August 24, 1970
Page 29770
APPROPRIATIONS FOR DICKEY-LINCOLN SCHOOL DAM
Mr. MUSKIE: Mr. President, New England and New York have suffered major power shortages this summer, and we are now told that fuel scarcities will lead to power shortages this winter.
When air-conditioning units shut down, when subways stop running, or when there is no heat in the winter, the differences between private and public power no longer matter.
The Northeastern United States needs all the electric power it can generate with a minimal impact on the environment. Our crisis is of major proportions. Our reserves of reliable power are low, and we cannot afford to postpone any longer the construction of needed facilities. Charles Luce, chairman of the board of Consolidated Edison, stated in hearings before my Subcommittee on Intergovernmental Relations on August 3 that electric power from the Dicky-Lincoln project could have helped alleviate the power shortage that reached crisis proportions in New York City during the last week in July. As each year passes, the peaking power from Dickey-Lincoln is missed more and more in the major metropolitan areas of the Northeast.
The benefits of this project are vital to New England. When construction of the Dickey-Lincoln facility was authorized in 1966, consumer rates for electricity in New England were among the highest in the Nation because New England has no "Federal yardstick." This situation has not changed. The people of Maine continue to pay some of the highest electricity bills in the Nation, as the promise of 100,000 kilowatts of public power that was made in 1965 goes unmet.
The benefit/cost ratio of the Dickey-Lincoln Dam continues to be almost 2 to 1. This year we have been told of the added benefits of Dickey’s potential for the irrigation of potato farmlands. The following excerpts from House hearings on Public Works appropriations discuss this new benefit:
EXCERPTS FROM HOUSE HEARINGS ON PUBLIC WORKS APPROPRIATION
Colonel BANE. Sir, there does seem to me to be an increasing awareness of the need for dependable and economic power.
IRRIGATION POTENTIAL FOR POTATO GROWING
I should also note another area of potential significant benefit that has not been previously considered. Last month a member of my staff attended a meeting sponsored by Congressman Hathaway relative to the irrigation needs of Aroostook County. Discussed was a report by the Department of Agriculture which indicated that the Aroostook County potato crop yield had been declining since 1964. This reduced yield is attributed to the lack of proper irrigation.
It was estimated that the net income increase to the main potato growers would be between $8 and $20 million annually if the irrigation were provided.
Mr. BOLAND. Who developed the report?
Colonel BANE. Department of Agriculture.
Mr. BOLAND. I know Congressman Hathaway has been tremendously interested in this project, and has done everything within his power to see it funded and on its way to construction. I notice in the Congressional Record of March 4, yesterday, that he indicates that Dickey could help stabilize and increase the potato crop and improve its quality by providing water for irrigation. This is a benefit which had not heretofore been considered, I understand.
Colonel BANE. That is correct.
Mr. BOLAND. He also said:
"Irrigation would assure that water is available whenever needed. Conservative estimates are that water from the Dickey Reservoir, by increasing yield on 150,000 acres currently in cultivation and improving crop quality, could improve the revenue of Maine potato growers by $20 million annually."
He has indicated he has asked the U.S. Corps of Engineers to investigate the possibility with respect to the irrigation benefits.
Can you comment on this? You have indicated you are aware of the new proposal to irrigate potato fields in Aroostook County and he says in his opinion this is important as you have indicated, by the Department of Agriculture report, and such irrigation would improve potato quality and again would increase the yield of revenue to the potato growers by $20 million.
Does the Corps have plans to explore the feasibility of adding an irrigation benefit to this project?
Colonel BANE. We have just received the Agriculture report and naturally we have no money for this year so I do not have the capability right now to explore it in depth. But offhand, based upon the information we have, perhaps a hundred to 200,000 acre-feet of water would be required for this irrigation purpose, which would be a relatively small amount when we consider the gross storage that would be included in the Dickey project of 7.7 million acre-feet.
Mr. BOLAND. Do you have any estimate of cost for exploring the feasibility of implementing this idea?
* * *
Colonel BANE. Not now, I do not. I can provide it.
Mr. BOLAND. Assuming that about 2 years would be the minimum required to complete planning, what further increase in the project cost would you anticipate?
Colonel BANE. We would anticipate 14 percent.
Mr. BOLAND. How much would that be?
Colonel BANE. It would be $35 million more.
Mr. BOLAND. So this would mean this project is now going to cost $280 million plus, is that right?
Colonel BANE. Yes, sir.
Mr. RHODES. Will the chairman yield?.
Mr. BOLAND.Yes?
IRRIGATION
Mr. RHODES. Do you have the capability of finding the benefit-cost ratio of these irrigation features?
Do you have any funds in shop to do this?
Colonel BANE. No, sir; not without robbing some other project.
Mr. RHODES. I was sure that would be the answer. We really will have problems considering this new element until we can get some idea of what the cost would be as well as the return.
Do you have any idea of what the annual rainfall is in Aroostook County?
Colonel BANE. Thirty-six inches, I believe; sir. But the problem here, as I understand it, is that there are certain periods that require 1-inch per week and there are certain drought periods, say 1 week, where they have no rain, for example; and maybe more rain at other times, and this is, according to the Agriculture report, affecting both the quality and quantity of the crops.
Mr. RHODES. So this would be really supplemental irrigation?
Colonel BANE. Right, sir.
Mr. RHODES. And if you have 200,000 acre-feet available, you probably would be able to service about 200,000 acres on a supplemental basis?
Colonel BANE. Yes, sir.
Mr. RHODES. I would not imagine it would take more than 1 foot per acre.
Colonel BANE. Yes. I might add on this, as you know, we have already spent considerable money on the preconstruction planning; better than $2 million. We are getting awfully close to completing it and this other aspect, as far as we are concerned would certainly be advisable if we could at least complete the planning on the project
Mr. BOLAND. You have indicated that you do not at this moment know what the capability would be for implementing the irrigation benefit, and you are going to try to determine what dollar estimate you can place on this benefit.
When will you be able to determine what you would need for a restudy of this potential new benefit that has now been developed?
Colonel BANE. This is all part of the overall thing, sir.
Mr. BOLAND. Irrigation was never considered in connection with the overall study?
Colonel BANE. It would have to be considered in conjunction with the overall study.
Mr. BOLAND. When you arrive at some figure, why do you not supply it for the committee?
Colonel BANE. All right, sir. (The information follows)
“The cost of the irrigation study is $125,000." .
Mr. BOLAND. The benefit-to-cost ratio is shown as, 1.9 to 1. Does the escalation and price increase of this project alter the ratio? I know that the value of the benefits is increasing also.
ANNUAL BENEFITS
Colonel BANE. Annual benefits have also increased, $1.515 million, sir. Actually, the BC ratio has changed practically none since last year. This amounts to a rounding off of the figures.
Mr. BOLAND. Would this new irrigation benefit increase the benefit-to-cost ratio?
Colonel BANE. Again, sir, we would have to see what it could cost to do it, and I do not have the money right now is what I am saying.
Mr. BOLAND. What interest rate has been used in the determination of the current 1.9 to 1 benefit-to-cost ratio?
Colonel BANE. Three and one-quarter percent, sir.
Mi. BOLAND. Will you provide for the record a detailed breakdown of how the request of $807,000 would be utilized, indicating the items in order of priority?
I note that $639,000 would be required to complete the preconstruction planning, as you have indicated, after fiscal year 1971.
Colonel BANE. Yes, sir.
(The information follows)
The recommended appropriation in the amount of $807,000 for fiscal year 1971 would be used to perform preconstruction engineering and design work as necessary to permit commencement of construction on the diversion works at the Dickey site early in the third quarter of fiscal year 1973 and on the main dam at Dickey in the third quarter of fiscal year 1974. The above amount would be allocated as follows:
a Complete the mapping of the main damsite at Dickey and the sites of the saddle dikes and the cross sectioning of the St. Johns River between the Dickey site and the Lincoln School site: $71, 000
b. Continue and complete the subsurface exploration and sampling of borrow areas for embankment materials for Dickey-Lincoln School dams and the quarry for concrete aggregates: $170,000
c. Supplement the previously completed program of preliminary foundation explorations as necessary to verify the foundation conditions as final design proceeds on items under (f), (g),
and (h) below: $100,000
d. Commerce surveys and subsurface explorations for relocation of roads and cemeteries and start final design: $80,000
e. Develop the preliminary master plan and complete the preparation f property maps and real estate planning precedent to the initial construction activities: $100,000
f. Initiate and continue the final design of the works for diversion and control of the St. Johns River at Dickey and start preparation of contract plans and specifications: $120,000
g. Initiate and continue the preliminary design of the power plants at Dickey-Lincoln School: $100,000
h. Commence final design of the main earth embankments and spillway at Dickey: $66,000
Total ----------------------- $807,000
Again this year, Mr. President, the Senate has included $807,000 for the final year of preconstruction planning for Dickey-Lincoln School. Again this year, the House has refused to recognize the immediate and urgent need for the projects electric power.
The Senator from Louisiana (Mr. ELLENDER) has worked with my colleague from Maine (Mrs. SMITH) on the Appropriations Committee to overcome resistance to this project, and the people of Maine and New England appreciate his continuing support.