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<br />SAN LUIS VALLEY IRRIGATION DISTRICT <br />RESPONSE TO STAFF'S ISSUES/ADDITIIONAL NEEDS <br /> <br />Applicant: San Luis Valley Irrigation District <br /> <br />Amount Requested: $288,000.00 <br /> <br />Water Activity Name: Rio Grande Reservoir <br />Multi-Use Enlargement and Rehabilitation <br />Preliminary Design <br /> <br />Source of Funds: Statewide <br /> <br />Water Activity Purpose: Study/Design for <br />Structural Water Project <br /> <br />Matching Funds: None <br /> <br />County: Hinsdale, Rio Grande, Saguache <br /> <br />Drainage Basin: Rio Grande <br /> <br />Water Source: Rio Grande River <br /> <br />Issue No.1: The application does not address nor does the study address how, if deemed <br />feasible, the project could ultimately be funded. Funding this application without some <br />sense of the potential for future success of project funding and implementation is a <br />concern. There is no information or range of what the project cost may be and how <br />different funding concepts might worl(. <br /> <br />ResDonse: Given that this project is still in a nascent form, identifying all funding <br />sources for construction at this early date is not possible. First and foremost, the <br />scope of the proposed project has not yet been finalized; it is uncertain whether or <br />not the applicant will seel( to perform a rehabilitation only or do an enlargement <br />as well. This determination, which greatly affects the required funding, will be <br />made in the pre-design study for which the applicant is currently seel(ing funds. <br />The final report for the first phase of this study, mentioned in the application, will <br />include a section on potential funding sources. Consistent with one of the major <br />findings of SWSI, the applicant, a small rural irrigation district, will not be able to <br />fully fund the proposed project. Funds for construction will need to come from a <br />myriad of sources which will certainly include partnerships with other <br />stal(eholders, Federal sources, and lil(ely State sources. It is expected that District <br />members will contribute in some way to the cost in the form of rate increases. It is <br />anticipated that other funding could come from the sale of storage for a variety of <br />purposes, including storage for domestic augmentation (potential customers <br />include San Luis Valley Water Conservancy District and other future <br />augmentation plans), storage for regulation of CDOW transmountain water, <br />water, fisheries conservation pool, compact administration, flood control, and <br />environmental releases. Funding at the Federal level will also be pursued,. Such <br />funding could come as a line-item appropriation in congressional spending bills, <br />such as the recent two billion dollars recently appropriated to western water <br />