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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />0003H <br /> <br />Response: Nothing in this regulation modifies the ground water protections found in the <br />CAP contracts or limits the Department's ability to protect trust resources. Also, as noted in ~ <br />414.3(c), the potential effects of the proposed measures on the environment, the economy, and <br />trust resources are among the factors the Secretary will consider when reviewing a Storage and <br />Interstate Release Agreement. <br /> <br />Subsidies <br /> <br />Comment: Several respondents stated that the Department should not allow extra non- <br />reimbursable expenses to occur in storing water or delivering it to a new location. There were <br />also suggestions that, with respect to Arizona, revenue from the Interstate Storage Agreement <br />(now termed a "Storage and Interstate Release Agreement") should be collected to help repay <br />CAWCD's debt to the United States for the CAP. <br /> <br />Response: The Department agrees that a proposed Storage and Interstate Release <br />Agreement cannot obligate the United States to incur extra non-reimbursable expenses to store <br />water or deliver it to new locations. The Secretary will review the provisions of every proposed <br />Storage and Interstate Release Agreement for its financial impacts on the United States and will <br />not execute any agreements that may have adverse financial impacts on the United States. In <br />addition, the United States is currently seeking to resolve the recovery of CAW CD's debt to the <br />United States. <br /> <br />Power Issues <br /> <br />Comment: Several respondents stated that Reclamation should analyze the impacts of the <br />rule on power customers in the State of Arizona. When water passes through the Hoover and <br />Davis generators on the way to storage in Arizona, there will be additional power production but <br />CA WCD will incur increased pumping costs to move the water to storage. When stored water is <br />withdrawn by a Nevada entity in the future, less water will pass through the Hoover and Davis <br />generators, resulting in less power production at those dams. When Arizona ground water <br />pumpers who take CAP water through in-lieu storage are required to go back to ground water <br />pumping, they may require more power during years when stored water is withdrawn from the <br />bank: and generation is reduced at Hoover and Davis Dams. The rule should provide for <br />compensation of power customers to protect them from subsidizing water banking. <br /> <br />Response: Under this final rule, the offstream storage of Colorado River water and the <br />Secretary's release ofICUA may influence the timing of power generation at the Hoover, Parker, <br />and Davis powerplants. Reclamation conducted an analysis to evaluate the potential impact& of <br />this final rule on Hoover and Parker-Davis power customers. The analysis reflects that under this <br />final rule the quantity of energy foregone in anyone year between 1998 and 2017 will result in a <br />loss ofless than 0.5 percent. Between 1998 and 2017, the quantity of Colorado River water <br />released from mainstream reservoirs will be equivalent to the quantity that otherwise would have <br />been released without the implementation of this final rule. <br /> <br />9 <br />