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<br />0012;)6 <br /> <br />Offstream storage of Colorado River water, Interstate Delivery of <br />Intentionally Created Unused Apportionment and Redemption of <br />storage Credits in the Lower Division states <br /> <br />Benefit-Cost Analysis/Unfunded Mandates Reform Act Analysis <br /> <br />Executive summary <br /> <br />Purpose of the proposed Rule <br />The proposed rule will facilitate the offstream surface or <br />underground storage of Colorado River water in water banks in <br />Arizona, California, and Nevada (Lower Division states) created <br />and operated under applicable state law, and the contractual <br />distribution of credits for Colorado River water stored in state <br />water banks on an interstate basis within the Lower Division <br />states. <br /> <br />This rulemaking is being undertaken in response to an April 1996 <br />request for Federal regulation by former Arizona Governor Fife <br />symington. Mr. Symington requested regulatory action in <br />accordance with the Arizona Water Banking Act (ARS 45-2427 C.l.) <br />which requires that the Secretary of the Interior promulgate <br />regulations facilitating the contractual distribution of unused <br />entitlement under article II(B) (6) of Arizona v. california, <br />Decree of March 9, 1964, 376 U.S. 340. <br /> <br />Purpose of the Benefit-Cost Analysis <br />This analysis is required under Executive Order 12S66 and the <br />Unfunded Mandates Reform Act for regulatory actions. The <br />Benefit-Cost Analysis estimates the benefits and costs of the <br />regulatory action as well as the potential effects on state, <br />local, and tribal governments. The benefits and costs are <br />evaluated in comparison to the conditions that would be <br />reasonably expected to exist absent this rulemaking. <br /> <br />summary of Findings <br />The economic and financial impacts of the proposed rule were <br />estimated during a 20-year period, from 1998 to 2017, given <br />varying assumptions regarding the Arizona Water Banking Authority <br />(AWBA) water price, alternative water supply prices, Colorado <br />River water supply conditions, and discount rates. variation of <br />economic and hydrologic assumptions reflects the sensitivity of <br />interstate water transactions benefits to changing economic and <br />hydrologic conditions. <br /> <br />The most important variables affecting the magnitude of net <br />economic benefits and financial gains are projected water supply <br />conditions on the Colorado River and the statutory ceiling <br />imposed by Arizona law on the amount of water which may be <br />distributed in interstate transactions in anyone year. In the <br />water supply model ("PSO") which is characterized by 10 yea:rs of <br />surplus water supply conditions on the Colorado River during the <br /> <br />1,1, <br />