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I. I A W 1 I I \ /\ I) s 



July 18, 1995 



Bv Fax (202) 225-5444 



Chairman John T Doolittle 



House, Water and Power Resources Subcommittee 



House Resources Committee 



1337 Longworth House Office Building 



Washington, DC 20515 



Dear Chainnan Doolittle: 



Re H R 1906 - CVPIA Reform Act of 1995 



I am aware that hearings on HR 1906 are scheduled in Washington, DC. on July 20, 1995. While 

 I have not sought to participate at these hearings, I am hopeful that you will include this letter in the 

 record, and that the Committee will consider the substance of our request when the bill is further 

 considered in the legislative process. 



I am writing on behalf of the Delta Wetlands Project, a unique water supply project being developed 

 with private sector financing and expertise, rather than by government agencies using public flinds. 

 I have attached an overview of the project for your records The project, once completed, will 

 provide a unique blend of new water supply and conservation benefits, and be accomplished wholly 

 by the private sector. 



Our specific concern relates to Section 3408(c) of the Central Valley Project Improvement Act (PL. 

 102-575) A small part of that subsection threatens harm to the private sector, appears to be 

 unintentional, serves no valid purpose, and can easily be remedied by a brief amendment to the Act. 

 Section 3408 (copy attached) provides general authority for the Secretary of the Interior to enter into 

 contracts with a broad range of interests for the "exchange, impoundment, storage, carriage, and 

 delivery of Central Valley Project and non-project water" for a number of purposes 



Interestingly, and for reasons which are not made clear either in the statutory language or in the 

 legislative history for the provision, such transactions are limited only to private nonprofit 

 organizations, to the apparent exclusion of private organizations for profit Under this provision at 

 least, the entire business sector is excluded from entering into contracts with the Secretary to supply 

 services or facilities with respect to Central Valley Project and non-project water 



This incongruous provision in the CVPIA impairs or eliminates a significant market for private 

 entrepreneurs dealing in water, in water facilities, or in services related to water, and substantially 



16'J7 Mt Diablo HKrt 



