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<br />16
<br />
<br />by the "Leavitt Act" (25 U.s.C. 386a). If the water is used on non-
<br />tribal lands, however, the bill would direct the Secretary to defer
<br />repayment of the construction costs above the ability of the tribes
<br />to repay, and to use Colorado River Storage Project receipts in-
<br />stead. Ba!ied on information from BOR, it appears that the ability
<br />of the tribes to repay would cover around 10 percent of the allocat-
<br />ed costs.
<br />According to the BOR, the tribes might attempt to sell most of
<br />the water and use the receipts from the sale to pay the construc-
<br />tion and operations and maintenance costs. The "Law of the River"
<br />may affect the tribes' ability to market the water, however, be-
<br />cause existing compacts and court decisions prohibit sales of water
<br />from the upper Colorado River basin (the State of Colorado) to the
<br />lower basin, which includes California. CBO cannot estimate what
<br />effect this would have on the tribes' ability to repay costs.
<br />6. Estimated cost to State and local governments: The cost-shar-
<br />ing agreement embodied in the water rights settlement and imple-
<br />mented by H.R. 2642, would require, the State of Colorado and sev-
<br />eral water conservation districts to pay approximately $70 million
<br />(18 percent) of the cost of constructing phase I of the Animas-La
<br />Plata project and approximately $130 million (100 percent) of the
<br />phase II construction costs. In addition, the agreement would re-
<br />quire nonfederal, non-Indian beneficiaries to repay approximately
<br />$200 million of the project's costs after construction is complete,
<br />primarily through water repayment contracts and power revenues.
<br />, 7. Estimate comparison: None.
<br />8.Previous CBO estimate: On August 22, 1988, the Congressional
<br />Budget Office prepared a' cost estimate for S. 1415, a similar bill
<br />ordered reported by the Senate Committee on Energy and Natural
<br />Resources on August 3, 1988. The cost of S. 1415 is the same as that
<br />of H.R. 2642.
<br />9. Estimate prepared by: Theresa Gullo, and Michael Sieverts
<br />(226-2860).
<br />10. Estimate approved by: James L.Blum, Assistant Director for
<br />Budget Analysis.
<br />
<br />:
<br />
<br />INFLATIONARY IMPACT STATEMENT
<br />
<br />Enactment of H.R.2642 will have minimal inflationary impact.
<br />
<br />OVERSIGHT STATEMENT
<br />
<br />No specific oversight activities were undertaken by the Commit-
<br />tee and no reCommendations were submitted to the Committee pur-
<br />suant to rule X, clause 2(b)2.
<br />
<br />COMMITTEE RECOMMENDATION
<br />
<br />The Committee on Interior and Insular Affairs, by voice vote,
<br />recommends approval of the bill by the House of Representatives.
<br />
<br />DEPARTMENTAL REPORT
<br />
<br />The favorable report of the Department of the Interior, dated Oc-
<br />tober 1, 1987, is set forth below:
<br />
<br />~:
<br />
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