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D. System Efficiency Projects A Contractor may make contributions of capital to the Secretary for use in Secretarial projects designed to realize efficiencies that save water that would otherwise be lost from the Colorado River System in the United States. The Secretary in consultation with the States will identify system efficiency projects, terms for capital participation in such projects, and types and amounts of benefits the Secretary would provide in consideration of non-federal capital contributions to system efficiency projects, including a portion of the water saved by the project. Water made available to Contractors by the Secretary would be considered Intentionally Created Surplus. System efficiency projects are only intended to provide temporary water supplies and would not be available for permanent use. Benefits to the total water available within the Colorado River System in the United States should be substantial; taking into account any benefit provided to any non-federal capital contributor. In those cases in which benefits are provided to a non-federal capital contributor in the form of a portion of the water saved by the system efficiency project, the water provided to the capital contributor should be characterized as Colorado River surplus water intentionally created by the system efficiency project. The ICS credits should be provided to the capital contributor pursuant to its BCPA § 5 surplus contract. The Secretary should first obtain the waiver or forbearance of any other BCPA § 5 surplus contractor(s) that may possess any right to the delivery of the same water, so that the Secretary may deliver it to the capital contributor pursuant to Article II (B)(6) of the Decree. The ICS credits should be provided to the capital contributor on a predetermined schedule of annual deliveries for a period of years as agreed by the Secretary and Contractor. The ICS credits would not be stored, and therefore would not spill from system reservoirs. Delivery of ICS credits during shortage conditions will be determined on a project-by-project basis. E. Introduction and Recovery of Non-Colorado River System Water The Secretary should develop procedures, in consultation with the States, that would prospectively allow non-Colorado River System water in a Lower Division State to be introduced into, conveyed through, and diverted from system reservoirs, or otherwise through the Colorado River System. The non-Colorado River System water may be introduced either (1) directly from the non-Colorado River System source, or (2) as effluent resulting from use of the non-Colorado River System water in the introducing entity's service area, assuming water quality concerns are adequately addressed by the Contractor introducing the water. This water is in addition to a state's basic apportionment and may be used during declared shortages. Contractors proposing to introduce, convey and recover such non-Colorado River System water should make sufficient arrangements, contractual or otherwise, with the Secretary so as to guarantee that any such action causes no harm to the Secretary's management of the Colorado River System. Such arrangements would provide that the introduction, conveyance and recovery of such water be done pursuant to appropriate permits or other authorizations as required by state law, that the actual amount of water introduced, conveyed and recovered would be reported to the Secretary on an annual basis, and that no more than 95% of such water introduced will be recovered. The non-Colorado River System water would be intended to be taken on a real-time basis, and hence would not 10