Federal Water Policy Remarks Announcing the Administration's Policy.

Last year, I asked Secretary Cecil Andrus to lead an interagency review of Federal water policy. And today, I'm sending to Congress a water policy message designed to achieve four basic objectives: one, improved planning and efficient management of Federal water policy programs, which will permit the completion of necessary water projects that are cost-effective, safe, and environmentally sound; two, a new national emphasis on water conservation; three, enhanced Federal-State cooperation in water policy and in planning; and four, increased attention to environmental quality. We will achieve these objectives without imposing any new Federal regulatory program for water management.

This policy recognizes that across the Nation there is remarkable diversity in the role that water plays. In most of the West, water is scarce and must be managed very carefully. Its use is governed by longstanding tradition and laws. In other areas of the country, flooding is more of a problem than drought. And in many areas, plentiful water resources have been offering opportunities for hydroelectric power and for navigation. Urban areas throughout the country face the need for rehabilitation of their drinking water systems. And everywhere, water is fundamental to environmental quality.

This policy recognizes the substantial benefits that water development has provided to our country. But our Federal water resource programs are now plagued by inefficiencies and environmental problems. These initiatives are specifically addressed to the four objectives of water policy.

First, to improve Federal water resource programs, I propose the use of new criteria and uniform procedures for the computation of project costs and benefits with an expedited interagency review to assure that projects are assessed rapidly and consistently, and cost-sharing to give States a more meaningful role in water project designs and decisions, yet to protect small States from undue financial burdens. Second, to establish water conservation as a new national priority, I'm directing all Federal agencies to incorporate water conservation requirements in all applicable programs, and proposing legislation to allow States the option of charging more for municipal and industrial water supplies from Federal reservoirs to encourage conservation, provided that the additional revenue is returned to the municipality.

Third, to enhance Federal-State cooperation, I'm proposing grant programs totaling $50 million to help States plan for their water needs and to implement water conservation programs, and creating a task force with State, local, and Federal officials to examine water-related problems and to deepen the partnership that this water policy review has begun.

Fourth and finally, to protect the environment, I'm requiring agencies to enforce environmental statutes more effectively, requiring agencies to fund environmental mitigation plans at the same time projects are being built, and seeking increased State cooperation in protection of in-stream flows and ground water resources.

I want to work closely with the Congress, with State and local governments, and with the public to implement this policy, to build needed water projects, to avert water shortages in the future, and to preserve our beautiful rivers and streams for tomorrow's America.

And now, Secretary Cecil Andrus, who has been instrumental in preparing this report which is going to the Congress, will be available to speak further and answer any questions that you might have.

Thank you.