I read it somewhat differently, Ken. The quote says "The U.S. Army Corps of Engineers said its environmental review of Million’s 550-mile water pipeline project has been terminated after Million re-purposed the project". In other words, it was not the money that was repurposed, but the pipeline project.
Being curious as to what exactly the project was supposed to encompass, I Googled "Aaron Million" pipeline
and lighted on quite a few relevant hits. Among them is this
2010-04-06 op ed
, from which it emerges that the pipeline project involves piping water from the Flaming Gorge Reservoir on the Utah-Wyoming border in order to irrigate the Front Range, part of the Southern Rockies located in north central Colorado and southeastern Wyoming.
The planned repurposing of the project is described in this 2011-05-23 article
in -- yes, the Coloradoan -- as centring on the use of the water for hydropower as well as Colorado agriculture and municipal needs.
According to this article, "If built, the $3 billion pipeline would pump 250,000 acre feet of water annually from Flaming Gorge on the Green River along a path roughly following Interstate 80 through southern Wyoming before dropping south near Fort Collins and eventually to its end near Pueblo [an industrial city in northwest central Colorado - EK]
. A variety of Larimer County and other Front Range irrigators and water districts have expressed interest in the project, which Million said could generate more than 1,000 megawatts of hydropower as the pipeline drops from Laramie, Wyo., to Fort Collins.
'The Army Corps’ environmental review of the project was expected to continue through 2018, but Million said Thursday the Federal Energy Regulatory Commission, which permits hydropower projects, may be the appropriate agency to conduct the environmental review of the project because of its new focus on hydropower."