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<br />::a:. 'ii:. <br /> <br />January 23-24, 2007 Board Meeting <br />Agenda Item 17 <br />Page 5 of6 <br /> <br />. <br /> <br />NEP A Process <br /> <br />The US Bureau of Reclamation initiated the NEPA process for the development <br />of Lower Basin shortage criteria and the coordinated operations of Lakes Powell <br />and Mead under low reservoir conditions on June 15,2005. To date, USBR has <br />completed the Scoping Process and identified 5 alternatives that it will evaluate in <br />the NEP A process: 1) the Basin States Proposal; 2) a conservation before shortage <br />proposal developed by the environmental community; 3) a water supply <br />alternative; 4) a preservation of reservoir storage option; and, 5) a no action <br />alternative that continues the existing coordinated long-range operating criteria. <br />The DEIS was released on February 28,2007. However, the DEIS did not <br />contain a preferred alternative. Reclamation hopes to identify a preferred <br />alternative in mid-June. The Bureau of Reclamation still expects to issue a final <br />EIS in September 2007 and a Record of Decision by December 31, 2007. <br /> <br />Conclusions <br /> <br />. <br /> <br />· The 7-state agreement commits the states to solve problems, much as it has <br />done over the years, through a consultation process. The consultation process <br />is much more likely to minimize ones risks than litigation. <br />· It is intended to be consistent with existing law and provides a reaffirmation <br />of the Compacts. <br />· The rights of each state and their respective positions on various legal issues <br />will be preserved. <br />· The agreement forces the Lower Basin to recognize that there is some <br />potential for shortages and that they not only need to, but will develop <br />shortage criteria. Arizona is taking shortages voluntarily, which reinforces to <br />some degree that CAP lacked a full water supply under full development <br />conditions in the basin. However, Arizona gets to "limit" the shortage that the <br />Secretary will impose to a quantity Arizona can realistically absorb, which is <br />very important to Arizona. <br />· If the States reach an agreement that they can all commit too, the Secretary of <br />Interior is far more likely to adopt that alternative in their EIS process. Ifthe <br />Record of Decision is not in substantial conformance with the 7-state <br />recommendations, "off ramps" are provided <br />· Nevada, in addition to its existing compact apportionment, gets an interim <br />source of water (75,000 AF annually by 2020) that they have a fairly <br />immediate need for. This allows the fight over how to account for water <br />development on the tributaries to be delayed. Absent this agreement, Nevada <br />would move forward with plans to develop water on the Virgin and Muddy <br />River, which would precipitate the lawsuit over tributary uses under the <br />Compact. <br />· The revised plan of operation for lakes Powell and Mead under low reservoir <br />conditions will lessen the possibility of curtailments in the Upper Basin, but it <br />will not remove the risk totally. The terms of the Agreement, if selected by <br /> <br />. <br />