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<br />Agenda Item 19 <br />March 16-17, 2004 Board Meeting <br />Page 3 of9 <br /> <br />. <br /> <br />- <br /> <br />~j6 <br />JV-- <br /> <br />Challenge Grant RFP - 2 <br /> <br />The grants program is being funded under the Western Water Initiative, which was proposed by <br />President George W. Bush in his Fiscal Year 2004 budget request. The Western Water Initiative was the <br />initial step towards Water 2025, which was announced by Secretary Norton in June 2003. President Bush <br />has requested $20 million for Water 2025 activities in FY 2005. <br /> <br />Water 2025 will help manage scarce water resources and develop partnerships to nourish a healthy <br />environment and sustain a vibrant economy. They will encourage voluntary water banks and other <br />market-based measures, promote the use of new technology for water conservation and efficiency, and <br />remove institutional barriers to increase cooperation and collaboration among federal, state, tribal, and <br />private organizations. <br /> <br />Reclamation is the largest wholesale water supplier and the second largest producer of <br />hydroelectric power in the United States, with operations and facilities in the 17 Western States. Its <br />facilities also provide substantial flood control, recreation, and fish and wildlife benefits. <br /> <br />### <br />