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<br />000829 <br /> <br />Now, with the emerging drought in the basin - the question before the stakeholders in the <br />Basin is whether we have the collective will to take the next steps necessary to address water <br />management in the Basin. <br /> <br />Two fundamental water management approaches are available in the Basin. We can wait <br />until the drought worsens and then impose reductions in the Lower Basin, beginning with the <br />Central Arizona Project. Alternatively, we can adopt proactive measures to increase <br />management flexibility in the Lower Basin to protect water in storage and reduce the likelihood <br />of having to impose a "shortage" in the future. <br /> <br />Why is it essential that the Basin States act now to agree on management actions to <br />minimize impact of the Drought? History has shown us that if the Basin States cannot reach <br />agreement on fundamental aspects of management of the Colorado River - the federal <br />government, whether the Executive Branch, Congress or the Courts - will step in and take action. <br /> <br />The role that the Secretary plays in the administration of the Lower Basin is broad, the <br />authority vested upon the Secretary is expansive, and - as recognized by the u.S. Supreme Court <br />- the Secretary's role in the Lower Basin is a unique exception to the historic and purposeful <br />deference to state law that the United States has followed regarding the use and allocation of <br />water in the western United States. <br /> <br />As federal officials, we are sworn to uphold the obligations imposed by this unique legal <br />structure. For some, an expansive federal role in western water administration may come <br />naturally. Secretary Norton and I came to the Department with strongly held views that <br />Congress' traditional deference to state law is both good law and sound policy. Notwithstanding <br />our personal views, we have an obligation to respect the law and uphold and implement the <br />unique role of the Secretary in the Lower Colorado Basin confirmed forty-one years ago. . <br /> <br />We do this with deep respect for the roles of the Basin States and we have tried, through <br />the mechanism of constant consultation, to recognize the sovereign function of each state within <br />the Basin. <br /> <br />This emerging drought provides the Basin States with a window of opportunity to <br />develop and implement voluntary arrangements in a timely manner to face the current challenges <br />of population growth and drought. <br /> <br />Many innovative, flexible approaches have been identified. Some would allow top water <br />"banking" approaches to utilize existing capacity in Lake Mead to store water for a later date. <br />Other approaches involve banking water off stream to minimize evaporative losses from surface <br />reservoirs. <br /> <br />Prepared Remarks - Keynote Address <br />Law of the Colorado River <br /> <br />Page 7 of 8 <br />