dollars for the additional federal purposes (non-point source control) Congress originally designated, e.g., allowing for conservation and water quality projects other than those that represent project infrastructure dollars for wastewater or drinking water facilities.
Reduction of Non-Point Sources
How are we reducing non-point sources in Oregon?
First, placing water instream for fishery protection is a policy of the state and has been since 1987 when the Legislature enacted the instream water right law (ORS 537.332 to .360). In the same legislative session, the state also enacted the "water conservation incentive program" (ORS 537.455 to .500 as attached). This program allows water users to conserve water, dedicate 25% or more to instream benefits for fishery protection, water quality and recreation, while the conserver retains a portion of the conserved water to store to stabilize their own water supply or to apply to additional use.
The transfer statutes generally also allow for the transfer of water to instream benefits. The state also provides a temporary leasing program to allow for beneficial uses instream on an annual basis (ORS 537.348).
In some circumstances, additional flow will reduce water temperature. Conservation projects that transition water delivery from open canals subject to evapotransporation water losses reap instream benefits when the delivery systems are piped and thus withdraw less water to deliver the same crop need. If there can be public investment in such projects, the public can receive a share of the benefit by receiving additional water flows instream.
Many of my association's members are irrigation districts. Irrigation withdrawal is the second largest use of water in the state of Oregon. (Hydropower use is the largest beneficial use.) While our association does not support taking agricultural lands out of production, we do support conserving water that results in a new net supply made available. We have cooperated with the Bureau of Reclamation and other interested groups in developing water-conservation projects which result in placing additional water instream. Several of these projects have been in Central Oregon, in the Deschutes Basin.
The Oregon Water Trust is leasing and purchasing conserved water in small amounts to place instream in key sections of stream where water is needed for fishery migration and protection. The Trust has been in place since the late 1980s and has acquired over 300 leases and a limited number of permanent water right transactions for instream benefit.
Other Tools
We believe that the language of this bill will also provide the opportunity to develop other kinds of water-quality related projects that will benefit water users and instream needs.
Conservation practices that result in less runoff to streams, that minimize discharges to streams, could be funded under this program.
Flexibility for the State Operated SRF Programs
By providing language to make it clear that conservation and water quality projects for other than drinking water and wastewater infrastructure were intended by the law to be funded from SRF monies, the states would be provided the flexibility to use SRF funding for a mix of projects.
Coalition of Interests
We have worked with Senator Wyden's office on this legislation with the Environmental Defense Fund and the American Farm Bureau Federation. The Oregon Farm Bureau supports this legislation. Mr. Pete Test of the Oregon Farm Bureau asked me to include his support in my remarks to you today. Our association in Oregon has worked closely with Zach Willey of the Environmental Defense Fund, Northwest Headquarters in Bend, Oregon, and with the Oregon Farm Bureau and our own local government members to effect conservation projects in Oregon. This legislation will enhance those opportunities by providing a funding resource. We strongly urge your passage of S. 188 to achieve those goals.
Jan Lee
Executive Director