<br />0017~3
<br />
<br />THE LOVVER COLORADO RrvER BASLN PROJECT
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<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
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<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-
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