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<br />B-217826 <br /> <br />provide water for generation of hydro-electric power and water <br />supply for irrigation and M&I. Project costs allocated to power <br />and M&I water are repaid with interest by the beneficiaries of <br />these purposes, whereas irrigation costs are repaid without <br />interest. <br /> <br />The Bonneville Unit is the largest unit of the Central Utah <br />Project and will develop water resources in two basins on either <br />side of the Wasatch Mountains. The unit will divert water from <br />the eastern side via a tunnel through the Wasatch Mountains and <br />into the Bonneville Basin. The principal purposes of the unit are <br />to supply water to irrigation and municipal and industrial water <br />users, and to generate commercial power. Construction of the unit <br />began in 1966 and is currently almost one-third finished; <br />completion is expected in 1996. The current estimated total cost <br />is $2.1 billion, $1.9 billion of which is to be repaid to the <br />federal government ($915 million for irrigation, $640 million for <br />M&I water, and $296 million for power). The remaining costs are <br />allocated to nonreimbursable purposes such as fish and wildlife, <br />flood control, and recreation. <br /> <br />In 1965, the federal government and the Central Utah Water <br />Conservancy District signed a contract involving the Bonneville <br />Unit which obligated the district to repay all of the costs <br />allocated to M&I water supply and 31 percent of the costs <br />allocated to irrigation. At that time, the contract obligated the <br />district to repay $156.8 million. However, because of a <br />lengthened construction period, design refinement, and inflation, <br />the existing repayment obligation is not adequate to recover the <br />anticipated M&I water costs. As a result, the district and the <br />Bureau are negotiating contracts to increase the M&I repayment <br />obligation. The Bureau expects these contracts to be executed by <br />the fall of 1985. <br /> <br />The Central Vall,ey Project is an integrated network that <br />includes dams and reservoirs, over 600 miles of canals and <br />aqueducts, 56 pumping stations, and 8 power plants. The project <br />is designed primarily to provide flood control, water for <br />irrigation and M&I use, and power generation. The project was <br />first authorized for construction in 1935, and the first feature <br />was completed in 1942. Since then, the Congress has authorized <br />the construction of several additional features, and the Bureau <br />estimates that the project will be completed in 2001. <br /> <br />As of September 30, 1983, Central Valley Project facilities <br />costing $2.267 billion to construct had been placed in service; <br />$1.993 billion of these costs are reimbursable. Reimbursable <br />costs are allocated as follows: $1.229 billion to irrigation <br />water, $349 million to commercial power, $266 million as the <br />state's share and for facilities built to accommodate future <br />additions, and $149 million to M&I water. The remaining costs are <br />for nonreimbursable purposes, such as fish and wildlife, <br />recreation, and flood control. <br /> <br />2 <br />