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<br />. <br /> <br />bU1172 <br /> <br />LC Region DEAl I <br /> <br />1 <br /> <br />\2197 <br /> <br /> <br />DRAFT PROGRAMMATIC ENVIRON1vfENTAL ASSESSMENT <br /> <br />FOR PROPOSED RULE MAKING <br /> <br />For <br /> <br />OFF STREAM STORAGE OF COLORADO RIVER WATER <br />AND INTERSTATE REDEMPTION OF STORAGE CREDITS <br />IN THE LOWER DIVISION STATES <br /> <br />I. PURPOSE AND NEED FOR ACTION <br /> <br />A. Introduction <br /> <br />The Bureau of Reclamation (Reclamation) is proposing a new rule under which Colorado River <br />water may be stored off stream in the Lower Colorado River Basin (Lower Basin) for future <br />interstate use in the Lower Division States of Arizona, California, or Nevada. This proposed rule <br />would establish the procedural framework under which any entity holding an entitlement to use <br />Colorado River water in the Lower Division States, if authorized to engage in interstate <br />Colorado Ri.ver water transactions by State law (an authorized entity), could arrange for <br />off stream storage of Colorado River water allocated for use in any given year. Water stored <br />could be from entitlements not otherwise used within the State where the storage would occur, or <br />from unused apportionment of the entity's home state, if other than the state where the storage <br />would occur. Credits would be developed and maintained for the stored water. The credits <br />could be redeemed or assigned within the Lower Division States by the holder of the credits. <br />The rule would increase the efficiency, flexibility, and certainty in Colorado River management <br />of Colorado River water supplies. <br /> <br />The proposed rule will clarifY the legal authority of authorized entities within the Lower <br />Division States to enter into interstate transactions by providing a standard set of procedures to <br />be used in place of the ad hoc processes that have been used for previous interstate water <br />transactions. These procedures will provide greater flexibility, certainty, and assurance to all <br />parties potentially interested in entering into interstate transactions to store Colorado River water <br />offstream and use or redeem associated storage credits. The actions and transactions <br />contemplated in the proposed rule are within the current authority of the Secretary of Interior <br />(Secretary) as noted by the Boulder Canyon Project Act of 1928 (45 Stat. 1057,43 U.S.C. 617) <br />(BCPA), and recognized in the 1964 Supreme Court Decree in Arizona v. California (376 U.S. <br />340) (Decree). The proposed rule and this environmental assessment (EA) do not address <br />off stream intrastate storage and distribution of water for intrastate use in the Lower Division <br />States. Entities within the Lower Division States are storing and distributing Colorado River <br />water on an intrastate basis at the present time. <br /> <br />