[Senate Hearing 113-745] [From the U.S. Government Publishing Office] S. Hrg. 113-745 OVERSIGHT OF ARMY CORPS OF ENGINEERS WATER MANAGEMENT IN THE APALACHICOLA-CHATTAHOOCHEE-FLINT (ACF) AND THE ALABAMA-COOSA-TALLAPOOSA (ACT) RIVER SYSTEM ======================================================================= HEARING before the COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION ---------- July 22, 2013 ---------- Printed for the use of the Committee on Environment and Public Works [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://www.gpo.gov/fdsys S. Hrg. 113-745 OVERSIGHT OF ARMY CORPS OF ENGINEERS WATER MANAGEMENT IN THE APALACHICOLA-CHATTAHOOCHEE-FLINT (ACF) AND THE ALABAMA-COOSA-TALLAPOOSA (ACT) RIVER SYSTEM ======================================================================= HEARING before the COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ JULY 22, 2013 __________ Printed for the use of the Committee on Environment and Public Works [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://www.gpo.gov/fdsys U.S. GOVERNMENT PUBLISHING OFFICE 95-876 PDF WASHINGTON : 2016 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION BARBARA BOXER, California, Chairman MAX BAUCUS, Montana DAVID VITTER, Louisiana THOMAS R. CARPER, Delaware JAMES M. INHOFE, Oklahoma BENJAMIN L. CARDIN, Maryland JOHN BARRASSO, Wyoming BERNARD SANDERS, Vermont JEFF SESSIONS, Alabama SHELDON WHITEHOUSE, Rhode Island MIKE CRAPO, Idaho TOM UDALL, New Mexico ROGER WICKER, Mississippi JEFF MERKLEY, Oregon JOHN BOOZMAN, Arkansas KIRSTEN GILLIBRAND, New York DEB FISCHER, Nebraska MAZIE K. HIRONO, Hawaii Bettina Poirier, Majority Staff Director Zak Baig, Republican Staff Director C O N T E N T S ---------- Page JULY 22, 2013 OPENING STATEMENTS Sessions, Hon. Jeff, U.S. Senator from the State of Alabama...... 1 Rubio, Hon. Marco, U.S. Senator from the State of, prepared statement...................................................... 199 Southerland, Hon. Steve II, U.S. Representative from the State of Florida, prepared statement.................................... 200 WITNESSES Jackson, Brigadier General Donald E. Jr., Commander, South Atlantic Division, U.S. Army Corps of Engineers................ 6 Prepared statement........................................... 9 Responses to additional questions from Senator Sessions...... 15 Atkins, J. Brian, Division Director, Alabama Office of Water Resources...................................................... 87 Prepared statement........................................... 90 Turner, Judson H., Director, Environmental Protection Division, Georgia Department of Natural Resources........................ 172 Prepared statement........................................... 175 Munson, Gregory M., Deputy Secretary, Water Policy and Ecosystem Restoration, Florida Department of Environmental Protection.... 187 Prepared statement........................................... 189 ADDITIONAL MATERIAL ACF Stakeholders................................................. 202 Letters: Department of the Army, Moble District Corps................. 234 To Chairman Shuster and Ranking Member Rahall in reference to the Water Resources Develpoment Act (WRDA), dated May 13, 2013....................................................... 237 To Chairman Shuster and Ranking Member Rahall in reference to the Water Resources Develpoment Act (WRDA), dated June 3, 2013....................................................... 240 To Secretary Darcy in reference to the Water Supply Act of 1958 (WSA)................................................. 242 Department of the Army, Office of the Assistant Secretary Civil Works................................................ 244 State of Alabama, Officer of the Govenor..................... 245 Congressional Budget Office, Douglas W. Elmendorf, Director.. 296 Rick Scott, Governor of Florida.............................. 307 Department of the Army, Office of the Assistant Secretary Civil Works................................................ 309 Hon. Jo-Ellen Darcy, Office of the Assistant Secretary (Civil Works)..................................................... 312 Manufacture Alabama!......................................... 318 Alabama Pulp & Paper Council................................. 320 Apalach-Colo River Keeper.................................... 322 Business Council of Alabama.................................. 326 Alabama Department of Environmental Management............... 328 Coosa-Alabama River Improvement Association, Inc............. 344 Georgia Department of National Resources Environmental Protection Division........................................ 359 Water Contingency Planning Task Force........................ 375 Cobb County-Marietta & Water Authority....................... 417 The Wall Street Journal; In Latest War Between the States, Georgia Says Tennessee Is All Wet.............................. 428 ............................................................. OVERSIGHT OF ARMY CORPS OF ENGINEERS WATER MANAGEMENT IN THE APALACHICOLA-CHATTAHOOCHEE-FLINT (ACF) AND THE ALABAMA-COOSA-TALLAPOOSA (ACT) RIVER SYSTEM ---------- MONDAY, JULY 22, 2013 U.S. Senate, Committee on Environment and Public Works, Washington, DC. The committee met, pursuant to notice, at 3 p.m. in room 406, Dirksen Senate Building, Hon. Jeff Sessions (co-chairman of the committee) presiding. Present: Senators Sessions and Boozman. OPENING STATEMENT OF HON. JEFF SESSIONS, U.S SENATOR FROM THE STATE OF ALABAMA Senator Sessions. Good afternoon. Welcome to today's Senate Environment and Public Works Committee hearing entitled, Oversight of the Army Corps of Engineers Water Management in the Apalachicola-Chattahoochee- Flint and Alabama-Coosa-Tallapoosa River Systems. Today, the Committee will hear from both Federal and State officials about the status of the Corps' efforts in the ACF and the ACT basins and impacts of those decisions. I see my colleagues, Senators Isakson and Chambliss, who have been very alert to these issues. We have discussed it at length over a period of years. They have been very articulate in advocating for Georgia's position on this. Gentlemen, it is great to have you. I would be willing to have an opening statement from you. You have indicated you would like to submit statements for the record and I would be glad to receive them. That is your choice. Thank you for attending. Indeed, as we have all discussed over a period of years, we really need a compact between the three States involved and that has been difficult to achieve to date. [The prepared statements of Senators Isakson and Chambliss follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. The first panel will include Brigadier General Donald E. Jackson, Jr., Commander, South Atlantic Division, headquartered in Atlanta, Army Corps of Engineers and Hon. Jo-Ellen Darcy, Assistant Secretary of the Army, Civil Works. General Jackson and Secretary Darcy, thank you both for taking time out of your schedules to be here. General Jackson, congratulations on your recent promotion to Brigadier General. The second panel consists of State officials from three States that comprise the ACF and ACT basins, J. Brian Atkins, Division Director, Alabama Office of Water Resources; Judson H. Turner, Director, Environmental Protection Division, Georgia Department of Natural Resources; and Gregory M. Munson, Deputy Secretary for Water Policy and Ecosystem Restoration, Florida Department of Environmental Protection. Given my interest in the hearing, Chairman Boxer and Ranking Member Vitter have graciously invited me to serve as Co-Chairman. We expect sparse attendance today as the Majority Leader has not scheduled any votes today, so many of our members will not be returning from the weekend in their States. During consideration of the WRDA bill, there were many conversations and activities in this Committee and outside about concerns with the status of operations at Lake Lanier in the ACT system and Lake Allatoona in the ACT system. These challenging issues have been facing Alabama, Georgia and Florida for decades. As Atlanta continues to consume increasing amounts of water from these shared and limited water resources, it is imperative that all stakeholders have a full understanding of the actions the Corps of Engineers has taken or plans to take in the years ahead in the region. Officials from all three States will give testimony about the impact of the Corps' actions on their constituents, industries and ecological resources. I intend to ask Secretary Darcy and General Jackson questions to understand their plans for the ACF and the ACT basins and ask whether and how those plans follow the law, including the Water Supply Act of 1958. Ultimately, a reasonable resolution of this matter should come through an InterState Water Compact agreed to by Governors. For that to happen, I believe the Corps must implement existing law and not take sides in discussions. A primary focus of the hearing will be concerns about the Army Corps decisions at Lake Lanier and Lake Allatoona under the Water Supply Act of 1958. This important law ``declared it to be the policy of Congress to recognize the primary responsibility of the States and local interests in developing water supplies for domestic, municipal, industrial and other purposes.' Section B of the Act authorized the Corps of Engineers to allocate a portion of Federal reservoirs for municipal and industrial water supply. In subsection (d) of the Act, however, Congress imposed a requirement that Congress approve any such allocation that would ``seriously affect the purposes for which the project was authorized, surveyed, planned or constructed or which would involve major structural or operational changes.' Lake Lanier in the ACF and Lake Allatoona in the ACT impound rivers that otherwise flow downstream to communities in Alabama, Florida and other parts of Georgia. These communities depend upon that steady flow of fresh water for their livelihoods and environmental quality. Even though the reservoirs were not built for Atlanta's water supply purposes, the Atlanta area municipalities have made increasing use of those two reservoirs for that purpose, local municipal and industrial water supply. Just this year, the State of Georgia asked the Corps for a 280 percent increase in their contractually authorized storage allocation for Atlanta's water supply withdrawals from Lake Allatoona, almost three times more than their current allocation. In addition, this year Georgia has renewed its request for water storage at Lake Lanier, seeking as much as 30 percent of Lake Lanier's storage for direct withdrawals for Atlanta's water supply, where there is no current contract in place. This issue has raised questions from Florida, Apalachicola Bay and other areas. How will the Corps handle these requests? That is an enormously important question for the entire ACF and ACT basins. Clearly, these significant demands from one area have a severe impact on downstream communities. I would like to thank Chairman Boxer and Ranking Member Vitter for suggesting this hearing and their efforts on the issue. They desire that all of us work together where possible to reach common agreement. On May 16, Chairman Boxer and Ranking Member Vitter sent an important letter to Secretary Darcy correctly calling for an InterState Water Compact to address the ongoing water dispute in the region. They also correctly urged the Corps to serve as a neutral facilitator of a negotiated solution. Regrettably, in my view, the Corps has too often sided with Atlanta by accommodating massive water withdrawals to the detriment of my constituents in Alabama, as well as communities in Florida and other parts of Georgia. Towns like Eufaula, Columbus, LaGrange, Dothan, Gadsden, Montgomery, and Apalachicola, are all impacted. Around the time of the May 16 letter, Chairman Boxer committed to me that this Committee, which has jurisdiction over the Corps of Engineers, would hold a hearing on this topic. She has kept her word by allowing this hearing to occur today. I would say this is one of the few opportunities we have had, and the people in the region have had, to have witnesses from the Corps discuss these issues openly. My understanding is that General Jackson will offer an opening statement on behalf of the Army Corps and General Jackson will primarily respond to questions about technical issues and Secretary Darcy will respond to broader policy issues. Senator Sessions. Before we begin, I would like you to agree, if you would, to respond in writing within 30 days to a set of limited questions for the record that I would plan to submit following today's hearing. Ms. Darcy. Yes, sir. Senator Sessions. General Jackson. General Jackson. Yes, sir. Senator Sessions. General Jackson, you can begin your opening statement. We thank you. STATEMENT OF BRIGADIER GENERAL DONALD E. JACKSON, JR., COMMANDER, SOUTH ATLANTIC DIVISION, U.S. ARMY CORPS OF ENGINEERS General Jackson. Senator Sessions, as you mentioned, I am Brigadier General Donald Jackson, Commander of the U.S. Army Corps of Engineers South Atlantic Division. I am honored to testify before you today on the status of the Corps Water Management in the Apalachicola-Chattahoochee-Flint, ACF, and the Alabama-Coosa-Tallapoosa, ACT, river systems. The ACF basin originates in northeast Georgia, crosses the Georgia-Alabama border into central Alabama and follows the State line south until it terminates in Apalachicola Bay, Florida. There are five Federal reservoirs and ten non-Federal reservoirs in the ACF system. The ACT basin originates just north of the Tennessee- Georgia border extending to central north Georgia, crosses the Georgia-Alabama State line into north Alabama and continues across central and south Alabama before terminating in Mobile Bay. There are five Federal reservoirs and 11 non-Federal projects owned by Alabama Power Company in the ACT system. Corps' Mobile District is currently updating the basin-wide Master Water Control Manuals for the ACT and the ACT River systems through an open and deliberative process that includes preparation of an environmental impact statement for each system and solicitation and consideration of comments from the public and all interested stakeholders. The purpose of revising the manuals is to develop and implement updated, basin-wide operational schemes for the Federal projects in the two basins in accordance of their authorized purposes, in light of current conditions and applicable law. Water control manuals assist Federal water managers in operating individual and multiple interdependent Corps reservoirs on the same river system consistent with applicable law. Generally, a water control manual will include technical, hydrologic, geographic, demographic, policy and other information. The Corps uses these manuals to inform and guide its decisions on the management of waters in our reservoirs, which typically involve different operating regimes for times of high water, low water and normal conditions. The manuals contain water control plans for each of the reservoirs in the basin systems and specify how the various reservoirs will be operated as a system. As part of the update process, the Corps is preparing an EIS for each of the two Federal systems and is soliciting and considering comments from the public and interested stakeholders. These actions will result in updated plans and manuals for both systems that are consistent with applicable law and take into account changes in basin hydrology and demands from years of growth and development, new/rehabilitated structural features, legal requirements and environmental issues. In June 2011, the United States Court of Appeals for the Eleventh Circuit held that municipal and industrial water supply for the city of Atlanta, Georgia is an authorized purpose of the Lake Lanier project under the Rivers and Harbors Act of 1946 and remanded the matter to the Corps to determine the extent of its legal authority to accommodate the State of Georgia's request in 2000 for additional water supply withdrawals at and below Lake Lanier. On October 12, 2012, the Corps published a notice soliciting public comment on revising the scope of the EIS for the ACF water control manual update in light of these developments. The Corps published a revised Final Updated Scoping Report in March 2013, providing notice that the Corps is evaluating additional water supply alternatives within the scope of the ACF water control manual updated and EIS, including Georgia's updated request for water supply. The Corps has not yet decided on a proposed mode of ACF system operations. The proposed operations will be identified in the draft water control manuals and EIS. These documents will be made available for public comment before any final decision is made on how the system should be operated. The ACF Water Control Manual update and the EIS are being prepared in accordance with Corps regulations, the National Environmental Policy Act and all applicable law. As part of this effort, the Corps will consult with other Federal agencies as required, including consultation with the U.S. Fish and Wildlife Service. The draft water control manuals and EIS will be released for public review and comment in accordance with NEPA and requirements in the Corps regulations. Similarly, the draft water control manuals and EIS will undergo quality control/ quality assurance reviews to include agency technical review and independent external peer review. The Corps is currently in the technical analysis stage of the ACF manual update. We expect to reach the next major milestone in the process about 2 years from now, when we file a draft EIS with the Environmental Protection Agency and release the draft water control manual and draft EIS for public review and comment. The ACT Water Control Manual update and EIS are also being prepared in accordance with applicable law. The draft water control manual and EIS were released for public review and comment on March 1, 2013. The Corps is currently evaluating the public review and independent external peer review comments it received on these draft documents. The draft Water Control Manual and EIS for the ACT reflect the existing water supply storage at Lake Allatoona pursuant to contracts entered under the Water Supply Act of 1958. Those contracts remain valid and the operations we are considering in the water control manual update process assume that withdrawals will continue as contemplated under these contracts. In summary, the purpose of both the ACF and the ACT manual updates is to improve the information and guidance that the Corps uses to operate the Federal dams in these basins in accordance with applicable law. We operate the dams in each basin as a system and will continue to do so. The updates will take into account changes in basin hydrology and demands from years of growth and development, new/rehabilitated structural features, legal requirements and environmental issues. Throughout this process, the Corps encourages the active participation of all stakeholders, and the Corps will carefully consider all comments received. Senator Sessions and members of the Committee, this concludes my testimony. I look forward to continuing to work with the Committee on these very important issues and answering any questions you may have. [The prepared statement of General Jackson follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. Thank you, General Jackson. Secretary Darcy. Ms. Darcy. Senator, I do not have a prepared statement but I am happy to be here to support General Jackson and answer any questions you have about the update for the manuals. Senator Sessions. Let's look at a few of the fundamentals. You cite, General Jackson, that you assume the contracts remain in force. I believe you indicated that the flow from Lake Allatoona would continue. Is that correct? General Jackson. The water control manual update for the ACT only recognizes existing contracts in effect today and do not reflect any increased requests for water withdrawals by the State of Georgia out of Lake Allatoona. Senator Sessions. Are you saying that the established amount is the amount in that contract or the amount actually being withdrawn now? General Jackson. Sir, we recognize the amount that is in the contract. Senator Sessions. The way this historically arose I have discovered is that Congress was concerned about being in a position of financing water supply projects for cities, counties and areas. The policy was clear that Congress would not pay for developing peoples' water systems. In cities like Birmingham, they pay for their own. This is a chart that shows a quote from Mayor Hartsfield, the famous Atlanta Mayor, back in 1948 about these projects and whether or not he would contribute and whether or not he wanted it to be done so that Atlanta could participate in getting water from it. He said, ``The city of Atlanta has many sources of potential water supply in north Georgia. Certainly in view of other possible sources of Atlanta's future water, we should not be asked to contribute funds to a dam which the Army engineers have said is vitally necessary for navigation and flood control on the balance of the river.' It would seem to me, General Jackson, that Atlanta's Mayor at the time said they would choose not to participate in this and did not desire any water from the system. Is that the way you would understand that quote? General Jackson. Sir, I apologize. I am not familiar with that quote. I do not have a response for that. Senator Sessions. It is pretty obvious to me you need to be thinking about it as you go through this process. Gerald Ford was a Member of Congress about this time. He was a frugal man and he raised this question at the hearing: ``Is it not conceivable in the future that the city of Atlanta will make demands on the Corps for certain water at certain times because of the needs of Atlanta when at the same time, it will be for the best interests of the overall picture, power, navigation, flood control, to retain the water in the reservoir?' Are you familiar with that question? General Jackson. No, sir, I am not. Senator Sessions. Colonel Potter replied, ``We would have to come back, I believe, to Congress to alter the authorization of that project were it a major diversion of the water. We take a very dim view of changing a project to the subsequent needs without Congress having a hand in it.' That sounds like pretty good policy, does it not? If Congress authorizes a dam for a series of purposes, the Corps of Engineers does not have the authority to alter that purpose, does it? General Jackson. That is correct, sir. We follow the authorized purpose of our projects as directed by Congress and the authorizing legislation. Senator Sessions. That is what we are talking about. We have some concern about that with regard to Allatoona Reservoir. First, let me ask, you support, I suppose the goal, I think most of us do, that there be a compact between the Governors? That is what Chairman Boxer and Ranking Member Vitter said in their letter to you. I think most of us advocate that. Is it your belief that is the best way to fix the problem? Ms. Darcy. Yes, Senator, that has been the longstanding view of the Army, that a compact between the three impacted States would be the best resolution for this issue. Senator Sessions. With regard to Cobb County and the Lake Allatoona Reservoir, there is a contract, is there not, executed in 1963 that allows, in effect, 4.6 percent of the reservoir to be utilized for water resources for Cobb County? General Jackson. Senator, there is a contract in place. I am not familiar with the exact numbers of the withdrawal but there is a contract in place. Senator Sessions. You need to know that. It was allocated just over 13,000 acre feet in that contract, is that correct? Do you know? General Jackson. Sir, I apologize. I am not familiar with the exact numbers of the withdrawal amount. Senator Sessions. That is about what it is as I read it. Now they are proposing a new contract of 14 percent, three times that amount. Are you aware of that? General Jackson. Sir, I am aware of a request submitted to Ms. Darcy by Governor Deal for increased water withdrawals at Lake Allatoona. Senator Sessions. Those increased withdrawals could effectively amount to reallocating the purposes of that by the reservoir from its original constructed purpose by the Federal Government, could it not? General Jackson. Sir, we are in the process right now, as I mentioned before, of completing the water control manual for the ACT system based on the authorized purposes as currently outlined and taking only into account those storage agreements currently in effect. That is what we have agreed to do and that is how we are proceeding with the water control manual update. Senator Sessions. Fill me in on that a little bit. You are redoing your manuals consistently with the contract that is in place, is that what you're saying? General Jackson. That is correct, sir. Senator Sessions. That would be the 4.6 percent of the reservoir or whatever is in that contract? General Jackson. Yes, Senator, whatever is reflected in the current contract. Senator Sessions. Secretary Darcy, are you aware that periodically over the years Congress has altered these kinds of contracts through explicit legislative action if they were to be changed? Ms. Darcy. Yes, it would take an act of Congress in order to change the project purpose. Senator Sessions. I know if our Governors can reach an agreement, I am sure that our Senators would reach an agreement. We could pass such legislation necessary to fix the disputes that we have. Are you aware, General Jackson, that Cobb County is drawing far more water today from that reservoir than is allowed under the contract? General Jackson. Sir, we monitor withdrawals from Lake Allatoona in support of the water supply contracts on a routine basis. We expect all users who are abiding by the water supply contracts to follow those water supply contracts. When we find out they are exceeded, we notify the individuals in writing and let them know they have exceeded their water supply contracts. We continue to monitor that and work with the Department of Justice for any adjudication that needs to occur. Senator Sessions. You acknowledge that according to Corps policy, the amount of water taken out by Cobb County far exceeds the contract amount? General Jackson. Sir, I am aware that they have been exceeded in the past but I am aware currently they are within the terms of their contract. Senator Sessions. You believe they are within the terms of the contract? General Jackson. That is my understanding at present, yes, sir. Senator Sessions. Are you counting return flow downstream or not in that evaluation? General Jackson. We don't attribute return flows giving them credit for the portion of the contract they have. We do monitor return flows but only as general basin inflows inside a water-controlled basin. The folks of Cobb County do not get credit for return flows into Lake Allatoona as a result of their contract. Senator Sessions. That is my understanding of Corps policy nationwide. General Jackson. Yes, sir. Senator Sessions. That is an important question. We have a pretty big difference of opinion. I hope you are correct in saying Cobb County is operating consistently at their contract level, but I have been informed they are well above the contract level. I was informed that during the 2007 drought, by the Corps' own calculation, Cobb County was using three times more storage place for water at Lake Allatoona than the contract allowed. It was allocated just over 13,000 acre feet and it was using over 39,000 acre feet. At 39,000 acre feet, that is 14 percent of the Lake's conservation pool and the Corps had to cut back on hydropower generation to protect that supply. Are you aware of that? General Jackson. Senator, as I mentioned earlier, I am aware of previous infractions and we have notified the contract holder in writing of its excedences and we continue to monitor on a daily basis what is taken in and out of the lake as a result of those contracts. Senator Sessions. Would you acknowledge that at a time of drought, as occurred in 2007, exceeding substantially the amount of withdrawals would be particularly problematic for downstream individuals depending on that water flow? General Jackson. I would agree that in periods of drought, there is significant impact up and down the basin to all users. Any excedences would certainly cause additional problems for users downstream. Senator Sessions. I would agree. If you make an operational change in that water supply flow with Allatoona, it would be require congressional approval, would you agree? General Jackson. As laid out for us in the Water Supply Act of 1958, any operational change we make as part of our water control manual update would remain, at this time, under the delegated discretion of the Chief of Engineers, assuming it does not include a major structural change, a major change in operation or a significant impact to the operational purposes for any of the authorized purposes for that reservoir. Senator Sessions. Would you repeat that? I am not sure I fully got that. Will you repeat what you said? I am not sure I fully understood that. General Jackson. You asked me about a reallocation of water? Senator Sessions. Yes. General Jackson. What I referred to is in the water control manual update we are currently doing, I am not sure. If you could rephrase the question, I want to make sure I answer your question correctly. Senator Sessions. I am not sure I can do that. Actually, I was asking you if there was a major operational change in water withdrawal by Cobb County or anyone else would it require congressional approval? The Corps of Engineers is not empowered to make those kinds of policy decisions. General Jackson. Any major changes or effects that fundamentally depart from the congressional intent of that particular project would require congressional authorization. Senator Sessions. The Water Supply Act says, among other things, that Congress must approve a major operational change, I believe is the phrase. I am informed that Cobb County, by its own admission, has exceeded for decades the contractual amount of water storage and they basically claim that their return of the water counts and therefore, they are entitled to do it and intend to keep on doing it. This has been going on for quite a long time, decades, and the Corps had done nothing about it. This is causing some unease downstream. That is our problem. Do you dispute that they have drawn more than the Corps policy allows consistently? General Jackson. All I can do is refer to my previous comment. I have been made aware of previous excedences which we have addressed in written correspondence with Cobb County. Senator Sessions. When you get back to Atlanta, you should be able to ascertain these amounts of flows and withdrawals. Would you submit a report to us setting forth how much has been withdrawn from that reservoir since the contract was in force? General Jackson. Yes, Senator. Senator Sessions. One of the things that concerns us is when it appears contracts are not being enforced, the Corps may be overlooking its deep fundamental responsibility to deal with the multi-State problem that has impacts throughout the region. Therefore, a Corps agreement with one city, county or State has to reflect the impact it would have on the other areas of the State. Really, that is why Congress maintained and kept for itself final authority to amend the congressionally passed purpose of these reservoirs. If it is changed, Congress would change it and it would represent a national decision, not a local decision. Do you think that is sound policy? General Jackson. I believe as spelled out in the Water Supply Act of 1958, that is sound policy. Senator Sessions. The environmental impact statement, if you change the manuals, the flow rate and the withdrawal rate, an environmental impact statement is required? General Jackson. Yes, Senator, it is. Senator Sessions. I have been informed that you intend to use the contractual amount as the authorized amount when you do the environmental impact statement, but if the historical flow coming out of there is greater and that withdrawal rate is going to be approved in the future, wouldn't you have to do an environmental impact statement on the larger flow rather than the contract flow? General Jackson. I am assuming you are talking about the ACT Water Manual update? Senator Sessions. Yes. General Jackson. We are basing our water control manual update on what is in the contracted amount. Senator Sessions. What if you take out more than that? Are you telling me you're going to stay at that contract amount? General Jackson. Senator, yes, I am. Senator Sessions. Let me ask you about the modified fall releases under the proposed Lake Allatoona manual. The Corps' decision or effort to alter the elevation levels in the Lake from October 1 through November 15 of each year, would simply extend a recreation system at Lake Allatoona, but fall is the dry time of the year and can have a big impact downstream. In other words, you maintain high levels of the Lake from October through mid November through retaining water, not allowing it to flow as you have before and that could have a significant impact downstream during the fall season which is traditionally dry. If it follows a dry summer, it can be particularly problematic. Why would you want to change that and reduce the flow downstream at that time of the year? General Jackson. I am not intimately familiar with all the details of that. I would have to refer those to my technical experts and reply in writing to the Committee. Senator Sessions. This would be very important to us because there is a good deal of concern on that. It seems to me it would violate the common sense objective that the point of a reservoir is to store water so it is available for release when there is a shortage of water downstream. Lake Lanier, in light of the unequivocal congressional testimony by the Corps officers in the 1950's and the passage of the 1956 Act, the Act actually amended the flow to 10 million gallons per day by congressional action. I am concerned and wouldn't it be consistent with that previous precedent that Congress would be called upon to approve or not, Lake Lanier allowing withdrawal of 170 million gallons a day in water. Wouldn't Congress need to be involved in approval of that? General Jackson. I am not quite sure I understand your question. Could you please repeat the question? Senator Sessions. In 1956 after the lakes had been built, there was a desire to get more water from Lake Lanier. Congress approved 10 million gallons per day in withdrawal from the lake. Now it appears we are talking about 170 million gallons per day. Wouldn't that take congressional approval for such a large increase? General Jackson. It is my understanding Congress has delegated to us authority to make certain changes administratively without additional legislation as long as it does not require or cannot involve a major structural change, major operational change or seriously affect any of the authorized project purposes. Senator Sessions. In 1956, you apparently felt it was necessary to get approval for 10 million gallons per day. It seems to me if you jumped that to 170 million gallons per day, you for sure ought to get congressional approval. Would you agree? General Jackson. I can only follow my interpretation and understanding of the authority we have under the Water Supply Act of 1958. That is the process we are following now as we take a look at Lake Lanier and the ACF system. Senator Sessions. With regard to Lake Lanier, we have the Eleventh Circuit opinion. It has been cited as a victory for the Georgia position and I suppose it is in some ways but also, in a footnote, it was quite clear that it only allows more releases of water from Lake Lanier if there is a withdrawal of water downstream for Atlanta or the other areas in the metropolitan area. Is that the way you understand the decision? General Jackson. My understanding of the decision was that it authorized water supply as an authorized purpose for Lake Lanier. Senator Sessions. That is an overstatement of it, I think, and you need to know this. You need to go back and have your lawyers look at it because it explicitly did not approve direct withdrawals of water from the reservoir. It indicated that water could be released from the reservoir to flow downstream if it was needed downstream to be captured for water supply in the region. Do you understand it that way? General Jackson. I will have to refer to my lawyers to make sure that I do understand it correctly. Senator Sessions. You should talk to your lawyers and make sure your lawyers are thinking correctly too, because a bit of his memorandum I think goes beyond what the opinion said. I would offer for the record some analysis we did of the memo by Mr. Stockdale, the Chief Counsel for the Corps. We questioned some of the opinions in his memorandum. Without objection, it will be accepted. [The referenced information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. The downstream areas, Florida and Alabama particularly, have been concerned about a possible bias of the Corps toward Atlanta on these water issues over quite a long time. It is causing a number of problems. Will you agree to take a close look at the letter submitted by Chairman Boxer and Ranking Member Vitter and the comments filed by the Alabama and Florida stakeholders and not favor any one State but follow the law as plainly written? General Jackson. We follow all of the authorized purposes for the system and all the applicable laws that are appropriate. We do consider all comments and work collaboratively up and down the system as we work to make decisions on our operations manuals as they are being developed. We will, in fact, consider all comments as I mentioned in my statement from members of the public and stakeholders in regard to these issues. Senator Sessions. I am asking a little more than that. I am saying will you ensure that you follow the recommendations of Chairman Boxer and Ranking Member Vitter and not favor any one State but follow the law? General Jackson. Yes, sir, we will follow the law. Senator Sessions. Would you agree that it is not permissible under the law to take the water first and then get a legal authority later? General Jackson. We follow the authorized purposes and what is represented to us in law. That is how we will work our alternatives for water that would be withdrawn to meet any requests or project purposes. Senator Sessions. One of the questions suggested from Florida is this. Does the Corps agree with the U.S. Fish and Wildlife Service's assessment that projected increases in Georgia's consumptive uses will increase the frequency and duration of low flows in Florida's Apalachicola River? General Jackson. I am not quite sure I understand. Senator Sessions. Do you agree with the Fish and Wildlife Service's assessment that the increases in Georgia's consumptive uses of water, withdrawal of water, will increase the frequency and duration of low flows in Florida's Apalachicola River? General Jackson. Senator, I have not seen that Fish and Wildlife Service opinion. Senator Sessions. You can get back with us on that, but I would note that is the Fish and Wildlife Service's opinion. It seems pretty obvious. Has the Corps determined the maximum amount of water that Georgia can consume without affecting the downstream? General Jackson. No, Senator, we have not. That is part of what we will be doing in our water control manual. Senator Sessions. How will you do that? What kind of testimony or evaluation will occur to determine the impact downstream? General Jackson. We will do a complete environmental impact study as part of our water control manual update process. We will take in information from all affected parties up and down the water basin. That will be the basis for what we use to develop our alternatives for consideration for our water control manual operational updates. Senator Sessions. With regard to withdrawals from Lake Lanier and Lake Allatoona, Georgia is violating your contract or otherwise having favorable benefits, do you understand how that can undermine the ability of the Governors of Florida and Alabama to negotiate with the Governor of Georgia? In other words, if the Governor of Georgia is able to obtain the kind of withdrawal rights he or she would want, they have little incentive, wouldn't you agree, to negotiate some sort of permanent agreement with Florida and Alabama? General Jackson. I will attempt to answer that, Senator. We expect any water supply user who has a contract to follow the guidelines set forth in their contract. I don't think I am the right person to determine whether or not Governors could or wouldn't get together to discuss what actions they might take in the future. Senator Sessions. I would sum it up this way. It is hard to have negotiations if we are looking the other way on the withdrawal rates from those two lakes and the Corps of Engineers is allowing Georgia to get a flow larger than they would otherwise be entitled to. It is difficult to have negotiations with Florida and Alabama because otherwise they have gotten what they wanted. I think you should think about that. Maybe Secretary Darcy, you could comment on that but it is a very real thing. That was explained to me previously as one of the impediments to being able to get an agreement among the States. Ms. Darcy. Senator, I think because of our ongoing look at the water control manuals and the fact they will not be completed, one of them will not be completed even for public comment until 2 years from now that within those 2 years hopefully the States will be able to come to some agreement because there will not be any finality to any kind of withdrawals between now and then. Senator Sessions. Thank you. I have a statement for the record from Senator Vitter, the Ranking Member. I also have a letter from Governor Scott of Florida who has been a very strong advocate on this issue and takes it very seriously. The same is true for Congressman Steve Sutherland of Florida. They have both been strong about this issue and are deeply concerned. I would offer statements from both of them for the record. I would also ask consent to enter the statement from Senator Nelson. He also has been very aggressive on this issue and has discussed legislation and other actions that might occur. I know Senator Nelson is deeply engaged in it. [The referenced information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. Senator Rubio, I understand, is having field hearings in Florida about this subject. He feels strongly about it. I would share with you that it is a matter that is very important. You are in a very difficult position. I would urge you to make up your mind and just follow the law as it is. I appreciate what I think you are saying, General Jackson, that you are going to comply with the contract because I don't see how we could have a contract with Cobb County and allow it to be systematically violated substantially over a long period of time and then somehow reach an accord with them that Alabama could accept and that is the level of withdrawals that are going to be allowed. Senator Boozman, thank you for joining us on a Monday afternoon. There are not many in town but we are glad you are here at your post. Senator Boozman. Thank you. We appreciate having you all here and appreciate working with you. General Jackson was in Little Rock and I had the opportunity to work with him very, very closely. He did an outstanding job there and I know he has done an outstanding job at his present post. It is always good to see you, Secretary Darcy. We do appreciate your hard work. When you talk to the future, water is always No. 1 or two. Energy and water are the two things that are the drivers. I think this problem, and it really is a problem and not an easy problem at all, but certainly illustrates how important these things are. We appreciate your having the hearing and shedding further light, Senator. Thank you all. Senator Sessions. As an Alabamian, I think I speak for all Alabamians and the Governor that we understand north Georgia needs water and we can work this out. We have gotten close a couple of times to reaching an agreement. Then one side or the other wins some lawsuit, the momentum seems to switch and they harden their position. No agreement is reached and usually some lawsuit turns the other way before long. We continue without an agreement. I hope that you will help us facilitate neutrally an agreement. I would offer for the record an index of organizations and persons who filed comments on the ACF master manual process, including the Alabama Office of Water Resources, Apalachicola Bay Chamber of Commerce, Apalachicola River Keepers and also a document provided by the ACF Stakeholders Group, a diverse group of cities, counties, industries, businesses, fishermen, farmers, environmental, conservation, recreational groups from all three States working together to achieve a common goal. We also have written comments of the Coosa Alabama Improvement Association submitted to the Army Corps of Engineers Mobile District and written comments recently submitted to the Army Corps by other organizations in Alabama concerned about the ACT master manual. You will have a lot of documents to read. [The referenced information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. Is there anything else you would like to share before we move to the next panel? Ms. Darcy. No, but thank you, Senator, for this hearing. Senator Sessions. Thank you all and I appreciate the opportunity to ask these questions. We will now have the second panel: J. Brian Atkins, Division Director, Alabama Office of Water Resources; Judson H. Turner, Director, Environmental Protection Division, Georgia Department of Natural Resources. You are a Bradley Arant attorney, Mr. Turner, previously? Mr. Turner. Previously, yes, sir. Senator Sessions. I will have to be careful asking you any questions. We also have Mr. Gregory Munson, Deputy Secretary, Water Policy and Ecosystem Restoration, Florida Department of Environmental Protection. Gentlemen, if you would share your comments with us at this time, we would be pleased to receive them. STATEMENT OF J. BRIAN ATKINS, DIVISION DIRECTOR, ALABAMA OFFICE OF WATER RESOURCES Mr. Atkins. Thank you, Senator Sessions. Senator Sessions and members of the Committee, the State of Alabama believes it is vital for Congress to retain its authority under the Water Supply Act of 1958 to approve any substantial reallocation of Federal reservoirs for local water supply uses. Alabama is keenly interested in this issue because it is downstream from major Federal reservoirs in the Alabama-Coosa- Tallapoosa River Basin, also known as the ACT River Basin, and the Apalachicola-Chattahoochee-Flint River Basin, also known as the ACF Basin. Increasing use of those reservoirs to serve local water supply needs in the Atlanta leads to lower downstream flows in both basins. Those lower flows inflict substantial environmental and economic damage on Alabama communities and Alabama citizens. Lake Allatoona in the ACT Basin and Lake Lanier in the ACF Basin were both constructed in north Georgia in the middle part of the 20th Century for three primary purposes: flood control, hydropower generation and downstream navigation support. These purposes are legislatively mandated in the bills authorizing construction of the reservoirs. As the Atlanta metropolitan area has grown, water supply providers in that region have failed or refused to construct their own water supply reservoirs and thus avoided expending hundreds of millions of dollars in construction costs. Instead, providers in the Atlanta metropolitan area have made massive withdrawals from the Federal reservoirs and the Corps has allowed these withdrawals. In doing so, the Corps has bypassed the required congressional approval. In the Water Supply Act of 1958, Congress expressly recognized that the obligation to meet water supply needs rests primarily with the State and local governments. While Congress in that Act contemplated some limited use of Federal reservoirs for water supply, Congress expressly reserved the right to approve any water supply usage that would involve major operational changes or cause serious effects to the authorized project purposes. Rather than go through the appropriate congressional process to seek permission for water supply usage at Lake Allatoona and Lake Lanier, Atlanta area interests have simply taken water without any legal authority to do so. It has been a take first, seek permission later mindset and much to the dismay of Alabama, the Corps of Engineers has been complicit in this improper water grab by taking no steps to curtail the unauthorized use of Federal resources. It is even worse than that. Not only has the Corps failed to prevent the massive and illegal water supply uses of these two Federal reservoirs, but the Corps also has taken steps to curtail operation of the projects for their congressionally authorized purposes in order to protect Georgia's water supply usage at the expense or the downstream States, Alabama and Florida. Furthermore, the Corps has given a pass to Atlanta's contractual violation of the water storage agreements and permitted excess water storage in violation of its agreements and of the Water Supply Act. The results of this course of conduct have imposed serious costs and harm on downstream communities which were most severe during the 2007 drought. Water quality in Alabama lakes and river segments deteriorated badly. Local Alabama water supply providers had to incur huge costs to treat the degraded water in order for it to be fit for public consumption. Levels of Alabama reservoirs dropped sharply inflicting major economic damage on Alabama's recreation industry. Numerous industrial plants were threatened with shut down because it became more and more difficult for those companies to meet their environmental permit requirements as a result of the degraded water in the rivers. The electric grid in Alabama was also threatened due to those types of environmental permit issues. What is happening is crystal clear. Georgia wants Alabama to take less water than it has always received historically so that Atlanta may take more water in order that Atlanta may expand at the expense of downstream communities and without regard to the ecological effect. If Alabama simply wants to maintain its historical usages and flows, then it will have to spend hundreds of millions of dollars on infrastructure so Atlanta does not have to pay for its own development. Congress clearly understands that many Federal reservoirs sit in basins that cover multiple States. The need for congressional approval of significant water supply uses of Federal reservoirs is vital to ensure that a proper balance is struck. Upstream communities should not be allowed to disrupt settled usages and expectations of downstream communities through unauthorized and improper usage of Federal reservoirs built with Federal taxpayer dollars. Senator Sessions, members of the Committee, the Corps and Atlanta have ignored the plain language of the Water Supply Act that would have required congressional approval for the water grab that has taken place. Alabama urges this Committee to strengthen the language of the Water Supply Act so that Congress' proper role in controlling local water supply uses of Federal reservoirs is maintained. Thank you. [The prepared statement of Mr. Atkins follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. Thank you very much. Mr. Turner? STATEMENT OF JUDSON H. TURNER, DIRECTOR, ENVIRONMENTAL PROTECTION DIVISION, GEORGIA DEPARTMENT OF NATURAL RESOURCES Mr. Turner. Good afternoon, Senator Sessions and members of the Committee. My name is Jud Turner and I am the Director of the Environmental Protection Division of the Georgia Department of Natural Resources. Georgia EPD is the State agency responsible for managing the State's surface waters and groundwater. I appreciate the opportunity to share Georgia's perspectives on the Corps of Engineers' management of the Federal reservoirs in the ACF and ACT basins. I have submitted written testimony that I ask to be submitted for the record. I will not read that testimony in full but make a few broad points from it. Senator Sessions. We will make it a part of the record. Mr. Turner. Thank you, sir. There are two principal reasons I believe we are at this juncture with respect to the interState river basins at issue. First, for much of the last 23 years, Senator Sessions, you referenced this, the Corps has been involved and often thwarted in finalizing new water control manuals for the ACF and ACT basins as required by law. Second, recent multi-year droughts that were longer and more severe than any we have seen before have increased the scrutiny and concern of stakeholders in all three States. Had the Corps been able to update the water control manuals before now, it might have better managed the reservoirs to the benefit of all users, upstream and down. We might also have answers to some of the questions that Alabama and Florida have raised in their testimony today. Instead, often paralyzed by litigation and political pressure, and unaided by environmental and economic studies that would have accompanied properly developed plans, the Corps has operated on an ad hoc and trial and error basis. Each State has had its complaints regarding the Corps' operation of these reservoirs. This paralysis has blocked the development of complete, up to date plans, and has not served any State well. Whether one is talking about the ACT or the ACF basins, the perception among stakeholders in downstream States, as evidenced by testimony today submitted by representatives from Florida and Alabama, the belief is the Corps and water users in Georgia are responsible when stream flows fall. The Corps, as this narrative goes, should release more water and all the problems would be solved. While I can empathize that people are hurt by drought, we too feel this pain in Georgia, the facts simply do not support that Georgia or the Corps are to blame for these effects. Per capita water consumption in the metropolitan Atlanta area is less than per capita water use in Montgomery, in Mobile, in Birmingham and in Tallahassee. The metropolitan Atlanta's total consumption of water from Lake Lanier and the Chattahoochee River in 2011 was a net 171 cfs. That is less than 1 percent of the average flow in the Apalachicola River at the State line in a normal year and less than 2 percent of that flow in a drought year. In the ACT Basin, the metro Atlanta water consumption is around 1.2 of the average flow at the Coosa River at the State line and around one-half of 1 percent if you measured the flow at the Alabama River. The facts are that metro Atlanta's use has almost no effect at all on the flow into Alabama and Florida. The downstream perceptions about the effects of the Corps operations are similarly misplaced. Take the stream flow in the Apalachicola River. That is an instance where the Corps operations have helped, not hurt, Florida. During the last two drought cycles, natural inflow into the ACF Basin has fallen to approximately 50 percent of normal levels. The Corps provided a great deal of augmentation from storage to mitigate the effect, but it can only do so much. Had the Corps drained all the conservation storage in the ACF Basin over the course of the drought to provide the maximum possible flow augmentation, it would have only replaced 4 percent of the natural 50 percent drop in the natural basin inflow. The Corps has operated the Federal reservoirs in Georgia to a State line flow target at Jim Woodruff Dam that was much above the amount of water entering the basin. For recent drought years in particular, take 2006, 2007, 2011 and 2012, the augmentation numbers are staggering. From 2006 through 2007, the Corps used 850,000 acre feet of storage drawn down to meet the State line flow requirement at Woodruff. That target was often 5,000 cfs when natural inflow was 3,000 csf or lower for extended periods of time. Often, this is 2,000 cfs of augmentation coming out of these Federal reservoirs hour after hour, day after day during the droughts. In 2011, the Corps drew approximately 700,000 acre feet from storage and in 2012, 570,000 acre feet. When it comes to the effects of drought, these reservoirs unequivocally help, not hurt. There are similar misconceptions about the ACT. Unlike the Federal reservoirs in the ACF, those in the ACT Basin, Allatoona and Carters, encompass only a small portion, 17 percent, of the total basin storage. The rest is in reservoirs in Alabama. Similar to Lanier, however, draining the reservoirs in Georgia will not solve the problems of drought. The 2006 and 2008 is instructive, State line flow from Georgia supported heavily by augmentation releases by Allatoona made up 80 to 90 percent of the flow target at Montgomery. Yet, as I noted, those reservoirs were only 17 percent of the storage. In reality, the downstream states and those downstream communities within Georgia, for that matter, have greatly benefited from the existence of these Federal reservoirs and the Corps' operation of them. We find ourselves in this dialog because Florida and Alabama naturally, in times of drought, would like more water. As I have mentioned, the Corps cannot eliminate all the effects of drought; it can, however, improve its operations to more optimally meet the needs of all stakeholders. Federal law provides the proper mechanism for the Corps to take up this balancing act and prepare that environmental impact statement that takes into account current and future operations and demands and to look at environmental, economic and socioeconomic effects of operating different scenarios and then use those studies to develop the plan. Once the water control manuals have been finalized with the attendant EIS work and NEPA analysis, you will have significant data and significant stakeholder impact. At that time, any aggrieved State can pursue whatever remedies it may have at law. There is no need for Congress to add to the regulatory framework or work to block what the courts have ruled to be legally required and badly needed. Whether you are a citizen of Alabama, Florida or Georgia, the best route to a long term, balanced solution is for the process and legal frameworks to be followed as the court has required by law. Thank you. [The prepared statement of Mr. Turner follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. Thank you, Mr. Turner. Mr. Munson from Florida. STATEMENT OF GREGORY M. MUNSON, DEPUTY SECRETARY, WATER POLICY AND ECOSYSTEM RESTORATION, FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION Mr. Munson. Thank you, Chairman Sessions and members of the Committee. I am Greg Munson, Deputy Secretary of the Florida Department of Environmental Protection. I am responsible for water policy and ecosystem restoration, including the Apalachicola River and Bay for the State of Florida. I have submitted testimony for the record and would ask that it be included. I will only hit the high points of that testimony here today. Senator Sessions. It will be included and made a part of the record, without objection. Mr. Munson. Thank you, sir. Thank you for convening this important hearing about water management for the ACF and ACT river systems. My testimony is given to provide Florida's perspective on the effect of reduced freshwater inflows into the Apalachicola River and Bay and the injury to this important economic and environmental region in the State and the country. The Apalachicola River's flood plain ecosystem is the largest in Florida and the Apalachicola Bay is one of the most productive estuarine systems in the northern hemisphere. Hundreds of thousands of acres at the cost of millions of dollars have been acquired by Federal, State, local and private entities to protect this unique environment. Oysters and other local seafood are the lynchpin of the Apalachicola region's social and economic structure. Apalachicola Bay provides about 90 percent of Florida's oyster harvest and 10 percent of the national oyster harvest. It gives Florida the third largest shrimp harvest as well. The river is the life blood of this extraordinarily productive estuarine system and the productivity of the Bay is strongly influenced by the amount, timing and duration of the fresh water inflow from the Apalachicola River. The amount of water flowing into the river, and ultimately to the Bay, is a function of Georgia's consumption on the Chattahoochee and Flint Rivers and the Corps reservoir operations on the Chattahoochee. Since the 1970's, Georgia consumption has grown substantially in both systems and the Corps implemented its ``draft' Water Control Plan to prioritize municipal and industrial water supply operations elevating them above other uses in 1989. As a consequence, Apalachicola River flows have been lower and low flows have occurred more frequently and for longer durations than at any time in recorded history. In 2012, Florida experienced widespread damage to its oyster resources resulting from this prolonged low flow condition. Flows in 2012 were at their lowest since records were kept beginning in 1923 but this is not the year with the lowest rainfall. Oyster production estimates are the lowest in the past 20 years. In fact, the data suggests that many of the stocks are not sufficiently abundant to support commercial harvesting, devastating the livelihoods of the men and women who make their living directly harvesting or processing oysters. As a result, Governor Scott requested that the Secretary of the Department of Commerce declare a commercial fishery failure for Florida's oyster harvesting areas. Under the Corps' operations of Buford Dam and Lake Lanier the Corps has entered numerous contracts with Georgia water suppliers to permit withdrawals for municipal and industrial uses. In 1989, the Corps began prioritizing operations to support this water supply demand which has increased dramatically. Under the Corps' operating schedule, each new demand placed on the system upstream is absorbed, not from reservoir storage, but entirely from downstream river flows. In other words, every acre foot of water Georgia wants is taken directly from flows that would otherwise reach Alabama and Florida. These practices have deprived downstream interests of basic river flow needs, despite the empirical evidence that such operations are devastating Apalachicola Bay and its oyster population. It is clear that the Apalachicola River needs more flow to help recover from the devastating oyster mortality in the Bay that occurred in 2012, as well as the previous massive die-offs of endangered mussels, decline in fisheries and drying of the floodplain forest that has occurred in recent years. The Corps' plan to develop a master manual presents an opportunity to restructure its present priority system as reflected in the existing Draft Water Control Manual and assign greater weight to downstream needs. The Corps can no longer assume that all needs can be met without proactively insisting on upstream conservation. At a minimum, the Corps should mandate that Georgia develop strict conservation measures as a condition to entertaining any further withdrawals from the ACF system. Thank you for the chance to talk to you today about one of Florida's most precious resources, the Apalachicola River and Bay. If you are ever able to visit Apalachicola, Florida, we would always be happy to host you and give you the oysters that are still left in the Bay so you can understand how unique that environment is to Florida and Floridians. I am happy to answer any questions. Thank you. [The prepared statement of Mr. Munson follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Sessions. Thank you, Mr. Munson. They do pretty well competing with Bon Secour oysters from Alabama. I have been there and have fished in the Bay. Mr. Atkins, Alabama does not want to stop all withdrawal of water from Georgia. What do you want and would you articulate for us what you think a proper solution to this water problem is? Mr. Atkins. No, Alabama does not want to turn off the tap for all drinking water usage at Lake Lanier and Lake Allatoona. So long as Alabama gets its historical amounts in terms of the amount of water that it has always had flowing in its rivers, then Atlanta simply can drink as much as it wants. However, that is going to result in lower elevations at the two reservoirs, but Georgia cannot realistically expect to increase its drinking water usage and maintain those reservoir elevation levels in the two reservoirs. The only way for both those things to happen would be if downstream flows are cut back and Alabama just cannot accept that. Senator Sessions. With regard to the Corps of Engineers, are there things they can do to help the States reach an accord, without going into detail because there have been ongoing discussions between the States for a number of years? Has resolution of the matter by agreement been hampered by some of the Corps' actions, in your opinion? Mr. Atkins. I would say yes in answer to that. The issue with the Corps is that the Corps must follow the law. That means they need to follow the law as established by the Water Supply Act by seeking congressional approval for the major water supply uses and Federal reservoirs. Second, they need to enforce limits of the storage contracts, the contracts that allocate the storage space in the reservoir for water supply. Once they do that, if they will stay out of the way, then I think that will create an opportunity for the States to be able to get together. Otherwise, as it stands now, there is no incentive for Georgia to try to make a deal because the Corps is basically providing everything they want. By the Corps getting out of the way, letting the States have the opportunity to talk to each other and negotiate in good faith, I think that would be the best chance for that. Senator Sessions. I have talked to Governor Bentley about it. I know he cares about this issue deeply and he is a good and decent man. I believe he is willing to make an agreement but it has to be one that he can justify to the long term interests of the people of Alabama. It has just been difficult. Mr. Turner, after Judge Magnuson's ruling in 2009, it appeared there was a setback for the Georgia interests. Atlanta interests did a study showing that in little more than a decade, Atlanta could get by without water supply usage from Lake Lanier if it spent maybe $2 billion on infrastructure and took other actions. At more than $272 billion a year, Atlanta has the tenth largest GDP among all U.S. cities, for which I congratulate you. It is a fabulous city. The city plans to build a billion dollar football stadium for the Falcons; why shouldn't Atlanta spend some more of its money on infrastructure rather than ask downstream communities to deal with severe impacts of low water that could cause them to have to spend more money as a result? Mr. Turner. Senator, I take from your question when you refer to Atlanta, you mean the metro Atlanta region. We are spending and will spend and have spent significant State resources. Cobb County, one of the municipalities with an issue with respect to their withdrawal contract from Allatoona, spent $100 million with the city of Canton on the Hickory Log Creek Reservoir trying to provide for that additional storage that could benefit, frankly, all of us downstream and upstream. Governor Deal, when he came in having lived this issue for years as a Congressman from the Lake Lanier area, understood this clearly. Georgia is well on the way to appropriating the $300 million he pledged under the Governor's Water Supply Program to bring on strategically additional storage so that we can share that in times of drought and catch it in times like right now when there is plenty. Those things are happening, have happened and will continue to happen with vigor. I think I know the study you referenced and we certainly viewed it differently than you did. I think replacement of Lanier, when you consider environment impacts and what it means when you have a very large main stem reservoir that we don't build anymore in this Country, to take that amount of storage and act like you are going to make none of it available for water supply would have been a travesty, a waste of the resource and I am glad we are not in that boat anymore and that we are talking about what is the right way to balance these authorized legal purposes for these Federal reservoirs. Senator Sessions. I agree. I don't think it would be necessary to go to zero but I do think there are alternatives as that study showed. Senator Boozman, thank you for attending and for your good work on all these issues. Senator Boozman. Thank you, Mr. Chairman. I enjoyed the testimony. Thank you for being here. It has been very helpful. Senator Sessions. Mr. Munson, a former Governor of Georgia described the dispute over the ACF Basin as involving people versus a few mussels. Is that what this is about? What does Florida want fundamentally? Mr. Munson. No, sir, it is not about just a few mussels, not that I want to give away even a few of the endangered mussels. It is about a lot more than some endangered mussels. It is really about a way of life in Franklin County, Florida and the people who have spent generations there farming oysters and engaging in other forms of commercial fishing. Basically, they are being asked to bear the brunt of the growth of Atlanta and other upstream interests in Georgia, meanwhile watching their way of life get taken apart. It is not about a few mussels; it is about a whole way of life in a very rural county, Franklin County, Florida. All we really seek is an equitable share of the waters of the ACF system. We don't want to take everything, but there is a unique way of life being driven to extinction in Apalachicola. We would start with commitment from the Corps that it will not entertain anymore requests from the State of Georgia for water supply contracts unless and until it sees some verifiable commitments to water conservation measures from that State. Even that, of course, will not do it. There are many things Georgia will need to undertake on its own besides what the Army Corps can accomplish by itself, but that would be a very good start. Senator Sessions. Mr. Turner suggested that water supply use in north Georgia is a drop in the bucket compared to flows into Apalachicola. How would you respond to that concern? Mr. Munson. I was not familiar with Mr. Turner's numbers. I was struck a little like the oak tree telling the maple tree to be happy in our shade. I think that is what I took from it. In fact, I think the comparison is meaningless. The truth is that the depletions throughout Georgia, including Atlanta and the rest of Georgia, take over half the total basin inflow of the ACF river system in times of drought. That is really the dry period, I should say, not necessarily just drought. That is the time period on which we are most focused. To look outside that timeframe doesn't shed a lot of light on the system. When there is plenty of water in the system, there is plenty for everyone. It is during the dry periods that Florida needs that equitable share. Senator Sessions. Mr. Atkins, with regard to augmentation, that was the purpose of the reservoirs, was it not? You don't get as much augmentation if the water has been drawn out to be consumed as you could get if it were not drawn, it seems to me. Would you comment on that? Mr. Atkins. The purpose of reservoirs, generally, is to store water during times of the year when you have high flows, store that water and generally at the drier times of the year, lower flow periods, you release that water to help provide flows downstream. Senator, may I ask permission to submit for the record the Corps' 2007 letter to Cobb County-Marietta Water Authority about their contract excedence? I forgot to mention that earlier. Senator Sessions. Can you share the key point of that? Mr. Atkins. It is the Corps' letter they wrote in late 2007 recognizing the excedences from the Cobb County-Marietta Water Authority storage contract and the results of their analyses. They acknowledged that there were excedences as far as what they had withdrawn in relation to the contract. You mentioned earlier the contract being 13,000 acre feet. The excedence had been up to 39,000 acre feet. We would like to introduce that. Senator Sessions. I would be glad to accept that and we will make it a part of the record, without objection. [The referenced information was not received at time of print.] Senator Sessions. Mr. Munson, as an official in the State of Florida, can you tell the Committee that Florida is serious about working in good faith toward achieving an interState compact? Mr. Munson. Florida would be interested in doing that. Obviously that requires some engagement by the other parties as well. Although we have taken a number of efforts at it over the years, no such compact has been readily available. I don't believe that is going to change but of course, we would always be happy to have a negotiated compact as a result. Senator Sessions. Don't you think that would be the preferable way to solve this dispute, if it could be achieved? Mr. Munson. If it could be fair to the people of Florida, then absolutely. Senator Sessions. Mr. Turner, is Georgia prepared to work with the other States to achieve a mutually agreeable solution to this difficult problem? Mr. Turner. Yes, sir. Governor Deal has been clear on that point since he has been in office. I would even say where there is a will there is a way. We do not live in the arid west. We do get times like now which are plenty and we are open to those conversations and will get to work on them. I am instructed to participate in that way from Governor Deal. I do not think it ought to stop the work the Corps is, by law, obligated to do under these water control manual updates. Therefore, that should progress, irrespective of what continues to happen between the State conversations. Senator Sessions. Mr. Atkins, would you believe Governor Bentley is committed to trying to reach an agreement that could solve this problem permanently? Mr. Atkins. Absolutely, Senator. Again, I think the biggest obstacle is the Corps of Engineers as far as their actions and their role in this. If they would simply stay out of this, if they will follow the law according to the Water Supply Act and enforce the storage contracts, I think that will definitely help things. Senator Sessions. Thank all of you for your testimony. You have to know that maybe other Senators do not feel the problems of Alabama, Georgia and Florida as the Senators from these three States do but it is a very real situation. Senators Chambliss and Isakson, thank you for your attendance and thank you for being engaged in this and being knowledgeable about it. We have been able to work together and I hope we can continue to do that. We will have 2 weeks for all members to submit questions for the record. I have exhibits I have offered dealing with the history of these reservoirs and the impact of policies since then. I also have congressional correspondence about the ACF and the ACT issues of which we received a good bit. Senators Chambliss or Isakson, is there anything you would like to add before we finish? I thank you for your attendance. Senator Chambliss. Thank you very much for a fair hearing today, Senator Sessions. I do have our joint statement that we will submit to you for the record. Senator Sessions. We will make it a part of the record, without objection. If there is nothing further to come before the Committee, we are adjourned. [Whereupon, at 4:25 p.m., the committee was adjourned.] [Additional material submitted for the record follows.] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]