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<br />( <br /> <br />~. <br /> <br />-3- <br /> <br />(5) With respect to navigation, this is an appropriate <br />role for the federal government, which is in a position <br />to assess and collect appropriate repayment requirements. <br /> <br />(6) With respect to fish and wildlife enhancement costs, <br />100% non-federal cost sharing is an untenable departure <br />from present procedures which ignores the impracticability <br />of recovering costs at the state and local level from in- <br />numerable indirect beneficiaries, <br /> <br />It should also be recognized that the list of project purposes <br />only partially represents total federal participation, and there- <br />fore raises questions as to the Administration's position with <br />respect to cost sharing for other purposes,. The cost sharing <br />table does represent a positive ~ove towards consistency in cost <br />sharing among federal agencies for similar projects and programs, <br /> <br />The memo is understandably brief, but it leaves many important <br />questions unanswered; not the least of which is its applicability <br />to projects that are currently a~thorized or under construction, <br />The memo does not recognize the ~ight of non-federal interests to <br />revenues from project vendible p~oducts, such as revenues which <br />have accrued or will accrue to basin accounts. The memo does not <br />discuss the question of cost rec~very. In particular, it does <br />not address the recovery of upfront costs proposed to be borne <br />by non-federal interests. <br /> <br />RECOMMENDATIONS: <br /> <br />The Governors could choose to wait until the more formal expli- <br />cation of cost sharing principles which is being prepared under <br />the direction of the Cabinet Council is released, However, <br />silence on the present direction of the Administration policy <br />might be interpreted as acquiescense, WESTPO Governors should <br />therefore state that the present direction of cost sharing policy <br />as evidenced by the Cabinet Council's memo, is unacceptable to <br />western states, The Governors should oppose, in particular, any <br />attempt to amend existing laws establishing basin accounts to <br />implement the recommendations of the Watt memorandum, <br /> <br />The Governors should also emphaSize that cost sharing policy must <br />be established ultimately by the Congress and not by the Adminis- <br />tration, Federal/state consultation on the cost sharing issue <br />has been less open and complete than WESTPO Governors would have <br />desired, The Governors should urge the Administration to seek <br />an acceptable proposal for Congressional consideration in close <br />consultation with the states. Consideration of the states' views <br />should not be deferred until. the issues are before the Congress. <br />