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~ . Due to the great demand for water in the Lower Basin, the Colorado River Basin Project Act of 1968 (Public Law 90-537) and the Operating Criteria allowed for the delivery of water greater than 75 MAF every 10 years if the water could be beneficially used in the Lower Basin, to avoid spills (power plant bypasses), or to equalize storage between Lakes Powell and Mead if Lake Powell storage is greater than that of Lake Mead. The release of this extra water was allowed only if CRSP storage exceeded that volume of water deemed necessary to ensure the Lower Basin delivery of water without impairing the Upper Basin use of apportioned water. The Secretary of Interior has declared that current CRSP storage exceeds this volume termed 602(a) storage, but this volume has never been technically determined by Reclamation. Reclamations position is that current CRSP storage does exceed this volume. The 1964 Supreme Court ruling in Arizona v. California specified the apportionment of Lower Basin uses with respect to 7.5 MAF of mainstream water, different from the 8.5 MAF of Colorado Basin water allocated in the Colorado River Compact. The 1970 Operating Criteria followed by setting the minimum annual release from Glen Canyon Dam at 8.23 MAF. The Operating Criteria also allowed releases greater than 8.23 MAF, but only for the reasons specified in the Colorado River Basin Project Act, cited' above. However, since Lower Basin mainstream use is currently only about 6.7 MAF annually and Lake Mead's storage is greater than Lake Powell's storage, additional water can presently only be released from the Upper Basin to avoid power plant bypasses. This has resulted in full reservoir conditions in the Upper Basin. 3.3 Project Repayment Repayment of the Project comes from power generation revenues, water sales and other sources which also assist in the financing of the CRSP participating projects. The passage of Public Law 84-485 created a separate U.S. Treasury fund known as the Upper Colorado River Basin Fund. This Basin Fund contained the advances from the Treasury to construct CRSP structures and received the revenues produced by the generation of electricity. Each of the provisions of the CRSP Act excepting Section 8 are credited to the Basin Fund. Section 8 of the act which pertains to fish and wildlife mitigation is funded by direct appropriation each year. In summary form, these are: 1. Power generation revenues resulting from the marketing of CRSP capacity and energy. 2. Revenues from water sales and other sources. 3. Interest charges on the unamortized balance of the investment. 4. Costs of operation, maintenance, replacement, and emergency expenditures for CRSP and participating projects. 5. Costs allocated to power production. 6. Costs allocated to municipal water supply. 7. Costs allocated to irrigation. 8. Costs associated with salinity control. 3-2