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. . . Western States Water Council Full Council Minutes Washington, D.C. March 29, 2006 WELCOME AND INTRODUCTIONS/APPROV AL OF MINUTES Hal Simpson welcomed members and guests. The minutes ofthe previous Council meeting held in San Antonio, Texas were approved with minor changes on page 12 from Dave Pope. REPORT FROM THE DEPARTMENT OF THE INTERIOR Mark Limbaugh, Assistant Secretary ofInterior, addressed members and guests noting that this was Secretary Gale Norton's last week in office. He added she had received a letter from the seven Colorado River Basin states expressing appreciation for her role in addressing issues along the river. Mark observed that Idaho Governor Dirk Kempthorne, named to replace Norton, is a fine gentlemen, easy to work with, and has an engaged style of management. Mark also introduced Brenda Burman, his counsel, and former assistant for Senator Jon Kyl (R-AZ). Craig Bell met via conference call with Brenda Birman and Julie McDonald of the U.S. Fish and Wildlife Department regarding"the Endangered Species Act (ESA) protocol. Mark briefly commented on a variety of issues. With respect to the proposed WSWC protocol regarding the Endangered Species Act (ESA) and water rights, he said it was a good draft and they would "work to put it in place." He noted budget pressures affect all the agencies, including the U.S. Geological Survey (USGS) and U.S. Bureau of Reclamation (BOR), under his jurisdiction. With regard to the Colorado River, by the end of2007, Interior expects to approve shortage criteria and different reservoir management scenarios. He said that the states have come up with innovative ideas and he looks forward to a transparent process to come up with the best alternative. He also addressed aging infrastructure issues, saying we need to come up with new and innovative ways to finance needed work. He suggested federal loan guarantees are a viable option for promoting private investment to help relieve rehabilitation pressures. He said, "We cannot forget, what we have today, is what we'll rely on tomorrow." Next, Mark mentioned the National Research Council (NRC) study, Managing Construction and Infrastructure in the 2]'1 Century Bureau 0/ Reclamation, and BOR' s response Managing/or Excellence. He stated that he is committed personally to address recommendations presented in the NRC report and will be looking to the Council and others for advice. For the Bureau to meet the region's future water needs, it will require a close productive relationship with water users and others. Mark mentioned attending the USGS streamgaging stakeholders meeting sponsored by the Interstate Council on Water Policy (ICWP), the Council (WSWC) and others in Austin, Texas last January. "We are looking for ways to stretch dollars." The federal government is expensive, and they are looking at alternative business models. "How do we do business?" "What is the most effective way to do business?" Before we go to Congress and ask for more money, we want to be able to say we are spending what we have effectively. I asked the USGS, after the Austin conference, for their recommendations within six months. The President has asked for a $2 million increase for the National 3