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no reason to reopen the Act. 



Simply put, we think H.R. 1906 is premature and 

 unnecessary. The legislation threatens the historic consensus 

 that has brought together all stakeholders in California's water 

 issues. H.R. 1906 could undermine the landmark Bay-Delta Accord 

 signed by the state and federal governments on December 15, 1994, 

 as well as the joint state-federal long-term Delta planning 

 process now taking shape. 



In addition, the Administration is concerned that reopening 

 the CVPIA — that is, revisiting who gets how much water for what 

 purpose, at what price and under what conditions — will lead to 

 the return of gridlock in California's water policies. To 

 jeopardize the hard-won consensus will be harmful to the overall 

 economy in California. Just a few months ago. Standard and Poors 

 said that the water accord was responsible for stabilizing the 

 credit quality of most California water suppliers. Prior to the 

 agreement. Standard and Poors had expressed concern that the Bay- 

 Delta water supply was unreliable and could prompt some water 

 providers to build costly capital projects, thus jeopardizing 

 their credit ratings. 



We view the CVPIA as an important initiative by Congress, 

 which in tandem with the Bay Delta Accord, is bringing back a 

 needed balance and certainty to the water picture in California. 

 For the first time in the history of the Central Valley Project, 

 under the CVPIA all stakeholders are working together to address 

 California's water needs. At this point, we urge that the 

 Congress give the CVPIA the opportunity to meet the objectives 

 that Congress established less than three years ago. 



Thank you again for the opportunity to testify. I would be 

 happy to answer any questions you may have. 



