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<br />USDI Secretary Babbitt on Colorado River Issues <br /> <br /> <br />Page 3 of6 <br /> <br />very low risk of future shortage. For these reasons, we declared a surplus condit' on that <br />allowed all Lower Basin water demand to be met in calendar year 1996. We anticipate a <br />similar decision for 1997. However, conditions of abundance will not always pr vail, and <br />users in the Lower Basin cannot depend on surpluses always being available. <br /> <br />The six Basin states other than California have proposed discussions to develop ultiple <br />year surplus and shortage criteria that will for an interim period meet at least pa of the <br />demand in the Lower Basin. This is a significant proposal, but it is based on California's <br />ability to commit to an enforceable program to reduce its reliance on surplus wat r, without <br />creating undue risk to other entitlement holders. <br /> <br /> <br />A crucial question is how California is preparing itself for times of greater string ncy. Its <br />uses in excess of 4.4 maf are occurring both in the agricultural and in the urban s ctors. The <br />agricultural agencies have an entitlement of3.85 maf, but called for more than 4 afthis <br />year. There is increased use in both the Palo Verde and Imperial Irrigation Distric s. The <br />Metropolitan Water District has been using about 1.2 maf of Colorado River water. <br /> <br />Where is California going? Apparently considerable reliance is being put on the p~ospect of <br />interstate water marketing, in particular on transfers of Colorado River water fro <br />agricultural to urban use. Presumably, much of that water would come from agric ltural <br />efficiency gains based on water saved through conservation technologies, funded y urban <br />interests. That was the approach taken in a 1989 MWD/IID conservation plan desi ed to <br />generate about 100,000 acre-feet per year. Other techniques that have been explor dare dry- <br />year options, a means for meeting short term deficits in supply through voluntary <br />agreements by farmers to forego use of river water during periods of shortage; an land <br />fallowing, a more controversial approach because of its potential impact on agricu tural <br />communities. During the last year, IID and San Diego initiated an ambitious effort aimed at <br />transferring large quantities ofwater--several hundred thousand acre-feet per year- from the <br />Imperial Valley to the city. <br /> <br />Water Transfers Through Marketing <br /> <br />As I emphasized last year, I believe that water marketing is an important tool that c n help <br />us to use the water in the Colorado River more effectively, and in particular that it an be <br />important in meeting California's long term need to bring its demand in line with a ailable <br />supply. However, some serious obstacles stand in the way of implementing marked based <br />transfers. I believe I can now usefully take several steps to help effectuate such tran fers, <br />consistent with the Law of the River and the fundamental precept that our goal is <br />management of the River to make the most effective use of the limited resource we ave. I <br />am initiating the following actions regarding marketing: <br /> <br /> <br />1. First, transfers must be founded on a baseline quantum of beneficially-used wate <br />which savings can be made. I know that some basin interests have expressed conce <br />increased water use by the Imperial Irrigation district attributable to various factors, <br />including changing cropping patterns. We have some real concern about this as well The <br /> <br /> <br /> <br />http://www.sci.sdsu.edu/salton/secr _babbitt_CoR _issues.hlm t 2/2006 <br />