Laserfiche WebLink
<br />.. <br /> <br />68498 <br /> <br />Federal Register / Vol. 62. No. 250 / Wednesday. December 31. 1997 / Proposed Rules <br /> <br />The benefit-cost analysis estimated <br />_net economic benefits of the proposed <br />rule on a State and regional level using <br />different water supply models and <br />discount rates. The different water <br />supply models represent potential water <br />supply conditions on the Colorado River <br />that affect interstate demand for water <br />from an Arizona water bank and the <br />magnitude of economic benefits <br />obtained from that water. The discount <br />rates used in the analysis were 5.75% <br />(the average rate on municipal bonds in <br />1996. which is a rate faced by major <br />water purveyors in California and <br />Nevada) and 8.27% (the prime rate in <br />1996. which more accurately represents <br />the cost of money). <br /> <br />Under a conservative water supply <br />scenario characterized by 19 years of <br />normal conditions on the Colorado <br />River and one surplus year, discounted <br />net economic benents at the regional <br />level ranged from $12.8 to $61.2 million <br />at 5.75% and $9.5 to $47.7 million at <br />8.27%. Under a water supply scenario <br />characterized by 10 years of surplus <br />conditions on the Colorado River, the <br />net economic benefits range from <br />$550.255 to $4.8 million at 5.75% and <br />$350.789 to $3.1 million at 8.27%. <br />. Under the scenario characterized by 10 <br />. surplus years. demand for banked water <br />is relatively low because the Lower <br />Division States can meet most of their <br />water needs with diversions from the <br />mainstream. <br /> <br />Reclamation has placed tlie full <br />analysis on file in the Reclamation <br />Administrative Record at the address <br />specified previously (see ADDRESSES). <br /> <br />Author <br /> <br />The principal author of this rule is <br />Mr. Dale E. Ensminger. Boulder Canyon <br />Operations Office. Bureau of <br />Reclamation. P.O. Box 61470. Boulder <br />City. Nevada 89006-1470. telephone <br />(702) 293-8659. <br /> <br />List of Subjects in 43 CFR Part 4 I 4 <br /> <br />Administrative practice and <br />procedure, Environmental protection. <br />Public lands. Reporting and <br />recordkeeping requirements, Water bank <br />program, Water resources, Water <br />storage. Water supply. Water quality. <br /> <br />Dated: December 22. 1997. <br />Patricia J. Beneke, <br />. Assistant Secretary-Water and Science. <br /> <br />For the reasons stated in the <br />~ preamble, the Bureau of Reclamation <br />proposes to add a. new part 414 to title <br />43 of the Code of Federal Regulations as <br />follows: <br /> <br />PART 414--0FFSTREAM STORAGE <br />OF COLORADO RIVER WATER AND <br />INTERSTATE REDEMPTION STORAGE <br />CREDITS IN THE LOWER DMSION <br />STATES <br /> <br />Sec. <br />414.1 Purpose. <br />414.2 Definitions. <br />414.3 Interstate storage agreements and <br />redemption of storage credits. <br />414.4 Reporting requirements and <br />accounting for storage credits. <br />414.5 Water quality. <br />414.6 Environmental compliance. <br /> <br />Authorily. 43 U.S.C. 617: 43 use. 391: 43 <br />U.S.c. 485: 43 U.S.c. 1501: 5 U.S.c. 553: 373 <br />u.S. 546: 376 u.S. 340. <br /> <br />S414.1 Purpose. <br />This part sets forth the procedural <br />framework for approval by the Secretary <br />of the Interior of interstate agreements <br />for the offstream storage of Colorado <br />River water in the Lower Division States <br />by State-authorized entities consistent <br />with State law. In accordance with the <br />Secretary's authority under Article 11 (B) <br />(6) of the Decree entered March 9.1964 <br />(376 U.S. 340). in the case of Arizona v. <br />California. et a1. as supplemented and <br />amended. this part also includes the <br />procedural framework to develop and <br />redeem storage credits associated with <br />Colorado River water stored offstream <br />by authorized entities consistent with <br />State law. This part does not address <br />intrastate storage or distribution of <br />water not subject to an Interstate Storage <br />Agreement <br /> <br />S414.2 Definitions. <br />The following definitions. listed <br />alphabetically, apply to this part: <br />Authorized entity means a State water <br />banking authority. or other entity of a <br />Lower Division State holding <br />entitlements to Colorado River water, <br />expressly authorized pursuant to <br />applicable laws of Lower Division States <br />to: <br />(I) Enter into Interstate Storage <br />Agreements: <br />(2) Develop intentionally created <br />unused apportionment; <br />(3) Acquire the right to use <br />intentionally created unused <br />apportionment; or <br />(4) Develop or redeem storage credits <br />for the benefit of an authorized entity in <br />another Lower Division State. <br />Basic apportionment means the <br />Colorado River water apportioned to <br />each Lower Division State when. <br />sufficient water is available for release, <br />as determined by the Secretary of the <br />Interior. to satisfy 7.5 million acre-feet <br />(maO of annual consumptive use in the <br />Lower Division States. The annual basic <br />apportionment for the Lower Division <br /> <br />States is 2.8 maf of consumptive use for <br />the State of Arizona. 4.4 maf of <br />consumptive use for the State of <br />California. and 0.3 maf of consumptive <br />use for the State of Nevada. <br />Colorado River water means water in <br />or withdrawn from the mainstream. <br />Consuming State means a Lower <br />Division State where water made <br />available by redeeming storage credits is <br />or will be used. <br />Consumptive use means diversions <br />from the Colorado River less such return <br />flow to the river as is available for <br />consumptive use in the United States or <br />in satisfaction of the Mexican treaty <br />obligation. Consumptive use from the <br />mainstream within the Lower Division <br />States includes all consumptive use of <br />water from the mainstr~~m, including <br />water drawn from the mainstream by <br />underground pumping. The Mexican <br />treaty obligation is set forth in the <br />February 3. 1944. Water Treaty between <br />Mexico and the United States. including <br />supplements and associated Minutes of <br />the International Boundary and Water <br />Commission. <br />Contractor means any person or entity <br />in the States of Arizona. California, or <br />Nevada who has a valid contract or <br />agreement with the United States for the <br />delivery of Colorado River water. <br />Decree means the decree entered <br />March 9. 1964, by the Supreme Court in <br />Arizona v. California. et aI.. 373 U.S. <br />S46 (1963). as supplemented or <br />amended. <br />Entitlement means an authorization to <br />beneficially use Colorado River water <br />pursuant to: <br />(I) A decreed right, <br />(2) A contract with the United States <br />through the Secretary, or <br />(3) A reservation of water from the <br />Secretary. <br />Federal entitlement holder means a <br />Federal agency or Indian tribe identified <br />in Article il (D) of the Decree as having <br />an entitlement for the beneficial use of <br />Colorado River water. <br />Intentionally created unused <br />apportionment means unused <br />apportionment that is created solely as <br />a result of an agreement within a Storing <br />State for the purposes of making <br />Colorado River water available for use <br />in a Consuming State in fulfillment of <br />a request for redemption of storage <br />credits pursuant to an Interstate Storage <br />Agreement. <br />Interstate storage agreement means an <br />agreement, consistent with this part, <br />that provides for offstream storage of <br />Colorado River water in a Storing State <br />for authorized entities in Consuming <br />States and for the recovery of the stored <br />water. An Interstate Storage Agreement <br />will be among authorized entities of two <br />