BOARD01693

• Board Meeting Date: 7/26/1999
• Description: Colorado River Basin Issues - Long-Term Funding Legislation
• Board Meetings - Doc Type: Memo

The purpose of this Memorandum of Understanding (MOD) is to set forth the
intentions of the Colorado Water Conservation Board (CWCB), the Secretary of the
Interior, acting through the U.S. Bureau of Reclamation (Reclamation), and the
Secretary Of Energy, acting through the Manager Of The Colorado River Storage
Project Customer Service Center Of The Western Area Power Administration
(Western), with respect to the loan of state funds.

The loan or loans shall be made pursuant to federal law, including legislation passed
by the 106th Congress to authorize the Reclamation to provide cost sharing for the
Endangered Fish Recovery Implementation Programs for the Upper Colorado and
San Juan River Basins (S. _and H.R. , as introduced and hereafter referred
to as the Act).

The execution of this MOU will indicate that, once the Act becomes law, the parties
have the necessary authorization and can execute a loan contract to carry out the
purposes of the Ad.

If any party to this MOU determines that future substantive changes to the Act, after
its introduction, have made this MOU null and void, they shall notify the other
parties in writing.

2. Recitals

2.1

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1.3

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1.4

2.2

Memorandum of Understanding
Among the CWCB, the U.S. Bureau of Reclamation and the Western Area Power
Administration
Regarding Funding to Implement the
Upper Colorado River and San Juan River Endangered Fish Recovery Programs

1. Preamble
l.l

1.2

Section 3 4 ( c ) of the Act provides the Secretary of Energy with the authority to
contribute $17 million to the construction of capital projects identified in the Upper
Colorado River and San Juan River Endangered Fish Recovery Programs.

This contribution may be made through a loan or loans from the CWCB
Construction Fund to Western.

2.3 The CWCB loan or loans shall be used to enable power users to participate
financially in the construction of capital projects designed to recover endangered
fish.

2.4 The loan or loans shall be negotiated in consultation with Salt Lake City Area
Integrated Projects (SLCA-IP) firm power contractors and shall be structured to
minimize impacts on SLCA-IP power rates.

2.5 The revenues received by Western from SLCA-IP will be used to repay the loan or
loans to the CWCB Construction Fund.

2.6

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Western shall repay the loan or loans, including principal and interest, no later than
September 30,2057.