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<br />2 <br /> <br />construction fund and appropriated for a biennium $2 million. In the second <br /> <br /> <br />biennium there was no appropriation and in the third biennium $500,000 was <br /> <br /> <br />appropriated. Monies were advanced to build a project and the project sponsors <br />agreed to purchase that project and return the money to the State. Supplemental <br /> <br /> <br />water has been added to existing irrigated lands in about 55 percent of the State, <br /> <br /> <br />compared with about 30 percent of lands in the State impacted by Bureau projects. <br /> <br />In 1980 the level of funding through Federal agencies has deteriorated due to <br /> <br />inflation. The dollar amounts advanced, in general, have remained somewhat level, <br /> <br />but there has been a reduction in buying ability. Utah recognized several years <br /> <br /> <br />ago that if the Central Utah Project could be funded by the Bureau that would be <br /> <br /> <br />about all the Federal money the State could get through the Bureau. <br /> <br />In 1978 the Utah Legislature authorized the Board of Water Resources to sell <br /> <br /> <br />$25 million in general obligation bonds. The authorization provided that State <br /> <br /> <br />projects could be built keeping them permanently in State ownership, the same as <br />the Bureau builds a Federal project. Utah can contract with private enterprise <br />to use water and to actually purchase the facility. Mr. Lawrence stated that <br />this was really an expansion of the original revolving construction fund which <br />was originally conceived after the depression when farm prices were low, and <br />although the law did not spell out the cost of the money, it was the policy of <br />the legislature that this money would be interest free. The revolving fund has <br />been available primarily to agricultural people at no interest. The legislature <br />determined in 1978 that there was still a need for interest free financial <br />assistance, but how it will fare with the legislature, time will tell. The <br />$25 million in bonds will bear interest by direct instruction from the <br />legislature. Utah has started construction on three projects and the agricultural <br /> <br />portions will pay 3 percent interest. There were 10 projects originally <br /> <br />. <br /> <br />" <br /> <br />B-2 <br />