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<br />
<br />Water Marketing
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<br />In an era of maximizing water uses, developing ways
<br />to redistribute water to meet current needs is a
<br />priority. Water marketing - the transfer, lease or sale
<br />of water or water rights from one user to another -
<br />is being used as a viable method of acquiring and
<br />providing water.
<br />
<br />As stated in the Law of the River, the secretary of
<br />the Interior may declare annual surplus conditions
<br />on the Colorado River alter reviewing water
<br />demands. projected yield from runoff and existing
<br />system storage. In 1996. for the first time ever.
<br />Secretary Bruce Babbitt did just that by declaring
<br />that additional water for the Lower Basin could be
<br />made available for use.
<br />
<br />A rule released by Interior at the end of 1999.
<br />and intended to add flexibility to operation of
<br />the Colorado River. may be the latest addition to the
<br />Law of the River. The "Offstream Storage of
<br />Colorado River Water and Development and
<br />Release of Intentionally Created Unused Apportion-
<br />ment in the Lower Division States" (Offstream
<br />Storage Rule) established a framework around
<br />which authorized entities in the Lower Basin states
<br />can create off-stream storage and interstate water
<br />transfers.
<br />
<br />Warer/rom the Colorado
<br />Ri\'er can create sharply
<br />conlrastillM landscapes
<br />as seen below.
<br />
<br />Under the rule, a "consuming" state can store its
<br />unused apportionment of Colorado River water
<br />in the storage facility (surface reservoir or under-
<br />ground aquifer) ot a "storing" state. A state operat-
<br />ing an off-stream storage facility may also store
<br />its own water in the facility. When the consuming
<br />state is ready to receive its stored water, the storing
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<br />state would reduce its use of Colorado River water
<br />to create an unused apportionment. Once the
<br />intentionally created unused apportionment is
<br />verified by the secretary of the Interior. the water
<br />will be diverted by the consuming state trom the
<br />Colorado River. All banking and agreements first
<br />have to be approved by the secretary of the Interior.
<br />
<br />The Arizona Water Banking Authority is considered
<br />the prototype arrangement tor the Offstream Storage
<br />Rule because it is authorized to enter into interstate
<br />storage agreements with state entities in California
<br />and Nevada. California and Nevada have already
<br />stored water in Arizona's underground aqUifers
<br />pursuant to a "test" agreement. Arizona's interstate
<br />banking program will be especially beneficial to
<br />Nevada by helping "bridge the gap" between current
<br />state water supplies and future water supplies for
<br />Las Vegas.
<br />
<br />In 2001. Arizona and Nevada negotiated a deal that
<br />would allow Nevada to store as much as 1.2 million
<br />acre-feet of water in Arizona's aquifers annually.
<br />Under the terms, Nevada would be allowed to
<br />withdraw up to 500.000 acre.feet annually at an
<br />esfimafed cost of $170 million. Nevada officials said
<br />funding for the project will be generated from
<br />increased sales tax revenues and water connection
<br />fees, not increased water rates. It is believed that a
<br />similar arrangement could be orchestrated by MWD
<br />as well.
<br />
<br />Yet to be seen is whether or not the Upper Basin will
<br />market its water to the Lower Basin, though in the
<br />near future, all indications are that it is unlikely.
<br />
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