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~ ~ Agenda item 20r November 22-23,1999 Board Meeting Page 2 00 l\ Purpose of Final Rule e The Final Rule establishes the procedural framework for the Secretary of Interior to follow in considering, participating in, and administering "Storage and Interstate Release Agreements" in the Lower Division States. These "Storage and Interstate Release Agreements" are voluntary and permit State-authorized entities to; (I) store Colorado River water offstream; (2) develop intentionally created unused apportionment (lCUA); and (3) make ICUA available to the Secretary oflnterior for release and use in another Lower Division State. The release ofICUA may only take place in accordance with federal law in the year of storage or in years subsequent to storage. As important as what the rule allows is what it specifically states it does not do allow. The rule does not: . Affect any Colorado River water entitlement holder's right to use its full water entitlement; . Address or preclude independent actions by the Secretary regarding Tribal storage and water transfer activities; . Change or expand existing authorities under the body ofIaw known as the "Law of the River"; . Change the apportionments made for use within individual states; . Address intrastate storage or intrastate distribution of water; . Preclude a storing state storing some of its unused apportionment in another Lower Division State consistent with applicable state law; or . Authorize any specific activities. . Discussion The Final Rule changed significantly from the Proposed Rule. The Final Rule is clearly limited to the Lower Basin and less specific in details. However, the list of requirements for developing "Storage and Interstate Release Agreement" is more lengthy and complete as are the considerations imposed on the Secretary when executing an agreement. I have reviewed Colorado's comment letter and find that our comments have been adequately addressed, with the exception of comments we made regarding water quality and possible impacts on Colorado River salinity and the Colorado River Salinity Control Program. Since the Final Rule establishes only the procedural framework for the Secretary oflnterior to follow in considering, participating in and administering "Storage and Interstate Release Agreements" in the Lower Division States, it will be necessary for the Secretary and Reclamation to do appropriate NEP A compliance for each individual agreement. Furthermore, the Final Rule explicitly states that water quality is not guaranteed. The Final Rule sets forth 18 basic requirements for a "Storage and Interstate Release Agreement." These requirements include a full description of the project and the accounting and verification requirements that many others and we requested. The Final Rule also sets forth a number of factors for the Secretary and Reclamation to consider .