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I I I I I I I I I I I I I I I I I I I II, PROPOSED ACTION AND ALTERNATIVES A. Proposed Action The proposed action is the promulgation of a new rule to set forth the procedural framework for approval by the Secretary of interstate agreements that would provide for off stream storage of Colorado River water, development, recovery, and use of resulting storage credits, or the interstate redemption of Colorado River water storage credits to authorized entities in other Lower Division States. The proposed rule would provide legal authority for State-authorized entities to enter into interstate storage agreements with authorized entities in other Lower Division States subject to the Secretary's approval, The proposed rule would facilitate the interstate component of the AWBA program and comparable measures that may be enacted in the future by other Lower Division States, B. Alternatives Analyzed I. No Action Alternative: Entities within each Lower Division State are entitled to consumptively use the quantity of Colorado River water apportioned to that State, In a normal year, 7.5 million acre-feet (mat) is available for consumptive use in the Lower Basin, divided as follows: 2,8 mafto Arizona, 4.4 mafto California, and 0.3 mafto Nevada. California's use has been exceeding its 4.4 mafbasic annual apportionment because the Secretary, in accordance with the Decree, has annually released for consumptive use within California the Colorado River water apportioned to but unused by Arizona and Nevada, However, this past use has not established any rights in the State of California to future use of water in excess of California's annual apportionment of4.4 maf In 1996, A WBA initiated efforts to store Arizona's unused Colorado River water off stream in Arizona and Arizona expects to use its entire 2.8 maf apportionment in 1997 through a combination of direct use and off stream storage, Under this alternative, Colorado River water will continue to be diverted by existing facilities along the Colorado River including the CAP, Arizona will continue to divert and store its unused Colorado River water off stream in existing facilities for its own use, Without the proposed Federal rule, AWBA would be unable to implement the interstate component of the Act and enter into interstate agreements. The A WBA would not be able to store Colorado River water for a State-authorized entity in California or Nevada, No interstate storage credits would be developed in Arizona and as a result no storage credits would be available in Arizona for use or redemption within the other Lower Division States, Under this alternative, Nevada's consumptive use of Colorado River water will continue to increase and Nevada users are expected to fully utilize Nevada's apportionment by 2004. Nevada will continue to divert its basic apportionment through existing diversion and delivery facilities at Lake Mead. Nevada's diminishing unused apportionment will continue to be subject LC Region DEAl I 9 12197