WSP03702 - Laserfiche WebLink

Home Browse Search

ANALYSIS 51 Interest on Oil Shale Lease Fund. A third alternative is to utilize only the interest from the Oil Shale Lease Fund as a part of an overall Energy Impact Assistance Fund. Interest should exceed $3 million annually as long as the principal remains intact. The interest portion of the Oil Shale Lease Fund should be available on a "quick response" basis for com- munity financial needs in the oil shale region. Hence, the Energy Impact Assistance Fund is a logical place for these monies. Other sources of funds. In the event a synthetic fuel bill is passed by the U.S. Congress, federal aid will probably be available to energy-im- pacted communities. Some of these federal dollars could be included in a state Impact Fund. Another source of dollars could be the revenues from a severance tax on coal and uranium. A portion of the proceeds from such a tax could be ear- marked for local impact alleviation via the Impact Fund. Once the pro- posed Energy Impact Assistance Fund was fully funded, previously ear- marked severance tax proceeds would revert to the state general fund. ~ The Colorado Legislature could also appropriate monies to help establish and replenish the Fund as needed. The Fund could also borrow by issuing bonds; or money could be borrowed from the Bureau of Land Management (BLM). This agency can make loans (at three percent interest) in anticipation of receipts from royalty payments.* The Advisory Committee views the need for an Impact Fund as being especi- ally urgent for use in areas impacted by coal, uranium, and power plant development. Areas likely to be impacted by oil shale development already have access to the Oil Shale Lease Fund, which can at least partially ac- commodate financial needs. The Advisory Committee concluded that an Impact Fund would best be admi- nistered by a special office within the Department of Local Affairs. It *Federal Land Policy and Management Act of 1976. 0416