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May 11-12, 1998 Board Meeting .- \_ Agenda Item 26g.iv Page 2 of3 Reservoir to the Grand Valley Power Plant. The Draft Environmental Assessment was , released on December 31,1997 and the public comment period closed February 9,1998. A public meeting was held on Thursday, January 22, 1998 at Reclamation Offices in Grand Junction. There have been no major issues or omissions noted with the Environmental Assessment. Reclamation is currently in the process of finalizing the Environmental Assessment and we anticipate a "Finding of No Significant Impact" when the "Record of Decision" is issued, Al!reement to Deliver Surnlus Water in the Historic Users Pool of Green Mountain Reservoir to the Grand Valley Power Plant The first formal public negotiating session concerning this agreement was also held Thursday, January 22,1998 at Reclamation's Grand Junction Office. The negotiations involve Reclamation, the Grand Valley Water Users Association, Orchard Mesa Irrigation District and the Public Service Company of Colorado. Pursuant to paragraph 5.a of the Stipulation and Agreement in the Orchard Mesa Check Case, an agreement to deliver surplus water in the "historic users pool" of Green Mountain Reservoir to the Grand Valley Power Plant is required. A draft agreement was presented and discussed during the first negotiation session, There is only one potential deal breaker and it relates to the term of the agreement. Reclamation had proposed a 5-year agreement based on their understanding of the Stipulation and Agreement in the Orchard Mesa Check Case. This was totally unacceptable to the water users. The water users would like an agreement that lasts as long as the decree in the Check Case, which hopefully is permanent. . There have been two or three subsequent negotiating sessions, all in Grand Junction. Except for the term ofthe agreement, the other issues appear to be resolved. Reclamation is currently investigating term options. Colorado Water Conservation Board's $1.25 Million Cost Share Contract The Board was authorized by Senate Bill 97-008, Section 11(a) to make a nonreimbursable grant in the amount of$1,250,000 from the Fish and Wildlife Resources Account of the CWCB Construction Fund to the U.S. Fish and Wildlife Service. This authorization was modified by House Bill 98-1189, Section 13 to allow the grant to be made to a participant in the Recovery Program. These funds provide the non-federal cost share of approximately 15% to plan, design, do NEPA compliance, construct, operate and maintain improvements to the Grand Valley Project. Staff drafted a contracted and provided that contract to the Service and other project participants for review. The Service, Reclamation, the Grand Valley Water Users Association and Board staff in consultation with other Recovery Program participants have decided that they would like to use these funds for the long-term operation, maintenance and replacement costs associated with the Grand Valley Project . improvements. The Grand Valley Water Users Association has subsequently been