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001332 AZ Dept. of Water Resources: Recent Announcem... Page 3 of 11 citation can be understood. It is doubtful, however, that a more casual reader of these rules would understand how Article II(B)(6) provides legal authority for this concept. Proposed Amendment: This part sets forth the procedural framework for approval by the Secretary of the Interior of interstate agreements for the offstream storage of Colorado River water in the Lower Division States by State-authorized entities consistent with State law. In accordance with the Secretary's authority under Article II (B) (6) of the Decree entered March 9, 1964 (376 U.S. 340), in the case of Arizona v. California, et al. as supplemented and amended, this part also includes the fJroeecktral framework FOR THE SECRETARY TO MAKE AVAILABLE INTENTIONALL Y CREATED UNUSED APPORTIONMENT TO LOWER DIVISION STATES PURSUANT TO INTERSTATE STORAGE AGREEMENTS to develofJ and redeem stor-age credits assoeiatea with Colorado River ':rater stored offstream by al::ltRorizea BBtities eonsistent witl1 State law. This part does not address intrastate storage or distribution of water not subject to an Interstate Storage Agreement. * * * ... Rule Section: ~ 414.2 Definition of "Authorized Entity" Comment: The phrase "or other entity. . . holding entitlements" suggests that all entities must hold an entitlement in order to qualify as an "Authorized Entity." The A WBA does not hold an entitlement. Holding an entitlement does not need to be a prerequisite to participating in Interstate Storage Agreements. It is of much greater significance that the entities be specifically authorized to participate by State law because the transactions involve the apportionments to Colorado River Water held by the individual States. The fourth item on the list in ~ 414.2 is unnecessary. It uses the terms "redeem" and "Storage Credits," which are discussed above, and creates further confusion or redundancy by suggesting that the terms mean something other than developing or acquiring Intentionally Created Unused Apportionment, which are specifically mentioned in items 2 and 3 in the list. This fourth item should be deleted from the proposed rule. Proposed Amendment: Authorized entity means a State water banking authority, or other entity of a Lower Division State noldiag eBtitlemeflts ts Colsrads River ':later, expressly authorized pursuant to applicable laws of Lower Division States to: (1) Enter into Interstate Storage Agreements; (2) Develop intentionally created unused apportionment; OR (3) Acquire the right to use intentionally created unused apportionment-;-ef ( 1) Develop or redeem. storage credits f-or the beBefit sf an aatnorized eBtity in aflother Loy.'er Divisiol'l State. * * * .... Rule Section: S 414.2 Definition of "Consuming State" http://www.adwr.state.az.us/annc/bankrule.html 3/12/98