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CHAPTER 1 PURPOSE AND NEED oxides are thought to be major contributors to the phenomenon known as "acid rain." Carbon dioxide, ,and to a lesser extent, nitrogen oxides, are believed to be principal causes of the "greenhouse effect" (the slow warming of overall climate). Thus a strong need exists to reduce emissions of these gasses where economically feasible. Operation of the proposed facility would result in emissions reductions from existing and/or future fossil-fueled plants in direct proportion to the facility's generation. The alternatives considered would result in emissions offsets (reductions) of sulfur oxides ranging from 750 tons per year to 825 tons per year. Nitrogen oxide emissions would be reduced by 1,235 to 1,375 tons per year. Offsets or reductions in carbon dioxide emissions, the major contributor to the "greenhouse effect,'" would range from 370,000 to 410,000 tons per year as a result of facility operation. Irriqation System Facility development would include installing automated stream gauges, gate control equipment, and remote telemetry devices at key locations on the UVWUA system. Information from these units would be fed directly to the UVWUA headquarters in Montrose. The instrumentation would allow the UVWUA to more efficiently control the flow of water needed to serve both irrigators and the hydropower facility. The facility penstock would provide an alternate route for irrigation water to travel from the Gunnison Tunnel to the Selig, Ironstone, Garnet, and East Canals (see figure 1.1). If emergency repairs are ever necessary to the South Canal during the irrigation season, water flows could still be maintained over most of the UVRP, increasing irrigation system reliability. UVWUA Revenues The UVWUA currently has outstanding rehabilitation and betterment loans of approximately $2.1 million due to the State of Colorado and an additional debt of $3.5 million owed to the Federal Government under construction loans originally lent for the Uncompahgre Project. The principal source of revenue to meet these expenses is the sale of water to UVWUA irrigators. One impact of the project will be the assistance to the UVWUA in repayment of this debt. As currently planned, initial revenues would be used for debt retirement on an accelerated basis. Revenues from water charges could then be used for more comprehensive operations and maintenance activities. Overall 1 -6 "'--- . '~ -:-......... ~ ~;, ;~._-.,.:~.,;