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I I I I I I I I II I I I I : I I I I I I DRAFT PROGRAMMATIC ENVIRONMENTAL ASSESSMENT FOR PROPOSED RULE MAKING For OFFSTREAM STORAGE OF COLORADO RIVER WATER AND INTERSTATE REDEMPTION OF STORAGE CREDITS IN THE LOWER DMSION STATES 1. PURPOSE AND NEED FOR ACTION A. Introduction The Bureau of Reclamation (Reclamation) is proposing a new rule under which Colorado River water may be stored off stream in the Lower Colorado River Basin (Lower Basin) for future interstate use in the Lower Division States of Arizona, California, or Nevada, This proposed rule would establish the procedural framework under which any entity holding an entitlement to use Colorado River water in the Lower Division States, if authorized to engage in interstate Colorado River water transactions by State law (an authorized entity), could arrange for off stream storage of Colorado River water allocated for use in any given year, Water stored could be from entitlements not otherwise used within the State where the storage would occur, or from unused apportionment of the entity's home state, if other than the state where the storage would occur, Credits would be developed and maintained for the stored water. The credits could be redeemed or assigned within the Lower Division States by the holder of the credits, The rule would increase the efficiency, flexibility, and certainty in Colorado River management of Colorado River water supplies, The proposed rule will clarifY the legal authority of authorized entities within the Lower Division States to enter into interstate transactions by providing a standard set of procedures to be used in place of the ad hoc processes that have been used for previous interstate water transactions, These procedures will provide greater flexibility, certainty, and assurance to all parties potentially interested in entering into interstate transactions to store Colorado River water off stream and use or redeem associated storage credits, The actions and transactions contemplated in the proposed rule are within the current authority of the Secretary of Interior (Secretary) as noted by the Boulder Canyon Project Act of 1928 (45 Stat. 1057, 43 U. S. C, 617) (BCPA), and recognized in the 1964 Supreme Court Decree in Arizona v. California (376 U.S, 340) (Decree), The proposed rule and this environmental assessment (EA) do not address off stream intrastate storage and distribution of water for intrastate use in the Lower Division States, Entities within the Lower Division States are storing and distributing Colorado River water on an intrastate basis at the present time. LC Region DEAl 1 1 12/97