EP 1165-2-1
30 Jul 99
(d) Use of the Section 6 authority should be encouraged only
where non-Federal interests do not want to buy storage because the
need of the water is short term or the use is temporary pending the
development of the authorized use.
(e) The views of the affected state(s) will be obtained, as
appropriate, prior to entering into any agreement under Section 6.
(f) The annual price deemed reasonable for this use of surplus
water is to be determined by the same procedure used to determine the
annual payment for an equivalent amount of reallocated storage plus an
estimated annual cost for operation and maintenance, repair,
replacement, and rehabilitation. The total annual price is to be
limited to the annual costs of the least cost alternative, but never
less than the benefits foregone (in the case of hydropower, revenues
forgone).
(g) Declaration of surplus irrigation water in the 17 western
states will require appropriate coordination/consultation with the
Department of the Interior (Bureau of Reclamation).
(h) For certain small withdrawals (including a group of
separate users at a specific project), under Section 6 authority, a
standard minimum charge or standard unit charge should be established
and applied for all of the numerous withdrawals. All proposals for
establishment of such standard charges must be submitted to HQUSACE
(CECW-A) for approval.
e. Interim Use Of Water Supply for Irrigation. Section 931 of
WRDA 1986 provides that, for any reservoir project constructed and
operated by the Corps, the Secretary of the Army is authorized to
allocate storage which was allocated in the project for M&I water
supply, and which is not under agreement, for interim use for
irrigation purposes. In accordance with Subsection 103(c)(3) of WRDA
of 1986, the cost to the local sponsor shall be 35 percent of the
original project investment allocated to M&I water supply (for the
block of storage to be used for irrigation). The period of analysis
for computing the annualized payments shall be 30 years, with the
payment based on the original project interest rate as established by
the Water Supply Act of 1958. The non-Federal sponsor shall also be
responsible for 100 percent of OMRR&R costs allocated to the storage
space being put under agreement. The term of the agreement for this
interim use shall not exceed five years. An option for incremental
five year extensions is allowed in the basic agreement only if it
provides for recalculation of annual OMRR&R costs at the end of each
5-year increment. Agreements for such interim use of water supply
storage for irrigation are subject to the same reporting and
submission requirements as those for water supply agreements. Future
sponsors for M&I use of the storage space shall not receive any
credit, in consequence of the interim use payments, toward repayment
of project water supply investment costs.
f. Seasonal Operation for Water Supply. Congress has not
granted general authority for including storage space in Corps
projects for seasonal M&I use, either as withdrawals or to improve
groundwater supplies. Where not specifically authorized, seasonal
operation of a project for water supply may be conducted, consistent
with authorized project purposes and law. Seasonal storage can be
accomplished under the deviation from water control plan authority as
described in ER 1110-2-240. There can not be a continuing or
recurring deviation from approved water control plans. In the case of
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