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e e COLORADO WATER CONSERVATION BOARD Closed Basin Project U.S. Bureau of Reclamation January, 1989 Introduction The Bureau of Reclamation estimates that the construction cost of the Closed Basin Project will total not more than $100 million. This exceeds the heretofore authorized ceiling by $25 million. In light of this circumstance. the Rio Grande Water Conservation District and the Board sought legislation in the last Congress to increase the authorized ceiling for the project. The district and the Board were able to obtain the necessary legislation in the waning days of Congress only by agreeing to a series of amendments to the original authorizing act for the project. One of these requires non-federal financing for a portion of the costs of the project beyond $75 million. Non-Federal FinancinQ Requirement The new legislation amends section 109 of the original authorizing act to read as follows: SEC. 109. There is hereby authorized to be appropriated the sum of $94.000,000 (October 1988) for the construction of the Closed Basin Division of the San Luis Valley Project, ...; provided. that none of the funds authorized herein for construction in excess of $75.000.000 may be expended by the Secretary unless and until the State of Colorado or a political subdivision thereof has entered into a binding agreement with the Secretary to contribute during construction one-third of the costs of construction in excess of $75.000.000 or $6.000.000, whichever is less. Such agreement shall include a reasonable limitation on administrative overhead expenses charged by the Secretary. In light of the fact that Congress has subjected nearly every federal project in the last three or four years to cost Sharing in the range of 35 to 40 percent, we were fortunate to negotiate 33 percent non-federal financing. Furthermore. the $6,000,000 cap protects against any further increases in costs. 8725E-3