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<br />[] <br /> <br /> <br /> <br /> <br />1 <br /> <br />1 <br /> <br />t <br />1 <br />t <br /> <br />t <br /> <br /> <br /> <br />1 <br />An Overview of the Institutional Setting <br />40 years, the program evolved in a number of respects.27 For the purposes of <br />this paper, it is sufficient to summarize what became the main attributes of <br />the federal reclamation program by 1939:za <br />1. Construction of projects by Reclamation has been, with but a few <br />exceptions in more recent years, totally financed by Congressional <br />appropriations. <br />2. Subject to item 6 below, construction costs allocable to irrigation <br />purposes are repayable by irrigators, albeit without interest and over <br />periods of 40 to 50 years (in contrast to the 1902 act's original requirement <br />that repayment be made within ten years). Furthermore, repayment <br />usually did not have to be initiated until after a five to ten year <br />development period following the first delivery of project water. <br />3. Construction costs allocable to hydropower and municipal and <br />industrial water supply purposes are repaid by those users with interest, <br />but interest rates are very favorable and 40 to 50 years is allowed for <br />repayment. <br />4. The construction costs of multipurpose dams and reservoirs which are <br />allocable to fish and wildlife and recreation are non-reimbursable, <br />although the costs of separate recreation and fish and wildlife facilities <br />(so-called separable costs) eventually became reimbursable, at 50 and <br />25 percent, respectively, under current law.zs <br />5. Water and power users have to pay all annual operation and <br />maintenance (O&M) costs which are allocable to reimbursable purposes <br />such as irrigation water supplies, municipal and industrial water supplies, <br />and hydropower. O&M costs of multiple purpose dams and reservoirs <br />which are allocable to recreation and fish and wildlife are borne by the <br />~' See generally M. ROBINSON, supra note 23, at 19-59. <br />~ 1939 is selected because the Reclamation Projects Act of 1939, ch. 418, 53 Stat. 1187 <br />(codified as amended at 43 U.S.C.A. §§ 485-485k (1986)) essentially brought to completion the <br />major changes wrought in the federal reclamation program during its first 40 years. The <br />program as it existed in 1939 was largely what applied to developments in the Colorado and <br />Missouri River Basins during the 1940x, 50s and 60x, although further modifications in the <br />program were still made by Congress after 1939. <br />~" Federal Water Project Recreation Act, 16 U.S.C.A. § 4601-13 (1993)). Separable fish <br />and wildlife costs were originally reimbursable at 50 percent. Federal Water Project <br />Recreation Act, Pub. L. No. 89-72, § 2, 79 Stat. 213 (1965). This was reduced to 25 percent in <br />1974. Act of March 7, 1974, § 77(a), 88 Stat. 33. <br />11 <br />