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<br />The QSA was negotiated with the very active involvement of then Secretary of <br />the Interior Bruce Babbitt, although the Department is not a signatory. The parties to the <br />QSA are the lID, CYWD, MWD and the State of California. In October, 1999, the <br />parties agreed to the HKey Terms" of the QSA, and the draft agreement was released for <br />public review in December, 2000. <br /> <br />Execution of the final QSA requires that a number of objectives be met. These <br />include the drafting of numerous legal documents and sub-agreements and the <br />completion of all state and federal environmental documentation and permitting. The <br />Key Terms provide that the QSA must be finalized and implemented by Dec. 31. 2002. or <br />it will be terminated. <br /> <br />In essence, the QSA quantifies and caps the somewhat elastic Colorado River <br />entitlements of the agricultural agencies, nb and CVWD, and reallocates, during the <br />term of this agreement, California's share of Colorado River water through the voluntary <br />conservation, exchange and transfer of more than 500,000 AF annually. Most of that <br />water will move from agricultural to urban use. <br /> <br />Specifically, the QSA caps lID's annual entitlement at 3.1 MAF; and CVWD's at <br />330,000 AF, but provides another 126,000 to CVWD through transfers and exchanges <br />with lID and others. The Agreement includes the liD-San Diego conservation transfer of <br />up to 200,000 AF annually and an existing IID-MWD conservation transfer of 110,000 <br />AF annually. An additional 94,000 AF of water will be made available by the lining of <br />the All American and Coachella canals -- 16,000 AF of which will be used to provide <br />supplies for the San Luis Rey Indian water rights settlement. Congress authorized the <br />canal linings several years ago, and the California Legislature appropriated $200 million <br />for the project in 1998. <br /> <br />The exchanges, conservation and transfers in the QSA will generate a total of <br />539,000 AF of water within California. In addition, the Key Terms of the QSA provide <br />for groundwater management and storage programs and dry-year water transfers that will <br />provide up to 400,000 AF of additional water for urban needs. <br /> <br />Interim Surplus Guidelines <br /> <br />If California were immediately held to its 4.4 MAF Colorado River <br />apportionment, MWD's urban supplies would fall short by approximately 700,000 AF in <br />a normal year. Therefore, the QSA -and the California Plan provide for the gradual <br />reduction in California's diversions from the Colorado River over a IS-year period. <br /> <br />California has been able to exceed its apportionment in recent years because the <br />Secretary of the Interior has declared that there are surplus flows on the Colorado. To <br />ensure that surplus water is likely to be available during the IS-year interim period, <br />California agencies asked the Secretary to liberalize the guidelines by which surplus <br />declarations are made. Essentially, this means allowing more water to be drawn out of <br />Lake Mead behind Hoover Dam for use by MWD. <br /> <br />In mid-2000, the Interior Department released draft "Interim Surplus Guidelines" <br />for review by the other six Basin states. The states responded with a stricter proposal of <br />