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<br />--- ~~-~~JC ~~.~~ <br /> <br />l"".l"'tD:JlJ" - t:IJ.UA.. <br /> <br />. <br /> <br />Allthoriry tD Mtn'ut Wdtft' from rh, YDP <br /> <br />Imide 101(e) ofthe Act authorizes the United Statca <br />to exchan,e my desalted water not needed for the <br />Pllrpoaca of the Act ~ ... at prices and under tc:nns and <br />conditions latisfactory to the S~..." The city <br />ofYulDll, Arizona (City) has the first right of refusal <br />and has exprcssed interest in markeling this water <br />with Reclamation, and possibly utilizing the plant for <br />some of its water supply in approximately 20 yean. <br /> <br />Yuma is a city of approximately 60,000 residents <br />located nellr a tri-point border of California, Arizona, <br />and MCllieo. Loo:al economy consists primarily of <br />agriculture, government, and tourism. <br /> <br />Protecting Eristing Entit~mmt Holders <br />After the iilterim period ends, Reclamation loses the <br />use of Coachella Canal conserved water to replace <br />WMIDD water bypassed to the Santa Clara Wetland. <br />To protec:t the basin states' water resources while <br />providinc for a long term commitment ofYDP <br />water, Reclamation would only execute contracts <br />with cntities that hold or can prove accC$S 10 an <br />established Colorado Rivcr water CDtitlement. <br />Reclamation will also rcserve enough capacity (two- <br />thirds of thc YDP or approximately 64,300 acre-Nyr <br />of r:lw-water-trcatment capacity) in the YDP to <br />ensure that marketing will not impact the ability to <br />meet the salinity requirements of Minute No. 242 <br />and potential requirements at SIB. <br /> <br />How MGrketing WiU Work <br /> <br />A CUllomer purchasing all 23,000 acre-fr/yr of <br />available YDP product water would hold an <br />entitlcment for approximately 29,000 lI.cre-fUyr (YDP <br />is only 75% efficient. 25% of the water is rejected as <br />brine). At the end of the interim period and when <br />salinity conditions are such that Reclamation is <br />required to meet Minute No. 242, Reclamation would <br />continue to sell the 23,000 aC're-ftIyr of Water and <br />would increasc plant operations to full capacity, <br />unless we buy water to offset the replacement <br />obliiation incurred by not operating the YDP, and <br />deliver approximately 46,000 acre.ftlyr ofYDP wucr <br />to Mexico. We would also release 29,000 acre-fr/yr <br />from system storage, the amount ofthc entitlement <br />held by the YDP'product.wuer customer, for <br />delivery to Mexico. The surface water that would <br />have been delivered to the entitlement holder via the <br />river is replaced by water <reated at the YDP. Thus, <br />Mexico is providcd the requisite amount of Water at <br />the requircd quality. Reclamation has reduced the <br />fedetal obligation to replace water and the basin <br /> <br />s <br /> <br />r ."-1' <br /> <br />. <br /> <br />statts' " ater supply is protec:tcd.. <br /> <br />Priu of Warer <br /> <br />Reclamation plans to sell YDP prOduct water (300 <br />p/rn, non-potable) at a price of SSIS per acre-fliyr. <br />This will enable us to recover full costs assodated <br />with producinl the water and to recover some <br />a.pensts associated with holding the YDP in r,?,dy <br />reserve. <br /> <br />Potmtitzl Climu <br />So far, seven entities have exprcssed an interest in <br />obtaining water from the planL These inc:1ude two <br />powerplants, the City of Yuma, the Quechan and <br />Cacopah Indian Tribes, and two private; entities. In <br />addition, entities in California and Nevada a~ <br />making plans to commit large sums of capital to <br />develop additional sources of water. Water from the <br />YDP could be used to meet some ofthese needs <br />where water from the plant can be prvduced at a <br />lower COlt than other sources of water. <br /> <br />While Reclamation intetlds to market the YDP watcr <br />primarily through the City of Yuma, we eould also <br />contract directly with a singlc large customer Or a <br />consortium of small water customers-provided they <br />show proof of a water cntitlement, or access to one. <br /> <br />As part of our efforts to create awarmcss that YDP <br />product water is available for purchase, Reclamation <br />will prepare and circulate news releases to news <br />papers and periodicals, is maintaining a home page <br />and developing an electronic mailing promotion on <br />the Interner, and, if necessary, will advertise in <br />specific industry journals. <br /> <br />Length ofContrt;u:t <br /> <br />Reclamation, via a Colorado River water entitlernrnt <br />holder, would enter into long-term service <br />agreements (IS to 25 yea.r.;) with water customers. <br />This will allow them time to recovcr their capi[al <br />investment required to economically justify use of <br />the treated water from the YDP. <br /> <br />Conclusion <br /> <br />The marketing of tre:Hed water from the YDP to <br />non-Federal entities would benefit both the United <br />States and the taxpayers. The advantagc;s include, <br /> <br />. Marketing water treated by the YDr would help <br />recover, in addition to costs associated with <br />oper:lting and maintaining the YDP to satisfy <br /> <br />M",IMI;'r Y."", Dualr.u.., PI"", W_-/996 <br />