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S°utheastem Colorado Water Conservancy District <br />November 10, 2008 (UPDATED NOVEMBER 20, 2008) <br />Page 2 of 2 <br />Background <br />Agenda Item 25a <br />The Fryingpan-Arkansas Project was authorized in 1962, and was constructed between 1964 and <br />1982. The Project is atrans-mountain diversion system that delivers supplemental water to cities, <br />farmers and ranchers all along the Arkansas River. Originally the Fry-Ark Project included two <br />conduits to move water from Pueblo Reservoir to communities in need of clean water. The Fountain <br />Valley Pipeline was built and delivers water to the Colorado Springs area. The second conduit is the <br />Arkansas Valley Conduit. The Fryingpan-Arkansas legislation calls for the Conduit to be paid for <br />by the communities receiving the water. The large and growing population of Colorado Springs and <br />its surrounding areas, made possible the construction, and funding of the Fountain Valley Pipeline a <br />reality. However, the lower Arkansas Valley Conduit, from Pueblo to Lamar, has never been built <br />because the communities could not afford the project. <br />In 2000, a group of water providers and goven°imental agencies in Otero County formed a group <br />called the Waterworks Committee. The group was formed to address water issues and began the <br />process of trying to get the Conduit built. A study was performed and confirmed the Conduit could <br />be built if Federal financial assistance could be provided. Waterworks asked the SECWCD to <br />assume the responsibility of moving the conduit process forward. The SECWCD agreed and is <br />working with water providers of the lower Arkansas Valley. An Arkansas Valley Conduit Advisory <br />Committee was formed in 2003 and has been leading the efforts to construct the Conduit. <br />Project Update <br />The SECWCD obtained a State and Tribal Assistance Grant (STAG) of $1,041,818 (requiring a <br />45% match) and a grant from the Water Supply Reserve Account for $200,000 to continue <br />engineering work necessary to prepare for the environmental compliance phase of the Project. The <br />STAG work is planned for November 2008 through January 2011. <br />Senate Bill S. 2974, which changes the original Fry-Ark authorization from a 100% local funding <br />of the Conduit to a 65/35 FederaULocal cost share and authorizes the Bureau of Reclamation to <br />construct the Conduit, has recently received a favorable mention from the U.S. Senate Energy and <br />Natural Resources Committee. The bill also includes provisions to use current and future <br />miscellaneous Fry-Ark project revenues towards the repayment of Conduit project costs. <br />The SECWCD was informed that S. 2974 is being included in the omnibus legislative package <br />being prepared by the Chairman of the Senate Energy Committee. Action on the bill is hopeful <br />before the end of the year or early in the next Congressional session. The SECWCD has stated that <br />CWCB's loan authorization has been instrumental in moving the Federal authorization forward. <br />Attachment: <br />1) Original Loan Approval Conditions (As approved by the CWCB in November 2006) <br />2) Letter from aim Broderick, SECWCD Executive Director -requesting the time extension <br />3) 2009 Projects Bill -language change <br />