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1',\" 'I ,0 lJII., ,.... There are a number of ways in which the legislature might provide funding to implement this alternative. They include general fund appro- priations, ear-marking of specific lax income (e.g. cigarettes), and financing through the issuance of bonds, among others. The most likely method for disbursement and administration of these funds would be by a state agency through either an existing fund (e.g. Nebraska Resources De- velopment Fund) or a newly created one. Rules and regulations establishing criteria for the dis- tribution and accountability of the funds would have to be developed. Physical/Hydrologic/Environmental Im- pacts. An increase in the number of water reo tention structures would have significant physi- cal/hydrologic/environmental impacts. Supple- mental water could be supplied to areas which are currently plagued by wide stream flow fluctu' ations or have no reliable water supply available. The benefits normally associated with reservoirs and other water retention structures may also be realized. In certain areas. these structures could reduce or prevent flood damage. On the other hand, if these structures are located on or associated with a stream, the possibility that downstream flows could be re- duced isa negative feature. Any alteration in flow is bound to prOduce some unwanted results, affecting such things as fisheries. recreation, and potential future downstream appropriators. Socio-Economic Impacts. This alternative is economically efficient only if the water users pay or could afford to pay the full costs of capturing and storing the water. Individual projects would have to be evaluated on a case by case basis. The opportunity cost of using water for instream uses or in other states would need to be ascertained before an economic evaluation 01 individual projects would be conducted accurately. ALTERNATIVES TO IMPROVE CURRENT SUPPLY Alternative #9: Authorize a state agency to offer to buy water rights in another state. Description and Methods of Implementa- tion. All western states but Nebraska allow the buying and selling of water rights. If Nebraska were able to purchase water rights in Colorado and Wyoming. streamfJows. at least in western Nebraska. could be increased. Nebraska could offer to purchase storage rights in upstream reservoirs or large natural flow rights. This water could then be used to satisfy existing water appropriations, increase storage. or apply to new appropriations. The Department of Water Resources would probably be the agency best suited to carry out this alternative. The legislature could grant authorization to offer to buy water rights in another state. Funding would probably be pro- vided by separate legislative appropriation or through a fund designed specifically for such purchases. Physical/Hydrologic/Environmental Im- pacts. II Nebraska were to purchase water rights and storage rights on interstate streams from other states, streamflows on those streams en- tering Nebraska could be increased. Any further impacts would depend upon the use to which this additional water is put. Socio-Economic Impacts. States may not possess a sufficient proprietary interest in waters found within their borders to support an interstate "sale" of water. Furthermore, to be safe, all other states on the stream, the federal government, and any affected Indian Tribes would have to consent to the "sale". Con. sequently, transaction costs would be very high. In contrast to a purchase of water, however, a purchase of storage rights might be arranged. This would put Nebraska in the position of storing its sovereign waters in a reservoir located within another state's sovereign jurisdiction. The eco- nomic impacls of any such proposal, however, cannot be determined absent detailed informa- tion about an actual proposal. Alternative # 1 0: Authorize a state agency to participate in the con- struction of projects in other states in return for a voice in project operations. Description and Methods of Implementa- tion. An example of implementation 01 this al- ternative would be for Nebraska to offer to aid in the construction of the Narrows Project in Colorado in rei urn for some storage rights or some say in the timing of flow release. The North Platte Project in Wyoming and western Nebraska is an example of an existing joint effort in this respect. Authorization lor the implementation of this alternative could be given to a state agency by the legislature. That agency would then determ- ine. on a case-by-case basis. which projects in other states would be worthwhile investments for Nebraska. The legislature then could appropriate funds for the state's share of construction costs. Another method of implementing this option would be to increase the amount of an existing fund, for example the Nebraska Resources Oe- velopment Fund, and provide that out-of-state 3.7