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<br />0017~3 <br /> <br />THE LOVVER COLORADO RrvER BASLN PROJECT <br /> <br />within and from which waters naturally drain into the Colorado <br />River system below Lee Ferry, and also all parts of said States lo- <br />cated without the drainage area of the Colorado River system which <br />are now or shall hereafter be beneficially served by waters diverted <br />from the system below Lee Ferry. Thus, the south coastal plain of <br />California (Los Angeles) as well as central Arizona (Phoenix and <br />Tucson) are within the lower basin. <br /> <br />Section 102 <br /> <br />Section 102 emphasizes regional, rather than local, objectives of the <br />bill. The net revenues from Bridge Canyon and Marble Canyon <br />projects, instead of being used exclusively to aid in the development <br />of water for central Arizona will assist water users throughout the <br />Lower Colorado River Basin, Net revenues from the sale of power <br />at Hoover, Parker, and Davis Dams, after repayment of construction <br />costs and existing obligations, are also dedicated to providing finan- <br />cial assistance in meeting regional water needs. SectIOn 102 is one of <br />the major compromises between Arizona and California. <br />The Lower Colorado River Basin Development Fund, established <br />by, this se~tion, followsg~nerally the precedent of .the Upper Color!tdo <br />River Basm Fund established by the Colorado River Storage Prolect <br />Act. The Lower Colorado River Basin Development Fund, un ike <br />the Upper Colorado River Basin Fund, does not include the appor- <br />tionment of net revenues among the States concerned. There is good <br />reason for this difference. The fundamental water supply problem <br />in the lower basin is one of insufficiency rat,her than of underdevelop- <br />ment. Hence interests of the lower basin States will best be served <br />by using net revenues accruing to the fund to assist in the repayment <br />of costs of projects to be authorized to augment the basin's water sup- <br />ply. An apportionment of revenues for use within each State might, <br />therefore, impede rather than assist development. <br />Subsection (b) provides that appropriations and revenues shall be <br />credited to the development fund. The exception of entrance, admis- <br />sion and recreation user fees and charges, and proceeds received from <br />recreation concessions anticipates the passage of the land and water <br />conservation fund legislation. <br />Subsections (c), (d), and (e) dedicate revenues from the sale of <br />water and hydroelectric power to return the reimbursable costs of <br />water developments. Thus the users of water and power from the <br />project ultimately bear the burden of the reimbursable costs of the <br />project. . <br />Subsection (c) anticipates the repa.yment of the construction costs <br />of Hoover by 1989 and Parker and Davis by 2004, and provides for <br />the crediting of the net annual revenue (on the order of $15 million), <br />which will thereafter be available from their operation, for purposes <br />of the Lower Colorado River Basin project. <br />This provision, among others, is based on the suggestions in the <br />Pacific Southwest Water Plan Report submitted by the Secretary of <br />the Interior to the Federal Power Commission on February 14, 1964, <br />and on which the subcommittee heard testimony. <br />Subsection (d) makes revenues in the development fund available, <br />without further appropriation, for costs of operation, maintenance, <br />and replacement, and for repayment of construction costs within a <br />period not exceeding 50 years and for interest under subsection (e), <br />subparagraphs (1) and (2). Like the Colorado River Storage Proj- <br /> <br />,. <br /> <br /> <br />..,.. . <br /> <br />. ' :~. , <br /> <br /> <br />. '. <br />..,: <br /> <br />., ,. ",'. :1' <br />, , . <br />,.' \ .,..> <br />, . <br />. .. <br />~ . ..' , <br />'.' , <br />. . , <br />, '.;t.,'.} <br />~,' .. ,:J1\ti~ <br /> <br />,",' , <br /> <br />.',.' . <br />. '/.:::~' <br />'.,'. <br /> <br />""'.-:','., <,/ >.: <br /> <br />',' " <br />":-'..1<:. <br /> <br />, to' <br />;:.~-.. <br />