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8 c /� <br />194)0 /08 <br />Apportionment of Revenues under CRSPA § 5(e) <br />The following is a draft interpretation of § 5(e) of the Colorado River Storage Projects Act of April 11, <br />1956 ( CRSPA). It outlines the priority of repayment of project costs from Power Revenues. <br />An issue has arisen regarding the apportionment of revenues under CRSPA § 5(e). In order to <br />understand what revenues are involved, how they accumulate and how they are applied, we must <br />consider the following points: <br />A. CRSP Projects must be repaid within 50 years of the statutory trigger point that initiates <br />repayment. § 5(a) <br />B. Under the guidelines inherent within the Power Repayment Study (PRS), interest bearing <br />obligations repaid by power for the Participating Projects (PP) are repaid first. Thus, PP <br />Agricultural (Ag.) repayment allocated to Aid to- Irrigation does not begin until the end of the 50 <br />year repayment period. <br />C. Repayment made by water users for Ag. and Municipal and Industrial (M &I) is .received on an <br />amortized basis and is credited as it is paid into the Basin Fund. <br />D. All CRSP revenues go into the Basin Fund (a sub - account within the Treasury). §5(c). <br />E. Moneys in the Basin Fund are credited as follows: <br />1St OM &R of Initial Units (IU) and PP. §5(c)(1) <br />2nd Repay construction and pay interest costs in the following order. § 5(c)(2) - § 5(c)(d) <br />I. 'Repay construction cost allocated to power for IU and PP. § 5(d)(1) <br />2. Repay construction cost allocated to M &I for IU and PP. §5(d)(2) <br />3. Pay construction interest (including IDC) for power and M &I for IU and PP. §5(d)(3) <br />4. Repay construction cost allocated to Ag. on IU only. § 5(d)(4) <br />5. Salinity program. § 5(d)(5) <br />3rd Revenues left after E (above) are apportioned to each state on a statutorily set <br />proportional basis for repayment of construction costs allocated to Aid to Irrigation for <br />PP Ag. projects only. § 5(e). Note, however, that: <br />1. Revenues apportioned under §5(e) consist mostly of Aid to Irrigation power <br />revenues collected to repay PP Ag. obligation. (§ 5(e) revenues also include some <br />§9(c)(2) water sales revenues from IU when other § 5(c) obligations have been met.) <br />2. Power revenues from any particular PP remain in that state to repay that state's <br />obligations. Thus, becoming a state specific Aid to Irrigation revenue source. <br />3. Because: <br />a. Aid to Irrigation for PP is repaid last, and <br />b. Repayment contract repayment terms are staggered depending upon when <br />repayment triggered, and <br />_'OC - -T— A*TCr n V_57 0 ",4'A;6' C'CX) STrticCtIo R/ <br />