EP 1165-2-1
30 Jul 99
CHAPTER 18
WATER SUPPLY AND QUALITY MANAGEMENT
18-1. The Federal Interest. National policy, defined by Congress,
has been developed over a number of years and is still being clarified
and extended by legislation. This policy recognizes a significant but
declining Federal interest in the long range management of water
supplies and assigns the financial burden of supply to users.
18-2.
Water Supply.
a. Water Supply Storage. Municipal and industrial (M&I) water
supply is considered the primary responsibility of the municipalities
or other non-Federal entities. However, M&I storage space may be
recommended for inclusion in any Corps reservoir pursuant to the Water
Supply Act of 1958 (Title III, Public Law 85-500), as amended. If
such storage space is economically justified and represents the least
cost alternative, it may be added to any project at any time.
However, modification of existing projects for this purpose which
would severely affect the project, its other purposes, or its
operation, requires Congressional authorization. An agreement
covering all costs allocated to present use and future water supply
must be negotiated, and submitted to HQUSACE for approval and
execution by the Assistant Secretary of the Army for Civil Works
(ASA(CW)), prior to initiation of project construction. The
legislation provides that allocated costs must be reimbursed by the
water users within the life of the project but not to exceed 30 years
after project completion; current administative policy for new
constuction starts, however, requires that all construction costs
allocated to water supply be repaid during the period of construction.
Federal interest rates are as defined in Section 932 of WRDA 1986
(Public Law 99-662). Storage in existing projects assigned to M&I
prior to enactment of WRDA 1986 (17 November 1986) and not yet covered
under an agreement as of that date shall be repaid within 30 years of
the plant-in-service date (which includes a 10-year interest free
period for water supply) at the interest rate defined in the Water
Supply Act. Water supply agreements are for water supply storage
space only. The Federal Government makes no representation with
respect to the quantity or quality of water and assumes no
responsibility for the treatment or availablity of the water.
b. Permanent Rights to Storage. Public Law 88-140 grants
permanent rights to use storage to local interests when they have paid
the costs of including the storage in the project under an agreement
with the Government. Their rights to use the storage continue as long
as the storage is physically available, taking into account equitable
reallocations as necessitated by sedimentation. They must also agree
to continue to pay their share of annual operation and maintenance
(O&M) costs allocated to the water supply storage, together with their
share of the costs allocated to any necessary repair, reconstruction,
rehabilitation, or replacement of any features which may be required
to operate the project. Storage space for raw water is provided.
Surplus water agreements executed under the authority of Section 6 of
the 1944 Flood Control Act do not provide permanent right to the
storage.
c. Modification of Completed Projects. Reallocation of
reservoir storage that would have a significant effect on other
authorized purposes or that would involve major structural or
operational changes requires Congressional approval. Procedures for
18-1
Previous Page
