Powell opposes retaliation

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1 Ruben Mena From: Sent: To: Cc: Ruben Mena Wednesday, February 12, :21 AM Fernando Macias, Norte; Javier Cabrera, Bravo Felix Arenas; Gonzalo Bravo; Donald Hobbs; Liliana Chavira Page 1 of 6 Subject: Official disappointed Mexico skips water payment; Panel OKs WIPP budget increase; Let's keep water, innovations flowing Updated 02/12/ :01:22 CST Powell opposes retaliation Official disappointed Mexico skips water payment By STEVE TAYLOR Valley Morning Star AUSTIN Secretary of State Colin Powell says he wants to avoid economic sanctions or blocking the Colorado River in retaliation against Mexico s non-compliance of a water-sharing treaty. Powell made the comments in response to questions from Sen. John Cornyn, R-Texas, at a Senate Budget Committee hearing in Washington, D.C., on Tuesday. Cornyn wanted to know why Mexico had reneged on an agreement to deliver 55,000 acre-feet of water on Jan. 30, and on the status of water talks between the United States and Mexico which is taking place in San Diego. Powell s testimony coincided with new concerns from South Texas irrigation district managers over new guidelines from the North American Development Bank on how $40 million in grants would be allocated for water conservation projects. "We are very disappointed that Mexico has been unable to meet its obligations under the 1944 treaty and there is such a backlog of 1.5 million acre-feet," said Powell. "We are pressing them very hard, trying to get another increment right away of 55,000 trying to get back up to their obligation for the 300,000 for this growing season. We ll continue to press." Powell confirmed Mexico had only delivered 129,000 acre-feet of an interim agreement that called for 200,000 acre-feet by the end of January. The 55,000 acre-feet was supposed to have been transferred from Chihuahua to the Amistad and Falcon international dams. Cornyn, R-Texas, said he was "particularly disturbed" by Mexico s failure to abide by the interim agreement, a deal that had offered "some hope" to South Texas farmers for the upcoming growing season.

2 Page 2 of 6 "I have to tell you that particularly folks in the agricultural business in South Texas have been devastated by Mexico s failure to live up to this (200,000 acre-feet) obligation," Cornyn said. "It s had a ripple effect in our economy. Over a billion dollars has been lost over the last 10 years due to the failure to abide by the treaty." Cornyn said that "in their frustration" farmers had voiced several options the United States ought to consider, including sanctions against Mexican agricultural produce "grown by the very water that they feel should have been delivered under the treaty." Another possibility, Cornyn said, was the renegotiation of a 1944 treaty that requires the United States to deliver 1.5 million acre-feet of water to Mexico each year from the Colorado River. A third option cited by Cornyn was to "just terminate the treaty entirely, just to walk away from it." Powell said he would "try to avoid" any or all of these remedies in favor of diplomatic negotiations such as those currently underway in San Diego. "Let us continue to pound away to see if we cannot get them to meet the commitments they ve made for this growing season as a start toward resolving, ultimately, the 1.5 million acre-foot backlog," Powell said. Under the treaty, Mexico is required to deliver an average of 350,000 acre-feet of water per year to the United States, mostly from the Rio Conchos Basin in Chihuahua. In return, the United States must deliver 1.5 million acre-feet of water per year to Mexico from the Colorado River. While the United States has complied with the treaty, Mexico, claiming extraordinary drought, has been fallen behind in its repayments since Mexico currently owes the United States more than 1.37 million acre-feet of water. Gordon Hill, general manager of Bayview Irrigation District, has claimed Mexico has three million acre-feet of water available for release in Chihuahua reservoirs. Not so, said Mary Kelly, senior attorney and program director for U.S./Mexico Border Initiatives Environmental Defense. "Unfortunately, it is not accurate," Kelly said. "Based on International Boundary and Water Commission data there are only about 1,246 million cubic meters - which is less than one million acre-feet - in the reservoirs in Chihuahua, in terms of usable storage." Hill said Tuesday that reports of Valley irrigation district managers

3 being happy with new loan rules from NADBank were wide of the mark. Page 3 of 6 The guidelines state that $40 million in Water Conservation Investment Fund monies will go to projects that help alleviate irrigation problems associated with drought conditions along the U.S.-Mexico border region. The rules also state that applications must be consistent with the framework of agreements set out in IBWC Minute 308, an accord agreed by the United States and Mexico last June that updates a 1944 water-sharing treaty. Sen. Kay Bailey Hutchison, R-Texas, said Monday that the guidelines would ensure 70 percent of the WCIF funds would go on South Texas projects. "The guidelines say nothing of the sort, there is no guarantee we will get the money," said Hill. "In fact, irrigation district managers are pretty upset. We feel we are right behind the eight ball when compared to applications from municipalities. We got a raw deal." Sonia Kaniger, general manager of San Benito Irrigation District, agreed with Hill. She said the fact that NADBank would only give loans up to $4 million, and only fund 50 percent of any project, put her district at a big disadvantage. "We have submitted an application for $15 million. We are desperate for money for a new pumping plant," Kaniger said. "How can we divide that bid into $4 million? I do not know how to split a pumping plant into four pieces." Panel OKs WIPP budget increase By Victoria Parker-Stevens Current-Argus Staff Writer Tuesday, February 11, CARLSBAD - The Waste Isolation Pilot Plant is one step closer to a $14 million increase this year. On Tuesday, WIPP's budget was set at $207 million during House-Senate conference committee work for agencies covered by the fiscal year 2003 energy and water development appropriations bill. The committee has been working to reconcile Senate and House spending bills. The entire omnibus bill, which includes 11 appropriations bills not completed in the last Congress, has yet to be approved, according to a press release from Sen. Pete Domenici, R-N.M. Domenici served as lead Senate negotiator during conference committee work.

4 Page 4 of 6 The federal fiscal year began Oct. 1. The president had requested WIPP's budget be set at $204 million. Last year's budget was $193 million. Also approved Tuesday was $3.5 million of community impact funding for education, infrastructure and acceleration impacts for Carlsbad. The U.S.-Mexico Border/Materials Corridor Initiative would receive $2.5 million, and there would be $1 million for science research under the agreement. The border program amount is half of what was proposed in the Senate bill, which also included $3 million for science research. None of the WIPP-related funds over the overall budget were part of the president's request. The agreement also includes $1.1 billion for accelerated cleanup for Energy Department sites that have entered into revised performance management plans. Rather than setting up a fund, money would be allocated among sites as part of the appropriation. The allocation idea was part of the Senate bill, but the administration favored setting up a fund to hold more leverage over sites' cleanup performance. Items agreed to Tuesday could still be subject to a 1 to 3 percent across-the-board cut, although Domenici said he hoped any such cut would be less than the 2.8 percent mandated in the Senate bill. Under the agreement, the Energy Department would receive $20.8 billion, a $920 million increase over last year's funding. For New Mexico entities, the agreement provides $281.5 million more than the president's request. Comment: Let's keep water, innovations flowing By Robert Duncan Special to the Express-News Web Posted : 02/12/ :00 AM There is an old saying: You know you're from Texas when you stop expecting the sight of a bridge to mean water is near. There was a time we could laugh at that one, but the reality facing Texas makes that line seem like a solemn prediction instead of a trite expression. After a dry spell cost the Texas economy $4 billion in 1996, we found several deficiencies in our state's water planning. There was no drought plan, we practiced little conservation, and no viable statewide water plan existed. That year, 80 percent of the recommended water resources had already been developed, and yet the state's population was predicted to double by 2030.

5 Page 5 of 6 Unless changes were made, Texas' major urban areas would be 15 percent short of daily water needs and a loss of $40 billion could be expected in the state economy. Most new water sources take up to 25 years to develop, and Texas had little time to waste. In 1997 and 2001, we passed Senate Bills 1 and 2 the most comprehensive reforms to water management and planning in Texas history. The measures shifted water planning from the state to the local level. This was designed to drive local participation, control and buy-in to the regional water-planning process. The impact has been clear: people now talk about natural resources, and communities understand water is a priority. Securing Texas' water supply, improving its infrastructure and promoting its conservation are among the issues demanding strict attention from lawmakers. A heightened emphasis on water issues including increased public participation, education and awareness now flows throughout the state. Within 50 years, almost 900 Texas cities will have to either reduce their demand for water or develop new sources. We must balance the water needs of rural and urban areas and follow the planning process. For rural and urban Texas, the success of one benefits the other. Rural Texas will be forced to reckon with depleted groundwater resources. At the current rate of usage, parts of West Texas could fall short of irrigation needs by an estimated 856,000 acre-feet per year. If the water needs of our urban neighbors are met through investment in conservation, reuse, desalination and brush control, the pressure on groundwater in aquifers could be relieved. It is vital that groundwater conservation districts continue to provide local control of groundwater, and it is of equal importance that these districts be supported and funded locally. Texans have to think both progressively and pragmatically about water. To provide more public input and attention to water issues, we created the Texas Water Advisory Council, a 13-member group of legislators, elected officials, agency leaders and public members. This council, which I am honored to chair, guides state water policy initiatives and is developing recommendations for the Legislature. Water is a multifaceted issue, and several of its levels will arise during this session, including conservation, desalination, reuse, infrastructure improvement, marketing, environmental and in-stream flows, condemnation of surface water rights, border water disputes, long-term financing strategies to help communities pay for water projects and protection of our rivers. Water will be a salient concern for this and every future Legislature. Texas regulations, laws and institutions must keep pace with and

6 Texas regulations, laws and institutions must keep pace with and encourage new developments in technology. Texans must increase their understanding of the complex issues involved in maintaining our natural resources. Page 6 of 6 Our state has policy challenges ahead, and overcoming them will require diplomatic resolve, judicious policies and responsive institutions. Water is like blood, not oil. This resource sustains more than livelihoods it maintains life. Robert Duncan is a Republican state senator from Lubbock. 02/12/2003