BOARD00943

• Board Meeting Date: 11/22/1999
• Description: WSP Section - Colorado River Basin Issues - Offstream Storage of Colorado River Water - Development and Release of Intentionally Created Unused Apportionment in the Lower Division States - Final Rule
• Board Meetings - Doc Type: Memo

59006

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Federal Register/Vol. 64, No. 210/Monday, November L 1999/Rules and Regulations

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California and Nevada are looking for
alternative water supplies (0 satisfy the
increasing demands of economic
development and population growth.
This rule may provide an opportunity
for Colorado River water users in
Nevada to experience a marginal cost
savings in securing alternative supplies.
Offstream storage of Colorado River
water and making available ICUA are
voluntary actions. Should the costs of
the procedures in this rule (0 facilitate
these transactions be greater than the
costs of other alternative water supplies.
California and Nevada would probably
select the lower cost alternatives.
The benefit-cost analysis estimated
net economic benefi(S of this rule on a
State and regional level using different
water supply models and discount rates.
The different water supply models
represent potential water supply
conditions on the Colorado River that
affect interstate demand for water from
an Arizona water bank and the
magnitude of economic benefits
obtained from that water. The discount
rates used in the analysis were 5.75 per
cent (the average rate on municipal
bonds in 1996. which is a rate faced by
major water purveyors in California and
Nevada) and 827 per cent (the prime
rate in 1996. which more accurately
represents the cost of money),
Under a conservative water supply
scenario characterized by 19 years of
normal conditions on the Colorado
River and one surplus year. discounted
net economic benefits at the regional
level ranged from $12,8 to $61.2 million
at 5.75 per cent and $9.5 to $47.7
million at 8.27 per cent. Under a water
supply scenariO characterized by 10
years of surplus conditions on the
Colorado River, the net economic
benefits range from $550,255 to $4,8
million at 5.75 per cent and $350,789 to
$3.1 million at 8,27 per cent, Under the
scenario characterized by 10 surplus
years. demand for banked water is
relatively low because water users in the
Lower Division States can meet most of
their water needs with diversions from
the mainstream within the basic and
surplus apportionments for Use within
those States.
We have placed the full analysis on
file in the Reclamation Administrative
Record at Bureau of Reclamation.
Administrative Record. Lower Colorado
RegIonal Office. P.O, Box 61470.
Boulder City. NY 89006-1470.
Attention: BC00-4451.

Executive Order 12988, Civil Justice
Reform

In accordance with Executive Order
12988. the Office of the Soitcitor has
determined that this rule does not

unduly burden the judicial system and
meets the requirements of sections 3(a)
and 3(bJ(2) of the Order,
List of Subjects in 43 CFR Part 414
EnvirOnmental compliance. Public
lands. Water bank program. Water
resources. Water storage. Water supply,
and Water quality.
Dated: October 26. 1999.
Patricia J. Beneke.
Assistant Secretary-Water and $cjence.
For the reasons stated in the
preamble. the Bureau of Reclamation
adds a new part 414 to title 43 of the
Code of Federal Regulations as follows:

PART 414--0FFSTREAM STORAGE
OF COLORADO RWERWATER AND
DEVELOPMENT AND RELEASE OF
INTENTIONALLY CREATED UNUSED
APPORTIONMENT IN THE LOWER
DIVISION STATES

Sec.

Subpart A-Purposes and Definitions

414.1 Purpose.
414.2 Defmitions of terms used in this part.

Subpart B-Storage and Interstate Release
Agreements

414.3 Storage and Interstate Release
Agreements.
414.4 Reponing Requirements and
accounting undet storage and interstate
release agreements.

Subpart C-Water Quality and
Environmental compliance

414.5 Water Quality.
414.6 Environmental Compliance and
funding of Federal costS.
Authority: 5 U.s.C. 553: 43 U.S.C. 391. 485
and 611: 313 U.s, 546: 316 U.S. 340.

Subpart A-Purposes and Definitions

1414.1 Purpose,
(a) What this part does. This part
establishes a procedural framework for
the Secretary of the Interior (Secretary)
to follow in considering. partIcipating
in. and administering Storage and
Interstate Release Agreements in the
Lower Division States (Arizona.
California, and Nevada) that would:
(I) Permit State-authoriZed entities to
store Colorado River water offstream:
(2) Permit State-authoriZed entities to
develop intentionally created unused
apportionment aCUA):
(3) Permit State-authoriZed entities to
make lCUA available to the Secretary for
release for use in another Lower
Division State. This release may only
take place in accordance with the
Secretary's obligations under Federal
law and may occur in either the year of
storage or in years subsequent to
storage; and

(4) Allow only voluntary interstate
water transactions. These water
transactions can help to satisfy regional
water demands by increasing the
effiCiency. flexibility, and certainty in
Colorado River management in
accordance with the Secretary's
authority under Article 1I (B) (6) of the
Decree entered March 9. 1964 (376 US
340) in the case of Arizona v. California,
(373 U.s. 546) (1963), as supplemented
and amended.
(b) What this part does not do. This
part does not;
(1) Affect any Colorado River water
entitlement holder's right to use its full
water entitlement;
(2) Address or preclude independent
actions by the Secretary regarding Tribal
storage and water transfer activities;
(3) Change or expand existing.
authorities under the body of law
known as the "Law of the River~
(4) Change the apportionments made
for use within individual States; .
(5) Address intrastate storage or
intrastate distribution of water;
(6) Preclude a Storing State from
storing some of its unused
apportionment in another Lower
Division State if consistent with
applicable State law: or
(7) Authorize any speclfic actIvities:
the rule provides a framework only,
1414.2 Definitions of terms used In this
part.
Authorized entity means:
(1) An entity in a Storing State which
is expressly authorized pursuant to the
laws of that State to enter into Storage
and Interstate Release Agreements and
develop ICUA ("storing entIty"): or
(2) An entIty in a Consuming State
which has authority under the laws of
that State to enter into Storage and
Interstate Release Agreements and
acquire the right to use lCUA
("consuming entity'?
Basic apportionment means the
Colorado River water apportioned for
use within each Lower Division State
when sufficient water is available for
release. as determined by the Secret3J)'
of the Interior. to satisfy 7.5 million
acre. feet (mat) of annual consumptive
use in the Lower Division States. The
United States Supreme Court. in
Arizona v. California. confirmed that
the annual basic apportionment for the
Lower Division States is 2.8 maf of
consumptive use in the State of Arizona.
4.4 mar of consumptive use in the State
of California, and 0,3 maf of
consumptive use in the State of Nevada.
BCPA means the Boulder Canyon
Project Act. authorized by the Act of
Congress of December 21, 1928 (45 Stat
1057).

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