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Interim Guidelines for the <br />Operation of Lake Powell <br />and Lake Mead <br />Conservation ICS not delivered pursuant to Section ;.C. or deducted pursuant to <br />Section 3.B.2. in the Year it was created will, at the beginning of the following <br />Year, be converted to Extraordinary Conservation ICS and will thereafter be subject <br />to all provisions applicable to Extraordinary Conservation ICS. Tributary <br />Conservation ICS may be delivered for Domestic Use only. <br />3. System Efficiency ICS <br />A Contractor may make contributions of capital4 to the Secretary for use in projects <br />designed to realize system efficiencies that save water that would otherwise be lost <br />from the Mainstream in the United States. An amount of water equal to a portion of <br />the water conserved would be made available to contributing Contractor(s) by the <br />Secretary as System Efficiency ICS.' System efficiency projects are intended only <br />to provide temporary water supplies. System Efficiency ICS will be delivered to the <br />contributing Contractor(s) on a schedule of annual deliveries as provided in an <br />exhibit to a Forbearance Agreement and Delivery Agreement. The Secretary may <br />identify potential system efficiency projects, terms for capital participation in such <br />projects, and types and amounts of benefits the Secretary could provide in <br />consideration of non-federal capital contributions to system efficiency projects, <br />including identification of a portion of the water saved by such projects. <br />4. Imported ICS <br />A Contractor may create Imported ICS by introducing non-Colorado River System <br />water in that Contractor's state into the Mainstream. Contractors proposing to <br />create Imported ICS shall make arrangements with the Secretary, contractual or <br />otherwise, to ensure no interference with the Secretary's management of Colorado <br />River System reservoirs and regulatory structures. Any arrangement shall provide <br />that the Contractor must obtain appropriate permits or other authorizations required <br />by state and federal law. The actual amount of any Imported ICS introduced to the <br />Mainstream shall be subject to verification by the Secretary as provided in Section <br />3.D. Any Imported ICS not delivered pursuant to Section 3.C. or deducted pursuant <br />to Section 3.B.2. in the Year it was created will be converted, at the beginning of the <br />following Year, to Extraordinary Conservation ICS and thereafter will be subject to <br />all provisions applicable to Extraordinary Conservation ICS. <br />a To the extent permitted by federal law, monies to pay construction, operation, maintenance, repair, <br />and/or replacement costs. <br />' Should other Contractor(s) elect to participate in a system efficiency project following the Secretary <br />making an amount of water available to the contributing Contractor(s), the Secretary shall reduce the <br />amount of water in the contributing Contractor(s)' ICS Account(s) and credit the electing Contractor(s)' <br />ICS Account(s) in an equal amount in accordance with the terms of the Secretary's agreement for the <br />funding of the system efficiency project. <br />ROD -Colorado River Interim Guidelines for December 2007 <br />Lower Basin Shortages and Coordinated 39 <br />Operations for Lake Powell and Lake Mead <br />