Document Type


Publication Date



Project Objectives:

The manner in which water resources are allocated and developed to meet energy development requirements has serious implications with respect to the state's responsibility and ability to manage these resources in the best interest of the public. In the Western States of Montana, Wyoming, Utah, Colorado, and New Mexico where extensive energy resources, including coal, oil shale, and uranium exist, the financing of water projects to support energy development in emerging as a significant problem. The overall objective of this research is to develop information on capital financing alternatives that state governments might consider for water projects to support energy development. To achieve the main objective, seven sub-objectives or tasks will be accomplished as follows:

1. Prepare an inventory of potential water projects required to support energy development in the Western Energy Development Area.

2. Assess state capital financing requirements for these water projects.

3. Identify and analyze the financial characteristics of these potential water projects.

4. Evaluate alternative sources of state capital finance, such as expansion of long-term debt, special appropriations, revolving development funds, earmarked revenues, user fees, and other forms of taxes.

5. Synthesize the information developed under Objectives 2,3,and 4 in the formulation of typical future water project financing scenarios.

6. Utilizing the scenarios of Objective 5, analyze the effects of changes in economic, financial, legal, and institutional conditions on the feasibility of capital financing alternatives.

7. Prepare recommendations on capital financing alternatives of state governments for water projects to support energy developments.