Cost & Repayment
An Investment for the Future
Based on preliminary design and engineering, the LPP is roughly estimated to cost between $1.3 to $2.2 billion dollars (2020 dollars). An updated cost estimate will be prepared when the environmental studies are complete and alignment and design are determined.
The 2006 Lake Powell Pipeline Development Act specifies that the LPP will be funded by the state of Utah and repaid by participating districts. Revenue to repay the state will come from three funding sources: impact fees, water rates and property taxes.
More than one thousand regional water projects have been built in Utah using the same financing mechanism. All have been repaid.
The Washington County Water Conservancy District has developed a general capital project funding strategy to phase in water rates, impact fees and ad valorem (property) tax increases to produce sufficient revenue to repay the state. If fully implemented, this strategy has the capacity to generate an additional $6.12 billion in revenue through 2060 for infrastructure projects, including the LPP.
A 2019 independent audit performed by the Utah Office of the Legislative General and the Bureau of Reclamation’s 2020 draft Environmental Impact Statement confirmed the LPP is economically feasible and affordable.