Laserfiche WebLink
<br />001430 <br /> <br />Colorado River water to ensure that water stored and recovered for interstate delivery does not <br />adversely impact those local tribal water resources. Under the proposed rule the Secretary will, <br />when determining whether to approve a proposed interstate transaction, take into account, <br />among other things, the potential impacts of a proposed transaction on water rights holders, <br />including Indian Tribes. See Sec. 414.3(b). <br />Finally. this Drooosal does not address. and is not intended to Q:ovem the exercise of. <br />whatever authority the Secretary of the Interior has to consider and imolement. in aODrooriate <br />situations. tribal storaQ:e and water transfer activities. <br />Except as described below, the Secretary, in reviewing an Interstate Storage Agreement, <br />will not focus on the price associated with utilization of storage credits or other financial details <br />agreed to by the authorized entities as willing sellers and willing buyers. The transaction must <br />leave the United States in no worse a financial position than if the transaction had not occurred. <br />When it is operationally feasible to do so, United States facilities may be available for use in <br />storing, delivering, and distributing Colorado River water off stream under the proposed rule to <br />the extent that the United States is fully reimbursed for relevant capital, interest, and operation <br />and maintenance costs. Approval to deliver Colorado River water cannot obligate the Federal <br />Government to incur extra non-reimbursable expenses to store water or deliver it to a new <br />location. Further, existing Reclamation law requires adjustment in repayment terms when use of <br />the water shifts from a non-interest bearing category to an interest-bearing category, such as <br />from agriculture use to municipal and industrial use. Additionally, if pumping power is needed to <br />affect a given transaction, the parties to the transaction must provide or pay for such power, and <br />may have to secure it from non-Federal sources. <br />The actions and transactions contemplated in the proposed rule are within the current <br />authority of the Secretary, the BCP A, and the Decree. Under BCP A, with the exception of <br />Federal Establishments PPR's, no authorized entity may receive Colorado River water except in <br />accordance with a contract with the Secretary. Where appropriate to implement the Interstate <br />Storage Agreement, the Secretary will contract for water deliveries under Section 5 of the <br />Boulder Canyon Project Act. In accordance with specific approvals, off stream storage and <br />development of storage credits for interstate purposes have already taken place on a limited <br />basis. The proposed rule will provide a standard set of procedures to be used in place of the ad <br />hoc processes that have been used for previous interstate water transactions. These procedures <br />will provide greater flexibility, certainty, and assurance to all parties potentially interested in <br />entering into interstate transactions for storage of Colorado River water and use or redemption <br />of storage credits. This increased certainty is expected to promote more efficient management of <br />the Colorado River and facilitate additional voluntary water transactions of this type among <br />Lower Basin water users. <br />The Secretary will consider the implications of the proposed Interstate Storage Agreement <br />for the financial interests of the United States and the United States will require the parties who <br />benefit from the transactions to fund the United States' reasonable costs to evaluate, process, <br />and/or approve transactions entered into under this rule. In considering a request for approval of <br />an Interstate Storage Agreement for offstream storage of Colorado River water and use or <br />redemption of storaQ:e credits, the Secretary will consider, among other relevant factors: <br />applicable law; applicable contracts; potential effects on trust resources; potential effects on <br /> <br />16 <br />