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<br />0014~7
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<br />68498
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<br />Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Proposed Rules
<br />
<br />The benefit-cost analysis estimated
<br />net economic benefits of the proposed
<br />A rule on a State and regional level using
<br />.. different water supply models and
<br />discount rates. The different water
<br />supply models represent potential water
<br />supply conditions on the Colorado River
<br />that affect interstate demand for water
<br />from an Arizona water bank and the
<br />magnitude of economic benefits
<br />obtained from that water, The discount
<br />rates used in the analysis were 5.75%
<br />(the average rate on municipal bonds in
<br />1996. which is a rate faced by major
<br />water purveyors in California and
<br />Nevada) and 8.27% (the prime rate in
<br />1996, which more accurately represents
<br />the cost of money).
<br />
<br />Under a conservative water supply
<br />scenario characterized by 19 years of
<br />normal conditions on the Colorado
<br />River and one surplus year. discounted
<br />net economic benefits at the regional
<br />level ranged from $12.8 to $61.2 million
<br />at 5.75% and $9,5 to $47.7 million at
<br />8.27%. Under a water supply scenario
<br />characterized by 10 years of surpl us
<br />conditions on the Colorado River, the
<br />net economic benefits range from
<br />$550,255 to $4.8 million at 5.75% and
<br />$350,789 to $3.1 million at 8,27%.
<br />Under the scenario characterized by 10
<br />a surplus years, demand for banked water
<br />.. is relatively low because the Lower
<br />Division States can meet most of their
<br />water needs with diversions from the
<br />mainstream.
<br />
<br />Reclamation has placed the full
<br />analysis on file in the Reclamation
<br />Administrative Record at the address
<br />specified previously (see ADDRESSES).
<br />
<br />Author
<br />
<br />The principal author of this rule is
<br />Mr. Dale E. Ensminger. Boulder Canyon
<br />Operations Office. Bureau of
<br />Reclamation, P.O. Box 61470. Boulder
<br />City. Nevada 89006-1470. telephone
<br />(702) 293-8659. '
<br />
<br />List of Subjects in 43 CFR Part 414
<br />
<br />Administrative practice and
<br />procedure. Environmental protection,
<br />Public lands, Reporting and
<br />recordkeeping requirements. Water bank
<br />program. Water resources. Water
<br />storage. Water supply, Water quality.
<br />
<br />Dated: December 22. 1997,
<br />
<br />Patricia J. Beneke.
<br />
<br />Assistant Secretary-Water and Science,
<br />
<br />a For the reasons stated in the
<br />.. preamble. the Bureau of Reclamation
<br />proposes to add anew part 414 to title
<br />43 of the Code of Federal Regulations as
<br />follows:
<br />
<br />PART 414-0FFSTREAM STORAGE
<br />OF COLORADO RIVER WATER AND
<br />INTERSTATE REDEMPTION STORAGE
<br />CREDITS IN THE lOWER DIVISION
<br />STATES
<br />
<br />Sec.
<br />414,1 Purpose,
<br />414.2 Definitions.
<br />414,3 Interstate storage agreements and
<br />redemption of storage credits,
<br />414.4 Reporting requirements and
<br />accounting for storage credits.
<br />414.5 Water quality,
<br />4 14,6 Environmental compliance.
<br />Authority: 43 U.S,C, 617: 43 U,S,C. 391: 43
<br />U,S,C, 485: 43 U.$,C. 1501: 5 U,$,C. 553; 373
<br />U.S, 546: 376 U,S, 340.
<br />
<br />S414.1 Purpose.
<br />This part sets forth the procedural
<br />framework for approval by the Secretary
<br />of the Interior of interstate agreements
<br />for the offstream storage of Colorado
<br />River water in the Lower Division States
<br />by State-authorized entities consistent
<br />with State law. In accordance with the
<br />Secretary's authority under Article II (B)
<br />(6) of the Decree entered March 9. 1964
<br />(376 U.S. 340). in the case of Arizona v.
<br />California. et a1. as supplemented and
<br />amended. this part also includes the
<br />procedural framework to develop and
<br />redeem storage credits associated with
<br />Colorado River water stored off stream
<br />by authorized entities consistent with
<br />State law. This part does not address
<br />intrastate storage or distribution of
<br />water not subject to an Interstate Storage
<br />Agreement.
<br />
<br />S414.2 Definitions.
<br />The following definitions. listed
<br />alphabetically, apply to this part:
<br />Authorized entity means a State water
<br />banking authority. or other entity of a
<br />Lower Division State holding
<br />entitlements to Colorado River water,
<br />expressly authOrized pursuant to
<br />applicable laws of Lower Division States
<br />to:
<br />(I) Enter into Interstate Storage
<br />Agreements;
<br />(2) Develop intentionally created
<br />unused apportionment;
<br />(3) Acquire the right to use
<br />intentionally created unused
<br />apportionment; or
<br />(4) Develop or redeem storage credits
<br />for the benefit of an authorized entity in
<br />another Lower Division State.
<br />Basic apportionment means the
<br />Colorado River water apportioned to
<br />each Lower Division State when,
<br />sufficient water is available for release,
<br />as determined by the Secretary of the
<br />Interior. to satisfy 7.5 million acre-feet
<br />(mat) of annual consumptive use in the
<br />Lower Division States. The annual basic
<br />apportionment for the Lower Division
<br />
<br />States is 2.8 maf of consumptive use for
<br />the State of Arizona, 4.4 maf of
<br />consumptive use for the State of
<br />California. and 0.3 maf of consumptive
<br />use for the State of Nevada.
<br />Colorado River water means water in
<br />or withdrawn from the mainstream.
<br />Consuming State means a Lower
<br />Division State where water made
<br />available by redeeming storage credits is
<br />or will be used.
<br />Consumptive use means diversions
<br />from the Colorado River less such return
<br />flow to the river as is available for
<br />consumptive use in the United States or
<br />in satisfaction of the Mexican treaty
<br />obligation, Consumptive use from the
<br />mainstream within the Lower Division
<br />States includes all consumptive use of
<br />water from the mainstr~llm. including
<br />water drawn from the mainstream by
<br />underground pumping. The Mexican
<br />treaty obligation is set forth in the
<br />February 3. 1944, Water Treaty between
<br />Mexico and the United States. including
<br />supplements and associated Minutes of
<br />the International Boundary and Water
<br />Commission.
<br />Contractor means any person or entity
<br />in the States of Arizona. California. or
<br />Nevada who has a valid contract or
<br />agreement with the United States for the
<br />delivery of Colorado River water.
<br />Decree means the decree entered
<br />March 9, 1964. by the Supreme Court in
<br />Arizona v. California, et al., 373 U.S.
<br />546 (1963). as supplemented or
<br />amended.
<br />Entitlement means an authorization to
<br />beneficially use Colorado River water
<br />pursuant to:
<br />(I) A decreed right.
<br />(2) A contract with the United States
<br />through the Secretary, or
<br />(3) A reservation of water from the
<br />Secretary.
<br />Federal entitlement holder means a
<br />Federal agency or Indian tribe identified
<br />in Article II (0) of the Decree as having
<br />an entitlement for the beneficial use of
<br />Colorado River water.
<br />Intentionally created unused
<br />apportionment means unused
<br />apportionment that is created solely as
<br />a result of an agreement within a Storing
<br />State for the purposes of making
<br />Colorado River water available for use
<br />in a Consuming State in fulfillment of
<br />a request for redemption of storage
<br />credits pursuant to an Interstate Storage
<br />Agreement.
<br />Interstate storage agreement means an
<br />agreement. consistent with this part.
<br />that provides for off stream storage of
<br />Colorado River water in a Storing State
<br />for authorized entities in Consuming
<br />States and for the recovery of the stored
<br />water, An Interstate Storage Agreement
<br />will be among authorized entities of two
<br />
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