Upper Colorado River Basin Fund 2007

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"SURPLUS- SURPLUS" FUNDS AVAILABLE FOR DEVELOPMENT State Year First Available Amount First Available Accumulated Amount in 2060 Colorado 2050 $13,853,000 $266,427,000 New Mexico 2025 $58,929,000 $211,341,000 Utah 2060 0 0 Wyoming 2025 $44,942,000 $183,907,000 TOTAL THROUGH 2060 $661,675,000 The State of Utah has succeeded in having Congress authorize participating projects that will develop a large portion of its share of Upper Colorado River Basin water. That is why the above table does not show any anticipated Basin Fund revenues for future projects in the State of Utah. It should also be recognized however, that a very large portion of the excess funds which will be available to the other 3 states are directly the result of the Utah project commitments. This is because Western sets the power rates sufficient to meet the funding needs and no more. Absent the Utah project obligations, the rates would have been lower and the accumulation of state apportioned funds would have been less. If there were no project obligations, Western would reduce the rate and there would be no accumulation of state apportioned funds. The table shows when money for future irrigation projects will begin accumulating in the other three states, the year 2025 in the case of the States New Mexico and Wyoming. Money will start being available for these two states in less than 16 years, a relatively short time from now. The States of Colorado, New Mexico and Wyoming should begin planning now to utilize the money that will be available soon pursuant to the CRSP Act for water development in their States. There is a good likelihood that if unused State apportionment money is allowed to accumulate in the Basin Fund without the authorization of new projects, someone else will find a use for the money. Discussion of Options for Utilizing State Apportionments: Option 1: Make no changes to Sec 5 of the CRSP Act and seek congressional authorization of future agricultural projects. Analysis: Excess revenues in the Basin Fund apportioned to states may be used for the specific purpose of returning, within 50 years, the costs of irrigation allocations of participating projects that are beyond the ability of water users to pay. The first question to be addressed is whether the states foresee the need for additional irrigation projects. Needs have changed since the passage of the CRSP, and municipal and industrial uses may better represent the future demand for water. Currently these projects are not eligible for funding. If there were new irrigation projects, they would need to be budgeted and included in a new congressional authorization. This would be very difficult given federal financial conditions 5