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I-' 00I.~ ~ 1\.:' Appendix - Repayment Analysis The Lower Colorado River Basin repayment spreadsheets provide a comparison of estimates between the net revenues from the Lower Colorado River Basin Development (LCRBD) Fund and Lower Colorado River Basin States (Arizona, California, and Nevada) share of reimbursable costs for salinity control projects. The reimbursable costs to the States are based on capital and operation and maintenance (O&M) costs spent as of 1992, budgeted costs (capital and O&M) for 1993 and 1994, and projected costs from 1995 to 2015. Projected cost estimates from 1995 to 2015 are based on the full implementation of the Salinity Program to meet the salinity target level in 2015. The repayment spreadsheets assist program managers in developing an implementation plan of salinity projects that meet the salinity numeric criteria at the three stations on the Colorado River (Hoover Dam, Parker Dam, and Imperial Dam). Projects in the implementation plan are either completed or in various stages of planning and construction. Cost estimates for projects being planned or constructed are in "1992" dollars. Cost estimates for the projects are on record in the Bureau of Reclamation (Reclamation) and the Soil Conservation Service offices. The reimbursable portion of these projects to the Lower Colorado River Basin States is based on two repayment formulas determined by Public Law 93-320 and Public Law 98-569. Reclamation projects authorized under Public Law 93-320 are Grand Valley Stage One, Grand Valley Stage Two, Las Vegas Wash, and Paradox Valley. The repayment formula that is applied after project construction is completed, states that 25 percent of the total construction cost is reimbursable without interest by Basin States. Eighty-five percent of this reimbursable portion is to be paid by the Lower Colorado River Basin States over a 50-year period. The repayment formula applied in the spreadsheet is (total construction costs x 0.25 x 0.85)/50 years. Repayment of O&M costs uses a similar formula (annual O&M costs x 0.25 x 0.85), where repayment is made in the next year after the year in which the costs are incurred. The repayment formula authorized under Public Law 98-569 provides that 30 percent of the costs of construction and O&M cost is reimbursable, 85 percent of which is reimbursable by the Lower Colorado River Basin States. This law requires that the reimbursable cost to the Lower Basin States be repaid either without interest during the year the costs are incurred, or, if the LCRBD Fund is unable to repay during the year costs are incurred, interest is charged on the unpaid portion of that year. The repayment formula applied to the spreadsheet is: annual projects costs (capital and O&M) x 0.30 x 0.85. - Projects covered by this repayment formula are: Grand Valley Unit (USDA), Uinta Basin (USDA), Lower Gunnison Basin (USDA), Lower Gunnison Basin Unit-Winter Water (USBR), Lower Gunnison-Laterals (USBR), Dolores Project (salinity control portion), McElmo Creek (USDA), Big Sandy (USDA), Moapa Valley (USDA), Price-San Rafael (USDA), Price-San Rafael (USBR), Hammond (USBR), and Uinta Stage I (USBR). Major changes from the 1991 Joint Evaluation Report (JER) repayment analysis are as follows: 1. In the spreadsheet, dollar estimates under the column titled, "Total Investment Costs" represent the construction and O&M (Reclamation projects only) costs for each project. 2. Period of analysis is extended from the year 2010 to the year 2015. This increases the O&M costs (approxi- mately $4.3 million) for some projects in the program. 3. Changes in project schedules, construction costs, and O&M costs made to the repayment spreadsheet for the following projects are: a. Glenwood-Dotsero Springs Unit eliminated from the Salinity 21