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<br />. . <br /> <br />6. State statutes like California Water Code Sections 1011 <br />and 1012 authorize, rather than limit. lID's riqht to transfer <br />conserved water. <br /> <br />A complete reading of Water Code Sections 1011 and 1012 makes <br />it abundantly clear that lID may transfer conserved water and that <br />"no forfeiture, diminution, or impairment" of lID's right to the <br />water shall occur. <br /> <br />It also bears noting that Sections 1011 and 1012 are not the <br />only provisions in California law authorizing the transfer of <br />conserved water. For example, Chapter 10.5, Article 4, of the <br />California Water Code, authorizes transfers of water by a water <br />supplier to any other "water supplier or users inside or outside <br />the service area of the water supplier." Finally, California <br />common law has long recognized and authorized transfers. <br /> <br />7 . Reclamation policy and actions evidence an intent to <br />favor transfers of conserved water pursuant to California law. <br /> <br />In addition to the mandate that the Secretary respect present <br />perfected rights, the Secretary's past actions indicated that he <br />deferred to, or at least was guided by, each state's <br />recommendations as to the allocation of their apportionments. In <br />California, the Secretary accepted the allocations and priorities <br />agreed to by the seven major California users. More recently, <br />after the Supreme Court clarified the role of the federal <br />government in the management and control of proj ect water, the <br />Secretary's contracts have deferred to state law. For example, a <br />provision in the Central Arizona Project contract states that "all <br />uses of project water and return flow shall be consistent with <br />Arizona water law unless such law is inconsistent with the <br />Congressional directives applicable to the Central Arizona <br />Project." <br /> <br />It also appears that Reclamation deferred to California's <br />Water Resources Control Board in its proceeding concerning <br />reasonable use within lID, and Reclamation has not required lID to <br />prepare a water conservation plan separate from the one prepared <br />under state law. <br /> <br />In outlining Reclamation policy developed after enactment of <br />the Reclamation Reform Act of 1982, the Commissioner of Reclamation <br />said: <br /> <br />In those states, such as Arizona and California, that <br />have active water conservation programs, we will consider <br />district water conservation plans that are approved by <br />the state to satisfy our requirements for water <br />conservation under the Reclamation Reform Act <br />Development of an effective working relationship with the <br />states is mandatory since federal policy recognizes state <br />control of water rights. <br /> <br />6 <br />