This hearing of the Senate Energy and Natural Resources subcommittee on water and power will come to order. The purpose of todays hearing is to receive testimony on water supply and drought issues. Well hear infrastructure and supply, planning and innovative management practice that are kritd to obtaining secure water supplies. This includes items crucial to arizona such as the colorado drought planning, better use of existing reservoirs. Reliable water supply and drought protection cannot be achieved without storage, infrastructure, management and planning. Its important that Congress Also consider the barriers that local communities face as they plan and pursue new Water Projects. I look forward to todays hearing to hear how state and local policies encourage judicious water use and how permit streamlining and regulatory predictability can ensure all solutions are on the table. Well also hear about innovations in Water Treatment technology and project financing that can help with Water Infrastructure and supply challenges. We live in an age, as we know, that you expect when you turn on the tap that theres water there, that the water will always be there. Which means that supply certainty is critical for managers. Protecting the sanctity of state water rights help ensure water certainty. As weve seen in arizona, providing this certainty can also unleash private investment and innovative partnerships that improve Water Management. Changes to existing infrastructure can be Cost Effective water strategy as well. Im glad that the committee will hear from several Witnesses Today who can speak to the importance of using the most up to date hydrology and forecasts in operating the existing reservoirs. I think that we can learn from this testimony and build on last years drought legislation to try to address critical water needs for arizona and the nation. Water managers on the ground have great ideas about how to increase water supply and drought resistance. I look forward to working with them on these efforts. In addition to the experts well hear from today, weve received a number of written statements for the hearing record and ill be considering that input as we move forward as well. As senator franken and i were talking just a bit ago, this is an important issue for arizona. I noted that for all of my life whenever it rains no matter where i was living when id see rain, id have the instinct to call my dad because as an old rancher, that was when he was in a good mood. Our favorite time as a family was to hop in the truck after a good rain to see which draws were running, which stock tanks would fill. That was our version of excitement in snowflake, arizona. Anyway, im glad were having this hearing. Im glad to have Ranking Member angus king from maine and turn to him for his opening statement. Thank you, mr. Chairman. Thank you to our expert witnesses joining us this morning, especially my c constituent from maine. Welcome to washington this time of year. Like me youd probably rather be in maine on a day in august. Well hear from a range of points of view this morning. Even in maine were not immune to the impacts of a fragile water supply due to drought conditions. We recently had our first drought in 14 years dh s which impacted 70 of our state. Almost half of our States Residents depend on wells for their water. And that drought finally ended this past april but it was a very serious matter for us. I understand my colleagues in the west probably arent very sympathetic to hearing about droughts in new england but they do occur. All regions of the country have these serious issues. Im looking forward to hearing about the different approaches that have been developed in other parts of the country. The critical nature of Water Management across the country has stimulated a variety of approaches to planning and financing. For example, well hear from martha shields from the new England Environmental Finance Center in regard to importance of Green Infrastructure improvements on the water supply. Im also looking forward to hearing how we can promote Public Private partnerships in Water Infrastructure projects and use the lessons in other areas where Infrastructure Improvements are in fact desperately needed. Well also hear about the value of planning and flexibility that we can provide in Water Management, how innovations in water use technology can make Water Management more effective. While we have different water concerns around the country and needs depending on where we are, we can certainly take lessons from these folks who have join us this morning to think differently and use more creative approaches to Water Management. Mr. Chairman, thank you for calling this hearing. I look forward to hearing from our witnesses with their testimony. Well, thank you. Well turn to the Witnesses Today. Thank you for joining us today. I will begin the panel with mr. Tom mashotski. I greatly appreciate the close working relationship we have had over the years and all youve done for the state of arizona on critical water issues. Youve been an important water leader for the state and we always look forward to having you testify here before the senate. Next shirley zane, chairman of the board of the Sonoma County water agency. Then martha shields,project director for the new England Environmental Finance Center. I must say these hearings are typically western focused, so its nice to have a witness here to talk about things going in maine. Then well hear from the president and ceo of thank you all for the testimony youll provide. Wed like to limit your remarks if you can for five minutes to have time for questions and your full remarks will be submitted for the record. With that well recognize you. Thank you. Im director of the Arizona Department of Water Resources. Thank you for providing me an opportunity to testify on behalf of the state of arizona. I have submitted written testimony for the record. My comments today will highlight see issues in that testimony. The Legal Framework, policy prescriptions, institutions and infrastructure needed to secure its resources, create certainty and prepare for drought. The state prioritizes internal actions but collaborates regionally and with the federal government. All while decreasing mined groundwater usage. For the past 20 years drought has been a constant in arizona. When shortage on the Colorado River is declared, about 84 of the total falls to arizona. This knowledge drives robust drought mitigation programs in the state. Now immaterial want to share s innovative actions in arizona. First the paolo verde long before reuse became a common practice. In 1986 and 1984 the landmark groundWater Management act whiz implemented to incentivize underground storage of water and effluent. The water can be used for drought management or for growth. The Arizona WaterBanking Authority was created in 1996 to back fill Colorado River shortages. It has stored over 4 million acre feet for arizona but has also stored 600,000 acre feet for nevada. Our underground storage credits can be marketed to others. Tribes lease water to others facilitated by federally authorized tribal water rights settlements. One reason the states policy is to settle rather than litigate tribal rights claims. There are 11 tribes in arizona with pending claims, so much work needs to be done. Turning to arizonas efforts to deal with drought impacts of the Colorado River even with the existing shortage criteria has risen to unacceptable levels. In response, arizona, nevada, california and the bureau of reclamation negotiated a draft drought contingency plan. The dcp further incentivizes the storage of Colorado River water in like mead. Under the dcp arizona and nevada would take additional reductions and for the first time california would take reductions to help protect critical lake mead elevations. Minute 323 would have mexico take actions equivalent to the dcp when both agreements are finalized. Arizona believes that congressional authorization directing the secretary of the interior to execute the dcp will be pursued when the dcp is finalized. That authorization will create certainty for all the parties. Collaboration and an all hands on deck approach is the future of the Colorado River. Within the state we will do more with our existing infrastructure. The bureau of reclamation and the operators completed a system use agreement earlier this year, something that chairman flake has been prodding the department of interior to complete. It allows for wheeling of knowledge project water. The agreement creates a Clear Pathway for the recovery of water stored underground and the transport of that water to entities who will be shorted by Colorado River reductions. It lowers their cost and creates flexibility. Another opportunity is use of a dedicated flood space at roosevelt dam. To date Environmental Compliance considerations and corps of engineers processing issues, streamlining the process similar to amendment inserted into the energy bill last year could help make that a reality. In conclusion, arizonas internal efforts to manage this Water Resources and its efforts on the Colorado River will be most successful in a setting where federal oversight is minimi minimized, regulation is reduced or streamlined. Thank you. Thank you. Thank you. Chairman flake, Ranking Member king and members of the subcommittee, thank you for the opportunity to testify today. My name is shirlee zane and i serve on the board of supervi r supervisors for Sonoma County california. Very proud to be here today to provide a local perspective on Water Management. Water is life. We have the pleasure and awesome responsibility to deliver safe, affordable Drinking Water 365 days a year 24 hours a day. Drought or flood, we must provide a secure water supply. There are two points that i would like to convey to the subcommittee this morning. First off, the rule uses for reservoir operations are woef woefully outdated. We manage two reservoir projects that provide water supply for the people in sonoma and marin counties. The u. S. Army corps the water control manual was created in 1959. Nearly 60 years later the manual has not been adjusted. In 2013, the corps was required to release 25,000 acre feet of rainfall from the reservoir because it had to adhere to the antiquated rule curve despite weather predictions that no rain was forecasted. The reservoir dropped to 25 of capacity later that season and Sonoma County lost water valued at tens of millions of dollars. If we had updated rule curve, Sonoma County would have been better positioned to adapt to the drought that followed the next four years. We are constantly managing water supply with an underlying goal of becoming more resilient. Not only is resiliency critical for security, but it also makes sense economically. We embarked upon an initiative in 2014 with federal and state partners to improve Weather Forecast modeling in managing reservoir operations. Better known as firo. It is a partnership with the corps, the bureau of reclamation, noaa. That document is attached to my testimony. Our ultimate goal is to put into place a modern rule for lake me mendicino. In california we experience atmospheric rivers. These provide about 50 of the yearly rainfall in california within just a few storms. The frequently and location of atmospheric rivers are are the primary drivers of floods and droughts. However rainfall forecasting beyond 1014 days remains unreliable. Lead time information about weather is crucial for operating water supply infrastructure. These forecasts are critical for improving efficiency of Water Project operations. Were working with the western States Water Council to build a coalition of stake holders committed to working with our partners at noaa to improve forecasting capabilities. The need for a global system to accurately predict our weather patterns is critical. Noaa is leading the way. The bottom line is this, better science leads to better data, and better data would greatly benefit reservoir operations. Were committed to working with this committee and other members of congress who support securing our water future by investing in better technology. We know that modern technology can be used more effectively to manage reservoirs in california and all across the west. Our future generations need us to act now to secure water supply. Thank you again for this opportunity to testify and im pleased to answer any questions you may have. Thank you. Thank you for this opportunity to appear today. I am martha sheils. Id like to make three key points. First, that clean water is essential for growing our economy prorand protecting our health. There are examples around our country on how state and local governments are saving money by investing in watershed conservation and Sustainable Management practices. And finally that the federal governments support although helpful should be expanded. Clean water is a critical component of the main brand and essential for attracting businesses, residents and tourists. In maine we now have two computer chip manufacturers with high paying jobs as well as a proliferation of micro breweries, all of which require high quality tap water and plentiful supply. Almost 20,000 jobs in the Tourism Sector depend on the bays health. A great example located in senator kings back yard is the sabago lake watershed. It supplies some of the cleanest Drinking Water in the country to the portland watershed. The portland Water District has a Sustainable ForestManagement Program to keep the watershed healthy and resistant to Invasive Species and fire threats. The bad news is that 90 of the watershed is privately owned and Development Pressures are threatening the districts epa waiver. Culvert upgrades, consultation easements and sustain forestry. These Solutions Cost approximately onethird of what it would cost to build a new filtration plant. If we add the other benefits like Wildlife Habitat protection to the avoided costs of not building a filtration plant, the net positive benefits increase tremendously. On a larger scale, new york city invested 1. 4 billion to purchase Conservation Land in the catskill mountains, ultimately saving approximately 5 billion compared to the constructing of a new filtration plant. Protecting natural infrastructure also pays off by mitigating flood damages. Tropical storm irene caused extensive damages in 2011. But downstream flows were far less because large conserved wetland complex absorbed the flood waters. Same with coastal flooding. Maines shoreline is increasingly vulnerable from Sea Level Rise and there are clear economic benefits from preserving and restoring coastal wetlands. In urban areas, built Green Infrastructure that mimics nature, things like green roofs and rain gardens are much more economical than sewer separation projects to manage stormwater. Because Green Infrastructure installments are many and diffused, they very well increase security by relying on a diversity of approaches rather than centralized facilities. The challenge for maine and the rest of the country is to better use existing funds to first of all protect existing natural infrastructure and second to promote built Green Infrastructure that mimics nature and more urban watersheds. Finally, financing programs at the federal and state levels should require or at least encourage Economic Analysis in the evaluation of projects that clearly show the costs, benefits and tradeoffs of projects as in the portland Water District and new york city examples. By doing so, the most Cost Effective projects should be chosen to encourage savings and generate multiple benefits such as Water Quality protection, resistance to Invasive Species, fire reduction, Wildlife Habitat and recreation opportunities, all at the same time. Adopt soun