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APR-27-9S THU 1S:42 UPPER COLORADO RZVER COMM P.04 DRAFT Mr. Char lea A. Calhoun U. S. Bureau of Reclamation April 27, 1995 pase 3 conaultation. Of ereater concern, however, is that auch flowa that would bypa.. the power plent are contrary to the law, the hi.torical intent of Conlre.. and make little economic 'ense. Section 602 of the COlorado River Baain Project Act (Public Law 90-537) lovern. the rel,ase of vater fro~ Lake Powall and .pecifically racolnixe. tha i_portance of the production of hydropower in a.aurine the financial faa.ibility of the raderal water reaource developmenta in the Upper Baain. The "Criteria for Coordinated Lolll-Ranse Oparation of Colorado River Reaer- voir." (operatinl criteria) promullated purauant to Section 602 .pecifieally prohibit ~king equalization releaae. or releases to avoid anticipatad .pill. unlesa tha water raleased can be peaaad through the power plant. Congra.., in the lelialative history of the Gr.nd Canyon Protection Act, .pecifically de.fines "!:;illc" ;.l" "re!esses in exceS8 of power plant capacity" or "flood release." and state. that such ralease. ahould be avoided. Tha Upper Colorado River Comadssion and the Upper Divi.ion Statea are adamantly opposed to auch relea.ea beyond power plant capacity unlass required to manaae dam lafet1 ri.ka to the dam structure or itl spillway. We underatand that the Record of Decision i~lementins lons-tera chansea that may be recoDAended by thi. Pinal Environmental Impact Statement must await the complation of an audit required by Section l804(b) of thl P.L. 102- 575. Althouch the provision requirinl tha audit contains few .pacific., the congressional co~ttee report. provide .ome in.iaht into their congre..' expectations. The act require. en audit of "...costa and b.nefit....resultins from manasement policies and da.. operatiollS, . . ". The report of the Senate Committee on Energy and Natural Resources requirea an audit of .....the co.ts and benefita of various alternative manasement policiea and operational procedure....". The House Report .ussests the audit Ihould "revie. the economic impacts of alternative. for Glen Canyon Dam operation..,.the_ economic anely.i. is to be conducted in accordance with the principle. set forth in the Standards section of the Water Re.ources Council'a Economic and Environmental Principal and Guidelinea for Water end Related Land Resources Implementetion Studies. " The Hous. Report aleo aut... "Thi. economic ana11si. well ensure that the costs and benefits to the nation are objectively and thorouah1y evaluat.d, beyond a mere account ins of the financial costs and benefitl to users of Federal Reaource.... Although the breath of the apparent con,ressio- nal intent could be con.trued as rather wide, it may serv. little useful purpose to do a full blown benefit-co,t ratio enalysis of each and every alternative. We believe, however, that at least. careful eudit of the co.ts end benefit. of this preferred alternative should be completed. This_ audit should be completed. Thia audit .hould contain s disclosur. of tha costs incurred in chanSins-.powerplant operations to acco~d.te the provieion. of Title XVIII in compari,on to the benefita to the natural resource, of the Grand Canyon. The audit .hould sl.o contain conclusion aa to whether the .'L._ __,._ ______:_ .._A ....... o"^", -F"'r rh. ",,"'ton .. . whole.