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Q~lSt7 Purpose and Need 1.7 Congress and the Administration have passed numerous laws, enacted regulations, and signed treaties that obligate the United States to encourage and develop our renewable energy resources, particularly those free of emissions. They provide a strong federal mandate to encourage economically feasible, renewable energy developments. Operation of the proposed AB Lateral would result in emissions reductions from existing and/or future fossil-fueled facilities in direct proportion to the facility's generation. Implementation of the Sponsors' preferred alternative, Alternative E-1, would result in emission reductions, assuming the facility replaces or offsets a new gas-fired, combined cycle power plant, of approximately 85,000 tons per year of CO2, 45 tons per year of carbon monoxide, and 25 tons per year of nitrogen oxides. Emission reductions from an equivalently-sized coal-burning plant would be significantly higher, and include other pollutants such as sulfur dioxide and particulates. The hydropower project could also save the consumption of natural gas, a finite natural resource, by 100 billion cubic feet over the 40-year regulatory life of the facility. 1.4.3 Irrigation System Operation Project 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 inigators and the hydropower facility. The facility penstock would provide an alternate route for inigation water to travel from the Tunnel to the Selig, Ironstone, Gamet and East Canals. The South Canal, which currently canies all of these flows, is 90 years old, and needs constant maintenance. Failure of this canal during the inigation season would cause curtailment of water deliveries to much of the UVRP, with significant adverse economic consequences. With project development, however, emergency repairs could be conducted on the South Canal, yet water still provided to most ofthe UVRP through the AB Lateral penstock. This would increase the reliability of the inigation system. 1.4.4 Project Revenues Fifty to seventy-five percent of the revenues from project operation would be used by the UVWUA to perform capital improvements to the inigation delivery system. The UVWUA is a Colorado not-for-profit association, serving the water needs of approximately 4,000 members. These include farmers, municipal water systems, fire districts and housing subdivisions in Montrose and Delta counties. Irrigated land totals approximately 85,000 acres. The UVRP includes a system of 7 diversion dams, 128 miles of main canals, 438 miles of laterals, 216 miles of drains, and a large number of check and head gates. Many of these structures are 80 to 100 years old. Canals and AB Lateral Hydropower Project July 2000