Environmentalists have struggled for years to reform water development policies so that project beneficiaries pay their fair share of the costs. This is essential to weed out projects whose fiscal and environmental costs exceed their benefits. The Water and Power Authorization Act set several dangerous precedents which could endanger these reforms. It waives repayment requirements for the Redwood Valley water district in California and the city of Dickinson in North Dakota, thus reducing incentives to curb future spending. It funds an additional $17 million for the Oroville-Tonasket Unit in Washington, which is already plagued by cost overruns. Environmentalists question whether the Bureau of Reclamation should be allowed to increase subsidies for these and other western water projects, some of which would have adverse environmental impacts. The House Interior Committee held no hearings on any of the Act's ten authorizations.

Furthermore, the bill allows the Bureau of Reclamation to divert even more water from the Colorado River by means of two large irrigation projects and a dam. The combined effect could drain the Colorado almost completely dry below the Grand Valley Irrigation Company during the growing season. This would be very damaging to wildlife, and threaten the habitat of the squawfish, an endangered species. This bill passed 220-184 on October 22, 1987. Because of the cost waivers and environmental impact, NO is the pro-environmental vote.