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WATER STRATECIST I'INf !>ol( ....~. LEGISL-\.TlOr- " IU I.ITIGATlO/'ll Octohec 1991 vol. 5 No.3 QUARn:RLY ANALYStS OF W\TER M,,-RKf:Tll'Ot. Editon;: Rodney T. Smith and Roger Vaughan Rules of the River: BuRec's Proposed Regulations for the Lower Colorado The Department of Interior's policy toward walel lrans- fen; marches al tbe pace of onc significant development pCT year. Consider: 1988: Interior issued its statement of general principle... that acknowledged a key IOIc for voluntary water transfers in mcctingwcstcrn ""-aler demands. Interior announo:-cd a chosen role of facilitating transaC1ions among willing buyers and will- ingsellers. In This Issue. . . "The Rules of the River" examines the Bureau of Reclamation's proposed regulations for administering entitlemenls to Colorado River water in the Lower Colo<- rado Basin. In their current form, the regulalimu por- tend water reallocation by regulatory fiat rather tban voluntary lransactions and state/federal conflicts over Colorado River water. "The 1991 Annual Lc_gislalive Revlcw" examines wbat bas happened to the ]84 major slate water bi1.4 tracked by WS lhi.'! year. Arizona finaUy resolved its long. standing dispute oYer groundwater transportalion and municipal water fanns. The rUth year of drought in California generated a nurry of legi..Jative activity. "dosing the Loop; Recycling Western Water" re- views how states and oommU1'lilies in the West are turning to reclaimed water to meet growing municipal demands.. "F"mancc Update" reviews the r{"-sults frcom the 87 bonds issued to raise $].3 billion in the third quarter. "Litigation Update" reviews the U.S. Supreme Court deci.c,ion on the Canadian River Compact and a u.s. District Court decision declaring invalid (he Bu- Ree's 1987 aCTeage limitation rules. 1991 Annual ugislative Re,'iew ..............._............3 Closing th~ Loop ...................................................._.5 QuWft'rly Upd4JUS Finance> .................................................... Litigation....................................,.......... Tn NCX1!JSUe ............-..........' ..."......,.,.-...-- ..........6 .., ..10 ."...14 1989:. The Bureau of Reclamation i......ued 'Critt::ria and Guidan~ for lbe implementation of Interior's prim:ipk TbC-5c guidelines evidenced an inlent to avoid burdening tram actioM \.\;th unreasonat>1e rcstrictioLl.S or ftnancial penalti, and 10 mainfain the primacy \1f slate law in Willer alh~l1li'_'n decisions. 1990:. The bureau's Boulder City office approved an a.<>....ignment of ~ 15.878 af/yr water t::llutlemcnt from Ba.c,ic Management tne. 10 the City llf Hendcrwn, Nevada. (For wscu.....c,ion ofthcs.e events, ~ee "interior's Policy of Volun- tary Water Tran....actions," WS JWlUary 1991). The main event for 1991 is the "Proposed Regulations for Administering Entitlements to Colorado River Water in the Lower Colorado River Basin." The proposed reguJatioWi outline the criteria the ulwer Colnrado Regional Office .....iU u..<.e in fulfilling the InteriM Secretary'~ respousibility iI!o water. master of tbe !t..lwcr Colorado River. Originally, tbe bureau planned to publish tbe propo:r.cu reg.ulations in the Fa1er/JI Regijferin November 1991 ~~which w,)uJdhavc started a60-day period (or publjr comment on the regubtions after which tbe hureau would puhlish final regulations. Recently, however. the: publication date has been pushed bad for several mont~" after the bur.::!u rccei",'ed many comments Oil a draft copy of tbe prop.lScd regulations tbat was publicly di...tributed last ..pring. Nuw. the bureau plans locon\'cnc a January 1992 mccting with ',be: L ,wer Basin $.tale.. to diSClbS th<..: l....slles ra.i.:;cd about the propo!.ed regulations. Aitef tbe meeting., the bureau will rc\'i~e Lhe ropo,;eJ regulation~ bci')fe pllbii,_ ati,'o .n the F Jaal ~, (.JI r f'1r {(,rm...1 public commenl The pr"p ...~td regulatiml.'> _Inl ,)11 .~c '~U,) Ri,,'::r ~n ,Ie :ntitl -m,'n " ;:1 ~ I.. .. ,r; " " " u,' off< :lglP l'::ll,l!o\ ...(in~ -luisi " '-\f R -I R rE" ' ~8S0