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Reclamation Law: Changes Needed Before Water Service Contracts Are Renewed

RCED-91-175 Published: Aug 22, 1991. Publicly Released: Sep 19, 1991.
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Highlights

Pursuant to a congressional request, GAO: (1) identified environmental and water use problems associated with the irrigation practices carried out under the Bureau of Reclamation's water service contracts in the Central Valley Project (CVP); and (2) determined whether contract renewals would allow such problems to continue.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
To provide the Department of the Interior with greater flexibility to manage Bureau of Reclamation water in CVP in the most effective and efficient manner, Congress should: (1) place a moratorium on all CVP contract renewals, while temporarily extending existing contracts; and (2) amend the 1956 act to explicitly allow contract renewals for lesser quantities of water and shorter periods of time so the Bureau can periodically assess water use.
Closed – Implemented
In June 1992, the House passed legislation limiting contract renewals to 20 years, requiring environmental impact analyses, and eliminating the 1956 act provisions. Legislation addressing CVP passed in the Senate, but does not alter contract renewal. Differences will be addressed in conference.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Interior The Secretary of the Interior should determine the effects of renewing CVP water service contracts for the same quantities of water for long terms. This impact analysis should include: (1) an analysis of whether the water supply could be more effectively used to reduce environmental degradation and meet wildlife habitat needs and other emerging water needs in the state; and (2) a demonstration of the extent to which problems associated with water service contracts can be mitigated by changes in the contract terms, including consideration of market mechanisms to promote more efficient water use and conservation.
Closed – Implemented
Interior currently has environmental impact analyses underway for current contract renewals and the Bureau of Reclamation is developing a strategy and schedule for completing environmental review for remaining contracts.
Department of the Interior The Secretary of the Interior should incorporate into renewed contracts changes in contract terms identified as likely to mitigate problems associated with water service contracts.
Closed – Implemented
Interior concurs with the recommendation but has not yet completed analyses. Interior states, however, that provisions covering the right to long-term renewal and quantity of water are not subject to change except as required by applicable law.

Full Report

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Topics

Agricultural programsContract extensionsEnvironmental impact statementsEnvironmental monitoringHazardous substancesIrrigationSubsidiesWater qualityWater resources developmentWater supply managementWildlife conservationWater use