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The state Legislature wants to pressure the Colorado Department of Local Affairs to use a $17 million grant for a new highway interchange off Interstate 70 near Parachute.

At least that's the impression of Aron Diaz, Associated Governments of Northwest Colorado executive director, as he told it to the Moffat County Commission during its meeting Tuesday.

"The Legislature supports this project" in Parachute, Diaz said. "They say this is a need."

The three commissioners, however, see some other needs across the state, including projects closer to Craig.

They also expressed disappointment that it seems AGNC, which represents all Northwest Colorado counties, seems to be going along with the Parachute project as the development to fund.

"As AGNC members, I thought all counties should be able to present projects," Commissioner Tom Mathers said. "Instead, it seems like AGNC decided for everyone which project to promote."

There are limited funds available through DOLA, he added, and giving money to one without giving a fair shot to others doesn't seem fair.

"We as counties always compete for money from DOLA," Mathers said. "But, if AGNC is going to support one project over any others, we need to all be on board with that. It's going to be real hard for me to go to Mesa County and say, 'I support their project more than mine.'"

Especially when it concerns a "one-time" grant of $10 million or more, which likely won't be seen again for a long time, Commissioner Tom Gray said.

Diaz said AGNC has not pushed for one project over the other.

For some time, the state has set aside a certain amount of federal mineral lease revenue, such as tax payments on coal, for large-scale projects that DOLA could fund.

There is a total of $17 million in the fund now, which the state Legislature has ordered to be released.

Linda Rice, DOLA spokesperson, said the department tentatively expects to go through a preliminary grant application process for the money this year, with final applications due in February 2010, and an award for the funds by April that same year.

However, with the energy industry on decline in Colorado, local officials do not expect the state to build up enough money for another large grant release any time soon.

The commissioners said they would like to see Rio Blanco County Road 5 get a shot at the money that's available now.

County Road 5 is the main artery into the oil shale fields of the Piceance Basin. If large-scale development ever occurs there, the commissioners feel there will need to be a better road infrastructure in place.

State Sen. Al White, R-Hayden, said that while Diaz's statement about the Legislature somewhat was true before, it's not anymore.

"Sen. (Josh) Penry asked me sign a letter of support for the Parachute deal, which I did not do," White said. "I recognized that there are other projects out there besides that. County Road 5 in Rio Blanco County is a huge project that needs some funding, as well."

White said the feeling that the Legislature wanted to fund the Parachute project over any other was an "unintended oversight" by the legislators who first supported the Parachute interchange.

It seems that everyone now wants to find a way to fund Parachute and Rio Blanco's road to oil shale, he said.

Diaz said there may be a way to fund County Road 5 without state money.

"We think we might be able to find some stimulus money for that," he said. "The one agency that does have money right now is the (U.S.) Department of Defense. The DOD has been pushing for oil shale development, which may be a big part of our energy security in the future."

Collin Smith can be reached at 875-1794 or cesmith@craigdailypress.com.