Memorandum Concerning Issues Involving the Consideration of Alternatives

Memorandum: To Stewart Udall, from Kenneth Holum, "Issues involving the consideration of alternatives for the Lower Colorado River Basin," December 9, 1996, page 3Irrigation Distribution Systems The repayment studies which were used to develop a $10 per acre foot water rate assumes Federal construction of laterals in addition to distribution works. The funds to finance the construction of such works are not included in the project cost estimate. Therefore, provision would have to be made to secure the authorization for the construction of such works even though the funds are not provided in the estimate. You will recall that this item was deleted some time ago when it was our objective to reduce the cost estimate below $1 billion. Drainage Works If additional water supplies are made available, some additional drainage would also probably be required. Project cost estimate does not provide for the construction of such facilites. This item should also be recognized in some manner in the authorization. Development Fund One of the major items we will have to take into account in selecting an alternative is the significance of the development fund. So far as the Central Arizona Project is concerned, it could be financed by a combination of existing sources with the possible addition of ad valorem taxes. The development fund was supported in H. R. 4671 as a means of financing the development of additional water that will be required to meet the needs of the entire Colorado River Basin. 90-Day Review Period by States In reviewing the alternatives presented, you may wish to keep in mind the time schedule and the necessity for the review by other Federal Agencies and States. Some of the plans presented could clearly be presented to Congress in the next session without presenting them to the States and Federal Agencies for review. However, there would be some question about the necessity of this for other plans. 3Epson Perfection 4870 Photo, 400 dpi, 8 bit, 2,053,498 byte