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<br />w~"'"'Z1:t <br /> <br />JuJ389 <br /> <br />industrial sectors will continue to grow. Western states generally are growing at nearly double the <br />national average. <br /> <br />California expects a population growth of 15 million people in the next 20 years. More people use more <br />water and the states will depend on the Colorado River for a major share of their water demands. <br /> <br />To accommodate these new arrivals, we need to make the smartest-and most efficient use oftbe limited <br />supplies of the River. Irmovative anangements will need to be developed For'such arrangements to <br />succeed, they must be mutually-agreed-upon transactions within each respective Basin, and fully <br />consistent with the Law of the River. <br /> <br />Arizona and Nevada provide one impOItant model of the innovative use of off-stream storage. We will <br />,need to Jook for other such opportUnities. <br /> <br />The Metropolitan Water District's negotiations with the Palo Verde Irrigation District are an example of <br />innovative thinking. They are using conservation contracTS and dry-year options to accommodate <br />temporary needs. There will undoubtedly be new possibilities for conjunctive use of surface and <br />groundwater supplies. where surplus water can be stored underground for future use. <br /> <br />We still have significant opportunities to USe water more efficiently, both in the cities and in agriculture. <br />There are methods that can benefit urban residents. agricultural in'igators. and the enviromnent in both the <br />Upper and the Lower Basins. <br /> <br />Environmental water accounts in some river basins have provided a predictable mechanism for assuring <br />fish needs can be met <br /> <br />It is also important to recognize that economic incentives have an important role to play. Urban water <br />users can often afford to help finance efficiency improvements that agriculture could not afford on its <br />own. <br /> <br />We need to encourage these efforts while protecting the viability of agricultural communities and <br />maintaining instream values such as recreation, fisheries, and wildlife habitat. <br /> <br />We have entered an era of constraint on the Colorado River-not only in water supply-but also in the fiscal <br />resources available to us. Efficient use of limited resources will have to be the watchword. Because of the <br />sluggish economy and the need to provide for our homeland security, tighter budgets are going to be a <br />fact of life for some time to come. Partnerships can help us stretch our resources) and we welcome them. <br /> <br />In conclusion, I want to congratulate all of you who have worked so hard to bring us so far in resolving <br />issues of the Colorado River ;Basin. I urge you to bring the same energy and innovativeness to the <br />pressing challenges that we still face. <br /> <br />Undoubtedly, the working relationships among the various stakeholders, and especially among the Basin <br />States will provide the framework for renewed success. <br /> <br />I have a fun.damental management precept for Interior: communication, consultation, and cooperation, in <br />the sCIVice of conservation. This has gone from theory to 'Working reality on the Colorado River. <br /> <br />Thank you, <br /> <br />-end. <br /> <br />CRWUA -Dec. /6,2002 <br /> <br />Page 7 of 7 <br />