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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 />000303 <br /> <br />Comments on Ouestion 1: <br /> <br />Comment: One State agency and two water districts cite the BCP A and the Decree to <br />support their view that an authorized entity must have a contract with the Secretary. Two State <br />agencies, one water district, and one water authority commented that an authorized entity need <br />not be an entitlement holder to store water and make it available to a Consuming State under an <br />Interstate Storage Agreement (now termed a "Storage and Interstate Release Agreement"): The <br />latter group recognizes that the BCP A and the Decree require all diversions of Colorado River <br />water from the mainstream to be based on an entitlement. However, these respondents believe <br />there is no statutory requirement for the authorized entity to have a direct contract with the <br />Secretary in order to fulfill its responsibilities to store its own State's unused apportionment. <br />Under their reasoning, the authorized entity can arrange for storage and ensure the availability of <br />unused apportionment in the future through existing contractual arrangements with other parties <br />that have entitlements through contracts with the Secretary. <br /> <br />Response: With the exception of Federal and Tribal rights identified in Article ll(D) of the <br />Decree, all diversions of water from the Colorado River for use within the Lower Division States <br />require a contract with the Secretary. This is specified in ~ 5 of the BCPA and confirmed by the <br />Decree in Arizona v. California. Under this rule diversions of Colorado River water will occur in <br />two circumstances. The first is when water is taken from the river and stored off-stream by the <br />storing entity and the second is when ICUA has been developed and that water is released by the <br />Secretary for use by the consuming entity. <br /> <br />For authorized entities which do not hold a Federal or Tribal entitlement recognized in <br />Article ll(D) of the Decree, the final rule allows for the storage of Colorado River water either <br />through a direct contract with the Secretary or through a valid subcontract with an entitlement <br />holder. For the release or diversion ofICUA to the consuming entity, the Storage and Interstate <br />Release Agreement, to which the Secretary will be a party, satisfies the ~ 5 requirement, <br /> <br />Comments on Question 2: <br /> <br />Comment: One State agency and one water district believe that sufficient statutory and <br />contractual authorities exist to allow the authorized entity to take water for banking purposes that <br />otherwise would be unused in that State. These parties believe the authorized entity does not <br />need to hold its own entitlement because sufficient legal authority already exists under applicable <br />laws and contracts. The State agency states that not all end users of Colorado River water are <br />required to have entitlements or contracts with the Secretary. The State agency further contends <br />that the Colorado River Basin Project Act [43 U.S.C. 1524(b)] makes a direct contract between <br />the Secretary and end-users of Colorado River water in Arizona discretionary. <br /> <br />Response: The Department recognizes in new ~ 414.3(e) that existing contracts or <br />Federal or Tribal entitlements recognized in Article ll(D) of the Decree may allow for the delivery <br />of water for storage under this rule. These include direct contracts between authorized entities <br /> <br />37 <br />