Central Valley Project

A New State of Water

Central Valley Project

The land frauds and the landgrabs compose the shabbiest chapter in our history. We have 75 years now of conservation as a (federal) government policy, of husbanding, developing, and using the publically owned natural resources for the public benefit. So we have grown used to believing that such corruption, such raids on the treasury, such blind imbecility were ended for all time.

But at this moment some powerful interests are preaching that what was intolerable corruption on a scale of half a million acres becomes wise public policy if you up the scale to half a billion acres. They are calling on Congress to legalize a final, conclusive raid on the publicly owned resources of the United States.

1953, Bernard DeVoto on the public lands

The Central Valley

450 miles long40-70 miles wideLittle precipitation and bad timingExtremely fertileWater in wrong places Serious floodsSaltwater intrusion

Government Intervention

State supervision of irrigation districtsFlood controlValley wide planDecreasing ground water

Corps or Bureau?

Army Corps of Engineersprimarily flood control and navigationlevees and redirection

Bureau of Reclamationprimarily irrigationdams and canal systems

Compete over budgets and political power

Irrigation Districts

Not particularly successfulProperty –weighted voting

monopoly powerWater storage districtsKern County

125,000/250,000 votes!Local control failure to reach goals

Need Recognition

Dam on the Sacramento RiverAqueducts to both sides of ValleyWater to Bay AreaImproved navigationPrevent saltwater intrusionWater to LA areaElectricity production

Issues

Progressive movement losing influencePrivate PowerSCE and PG&ENorth worried about shipping water southExisting water rights holdersRiparian supersedes appropriative1928 vote “reasonable beneficial use.”County of origin law

Political Evolution

Depression – repudiate RepublicansFDR= government interventionRepublicans had to switch ideasThe pendulum

Depression and Drought

Increased pressure to build somethingJOBSNeed for Federal financingPubic or private power“No public power, no federal help”July 1933, bill passed the state

Revolt

Private power lobbyingLA againstNorth in favorValley in favorFederal takeover by Bureau

The Task

*20 dams*500 miles of canals*9 MAF*2.5 municipal consumers*3 million acres*Environmental benefits*5.6 MkWH*2 million customers*$34 million revenues

Reclamation Law

160 acresExcess sold within 10 yearsExcess sold at prices reflecting prior to waterNo interest on capital fundingCosts reduced by electricity revenues6% of owners held 53% of land!

Acreage Limits?

Many large farms predated the CVP“unearned increment” from CVPDinuba study

small farms = equality, higher living standards, schools and parks, and businesses

study buried

Technical Compliance

Post war philosophyIncrease Bureau’s budgetPost war technology (not in book)160 acres per shareholder or family member or employeeAccelerated payoffIgnore residency requirement Ignore “unearned increment”

The Partnership Between Gov’t and Private Enterprise

Jefferson Vs HamiltonShould the Gov’t aid, support, subsidize or ignore private business?Large business or small business? Labor relations?GDP or singing and dancing?

Public or Private Power?

Recall: Hoover Dam: LADWP and SCERecall Hetch Hetchy: Municipal sold to PG&EFarmers want what?Power to be delivered in the NorthLarge farms in the southSmall farms in the NorthWhat is the conflict?

Power’s Technical Compliance

Power to the BureauUsed for Bureau pumpsExcess sold to PG&EPG&E sells back to gov’tPG&E sells to customersCustomers subsidize PG&E (monopoly) and agribusiness

The Punch Line

Electricity users (northern cities, SF, and small farms) were providing $300,000,000 in subsidies to the (large) Central Valley Farms! Southern cities, LA, did not need the power