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<br />001431 <br /> <br />contractors or Federal entitlement holders, including Indian and non-Indian PPR holders and <br />other Indian tribes; potential effects on other third parties; environmental impacts and effects on <br />threatened and endangered species; comments from interested parties, particularly parties who <br />may be affected by the proposed action; and other relevant factors, including the implications of <br />the proposed Interstate Storage Agreement for the financial interests of the United States. <br /> <br />IV. Prior Rulemaking Proceedings <br /> <br />In 1991, 1992, and 1994, Reclamation developed draft rules for administering Colorado <br />River water entitlements and distributed drafts to known interested parties. Among other things, <br />those drafts included provisions that would have allowed instream storage of water saved, <br />interstate transfer of conserved water, reductions in entitlements due to nonuse, and proposed <br />water conservation criteria. Because of the controversy associated with these proposals, <br />Reclamation suspended further work on the rule in late 1994 to allow the Lower Division States <br />time to develop a consensus on storage and interstate transfer issues. While a consensus on all of <br />these issues has not been achieved, it appears that there is strong support and demand for a new, <br />more narrowly focused rule that will facilitate off stream water storage and interstate water <br />delivery programs in the Lower Basin. <br /> <br />V. Section by section analysis of the Proposed Rule <br /> <br />Section 414.1. Purpose <br /> <br />Under this proposed rule Colorado River water may be stored offstream to permit future <br />interstate use of Colorado River water. This proposed rule would establish the procedural <br />framework under which authorized entities of any of the Lower Division States (Arizona, <br />California, or Nevada) could store offstream throu~h another authorized entity (for example. <br />State-authorized water banks) in anv Lower Division State. Colorado River water allocated but <br />not taken bv water entitlement holders within the State where the storage occurs. or unused <br />basic apportionment, or surplus apportionment of the Consuming State. The authorized entity of <br />the Storing State would develop, on behalf of the authorized entity in the consuming state, <br />storage credits associated with that water. When unused apportionment is intentionally created <br />to satisfy a request for delivery of water from storage credits, the authorized entity must ensure <br />that its State's consumptive use is decreased by a quantity sufficient to offset the quantity of <br />storage credits that are to be made available as unused apportionment by the Secretary and <br />delivered for use in another Lower Division State in accordance with Article IT(B)(6) of the <br />Decree. This rule would increase efficiency, flexibility, and certainty in Colorado River <br />management. <br />The proposed rule establishes procedures for interstate contractual distribution derived from <br />credits for Colorado River water stored offstream. These procedures will apply to all holders of <br />entitlements to use Colorado River water in the Lower Division States. The proposed rule <br />allows authorized entities of any Lower Division State to enter into agreements with authorized <br />entities of another Lower Division State to store Colorado River water offstream, develop <br /> <br />17 <br />