AZ vs. CA:16 California Exhibits, Vol. XVI; Nos. 2600-2644

page 58

58 BUDGET BUREAU CIRCULAR A-4 7 AND POWER PARTNERSHIP considered primarily a local and State responsibility. The needs of communities and industries for water supply shall, hoAvever, be given full consideration in the investigations, surveys, and preparations of plans for Federal river development programs and proiects. (b) Proposals for the incorporation in a Federal program or project of provisions for domestic, municipal, or industrial water supply shall be made only if the total financial costs to be allocated to this purpose will be fully reimbursed by the States, local governments, districts, or persons served. 21. Provision in Federal water resources programs and projects for future requirements Where a significant saving will result from inclusion in the original plan for a program or project of additional or enlarged structures, facilities, or parts thereof which will serve anticipated future non-Federal needs, as, for example, excess storage capacity in reservoirs for municipal or industrial water supply, provision for such inclusion may be made if- (a) The cost of including the facilities for anticipated future needs, including the properly allocable part of the joint costs of the program or project, represent not more than 15 percent of the total construction costs of the program or project. (b) All financial costs of such additions will be repaid within 50 years after the date on which initial use of such addition is begun, regardless of the degree to which the full capacity provided is utilized during that period. In arriving at the finan-cials costs of such additions, interest on the construction costs during the period of deferral of any use may be waived. (c) Reasonable assurance is given by local interests at the time the project report is prepared that initial use of the proposed addition to the program or project will begin within not more than 10 years, and a repayment contract is signed by local interests prior to the beginning of construction agreeing to start repayment within such 10-year period. By direction of the President: Frederick J. Lawton, Director.