WSP09205

• File Number: 8200.400
• Description: Colorado River Basin Briefing Documents-History-Correspondence
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 11/1/1999
• Author: DOI-BOR
• Title: Offstream Storage of Colorado River Water - Development and Release of Intentionally Created Unused Apportionment in the Lower Division States - Final Rule - 43 CFR Part 414
• Water Supply Pro - Doc Type: Report/Study

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Federal Register/Vol. 64, No, 210/Monday, November 1. 1999/Rules and Reguiations

California and Nevada are looking for
alternative water supplies to satisfy the
increasing demands of economic
development and population growth.
This rule may provide an opportunity
for Colorado River water users in
Nevada to experience a marginal cost
savings in securing alterniHive supplies.
Offslream storage of Colorado River
water and making available ICUA are
voluntary actions. Should the costs of
the procedures in this rule to facilitate
[/lese transactions be greater than the
costs of olher alternative water supplies,
California and Nevada would probably
select the lower cost alterrlatives.
The benefit-cost analysis estimated
net economic benefits of this rule on a
State and regional level using different
water supply models and discount rales.
The different water supply models
represenl potential water ~uppty
conditions on the ColoradO River that
aiTect interstate demand for water from
an Arizona water bank and the
magnitude of economic benefits
obtained from that water. The discount
relies used in the analysis were 5.75 per
cent (the average rate on municipal
bonds in 199B, which is a rate faced by
major water purveyors in CalifornJa and
Nevada) and 8.27 per cent (the prime
rale in 1996. vvbich more accurately
represents the cost of money).
Under a conservative water supply
scenario characterized by 19 years of
normal conditions on the Colorado
River and one surp\us year. disco\lnled
net economic benefits at the regional
level ranged from $12.8 to $61.2 milJJon
at 5,75 per cent and $9.5 to $47.7
miUion at 8.27 per cem. Under a water
supply scenario charac.tcr'.i'l.ed by 10
years of surplus coodilion~ on the
Colorado River. the net economic
benefits range from $550.255 to $4.8
million at 5.75 per cent and $350.789 to
$3.1 million a\ 8.27 pcr cern. Under the
scenario characterized by lO surplus
years. demand for banked water is
relatively low because water users in the
Lower Division Slates can meet most of
their water needs with di'Jcr51on~ from
the mainstream within the bask and
surplus apportionments fOf use within
those Stales.
We have placed the full <ma1ysis on
file in the Reclamation A.d~n~n\stfa\ive
Record at Bureau of Reclamalion,
Administralive Record. Lower Colorado
Regional Office, P.O, Box 61470,
Boulder City, NV 89006-1470,
Aneonon: BCOO-445l.

E>:eculive Order 12988. (jy"iJ justice
Reform

In accordance with Execulive Order
12988. the OFfice of the Solicitor has
determined that this rule does not

unduly burden thejudiciaJ system and
meets the requirements of sections 3(a)
and 3(b)(2) of the Order.
List or Subjects in 43 CFR Parl414
Environmental compliance, Public
lands. Water bank program. Water
resources, Water storage. Water supply.
and Water quality.
Daled: October 26. 1999.
Patricia J. Beneke.
Assistanf St~cre'ary-Water and Science.
For the reasons stated in [he
preamble. the Bureau of Reclamation
adds a new pan 414 to Iitle 43 of the
Code of Federal Regulalions as follows:

PART 414--0FFSTREAM STORAGE
OF COLORADO RIVER WATER AND
DEVELOPMENT AND RELEASE OF
INTENTIONALLY CREATED UNUSED
APPORTIONMENT IN THE LOWER
DIVISION STATES

Sec

Subpart A-Purposes and Definitions

4 \ 4. \ Purpose.
414.2 DefinitIons of terms used in this part.

Subpan B-Storage and InlerstalC Release
Agreements

414.3 Storage and Interstate Release
AgreemenTs.
414.4 Reponing RequJrements and
accounting under storage and Interstate
release agreements.

Subparl C-Water Quality and
Environmental compliance

414.5 Water Quality.
414.6 Environmental Compliance and
fundmg of Federal costs.
Authority: 5 u.s.e. 553: 43 u.s.e. 391,485
and 617: 373 U.S. 546: 376 U.S. 340.

Subpart A-Purposes and Definitions

S414.1 Purpose,

(a) What this parr docs. This part
establishes a procedural framework' fo~
the Secretary of the Interior (Secretary)
to follow in considering. participating:
in. and adminis!ering Storage and .
\nterstate Release Agreements in th~
Lower Division Stales (Arizona.
California. and Nevaaa) that would:
(1) Permit Sta[e-awhorized enlitfes to
store Colorado River water ofTstrearn: .
(2) Pemlit State-authorized entities to
develop intentionally created unused .
apportionment (1CUA); .
(3) Permit Stare-authorized entities to
make ICUA available to the Secretary for
release for use in another Lower .
Division State. This release may on)y
take place in accordance with the,
Secretary's obligations under Fede~al
law and may occur in either the year of
storage or in ye~rs subsequent to, ~
storage: and

(4) Anow only voluntary interstate
water tTansactions. These watei' .
t'ransactions can. help to satisfy regional
water demands by increasing the
efficiency. nexibility. and ceflainty in
Colorado River management in
accordance with the Secretary's
authority under Article II (8) (6) of tlle
Decree entered March 9,1964 (376 LIS
340) in the case of Arizona v. California.
(373 U.S, 546) (I 963). as supplemented
and amended.
(b) Whm this part doe.5 not do. This
part does not~' :a ..
(1) Affect any Colorado River wa-,~r .
entitfement holder's right to use its fulJ
water entitlement;
(2) Address or preclude independent
actions by the SecrClary regarding Triba'[
storage and water transfer activities: ..
(3) Change or expand existj[~g .
authorities under the body of Jaw ..
known as the "Law of the River:;
(4) Change the apportionments made
for use within individual States: ..
(5) Address. intrastale storage, oS
intrastate distribution of water:
" (5) Preclude a Storing StateJroJll
storing some of its unused ..
apportionment in another Lowe~
Division Stale if consistent witq
appHcable-Slate law; or
(7) Authorize any spednc activities:
the rule provides a framework only. ... '
S414.2 Definitions of tenns used in thi6
part.
, Author/zed (lnrity means:
11) An entity in a Storing Slate which
is expressly oiuthorized pursuant to tile
laws of thaI State to enter inlo Storage
and Interstate Release Agreements and
develop ICUA ("storing entity"); m
(2) An entity in a Consuming State
which has authority under the laws of
that State to enler into Storage and
Interstate Release Agreements and
ar:quire the right to use leU A
("consuming entity").
B'asic apportionmem means the
Colorado River water apporlioned for
use within each Lower Division Swte
when suffici.ent water is avail,ible for
release. as dctem1ined by the Secretary
of the Interior. to satisfy 7.5 million
acre-feel {man of annual consumptive
use in the Lower Division Slates. The
United Stales Supreme Court. in
Arizona v. California, connmled that
the annual basic apportionment for the
Lower Division States is 2.8 maf of
consumptive use in the Slate of Arizona.
4.4 maf of cOfl'S.umptive use in the State
of California. and 0.3 maf of
consumptive use in the State of Nevada.
, B.~P~ means the Boulder Can~oll -
PrOject Act. authorized by the Act uf
Congress of Der:ember 2\.1928 (45 Stat.
1057),

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