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Water Supply Partnership Kit 7 Section 6 of the 1944 Flood Control Act. Under the least costly alternative, but !lever less than the this Section, the ASA(CW) is authorized to enter benefits foregone, or, in the case of hydropower, into agreements for surplus water with states, revenues foregone. municipalities, private concerns, or individuals at such prices and on such terms as he may deem reasonable. These agreements may be for domestic and M&I uses but not for crop irrigation, from swplus water that may be available at any reservoir under the control of the Department of the Army. DEFINITION. Surplus water is classified as either; (I) water stored in a Corps reservoir which is not required because the authorized need for the water never developed or the need is reduced by changes which have occurred since authorization or construction, or (2) water which would be more beneficially used as M&I water than for the authorized purpose and which, when withdraw, would not adversely affect existing lawful uses of such water over some specified time period. Agreements covering surplus water will normally be for small amounts of water and for temporary use as opposed to storage reallocations and a permanent right to that storage. Surplus water agreements will be limited to a 5-year period. Use of the Section 6 authority is allowed only where non-Federal sponsors do not want to purchase storage because use of the water is desired for a short term only, or, use would be temporary pending development of the authorized use. COST. The cost for surplus water is determined by the same procedure as used to determine an equivalent amount of reallocated storage. Repayment of this storage is to be based on an annualized amount based on repaying the cost of the storage over a 3D-year period. The interest rate to use for this annualized computation is that as authorized in WRDA '86 (see Table 3). To this aruma! cost will be added an estimated annual cost for operation, maintenance, repair, replacement, rehabilitation and reconstruction. The total annual price is to be limited to the annual costs of Should you require a 5-year extension to your water supply agreement, such addition may be granted on a case by case basis. The cost however, will be redetermined based on current prices and interest rates. AGRICULTURAL WATER SUPPLY AUTHORITY. The Reclamation Act of 1902, Public Law 57-161, established irrigation in the 17 contiguous westem states as a national policy to. be administered by the Secretary of the Interior. Section 8 of the 1944 Flood Control Act provides that Corps reservoirs may store water for irrigation of agricultural lands upon the recommendation of the Secretary of the Interior. illSI. The cost and repayment for irrigation storage depends upon your location. I ) Western States. If you are in one of the 19 western states (including Alaska and Hawaii), in conformity with Reclamation Law, the cost and repayment arrangements and agreements for irrigation water from Corps projects will be determined, and is administered by, the Bureau of Reclamation. 2) Eastern States. Subsection 103(c)(3) ofWRDA '86 establishes the cost that is applied to agricultural water supply stored in Corps projects east of the Reclamation states. In these non- Reclamation states, non-Federal sponsors must provide 35 percent of the construction costs assigned to the storage space, and 100 percent of the operation. maintenance, repair, reconstruction, rehabilitation and replacement costs. Repayment of construction costs shall be made during the period of construction of the project.