Page 5

A repayment demonstration was made for the reimbursable portion of Phases I and II construction costs which indicated payout within a period of 50 years after the last features were constructed at 3 percent interest on municipal, industrial, and power allocated components. In essence, this was the plan on which the States and Federal agencies commented. Summary of Major Comments Submitted by Affected States Arizona. Governor Fannin expressed general agreement with the regional concept, but emphasized it must not be permitted to delay independent authorization of the Central Arizona Project which is now under consideration in Congress; if the inclusion of Marble Canyon in a separate Central Arizona Project or in any other plan to bring additional water into Arizona will facilitate and result in early authorization and construction, Arizona should agree to its includion; development of additional water for Arizona above and beyond the 1,200,000 acre-feet planned under the Central Arizona Project should be a major objective of the plan; projects in northern Arizona, dependent upon water exchange arrangements and upon direct diversion from Colorado River, should be authorized as soon as feasibility reports are completed. California. Governor Brown submitted comments which, with respect to broad aspects, strongly support the regional program concept, and indicate that individual projects should be authorized only after agreement by the interested parties on a truly regional approach; the subsidy to municipal and industrial water should be eliminated: the 5Epson Perfection 4870 Photo, 400 dpi, 8 bit, 14,301,184 byte