96-30769. Adjustments to 1988 Operating Criteria and Procedures (OCAP) for the Newlands Irrigation Project in Nevada  

  • [Federal Register Volume 61, Number 237 (Monday, December 9, 1996)]
    [Proposed Rules]
    [Pages 64832-64848]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-30769]
    
    
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    DEPARTMENT OF THE INTERIOR
    
    Bureau of Reclamation
    
    43 CFR Part 418
    
    RIN 1006-AA37
    
    
    Adjustments to 1988 Operating Criteria and Procedures (OCAP) for 
    the Newlands Irrigation Project in Nevada
    
    AGENCY: Bureau of Reclamation, Interior.
    
    ACTION: Proposed rule.
    
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    SUMMARY: This proposed rule adjusts the 1988 OCAP for the Newlands 
    Irrigation Project (Project). The 1988 OCAP anticipated that irrigated 
    acreage in the Project would increase to 64,850 acres. In 1995, 
    irrigated Project acreage was approximately 59,023 acres. Adjustments 
    are proposed to the Project efficiency requirements, maximum allowable 
    diversion calculations, and Lahontan Reservoir storage targets in the 
    1988 OCAP to reflect current irrigated acreage and court decrees which 
    have lowered the water duty applicable to certain Project lands. To 
    better manage diversions from the Truckee River to the Project, 
    additional proposed adjustments to the 1988 OCAP provide flexibility in 
    using snowpack and runoff forecasts and extending the time frame for 
    storing water in Truckee River reservoirs in lieu of diversions to the 
    Project from the Truckee River.
    
    DATES: Written comments should be submitted to be received by February 
    7, 1997. All comments received by the close of the comment period will 
    be considered and addressed in the Final Rule. Comments received after 
    that date will be reviewed and considered as time allows.
    
    ADDRESSES: Comments should be sent to: Adjusted OCAP, Truckee-Carson 
    Coordination Office, 1000 E. William Street, Suite 100, Carson City, 
    Nevada 89701-3116.
    
    FOR FURTHER INFORMATION CONTACT:
    Additional copies of 1988 OCAP with proposed adjustments may be 
    obtained from: Lahontan Area Office, Bureau of Reclamation, P.O. Box 
    640, Carson City, Nevada 89702, Phone (702) 882-3436.
        If you have questions or need additional information contact:
    
    Ann Ball, Manager, Lahontan Area Office, (702) 882-3436
    
        or
    
    Jeffrey Zippin, Team Leader, Truckee-Carson Coordination Office, (702) 
    887-0640.
    
    SUPPLEMENTARY INFORMATION: 
    
    Background
    
        On April 15, 1988, the Secretary of the Interior (Secretary) 
    implemented new Operating Criteria and Procedures (OCAP) governing 
    management of water diverted to and used within the Newlands Project. 
    These 1988 OCAP were approved by the U.S. District Court for the 
    District of Nevada, subject to a hearing on objections raised by 
    various parties. In 1990, Congress directed in the Truckee-Carson-
    Pyramid Lake Water Rights Settlement Act (Title II of Pub. L. 101-618, 
    Section 209(j) (104 Stat. 3294) that the 1988 OCAP remain in effect 
    until December 31, 1997, unless changed by the Secretary in his sole 
    discretion. Prior to this proposed rule, the 1988 OCAP have not been 
    published in the Federal Register.
        These OCAP were designed to further increase the reliance of the 
    Project on water from the Carson River, minimize the use of water from 
    the Truckee River as a supplemental supply, increase efficiency of 
    water use in the Project, and establish a regulatory scheme to manage 
    deliveries to Project water users including incentives for efficiency 
    and penalties for inefficiency.
        An environmental impact statement (EIS) was prepared on the 1988 
    OCAP. That EIS serves as the basis for reviewing the environmental 
    effects of proposed adjustments.
        The Department of the Interior (Department) has prepared a draft 
    environmental assessment on the adjustments which tiers off of the 
    analysis in that EIS. Copies of the draft environmental assessment may 
    be obtained from the Truckee-Carson Coordination Office.
        The Department is proposing at this time to make a number of 
    revisions to the 1988 OCAP to adjust for changes in use of water 
    rights, to increase flexibility, and to clarify and fine-tune the 
    language of the OCAP based on experience gained in administering the 
    1988 OCAP through eight irrigation seasons. These revisions are 
    proposed within the basic framework of the 1988 OCAP and its 
    environmental documentation. They are also proposed for codification.
        The need for additional changes to the 1988 OCAP beyond those 
    proposed in this rule may be appropriate as well, but consideration of 
    such changes is
    
    [[Page 64833]]
    
    expected to require further examination including the preparation of an 
    environmental impact statement (EIS).
    
    Description of the 1988 OCAP
    
        The 1988 OCAP provisions were preceded by a preamble and 
    introduction which are equally applicable to the Adjusted OCAP 
    proposed. The 1988 OCAP preamble and introduction are here reproduced 
    with minor grammatical editing. The following two headings, 1988 OCAP 
    Preamble and 1988 OCAP Introduction are taken from the 1988 OCAP.
    
    1988 OCAP Preamble
    
        The development of Operating Criteria and Procedures (OCAP) for the 
    Newlands Project (Project) in western Nevada was initiated in the late 
    1960's and has proven to be a divisive, contentious issue for the 
    people in Nevada who rely on the waters of the Carson and Truckee 
    Rivers. Competition for the water in the Project's desert environment 
    is intense and growing. The conflicts among uses are clearly apparent 
    in the effects forecast on various areas where the Department of the 
    Interior (Department) has program responsibilities. The issue is 
    complicated further by the requirements of the Endangered Species Act 
    and the listing of the Cui-ui, a fish inhabiting the lower Truckee 
    River and Pyramid Lake.
        In order to proceed effectively and fairly, the Department had to 
    have guiding principles for the OCAP. These are to:
    
    --Provide water deliveries sufficient to meet the water right 
    entitlements of Project water users;
    --Meet the requirements of the Endangered Species Act as they 
    specifically relate to the Truckee River/Pyramid Lake Cui-ui;
    --Fulfill Federal trust responsibilities to the Pyramid Lake Paiute 
    Indian Tribe;
    --Conserve wetland and wildlife values in both the Truckee and Carson 
    River basins;
    --Give cognizance to the State laws affecting water rights and uses;
    --Provide for stable economies and improve quality of life in the 
    region to the extent it is influenced by the Department-managed 
    resources and facilities;
    --Allow local control and initiative to the maximum extent possible; 
    and
    --Provide stability and predictability through straightforward 
    operation based on actual versus forecast conditions.
    
        The Department believes that the proposed OCAP best satisfy these 
    principles within the limits of the Department's legal authority.
        Each of the competing uses for the water is critical in its own 
    right. They are all essentially separable for decision making purposes 
    even though they clearly impact upon each other since the available 
    supply is far less than the demand.
        The OCAP deal with the operation and use of Federal facilities 
    related to the Newlands Project. Therefore, their primary 
    responsibility is supplying the water rights to the Project water 
    users. To the extent this can be done effectively and efficiently, then 
    the remaining water supply is available for other competing uses. The 
    secondary impacts of the OCAP must, however, act to support or 
    encourage results which benefit the other competing uses.
        The basic structure of the OCAP relies on both rules and incentives 
    which we believe will ensure reasonable, efficient water management 
    through reliance on local control and initiatives. The direct 
    consequences of the OCAP will be delivery of full water entitlements 
    within the Newlands Project, protection of endangered species, 
    fulfillment of trust responsibilities, and encouragement for the 
    protection of other environmental and quality of life values.
    
    1988 OCAP Introduction
    
        The OCAP shall govern the operation and use of federal facilities 
    on the Project.
        When approved by the United States District Court for the District 
    of Nevada (Court), the OCAP will supersede all OCAP previously issued 
    by the Secretary of the Interior (Secretary) and the 1973 OCAP 
    previously issued by the Court in Pyramid Lake Paiute Tribe of Indians 
    v. Morton, 354 F. Supp. 252 (D.D.C. 1973). The OCAP are believed to be 
    consistent with the decrees in United States v. Alpine Land and 
    Reservoir Co., 503 F. Supp. 877 (D. Nev. 1980), substantially affirmed, 
    697 F. 2d 851 (9th Cir. 1983), cert. denied, 464 U.S. 863 (1983) and 
    United States v. Orr Water Ditch Co., Equity No. A-3 (D. Nev.) (Orr 
    Ditch and Alpine decrees, respectively). Implementation of the OCAP 
    will ensure that the Secretary: (i) supplies the Project with water to 
    meet all valid water rights; (ii) fulfills the federal trust 
    responsibility to the Pyramid Lake Paiute Tribe of Indians; (iii) 
    fulfills the federal trust responsibility to the Fallon Paiute-Shoshone 
    Tribes of Indians; (iv) meets the requirements of the Endangered 
    Species Act (16 U.S.C. 1531 et seq.); and (v) provides a framework for 
    local decision making which can contribute to the protection of 
    wetlands, recreation, economic, and other regional values. Procedures 
    are included to monitor water use and Project operations and to enforce 
    these OCAP.
        Fundamentally the OCAP are predicated on water being used on the 
    water-righted land in a manner similar to the past coupled with the 
    Project operating at a reasonable efficiency. The Department believes 
    that the OCAP efficiency targets are reasonable because they are at a 
    level that can be shown to be achievable, can be obtained without 
    significant capital expenditures and are within the range of 
    efficiencies achieved in comparable systems.
        The OCAP are designed to operate in a manner to produce a long term 
    average effect recognizing that each year will necessarily be different 
    as weather and actions by individual water users vary. It is also 
    critical that OCAP compliance be measured based on facts which can be 
    readily determined and reviewed, rather than on forecasts, theories, or 
    models. In combination, the use of a factual base and a long-term 
    average project efficiency yield a methodology which will operate in a 
    predictable fashion that minimizes disputes and allows the landowners 
    and others to make knowing, rational decisions for themselves.
        The OCAP assure proper water use and a reasonable efficiency by 
    establishing a methodology consisting of three basic elements. First, 
    it requires monitoring headgate deliveries against the acreage eligible 
    to receive Project water multiplied by the court set water duty.
        Second, the OCAP establish efficiency targets for the Project 
    distribution system. The efficiency target varies with the actual valid 
    headgate deliveries. Since many of the system losses are relatively 
    constant, the system efficiency declines with smaller headgate 
    deliveries and increases with larger deliveries. This also allows an 
    automatic adjustment in efficiency for drought conditions. The OCAP 
    provide for incentives if the District's operation is more efficient 
    and for disincentives if it is less efficient than the OCAP target 
    efficiency. Thus, through use of the incentive provisions, the District 
    can offset deficiencies in time of drought or use the water saved for 
    its desired purposes (e.g., wetlands, recreation, power, etc.) 
    consistent with Nevada and Federal Law.
        Third, as a protection against the first two elements allowing the 
    operation to become excessively out of balance, the OCAP establish a 
    maximum allowable diversion (MAD) limit for irrigation and a maximum 
    efficiency deficit (MED). No
    
    [[Page 64834]]
    
    limit has been placed on the ability of the District to gain through 
    the incentive feature.
        The MAD and MED limits are set to provide an operating cushion 
    approximately 26,000 acre-feet above and below, respectively, the 
    expected irrigation diversions, assuming the District's operation is at 
    an average annual efficiency at the OCAP target level. Neither limit is 
    expected to ever be encountered in actual operation.
        The operating cushion size was chosen in relation to historic 
    operations. Historically, not all water users have used their full 
    entitlements in a given year. Either the season doesn't require it, the 
    crops planted need less, or the land cannot productively accommodate 
    the full amount. Whatever the reason, the Project uses about 26,000 
    acre-feet less every year on average than its entitlement for actual 
    irrigated acres. This provides a reasonable cushion, or insurance 
    protection, above the normal expected use, yet does not in any way 
    limit or impact on the water users' rights. It is also an important 
    protection for other uses. Therefore, rather than trying to forecast 
    the expected actual use each year and adding the operating cushion to 
    get the MAD, it is more direct and predictable to simply determine the 
    anticipated acreage to be irrigated at its full water duty for the MAD.
        The MED is a fixed number set equal to the operating cushion. It is 
    the limit on how much accumulated storage can be borrowed from the 
    future to satisfy a less efficient operation. The MED is for the 
    protection of the water users against too severe an impact in the case 
    of a low water year. Only the MAD can affect current operations within 
    an irrigation season. The MED operates on the subsequent year only.
        These OCAP will be enforced in cooperation with the Federal Water 
    Master and the Nevada State Engineer and will govern delivery of all 
    Project water. The OCAP are applicable to the Truckee-Carson Irrigation 
    District or any other Project operating entity.
    
    1996 Revisions to the OCAP in General
    
        1. Changes in Water Demand: The 1988 OCAP envisioned and provided 
    for increasing irrigated acreage. It was assumed the project would grow 
    from about 60,900 irrigated acres and a headgate entitlement of 226,450 
    acre feet of water on average beginning in 1988 to as much as 64,850 
    irrigated acres and a headgate entitlement of 237,485 acre feet on 
    average by 1992 and thereafter with certain efficiency targets and 
    assumptions about water duties and use of entitlements. The annual 
    calculations of the maximum allowable diversion (MAD) to the Project 
    and efficiency requirements in use today are based, in part, on this 
    assumed projected growth to 64,850 irrigated acres and the other 1992 
    project water demand assumptions. In practice, this growth has not 
    occurred. Actual acreage served in 1995 and assumed for 1996 and 
    thereafter for at least several years, and other key parameters in 
    determining project water use are displayed in Table A below along with 
    the comparable assumptions made in the 1988 OCAP.
    
                                Table A.--Comparison of Project Water Balance Assumptions                           
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                                                                    1988 OCAP assumptions      Current assumptions  
                                                                 ---------------------------------------------------
                                                                      1988         1992         1995       Proposed 
    ----------------------------------------------------------------------------------------------------------------
    Acres.......................................................       61,630       64,850       59,023       59,023
    Average duty in acre-feet per acre (af/a) \1\...............         3.67         3.66         3.49         3.49
    Headgate entitlements in acre-feet..........................      226,555      237,485      206,230      206,230
    Estimated percent use of entitlement........................           90           90           90         93.2
    Resulting demand............................................      203,900      213,740      185,555      192,206
    Percent target efficiency \2\...............................         59.3         66.7         66.7         65.7
    Expected diversion in acre-feet.............................      343,845      320,450      278,193      292,627
    Maximum allowable diversion in acre-feet....................      371,055      346,985      301,506      308,319
    ----------------------------------------------------------------------------------------------------------------
    \1\ Average duty includes bench lands at 4.5 af/a, bottom lands at 3.5 af/a, pasture lands at 1.5 af/a, and     
      deliveries to wetlands of less than full entitlement.                                                         
    \2\ The target efficiencies for 1988, 1992, and 1995 are as prescribed in the 1988 OCAP; the Proposed target    
      efficiency is calculated.                                                                                     
    
        The differences between 1992 and 1995 stem from the following:
         Acreage: The anticipated increase in acreage has not 
    materialized; actual irrigated acreage in 1995 was 59,023 acres. This 
    amount reflects the efforts of the Bureau of Reclamation (BOR) to limit 
    irrigation to water-righted lands and that, on average, irregators have 
    not increased the acreage of lands in production.
         Average Water Duty: The average water duty for the project 
    has been reduced as a result of the so-called ``bench/bottom 
    litigation'' (1995 Order of Judge McKibben, in U.S. v. Alpine, United 
    States District Court for the District of Nevada No. D-185). This 
    bench/bottom court ruling approved a change in the designation of some 
    Project lands from bench lands to bottom lands. Bench lands have a 
    maximum water duty of 4.5 acre-feet/acre; bottom lands have a maximum 
    water duty of 3.5 acre-feet/acre. (The Project includes pasture lands 
    with a duty of 1.5 acre-feet/acre.) The bench/bottom decision 
    reclassified approximately 9,000 acres of irrigated lands in the 
    project, reducing Project water entitlements by approximately 9,000 
    acre-feet. The change in demand is expected to be approximately 5,000 
    acre-feet of water when measured at the farm headgates. This is based 
    on historic use of about 90 percent of the headgate entitlement at 4.5 
    acre-feet/acre versus projected use of 100 percent of the 3.5 acre-
    feet/acre entitlement.
         Average Use of Entitlement: Actual water use as a 
    percentage of entitlement is usually less than 100 percent, 
    historically about 90 percent. The reduced percentage of entitlement 
    use results from on-farm practices and efficiencies, fallowing of 
    lands, and varying weather conditions. The current projected percent 
    use of entitlement is 93.4 percent. This is based on irrigation use of 
    91.8 percent and 95 percent for Carson and Truckee Divisions, 
    respectively, and 100 percent water use for pasture lands and wetlands. 
    Several factors will affect use of entitlement in the future:
    
    --As noted above, irrigators whose lands were reclassified from bench 
    lands with a water duty of 4.5 acre-feet per acre to bottom lands with 
    a 3.5 acre-feet per acre duty may use more than 90 percent of their 
    entitlement, an increase in use.
    
    [[Page 64835]]
    
    --The Fallon Paiute-Shoshone Tribes reservation is within the Project 
    and Tribes have a cap on the water they receive. The Tribes are 
    expected to use their full water entitlement every irrigation season.
    --The Naval Air Station Fallon, as part of an agreement with the U.S. 
    Fish and Wildlife Service (FWS), will use less of its irrigation water 
    and is also developing less water intensive cropping strategies 
    decreasing percent use of entitlement.
    --The FWS and the State of Nevada are acquiring water rights within the 
    Newlands Project for restoration of wetlands at Stillwater National 
    Wildlife Refuge. The FWS and Nevada are transferring the consumptive 
    use portion, 2.99 acre-feet per acre, of the water rights they acquire. 
    This changes their entitlement to 2.99 acre-feet per acre of which they 
    are expected to take 100%, thus increasing percent use of entitlement.
    
        These and other changes in water use will cause the percent use of 
    entitlement to vary from year to year. The percent use will be 
    determined based on actual experience and used in calculating the 
    expected irrigation diversion for each irrigation season.
         Efficiency: Within the same size project, more irrigated 
    acreage results in greater efficiency; with less irrigated acreage 
    lower efficiencies are expected. Project irrigated acreage never 
    reached the level anticipated in the 1988 OCAP but the associated 
    target efficiencies have remained in effect. As water rights are 
    acquired for Stillwater Wildlife Refuge (Pub. L. 101-618, section 206), 
    the effect on Project efficiencies may vary at first, but as more water 
    is acquired and moves to the Refuge, efficiencies should improve 
    stemming from the concentration of deliveries through the system.
    
    Specific Proposed Adjustments to 1988 OCAP
    
        Even with the prospect of revising the OCAP in the future, there 
    are a number of adjustments to the 1988 OCAP that will help manage the 
    Project during the interim period until a revised OCAP can be 
    promulgated. This proposed rulemaking addresses only those adjustments 
    to the 1988 OCAP in the following areas:
        1. Target Efficiency adjustments (Sec. 418.1(c)(3)(i)(A) and 
    Newlands Project Water Budget table): The 1988 OCAP envisioned and 
    allowed for increasing irrigated acreage, assuming the Project would 
    grow to over 64,850 irrigated acres by 1992 compared to a base of 
    approximately 60,900 acres being irrigated in 1987. The annual 
    calculations of the maximum allowable diversion (MAD) to the Project 
    and efficiency requirements currently in use are based on a Project of 
    64,850 or more irrigated acres and a commensurate target efficiency of 
    68.4 percent. However, the acreage increase has not materialized and 
    current irrigated acreage is approximately 59,023 acres. The Project 
    efficiency that can be achieved, which is the relationship between the 
    total annual diversion to the Project and total delivery to farm 
    headgates, is directly related to irrigated acreage; efficiency 
    generally decreases as the irrigated acreage in the Project decreases. 
    The 1988 OCAP does not accurately reflect the current acreage, and as a 
    consequence, the higher efficiency requirement remains in effect. This 
    may decrease the water available to the Project as calculated in the 
    MAD and increases the likelihood of penalties for inefficiency.
        In response to less acreage and varying water demand, the 
    Department proposes to calculate the annual Project water budget for 
    each irrigation season in accordance with the elements in the Newlands 
    Project Water Budget table of the Adjusted OCAP. Each year the Maximum 
    Allowable Diversion (MAD) would be based on the projected irrigated 
    acreage for that year and applicable water duties. The other elements 
    in Newlands Project Water Budget, including appropriate Project 
    efficiency, would be calculated to determine the MAD and Project 
    efficiencies. Through this proposal, the Project water budget can 
    accommodate anticipated changes in Project characteristics.
        Using the 1995 Actual Acres column from the Newlands Project Water 
    Budget, Maximum Headgate Entitlement (line 2) is the product of 
    Irrigated Acres (line 1) and the average water duty (calculated 
    annually). Variable distribution system losses of Canals/Laterals 
    Evaporation (line 3), Canals/Laterals Seepage (line 5), and Operational 
    Losses (line 7) are interpolated to determine the Total Losses (line 8) 
    for a given Project size. The combined Maximum Headgate Entitlement 
    (line 2) and the Total Losses (line 8) determines the MAD (line 9), and 
    the relationship of Maximum Headgate Entitlement (line 2) to Total 
    Losses (line 8) determines Project Efficiencies at 100 percent water 
    use (line 10). Actual use of entitlement, based on historic patterns, 
    is less than 100 percent, so the Maximum Headgate Entitlement is 
    adjusted by the projected percent use of entitlement (calculated 
    annually) to yield Expected Headgate Entitlement Unused (line 11) and 
    the Diversion Reduction for Unused Water (line 12). The Diversion 
    Reduction for Unused Water (line 12) is subtracted from the MAD (line 
    9) to determine Expected Irrigation Diversions (line 13). Finally, the 
    adjusted Project demand (calculated from line 2 minus line 11) is 
    divided by the Expected Irrigation Diversions (line 13) to determine 
    the Expected Efficiency (line 14).
        The effect of this proposal is to have OCAP that more accurately 
    reflect the Project water demand. Reducing the annual Project 
    efficiency target will recognize the limitation of the present water 
    distribution system facilities and assist the Project in achieving 
    efficiency requirements. No changes are proposed for the 1988 OCAP 
    relative to how the MAD is calculated and administered, determination 
    of eligible land, reporting, or calculation of credits or debits.
        2. Adjustments in Storage Targets (Sec. 418.3(e) and tables of 
    Monthly Values for Lahontan Storage Computations and End of Month 
    Storage Targets for July Through December): The 1988 OCAP prescribes 
    when water may be diverted from the Truckee River to supplement Carson 
    River inflow to Lahontan Reservoir to serve the Carson Division of the 
    Project. (The Truckee Division of the Project is supplied entirely by 
    water from the Truckee River.) The Truckee River diversion to the 
    Carson Division is governed by end-of-month storage target levels in 
    Lahontan Reservoir. Water is diverted from the Truckee to the Reservoir 
    only if its is forecast that the storage target will not be met by 
    Carson River inflow by the end of the month. In years of low flow on 
    the Carson River, a greater percentage of the Carson Division Project 
    water supply is diverted from the Truckee River. In wet years, the 
    Carson Division supply may come entirely from the Carson River. Thus, 
    storage targets are used to help maintain a steady water supply despite 
    the natural climatic variability and differences in annual runoff 
    between the two river basins.
        The formula used to determine how much water may be diverted to 
    Lahontan Reservoir from the Truckee River in January through June 
    relies, in part, on the runoff forecast for the Carson River. The 
    imprecision inherent in such forecasting can lead to variable 
    consequences. Sometimes more Truckee River is diverted than is needed 
    to serve Project water users. This is particularly problematic when the 
    Carson River fills Lahontan Reservoir to the point that water spills 
    over Lahontan Dam or so that a precautionary spill (release) of water 
    must be made to avoid later
    
    [[Page 64836]]
    
    flooding. In either situation, spilled water that cannot be transported 
    to water-righted lands or Lahontan Valley wetlands flows into Carson 
    Sink in the desert. This situation occurred most recently in 1996 with 
    the consequence that Truckee River water that could have flowed into 
    Pyramid Lake contributed to water that was spilled.
        Because of their imprecision, forecasts for Carson River runoff do 
    not always reflect actual conditions and the water may not materialize. 
    If not enough water was brought over from the Truckee River earlier in 
    the water year, or Truckee River flow is insufficient to make up for 
    the shortfall from the Carson River, then the water supply may be 
    inadequate to meet the annual irrigation demand. This situation 
    occurred in 1994 when the Carson River was forecast to have a 100 
    percent water year but only produced a 50 percent water supply.
        Two of the objectives of OCAP are to minimize spills and moderate 
    shortages. It is important to note that for the 94 years of records, 
    the climatic/hydrologic variability of both rivers is so great that 
    even if there were no limits on the diversion of Truckee River water, 
    in some years shortages would result. Conversely, even if no Truckee 
    River water were diverted, in some years Lahontan Reservoir would spill 
    just from Carson River inflow.
        The 1988 OCAP has a June end-of-month storage target of 215,000 
    acre feet in Lahontan Reservoir. The 215,000 acre-feet was based on 
    serving at least 5,000 more acres of water-righted and irrigated land 
    than has been irrigated in actual practice. The reclassification of 
    some bench lands to bottom lands further reduces water demand in the 
    Carson Division. The difference in headgate demand between what the 
    1988 OCAP projected and current Carson Division demand is approximately 
    21,000 acre-feet. The current storage targets permit unnecessary 
    diversions from the Truckee River to the Project. The proposed Adjusted 
    OCAP storage targets are based on the lower Carson Division demand and 
    reducing water loss to seepage and evaporation. Accordingly, the 
    proposed end-of-June storage target is adjusted to 174,000 acre-feet, 
    as shown in the table Monthly Values for Lahontan Storage Calculations. 
    The June storage target is important because it is one of the terms in 
    the formula used to calculate the monthly Truckee River diversion to 
    the Project for January through June.
        A comparison of the 1988 OCAP and proposed Adjusted OCAP storage 
    targets for Lahontan Reservoir are shown in Table B of this preamble.
    
      Table B.--Comparison of 1988 OCAP and Proposed Adjusted OCAP Lahontan 
                            Reservoir Storage Targets                       
                                 [In acre-feet]                             
    ------------------------------------------------------------------------
                                                                   Adjusted 
                         Month                       1988 OCAP       OCAP   
    ------------------------------------------------------------------------
    January-June..................................      215,000      174,000
    July..........................................      160,000      139,000
    August........................................      140,000       95,000
    September.....................................      120,000       64,000
    October.......................................       80,000       52,000
    November......................................      160,000       74,000
    December......................................      210,000      101,000
    ------------------------------------------------------------------------
    
        The adjusted storage targets for these months appear in the table 
    End of Month Storage Targets for July Through December in the proposed 
    rule. The adjusted storage targets would be used to calculate 
    diversions from the Truckee River in accordance with Sec. 418.3 of the 
    proposed rule.
        The proposed storage targets were developed using the Truckee River 
    settlement negotiations water balance model. The model was used to 
    examine how different storage targets affected spills, inflow to 
    Pyramid Lake, and other parameters. Key assumptions used in modeling 
    were reduced Project water demand from the 1988 OCAP, lower efficiency 
    targets, current Truckee River operations, and Project shortages 
    consistent with the 1988 OCAP. The model uses the 94-year (1901-1995) 
    historic hydrologic record for the Truckee and Carson Rivers.
        A series of modeled storage targets was evaluated based on the 
    degree to which a set of targets reduced spills, increased inflow to 
    Pyramid Lake, increased the estimated number of spawning years for cui-
    ui, increased the estimated number of cui-ui, reduced Lahontan 
    Reservoir and Truckee Canal seepage and evaporation losses, and held 
    frequency and magnitude of Project shortages consistent with the 1988 
    OCAP. These goals are consistent with the Secretary of the Interior's 
    responsibilities as the District Court ruled in Tribe v. Morton.
        Though not a specific feature of the Adjusted 1988 OCAP, the 
    modeling used in making decisions on this proposed rule took cognizance 
    of the 4,000 acre foot minimum pool that the Truckee-Carson Irrigation 
    District voluntarily has maintained in Lahontan Reservoir to protect 
    fish resources there. Though this action to maintain a minimum pool is 
    purely voluntary on the part of TCID and Newlands Project water right 
    holders, it provides environmental benefits, was assumed to be 
    continued into the future, and was credited in the modeling used to 
    establish new Lahontan storage targets; that is to say, the targets 
    would have been somewhat lower to achieve the same release shortage 
    percentage and Truckee River inflow volume to Lahontan Reservoir 
    assuming no anticipation of the 4,000 acre-foot minimum pool.
        Table C compares the modeled current conditions under the 1988 OCAP 
    to those under the Adjusted 1988 OCAP for each of these elements.
    
                                   Table C.--Modeled Results for OCAP Storage Regimes                               
    ----------------------------------------------------------------------------------------------------------------
                  Parameter                     1988 OCAP \1\        Proposed adjusted OCAP         Difference      
    ----------------------------------------------------------------------------------------------------------------
    Truckee Canal and Lahontan Reservoir   61,800 af \2\..........  53,600 af..............  8,200 af.              
     Losses.                                                                                                        
    Reservoir Spills.....................  42,100 af..............  37,500 af..............  4,600 af.              
    Lahontan Release Shortage............  7,820 af...............  6,880 af...............  940 af.                
    Release Shortage as Percentage of      2.68%..................  2.54%..................  0.14%.                 
     Demand.                                                                                                        
    Mininum Pool.........................  0......................  4,000 af...............  4,000 af.              
    Number of Shortage Years.............  9 years................  9 years................  .......................
    Truckee River Inflow to Pyramid Lake.  445,500 af.............  480,700 af.............  35,200 \3\ af.         
    Cui-ui Spawning Years................  69 years...............  74 years...............  5 years.               
    Ending Number of Adult Female Cui-ui.  40,300.................  304,300................  264,000.               
    ----------------------------------------------------------------------------------------------------------------
    \1\ Modeled results based on the 1992 Newlands demand assumptions from the 1988 OCAP, the 94-year hydrologic    
      record (1901-1995), and 1995 Truckee River operating conditions.                                              
    \2\ af=acre-fee.                                                                                                
    \3\ The difference in inflow to Pyramid Lake results from reduced Project acreage and reduced Truckee Canal and 
      Reservoir losses.                                                                                             
    
    
    [[Page 64837]]
    
        The values are averages for the 94-year period of record. In every 
    category listed above, the modeled results show improvement under the 
    proposed storage targets as compared with the 1988 OCAP modeled with 
    64,800 irrigated Project acres and current Truckee River conditions. A 
    reduction of water loss and spill from the Project will increase inflow 
    to Pyramid Lake. Shortages to the Project are reduced under the 
    proposed storage targets by approximately 2,500 acre-feet compared to 
    the current target regime using the 1988 OCAP and 1995 acreage and 
    water use. However, today's irrigated acreage has not matched what was 
    anticipated in the 1988 OCAP so Project water supply has benefited from 
    storage targets based on higher water demand assumptions in place.
        3. Truckee River Storage in Lieu of Diversions (Sec. 418.3(e)(8)): 
    Project diversions from the Truckee River may be fine-tuned by 
    retaining water in upper Truckee River reservoirs that would otherwise 
    have been diverted to Lahontan Reservoir to meet storage targets. 
    Depending upon how much Carson River runoff reaches Lahontan Reservoir 
    and whether storage targets are met by the Carson River inflow, the 
    water retained in storage may be released later in that year and 
    diverted to Lahontan Reservoir for delivery to the Carson Division, or 
    retained for Pyramid Lake if the water is not needed for Carson 
    Division irrigation.
        Under the 1988 OCAP, water may be stored upstream on the Truckee 
    River in lieu of diversion only from April to June. In 1995, this 
    limitation contributed to approximately 70,000 acre-feet of water being 
    diverted from the Truckee River to Lahontan Reservoir before March 31, 
    then spilling because of high Carson River runoff. None of the Truckee 
    River water was needed because the Carson River more than filled 
    Lahontan Reservoir and precautionary releases were made to avoid 
    spilling over the dam. While the 70,000 acre-foot-diversion from the 
    Truckee was controversial, it resulted from managing the diversion in 
    strict adherence with the 1988 OCAP targets. The proposed Adjusted OCAP 
    provides more flexibility to reduce such unnecessary diversions.
        Consistent with managing Projects diversions from the Truckee 
    River, the proposed rule expands the opportunity to credit store water 
    for the Project in reservoirs on the upper Truckee River by allowing 
    storage as early as January of each year. The water would be credited 
    based on water actually retained in Trukee River reservoirs or, if 
    water was not being released for Project diversion, credited as 
    Newlands Project water in Stampede Reservoir adverse to other water 
    (fish water) stored in Stampede Reservoir. In the latter situation, 
    concurrence by the U.S. Fish and Wildlife Service (FWS) will be 
    required. For example, a reduction of diversions in January through 
    March of 1995, would have required FWS approval because water was not 
    being released for Project diversion. Stored water could be released 
    for diversion to Lahontan Reservoir, if needed, as early as July 1 
    through the end of the irrigation season, but not thereafter. The Water 
    would only be used for the Carson Diversion. Water in storage could be 
    exchanged to other reservoirs but it will not carry over to the next 
    year for use in the Project. If it is not used in the year in which it 
    is stored, it will not be available thereafter to the project. To 
    protect the water users, the water held in storage on the Truckee River 
    would not be reduced as a result of spill or evaporation and would be 
    gaged at the U.S. Geological Survey gage on the Truckee Canal near 
    Wadsworth, Nevada, to ensure that the diversion to the Project matches 
    the diversion foregone earlier in the season. Water stored but not 
    needed for the Project would be managed to benefit endangered cui-ui in 
    Pyramid Lake.
        The proposed adjustment provides the flexibility to reduce 
    excessive diversions from the Truckee River. As proposed, there is no 
    risk to the Project water users and there is potential benefit for 
    Pyramid Lake. The BOR is expected to use this proposed provision only 
    in years when Carson River runoff is forecast to be above average and 
    is intended to fine tune diversions and avoid over-diversions from the 
    Truckee River. Such storage in Stampede Reservoir or other Truckee 
    River Reservoirs is not intended to make up for shortages in drier 
    years. There is little advantage to foregoing diversions in below 
    average runoff years if the likelihood is that all the credit stored 
    water would need to be diverted to the Project in any event. The 
    changes proposed in Sec. 418.3(e)(8) of the rule include provisions for 
    BOR to consult with TCID, the Federal Water Master, FWS, Bureau of 
    Indian Affairs (BIA), and the Pyramid Lake Paiute Tribe before any 
    credit storing is initiated.
        4. Expanded Forecasting (Sec. 418.3(e)(1)): In calculating the 
    January to June monthly diversions from the Truckee River, the 1988 
    OCAP uses the monthly forecast for April through July runoff published 
    by the Natural Resources Conservation Service (NRCS) (formerly the Soil 
    Conservation Service). Rather than continuing to rely on that forecast 
    alone, Sec. 418.3(e)(1) of the proposed Adjusted OCAP provides 
    flexibility to examine other forecasts and allows use of a deliberative 
    process to determined how to manage Truckee River diversions. The 
    intent of this change is to allow the BOR to take advantage of other 
    forecasts and the experience and knowledge of the Federal Water Master, 
    the TCID water master, and other parties. The desired effect of this 
    change is to improve precision in forecasting and managing the Truckee 
    River diversion to the Project to avoid spills and shortages.
        5. Additional Revisions: In addition to the proposed change 
    identified in 1. through 4. above, a number of minor revisions have 
    been made to the 1988 OCAP. Most changes are editorial and do not 
    affect the meaning of the text. Some changes provide opportunities for 
    consultation with interested and effected parties before BOR makes a 
    decision.
        A few changes add language to clarify or interpret the meaning of 
    the 1988 OCAP in light of experience administering the OCAP, passage of 
    time, or new statutory provisions. Changes to the text of the 1988 OCAP 
    occur at:
        Section 418.1: Other Project purposes are added in accordance with 
    Pub. L. 101-618, 104 Stat. 3289, Sec. 209 (a)(1).
        Section 418.1 (c)(3) (i) (B): Explains the use of efficiencies in 
    calculating the MAD.
        Section 418.3 (c): Calculates terminal flow in the Truckee Canal by 
    averaging flows during the time when water is not being diverted to 
    Lahontan Reservoir.
        Section 418.3 (g): Subtracts Rock Dam Ditch deliveries from Carson 
    Division demand and adds it to Truckee Division demand.
        Section 418.3 (h) (1): Water captured in Project facilities from a 
    spill or precautionary draw down is used to make deliveries to eligible 
    lands but does not count as a Project diversion or as Lahontan 
    Reservoir storage.
        Section 418.7(b): Deletes the reference to the February 14, 1984, 
    Contract for Operation and Maintenance between the United States and 
    the District.
        Section 418.9 (f) (4): Adds new text clarifying that a natural 
    drought greater than or equal to the debit will eliminate the debit.
        Section 418.9 (h)(2): Allows TCID to divert up to the MAD if needed 
    to meet headgate entitlements.
    
    Coordination With the Public
    
        The Department developed the proposed adjustments to the 1988 OCAP 
    in consultation with the BOR, FWS, BIA, and other interested and 
    affected
    
    [[Page 64838]]
    
    parties in western Nevada. Four public meetings were held in Fernley, 
    Nevada, to discuss the four main revisions to the 1988 OCAP described 
    above. Participants in the public meetings were representatives from 
    the State of Nevada, Churchill, County, Washoe County, Town of Fernley, 
    TCID, Pryamid Lake Paiute Tribe, Fallon Paiute-Shoshone Tribes, 
    Lahontan Valley Environmental Alliance, Newlands Water Protective 
    Association, The Nature Conservancy, and members of the public.
    
    Administrative Matters
    
         This rule is not a significant rule under Executive Order 
    (E.O.) 12866 and does not require review by the Office of Management 
    and Budget.
         As required by the Regulatory Flexibility Act, it is 
    hereby certified that this rule will not have a significant impact on 
    small business entities.
         This rule does not include any collections of information 
    requiring approval under the Paperwork Reduction Act.
         The Department has preliminarily determined that the 
    proposed rule is not a major Federal action having significant effects 
    on the human and natural environment. A draft environmental assessment 
    (EA) has been prepared on the effects of the proposed rule. The EA will 
    be reviewed in light of comments on the proposed rule.
         The proposed rule has no substantial effects on Federalism 
    under the requirements of E.O. 12612.
         The proposed rule does not have a significant impact on 
    family formulation, maintenance, and general well being under the 
    requirements of E.O. 12606.
         The proposed rule does not represent a government action 
    that would interfere with constitutionally protected property rights 
    and does not require a Takings Implications Assessment under E.O. 
    12630.
         The proposed rule meets the applicable standards of civil 
    justice reform in accordance with E.O. 12988.
         The proposed rule will not result in aggregate annual 
    expenditures in excess of $100 million by state, local, and tribal 
    governments, or the private sector and is, therefore, not subject to 
    the requirements of Section 202 of the Unfunded Mandates Reform Act of 
    1995 (Pub. L. 104-4).
        The author of this rule is Jeffrey Zippin of the Department of 
    Interior, Truckee-Carson Coordination Office.
        The proposed rule replaces the 1967 OCAP regulations at 43 CFR 418. 
    That regulation was superseded by subsequent U.S. District Court-
    approved OCAP, including the 1988 OCAP, which are the basis for this 
    proposed rule.
        List of Subjects in 43 CFR Part 418; Irrigation, Water supply, 
    Newlands Irrigation Project; Operating Criteria and Procedures.
    
        Dated: November 27, 1996
    John Garamendi,
    Deputy Secretary.
    
        For the reasons set forth in the preamble, 43 CFR part 418 is 
    proposed to be revised as follows:
    
    PART 418--OPERATING CRITERIA AND PROCEDURES FOR THE NEWLANDS 
    RECLAMATION PROJECT, NEVADA
    
    Sec.
    418.1  Conditions of water delivery.
    418.2  Monitoring diversions.
    418.3  Operations management.
    418.4  Water rights.
    418.5  Prohibited deliveries.
    418.6  Violations.
    418.7  Enforcement.
    418.8  Water management and conservation.
    418.9  Implementation.
    418.10  Fallon Paiute-Shoshone Indian Reservation.
    
    Appendix A--Expected Project Distribution System Efficiency
    
        Authority: 32 Stat. 388, et. seq,; 43 U.S.C. 373; 70 Stat. 775; 
    72 Stat. 705; 104 Stat. 3289.
    
    
    Sec. 418.1  Conditions of water delivery.
    
        Project water may be delivered only to serve valid water rights 
    used for maintenance of wetlands, fish and wildlife including 
    endangered and threatened species, recreation, domestic and other uses 
    and for irrigation of eligible land. Domestic and other uses of Project 
    water are as defined by the Orr Ditch and Alpine! decrees. Eligible 
    land is defined as Project land which at the time of delivery has a 
    valid water right and either: Is Classified as irrigable pursuant to 
    Bureau of Reclamation (Bureau) land classification standards 
    (Reclamation Instruction Series 510); or has a paid out Project water 
    right.
        (a) Irrigation deliveries. Project irrigation water deliveries may 
    be only to eligible land to be irrigated. The District shall maintain 
    records for each individual water right holder indicating the number of 
    eligible acres irrigated and the amount of water ordered and delivered.
        (1) Eligible land actually irrigated. During each year, the 
    District, in cooperation with the Bureau, shall identify and report to 
    the Bureau the location and number of acres of eligible land irrigated 
    in the Project. Possible irrigation of ineligible land will also be 
    identified. The Bureau will review data to assure compliance with these 
    OCAP. The District in cooperation with the Bureau will be responsible 
    for field checking potential violations and immediately stopping 
    delivery of Project water to any ineligible land. The Bureau may also 
    audit as appropriate.
        (2) Eligible land with transferred water rights. The District water 
    rights maps dated August 1981 through January 1983 will be used as the 
    basis for determining lands which have a valid water right. The 
    original maps will be maintained by the District. The District shall 
    provide copies of the maps to the Bureau. The District will alter the 
    maps and the copies to account for water right transfer as they are 
    approved by the Nevada State Engineer.
        (3) Other eligible land. The Bureau will also identify eligible 
    land that was not irrigated during the prior irrigation season.
        (4) Notification and review. (i) Eligible land anticipated to be 
    irrigated. (A) Anticipated changes in irrigated eligible land from the 
    prior year will be reported to the Bureau's Lahontan Basin Projects 
    Office by the District by March 1 of each year. The District will 
    adjust the acreage of the eligible land anticipated to be irrigated to 
    correct for inaccuracies, water right transfer that have been finally 
    approved by the Nevada State Engineer, and any other action than 
    impacts the number of eligible acres, acres anticipated to be 
    irrigated, or water deliveries. As the adjustments are made, the 
    District will provide updated information to the Bureau for review and 
    approval. The District shall adjust anticipated water allocations to 
    individual water users accordingly.
        The allocations will be based on a maximum annual entitlement of 
    3.5 acre-feet (AF) per acre of bottom land, 4.5 AF per acre of bench 
    land, and 1.5 AF per acre of pasture land that is anticipated to be 
    irrigate and not by the number of water-righted acres.
        (B) The District will provide the individual water users with the 
    approved data regarding the anticipated acreage to be irrigated and 
    water allocations for each water user that year. Any adjustments based 
    on changes in lands anticipated to be irrigated during the irrigation 
    season must be reported by the individual water user to the District. 
    The District will, in turn, notify the Bureau of any changes in 
    irrigated acreage which must be accounted for. Each landowner's 
    anticipated acreage must be less than or equal to the landowner's 
    eligible acreage.
        (C) Should a landowner believe that the number of acres of eligible 
    land he or she is entitled to irrigate is different from the number of 
    acres as approved by the Bureau, the landowner is
    
    [[Page 64839]]
    
    required to notify the District and present appropriate documentation 
    regarding the subject acreage. The District shall record the 
    information and present the claim to the Bureau for further 
    consideration. If the Bureau determines that there is sufficient 
    support for the landowner's claim, then adjustments will be made to 
    accommodate the changes requested by the landowner. If the Bureau 
    disallows the landowner's claim, the Bureau shall notify the District 
    is writing. The District will, in turn, inform the landowner of the 
    disposition of the claim and the reasons, therefore, and will further 
    instruct the landowner that he or she may seek judicial review of the 
    Bureau's determination pursuant to the Orr Ditch and Alpine decrees. If 
    the dispute affects the current year, then the Bureau and the District 
    will seek to expedite any court proceeding.
        (ii) Changes in domestic and other uses. By March 1 of each year, 
    the District shall reports to the Bureau all anticipated domestic and 
    other uses. This notification shall include a detailed explanation of 
    the criteria utilized in allowing the use and sufficient documentation 
    on the type and amount of use by each water user to demonstrate to the 
    satisfaction of the Bureau that each water user is in compliance with 
    the criteria. With adequate documentation, the District may notify the 
    Bureau of any changes in domestic water requirements at any time during 
    the year.
        (b) Water duty. (1) Eligible land may receive no more than the 
    amount of water in acre-feet per year established as maximum farm 
    headgate delivery allowances by the Orr Ditch and Alphine decrees. All 
    water use is limited to that amount reasonably necessary for economical 
    and beneficial use pursuant to the Orr Ditch and Alpien decrees.
        (2) The annual water duty as assigned by the Orr Ditch and Alpine 
    decrees is a maximum of 4.5 AF per acre for bench lands and a maximum 
    of 3.5 AF per acre for bottom lands. The water duty for fields with a 
    mixture of bench and bottom lands shall be the water duty of the 
    majority acreage. Bench and bottom land designations as finally 
    approved by the United States District Court for the District of Nevada 
    will be used in determining the maximum water duty for any parcel of 
    eligible land. The annual water duty for pasture land established by 
    contract is 1.5 AF per acre.
        (c) Deliveries, efficiency, and maximum limits. The OCAP will 
    constrain the operation of the Project on a long term average basis to 
    achieve the full benefits for all the region's water users through 
    three basis elements: valid headgate deliveries; Project efficiency 
    with incentives and disincentives; and maximum operating limits or 
    cushions.
        (1) Valid headgate deliveries. The valid water deliveries at the 
    headgate are set by the product of eligible land actually irrigated 
    multiplied by the appropriate water duty in accordance with 
    Secs. 418.1(a) and 418.1(b). The District will regularly monitor all 
    water deliveries and report in accordance with Sec. 418.1(a). No amount 
    of water will be permitted to be delivered in excess of the individual 
    water user's headgate entitlement. In the event it should occur, such 
    amount will be automatically reflected in the efficiency deficit 
    adjustment to the Lahontan storage. Water delivered in excess of 
    entitlements shall not be considered valid for purposes of computing 
    project efficiency.
        (2) Project efficiency. (i) The principal feature of the OCAP is to 
    obtain a reasonable level of efficiency in supplying water to the 
    headgate by the District. The efficiency targets established by these 
    OCAP are the cornerstone of the enforcement and the incentive 
    provisions and when implemented will aid other competing uses.
        (ii) The efficiency approach has the advantage of being readily 
    calculable at the year's end, easily convertible to water appropriate 
    to that year, able to be compared to other systems even though there 
    may be many dissimilarities, appropriate for long term averaging, 
    adjustable to any headgate delivery level including droughts or 
    allocations, automatically adjusts to changes during the year, and it 
    accurately accounts for misappropriated water. It also can be achieved 
    through any number of measures from operations to changes in the 
    facilities and can be measured as an end product without regard to the 
    approach. Thus it is flexible to allow local decision making and yet is 
    fact based to minimize disputes.
        (iii) Assuming that the headgate deliveries are valid and 
    enforceable, the efficiency is the only remaining variable in 
    determining the water needed to be supplied to the District. Efficiency 
    is a measure of how much water is required for system losses relative 
    to actual headgate deliveries. Differences in efficiency, therefore, 
    are directly convertible to acre-feet. The differences in efficiency, 
    expressed as a quantity in acre-feet, may be added to or subtracted 
    from the actual Lahontan Reservoir storage level before it is compared 
    to the monthly storage objective. Thus the diversions from the Truckee 
    River, operation of other facilities (e.g., Stampede Reservoir) and 
    decisions related to Lahontan Reservoir are made after the efficiency 
    storage adjustments have been made. Operating decisions are made as if 
    the adjusted storage reflected actual conditions.
        (A) Effiency incentive credits. In any year that the District's 
    actual efficiency exceeds the target efficiency for the actual headgate 
    delivery, two-thirds of the resultant savings, in water, will be 
    credited to the District as storage in Lahontan. This storage amount 
    will remain in Lahontan as water available to the District to use at 
    its discretion consistent with Nevada and Federal law. Such uses may 
    include wetlands (directly or incidentally), power production, 
    recreation, a hedge against future shortages or whatever else the 
    district determines. The storage is credited at the end of the 
    irrigation season from which it was earned. This storage ``floats'' on 
    top of the reservoir so that if it is unused it will be spilled first 
    if the reservoir spills. The District may use all capacity of Lahontan 
    Reservoir not needed for project purposes to store credits.
        (B) Efficiency disincentive debits. In any year that the District's 
    actual efficiency falls short of the target appropriate to the actual 
    headgate deliveries, then the resultant excess water that was used is 
    considered borrowed from the future. Thus it becomes a storage debit 
    adjustment to the actual Lahonthan Reservoir storage level for 
    determining all operational decisions. The debit may accumulate but may 
    not exceed a maximum as defined in Sec. 418.1(c)(3)(ii). The debit must 
    be offset by an existing incentive credit or, if none is available, by 
    a subsequent incentive at a full credit (not a 2/3 credit) or finally 
    by an allocation by the District to restrict actual headgate 
    deliveries. This would only be done prospectively (a subsequent year) 
    so the District and the water users can prepare accordingly. Since the 
    debit does not impact immediately on other competing uses or the 
    District (except in a real drought), it allows for planning ahead and 
    averaging over time.
        (C) Efficiency targets. The goal is to have the District operate at 
    a reasonably efficient level. The OCAP establish reasonable efficiency 
    targets. The key to the target efficiencies, therefore, is the 
    application of ``reasonable''. To determine the efficiency target, the 
    system delivery losses were divided into categories such as seepage, 
    evaporation and operational losses. The ``reasonable'' level of savings 
    for each category was then determined by
    
    [[Page 64840]]
    
    starting with current operating experience and applying the added 
    knowledge from several possible measures researched, identified and 
    subjected to public comment. Not all of these measures were then 
    utilized nor was their full potential savings claimed. The derivation 
    of the efficiency targets, including the specific measures and amounts, 
    is identified in the following table.
    
                                              Newlands Project Water Budget                                         
    ----------------------------------------------------------------------------------------------------------------
                                                                                             1988 OCAP,             
                                                                      1988      1988 OCAP,    1992 w/o     Proposed 
     Line                                                           OCAP,\1\       1992      additional      1995   
                                                                      Base     assumptions     acres       example  
    ----------------------------------------------------------------------------------------------------------------
    1....  Irrigated Acreage (acres)............................       60,900       64,850       61,630       59,023
    2....  Maximum Headgate Entitlement \2\.....................      226,450      237,485      226,555      206,230
                         Distribution System Losses                                                                 
           Evaporation:                                                                                             
    3....    Canals/Laterals....................................        6,000        6,200        6,000        5,838
    4....    Regulatory Reservoirs..............................       15,000        7,500        7,500        7,500
           Seepage:                                                                                                 
    5....    Canals/Laterals....................................       50,000       51,000       48,500       46,481
    6....    Regulatory Reservoirs..............................        7,000        4,000        4,000        4,000
    7....    Operational Losses.................................       87,980       40,800       39,400       38,270
                                                                 ---------------------------------------------------
    8....     Total Losses \3\..................................      165,980      109,500      105,400      102,089
    9....  Max. Allowable Diversion \4\ (MAD)...................      392,430      346,985      331,955      308,319
    10...  Projected Efficiency (%) \5\ Assuming 100% Water Use.         58.4         68.4         68.2         66.9
    11...  Expected Headgate Entitlement Unused \6\.............       20,930       23,700       22,700       13,611
    12...  Diversion Reduction for Unused Water \7\.............       25,430       26,500       25,400       15,279
    13...  Expected Irrigation Diversions \8\...................      367,000      320,485      306,555      293,040
    14...  Expected Efficiency (%)\9\...........................         56.0         66.7         66.5    \10\ 65.7
    ----------------------------------------------------------------------------------------------------------------
    \1\ All values are in acre-feet except where noted. The first 3 columns of numbers come from the 1988 OCAP,     
      Table 1.                                                                                                      
    \2\ Derived by multiplying the acreage by the appropriate water duty.                                           
    \3\ In deriving the 1988 OCAP water budget, it was recognized that the District had reduced losses by 7,400 acre-
      feet prior to 1988.                                                                                           
    \4\ Maximum Headgate Entitlement (line 2) plus Total Losses (line 8).                                           
    \5\ Maximum Headgate Entitlement (line 2) divided by Maximum Allowable Diversion (line 9) multiplied by 100.    
    \6\ Water delivery records show that, historically, lands have been irrigated with less than their full         
      entitlement. In the 1988 OCAP base the unused portion of the entitlement was assumed to be approximately 9%;  
      in the 1988 OCAP 10%; in the 1995 example 6.8%.                                                               
    \7\ Unused Water (line 11) plus a proportional share of Operational Loss (line 7).                              
    \8\ Maximum Allowable Diversion (line 9) minus Diversion Reduction (line 12).                                   
    \9\ Maximum Headgate Entitlement (line 2) minus Unused Water (line 11) divided by Expected Irrigation Diversion 
      (line 13) multiplied by 100.                                                                                  
    \10\ Expected efficiency at 93.4% use of headgate entitlement; other entries based on 90%.                      
    
        (1) These water conservation measures and others currently 
    available to the District are listed in the following table. The table 
    has been revised in this proposed OCAP based upon the Bureau of 
    Reclamation's Final Report to Congress of the Newlands Project 
    Efficiency Study, 1994.
    
          Possible Water Conservation Measures for the Newlands Project     
    ------------------------------------------------------------------------
                                         Expected                           
                                     savings in acre-                       
       Conservation measures \1\      feet (AF) per            Notes        
                                         year \2\                           
    ------------------------------------------------------------------------
    1. Water ordering..............            1,000  Require 48-hour       
                                                       advance notice.      
    2. Adjust Lahontan Dam                     \3\++  Match releases to     
     frequently.                                       demand with daily    
                                                       adjustments.         
    3. Increase accuracy of                   16,630  Account for deliveries
     delivery records.                                 to nearest cfs and to
                                                       nearest minute.      
    4. Change operation of                     \4\??  Eliminate use of all  
     regulating reservoirs.                            or parts of          
                                                       regulating           
                                                       reservoirs; drain at 
                                                       end of season.       
    5. Shorten irrigation season...            4,000  Reduced by 2 weeks.   
    6. Control delivery system.....               ++  Eliminate spills,     
                                                       better scheduling    
                                                       grouping deliveries. 
    7. System improvements.........               ??  O&M activity: repair  
                                                       leaky gates, reshape 
                                                       canals, improve      
                                                       measuring devices.   
    8. Dike off 2/3 S-Line                     2,720  500 ft. dike; (5'     
     Reservoir.                                        evaporation, 0.75'   
                                                       seepage).            
    9. Dike off south half of                  2,130  5,000 ft. dike; large 
     Harmon Reservoir.                                 savings considering  
                                                       canal losses 95'     
                                                       evap., 1.8' seepage).
    10. Dike off west half of                  2,400  6,000 ft. dike.       
     Sheckler Reservoir.                                                    
    11. Eliminate use of Sheckler              4,000  Use for Lahontan spill
     Reservoir.                                        capture only; restore
                                                       200 ft. of E-Canal; A-
                                                       Canal is OK.         
    12. Line 20 miles of Truckee              20,000  Reduces O&M.          
     Canal.                                                                 
    13. Line large canals..........    26,100-31,000  Line large net losers 
                                                       first.               
    14. Line regulatory reservoirs.              2.3  ......................
    15. Reuse drain water for                  7,100  Blended irrigation    
     irrigation.                                       water quality would  
                                                       be adequate.         
    16. Ditch rider training each                 ??  ......................
     year.                                                                  
    17. Canal automation...........               ??  Reduced canal         
                                                       fluctuations.        
    18. Community rotation system..               ??  Grouping deliveries by
                                                       area.                
    
    [[Page 64841]]
    
                                                                            
    19. Reclamation Reform Act                    ??  District              
     water conservation plan:                          implementation of    
                                                       water conservation   
                                                       plan.                
        a. Weed and phreatophyte                                            
         control.                                                           
        b. Fix gate leaks.                                                  
        c. Water measurement.                                               
        d. Automation.                                                      
        e. Communication.                                                   
    20. Pumps and wells for small                400  ......................
     diverters.                                                             
    21. Water pricing by amount                   ++  Incurs administrative 
     used.                                             costs to implement.  
    22. Incentive programs.........               ??  For District personnel
                                                       and/or water users.  
    23. Drain canals...............            1,065  ......................
    ------------------------------------------------------------------------
    \1\ The first seven measures were considered in developing the water    
      budget in Table 1 for the 1988 OCAP. Additional measures could be     
      implemented by the District to help achieve efficiency requirements.  
    \2\ Water savings have been updated in accordance with Bureau of        
      Reclamation's Report to Congress on Newlands Project Efficiency, April
      1994.                                                                 
    \3\ ++ indicates a positive number for savings but not quantifiable at  
      this time.                                                            
    \4\ ?? indicates uncertainty as to savings.                             
    
        (2) These measures are discretionary choices for the District. The 
    range of measures available to the District provides a level of 
    assurance that the target efficiency is reasonably achievable. The 
    resultant efficiency targets were also compared to the range of 
    efficiencies actually experienced by other irrigation systems that were 
    considered comparable in order to provide a further check on 
    ``reasonable''. Most of the delivery losses are relatively constant 
    regardless of the amount of deliveries. The efficiency will necessarily 
    vary with the amount of headgate deliveries.
        (D) The target efficiency for any annual valid headgate delivery 
    can be derived from the figure in Appendix A to this part.
        (3) Maximum allowable limits. (i) Maximum allowable diversions. (A) 
    The water budget in the table Newlands Project Water Budget shall be 
    recalculated for each irrigation season to reflect anticipated water-
    righted acres to be irrigated. Based on the anticipated irrigation 
    demand, the required target efficiency shall be recalculated each 
    irrigation season. The maximum allowable diversion (MAD) for each year 
    shall be determined based on: acres of eligible land anticipated to 
    actually be irrigated in that year (Sec. 418.1(a)); the water duties 
    for those lands (Sec. 418.1(b)); and the established efficiency of the 
    project water distribution system (Appendix A). The MAD will be 
    calculated annually to assure an adequate water supply for all water 
    right holders whose water use complies with their decreed entitlement 
    and these OCAP. The MAD is the maximum amount of water permitted to be 
    diverted for irrigation use on the Project in that year. It is 
    calculated to ensure full entitlements can be fulfilled, but is 
    expected to be significantly in excess of Project requirements. The MAD 
    will be established by the Bureau at least two weeks prior to the start 
    of each irrigation season. All releases of water from Lahontan 
    Reservoir and diversions from the Truckee Canal (including any 
    diversions from the Truckee Canal to Rock Dam Ditch) shall be charged 
    to the MAD except as provided in Secs. 418.3 and 418.9 of these OCAP
        (B) On the basis of the methodology adopted herein (i.e., actual 
    irrigated acres multiplied by appropriate water duties divided by 
    established project efficiency) an example of the MAD calculated for 
    the projected irrigated acreage as shown in the table Newlands Project 
    Water Budget would be 308,319 acre-feet for Proposed 1995 Example. The 
    sample MAD corresponds to a system efficiency for full deliveries at 
    66.9% for 1995 actual acres. Appendix A shows the sliding scale for 
    target efficiencies which will be used over the range of water supply 
    condition and headgate deliveries expected in the future. Target 
    efficiencies shall be based on the percentage of maximum headgate 
    entitlement delivered and not on the percent of water supply available. 
    In Appendix A of this part, the sliding scale for 1995 Actual Acres 
    shall be used to determine that target efficiencies for all irrigation 
    years subsequent to 1995.
        (C) Adjustments in the MAD shall be made by the Bureau each year 
    based on changes in irrigated eligible land from the prior year and 
    subsequent decisions concerning transfers of Project water rights, 
    using the methodology established herein.
        (D) In the event the District concludes the MAD for a given year 
    will not meet the water delivery requirements for the eligible land to 
    be irrigated in that year due to weather conditions, canal breaks, or 
    some other unusual or unforeseen condition, the District shall submit a 
    written request to the Bureau for such additional water considered 
    necessary to make up for the specified loss and supply decreed 
    entitlements. The District shall set forth a full detailed, factual 
    statement of the reasons for the request. The Bureau shall promptly 
    review the request and after consultation with the Federal Water Master 
    and other interested parties, will determine if the request or any 
    portion of it should be approved. The Bureau will make reasonable 
    adjustments for unforeseen cause or events but will not make 
    adjustments to accommodate waste or Project inefficiency. The Bureau 
    will then notify the District of its determination. If the District 
    does not agree with the Bureau's decision, it may seek judicial review. 
    The Bureau and the District will seek to expedite the court proceeding 
    in order to minimize any potential adverse impacts.
        (ii) Maximum Allowable Efficiency Debits (MED)--The debits in 
    Lahontan Reservoir storage from the District's actual efficiency 
    falling short of the target can accumulate over time. If these amounts 
    of borrowed storage get too large they may not be offset later by 
    increased efficiencies and may severely impact the District's water 
    users by an added ``drought'' on top of a real one. Therefore, a limit 
    was placed on how much could be borrowed or accumulated. The limit 
    should also be large enough to allow reasonable opportunity to average 
    out over time. This maximum efficiency debit cushion is 26,000 acre-
    feet. However, unlike the MAD, it only applies to the subsequent year's 
    operation. The MED is approximately 9% of the headgate entitlements.
    
    [[Page 64842]]
    
    Sec. 418.2  Monitoring diversions.
    
        (a) Operations. (1) By the end of each month, the District shall 
    submit to the Bureau's Lahontan Basin Projects Office reports for the 
    previous month which document monthly inflow and outflow in acre-feet 
    from the Truckee and Carson divisions of the Project for that month. 
    Reports shall include any data the Bureau may reasonably require to 
    monitor compliance with these OCAP.
        (2) Accounting for farm headgate deliveries shall be based on the 
    amount of water actually delivered to the water user. Project 
    operations shall provide for the amount of water ordered and the 
    distribution system losses.
        (3) The District shall keep records of all domestic and other uses 
    showing the purpose and amount of water usage for each entity. The 
    District shall make the records available for review by the Bureau upon 
    request. The Bureau shall have the right to audit all records kept by 
    the District.
        (b) Operations monitoring. (1) The Bureau will work in cooperation 
    with the District to monitor the operation of the Project. The Bureau's 
    personnel shall perform field inspections of water distribution during 
    the irrigation season. Staff members of the Bureau's Lahontan Basin 
    Projects Office and the District will meet as often as necessary during 
    the irrigation season after each water distribution report has been 
    prepared to examine the amounts of water used to that point in the 
    season. On the basis of the information obtained from field 
    observations, water use records, and consultations with District staff, 
    the Bureau will determine at monthly intervals whether the rate of 
    diversion is consistent with the OCAP for that year. The District will 
    be informed in writing of suggested adjustments that may be made in 
    management of diversions and releases as necessary to achieve target 
    efficiencies and stay within the MAD.
        (2) Project operations will be monitored in part by measuring flows 
    at key locations. Specifically, Project diversions (used in the 
    calculations under Sec. 418.1(c) above) will be determined by adding 
    flows measured at:
        (i) Truckee Canal near Wadsworth--U.S. Geological Survey (USGS) 
    gauge number 10351300;
        (ii) Carson River below Lahontan Dam--USGS gauge number 10312150;
        (iii) Rock Dam Ditch near the end of the concrete lining; and 
    subtracting:
        (iv) Flows measured at the Truckee Canal near Hazen--USGS gauge 
    number 10351400;
        (v) The Carson River at Tarzyn Road near Fallon (below Sagouspe 
    Dam) for satisfying water rights outside of the Project boundaries as 
    described in Sec. 418.3(I), USGS gauge number 10312275;
        (vi) Estimated losses in the Truckee Canal; and
        (vii) Spills, precautionary drawdown, and incentive water released 
    at Lahontan Dam pursuant to Secs. 418.3 and 418.9.
    
    
    Sec. 418.3  Operations and management.
    
        (a) Power generation. All use of water for power generation using 
    Project water shall be incidental to releases charged against Project 
    diversions, precautionary drawdown, incentive water (Sec. 418.9(c)), or 
    spills.
        (b) Truckee and Carson River water use. Project water shall be 
    managed so that maximum use will be made of Carson River water and 
    diversions of Truckee River water through the Truckee Canal will be 
    minimized in order to make available as much Truckee River water as 
    possible for use in the lower Truckee River and Pyramid Lake.
        (c) Diversions at Derby Dam. Diversions of Truckee River water at 
    Derby Dam shall be managed to the maximum extent practical with the 
    objective of maintaining minimum terminal flow to Lahontan Reservoir or 
    the Carson River except where these criteria specifically permit such 
    diversions. Diversions to the Truckee Canal shall be managed to achieve 
    an average terminal flow of 20 cubic feet per second (cfs) or less 
    during times when diversions to Lahontan Reservoir are not allowed (the 
    flows shall be averaged over the total time diversions are not allowed 
    in that calendar year; i.e., if flows are not allowed in July and 
    August and then are allowed in September then not allowed in October 
    and November, the average flow will be averaged over the four months of 
    July, August, October, and November). The Bureau will work 
    cooperatively with the District on monitoring the flows at the USGS 
    gage on the USGS gage on the Truckee Canal near Hazen to determine if 
    and when flows are excessive and bringing the flows back into 
    compliance when excessive. Increases in canal diversions which would 
    reduce river flows below Derby Dam, by more than 20% in a 24-hour 
    period will not be allowed when Truckee River flow, as measured by the 
    gauge below Derby Dam, is less than or equal to 100 cfs. Diversions to 
    the Truckee Canal will be coordinated with releases from Stampede 
    Reservoir, in cooperation with the Federal Water Master, to minimize 
    fluctuations in the Truckee River below Derby Dam in order to meet 
    annual flow regimes established by the United States Fish and Wildlife 
    Service for listed species in the lower Truckee River.
        (d) Diversions from the Truckee River to the Truckee Division--
    Sufficient water, if available, shall be diverted from the Truckee 
    River through the Truckee Canal to meet the direct irrigation, domestic 
    and other entitlements of the Truckee Division.
        (e) Criteria for Diversions from the Truckee River to Lahontan 
    Reservoir, January through June.
        (1) Truckee River diversions through the Truckee Canal will be made 
    to meet Lahontan Reservoir end-of-month storage objectives for the 
    months of January through June. The current month storage objective 
    will be based in part on the monthly United States April through July 
    runoff forecast for the Carson River near Fort Churchill, to meet 
    anticipated diversion requirements for the Carson Division, and target 
    storage for Lahontan Reservoir. The Bureau in consultation with the 
    District, Federal Water Master, Fish and Wildlife Service, the Pyramid 
    Lake Paiute Tribe, and other affected parties will determine the 
    exceedance levels and predicted Carson River inflows to use, based on 
    the reliability of the forecast and other information such as river 
    forecasts available from other sources. The end-of-month storage 
    targets may be adjusted any time during the month as new forecasts or 
    other information become available.
        (2) The January through June storage objective will be calculated 
    using the following relationship:
    
    LSOCM=TSM/J-(C1 x AJ)+L+(C2 x CDT)
    where:
    LSOCM=current end-of-month storage objectives for Lahontan Reservoir.
    TSM/J=current end-of-month May/June Lahontan Reservoir target storage.
    C1 x AJ=forecasted Carson River inflow for the period from the end of 
    the current month through May or June, with AJ being the Bureau's April 
    through July runoff forecast for the Carson River at Fort Churchill and 
    C1 being an adjustment coefficient.
    L=an average Lahontan Reservoir seepage and evaporation loss from the 
    end of the current month through May or June.
    C2 x CDT=projected Carson Division demand from the end of the current 
    month through May or June, with CDT being the total Carson Division 
    diversion requirement (based on eligible acres anticipated to be 
    irrigated times the appropriate duty times a 95% usage rate), and C2 
    being the estimate of the portion of the total diversion requirement to
    
    [[Page 64843]]
    
    be delivered during this period. Values for TSM/J, C1, L and C2 are 
    defined in the following table.
    
                                    Monthly Values for Lahontan Storage Computations                                
    ----------------------------------------------------------------------------------------------------------------
                                     January       February        March         April          May          June   
    ----------------------------------------------------------------------------------------------------------------
    TSM/J.......................        174.0         174.0         174.0         174.0         174.0          174.0
    C1/MAY......................          0.863         0.734         0.591         0.394  ............  ...........
    C1/JUNE.....................          1.190         1.061         0.918         0.721         0.327  ...........
    L/MAY.......................         13.9          12.5           9.9           7.1    ............  ...........
    L/JUNE......................         18.2          16.8          14.2          11.4           4.3    ...........
    C2/MAY......................          0.30          0.30          0.28          0.18   ............  ...........
    C2/JUNE.....................          0.47          0.47          0.45          0.35          0.17   ...........
    ----------------------------------------------------------------------------------------------------------------
    
        (3) For January through April, the Lahontan Reservoir storage 
    objective for each month will be the lowest of the May calculation, the 
    June calculation, or full reservoir (defined as 295,000 acre-feet using 
    Truckee River diversions, but can fill above 295,000 acre-feet to 
    317,000 acre-feet with Carson River inflow and the use of flash 
    boards).
        (4) For May, the Lahontan Reservoir storage objective will be the 
    lower of the June calculation or full reservoir.
        (5) For June, the Lahontan Reservoir storage objective will be the 
    June target storage.
        (6) Once the monthly Lahontan Reservoir storage objective has been 
    determined, the monthly diversion to the Project from the Truckee River 
    will be based upon water availability and Project demand as expressed 
    in the following relationship:
    
    TRD =TDD+TCL+CDD+LRL +LSOCM-ALRS-CRI
    where:
    TRD=current month Truckee River diversion acre-feet to the Project.
    TDD=current month Truckee River Division demand.
    TCL=current month Truckee Canal conveyance loss.
    CDD=current month Carson Division demand.
    LRL=current month Lahontan Reservoir seepage and evaporation losses.
    LSOCM=current month end-of-month storage objective for Lahontan 
    Reservoir.
    ALRS=current month beginning-of-month storage in Lahontan Reservoir. 
    (Includes accumulated Stampede credit described below and further 
    adjusted for the net efficiency penalty or efficiency credit described 
    in Secs. 418.1 and 418.9).
    CRI=current month anticipated Carson River inflow to Lahontan Reservoir 
    (as determined by Reclamation in consultation with other interested 
    parties).
        (7) The following procedure is intended to ensure that monthly 
    storage objectives are not exceeded. It may be implemented only if the 
    following conditions are met:
        (i) Diversions from the Truckee River are required to achieve the 
    current month Lahontan Reservoir storage objective (LSOCM);
        (ii) Truckee River runoff above Derby Dam is available for 
    diversion to Lahontan Reservoir; and
        (iii) Sufficient Stampede Reservoir storage capacity is available.
        (8) The Bureau, in consultation with the Federal Water Master, the 
    District, Fish and Wildlife Service, the Bureau of Indian Affairs, and 
    the Pyramid Lake Paiute Tribe will determine whether the calculated 
    current month Truckee River diversion to Lahontan Reservoir (TRD-TDD-
    TCL) may be reduced during the month and the amount of reduction credit 
    stored in Stampede Reservoir. Reductions in diversions to Lahontan 
    Reservoir with credit storage in Stampede Reservoir may be implemented 
    to the extent that: The reduction is in lieu of a scheduled release 
    from Stampede Reservoir for the purpose of supplementing flows to 
    Pyramid Lake; and/or water is captured in Stampede Reservoir that is 
    scheduled to be passed through and diverted to the Truckee Canal. Any 
    proposal to reduce diversions to Lahontan Reservoir for Newlands 
    Project credit purposes without a comparable reduction in release from 
    Stampede Reservoir (any conversion of Stampede Reservoir project water 
    to Newlands Project credit water) would have to be approved by the Fish 
    and Wildlife Service.
        (i) The diversion to Lahontan Reservoir may be adjusted any time 
    during the month as revised runoff forecasts become available. The 
    accumulated credit will be added to current Lahontan Reservoir storage 
    (ALRS) in calculating TRD. If the sum of accumulated credit and 
    Lahontan Reservoir storage exceeds 295,000 acre-feet, credit will be 
    reduced by the amount in excess of 295,000 acre-feet. Credit will also 
    be reduced by the amount of precautionary drawdown or spills in that 
    month. If the end-of-month storage in Lahontan Reservoir plus the 
    accumulated credit in Stampede Reservoir at the end of June exceeds the 
    end-of-month storage objective for Lahontan, the credit will be reduced 
    by the amount exceeding the end-of-month storage objective.
        (ii) Following consultation with the District, the Federal Water 
    Master, and other interested parties as appropriate, the Bureau may 
    release credit water for Project purposes from July 1 through the end 
    of the irrigation season in which the credit accrues with timing 
    priority given to meeting current year Project irrigation demands. 
    Conveyance of credit water in the Truckee Canal shall be in addition to 
    regularly scheduled diversions for the Project and will be measured at 
    the USGS gauge number 10351300 near Wadsworth. Newlands credit water in 
    Stampede Reservoir storage will be subject to spill and will not carry 
    over to subsequent years. Newlands credit water in Stampede can be 
    exchanged to other reservoirs and retain its priority.
        (iii) The Bureau, in consultation with the District, the Federal 
    Water Master, and other interested parties, may release Newlands 
    Project credit water before July 1. Prior to such release, the credit 
    shall be reduced to the extent that Lahontan Reservoir storage plus 
    accumulated credit at the end of the previous month exceeds the storage 
    objectives for that month. If any Newlands credit water remains in 
    Stampede Reservoir storage after the end of the current irrigation 
    season in which it accumulated, it will convert to water for cui-ui 
    recovery and will no longer be considered available for Newlands credit 
    water. Newlands credit water stored in Stampede Reservoir shall be 
    available for use only on the Carson Division of the Newlands Project.
        (9) Subject to the provisions of Sec. 418.3(c), LSOCM may be 
    adjusted as frequently as necessary when new information indicates the 
    need and
    
    [[Page 64844]]
    
    diversions from the Truckee River to the Truckee Canal shall be 
    adjusted daily or otherwise as frequently as necessary to meet the 
    monthly storage objective.
        (f) Criteria for Diversion of Truckee River Water to Lahontan 
    Reservoir, July through December. Truckee River diversions through the 
    Truckee Canal to Lahonton Reservoir from July through December shall be 
    made only in accordance with the following table.
    
    ------------------------------------------------------------------------
                                                                     Storage
                            Operating month                          target 
                                                                      (AF)  
    ------------------------------------------------------------------------
    July..........................................................   139,000
    August........................................................    95,000
    September.....................................................    64,000
    October.......................................................    52,000
    November......................................................    74,000
    December......................................................  101,000 
    ------------------------------------------------------------------------
    \1\ Diversions shall be started to achieve the end-of-month storage     
      targets listed in the table above and will be discontinued when       
      storage is forecast to meet or exceed the end-of-month storage targets
      at the end of the month. Diversions may be adjusted any time during   
      the month as conditions warrant (i.e., new forecasts, information from
      other forecasts becoming available, or any other new information that 
      may impact stream forecasts). The end-of-the-month storage targets may
      be adjusted by procedures provided in Sec.  418.9.                    
    
        (g) Rock Dam Ditch. Project water may be diverted directly to Rock 
    Dam Ditch from the Truckee Canal only when diversions cannot be made 
    from the outlet works of Lahontan Reservoir. Such diversions will 
    require the prior written approval of the Bureau and be utilized in 
    calculating Project diversions. During the period January through June 
    of such operation, the projected total delivery to Rock Dam Ditch from 
    the end of the current month through May or June will be subtracted 
    from the projected Carson Division demand (C2* CDT) in calculating the 
    current end-of-month storage objective for Lahontan Reservoir (LSOCM), 
    and added to Truckee Division demand in calculating Truckee River 
    diversion (TRD) in conformance with the procedures set forth in 
    Sec. 418.3(e).
        (h) Precautionary drawdown and spills from Lahontan Reservoir. (1) 
    Even though flood control is not a specifically authorized purpose of 
    the Project, at the request of the District and in consultation with 
    other interested parties and the approval of the Bureau, precautionary 
    drawdown of Lahontan Reservoir may be made only for the purpose of 
    limiting potential flood damage along the Carson River. Criteria for 
    precautionary drawdown will be formulated by the Bureau in consultation 
    with the District and other interested parties. The drawdown shall be 
    scheduled sufficiently in advance and at such a rate of flow in order 
    to divert as much water as possible into the Project irrigation system 
    for delivery to eligible land or storage in reregulating reservoirs for 
    later use on eligible land. During periods of precautionary drawdown, 
    or when water is spilled from Lahontan Reservoir, Project diversions 
    will be determined by comparison with other year's data and normalized 
    by comparison of differences in climatological data. The Bureau will 
    determine the normalization in consultation with the District and other 
    interested parties. Spills from Lahontan Reservoir and precautionary 
    drawdown of the reservoir to create space for storing flood waters from 
    the Carson River Basin that are in excess of the normalized diversions 
    will not be used in calculating Project diversions. Water captured in 
    Project facilities as a result of a precautionary drawdown or spill 
    will not be counted as diversions to the Project nor will they be 
    counted as storage in Lahontan Reservoir for the purpose of calculating 
    Truckee River Diversions. The precautionary drawdown or spills that are 
    captured in Project facilities shall be measured, used to the maximum 
    extent possible, and counted as deliveries to eligible lands in the 
    year of the drawdown. If all the drawdown water captured in Project 
    facilities cannot be used in the year of capture for delivery to 
    eligible lands then that water shall be delivered to eligible lands in 
    subsequent years to the maximum extent possible and counted on the 
    water card of the water user.
        (2) If a precautionary drawdown in one month results in a failure 
    to meet the Lahontan Reservoir storage objective for that month, the 
    storage objective in subsequent months will be reduced by one-half of 
    the difference between that month's storage objective and actual end-
    of-month storage. The Bureau shall not be liable for any damage or 
    water shortage resulting from a precautionary drawdown.
        (i) Water use for other than Newlands Project purposes. The 
    District will release sufficient water to meet the vested rights below 
    Sagouspe Dam as specified in the Alpine decree. These water rights are 
    usually met by return flows. Releases for these water rights will in no 
    case exceed the portion of 1,300 acre-feet per year not supplied by 
    return flows. This water shall be accounted for at the USGS gage number 
    10312275 (the Carson River at Tarzyn Road near Fallon). Releases for 
    this purpose will not be considered in determining Project diversions 
    since the lands to which the water is being delivered are not part of 
    the Project (See Sec. 418.2(b)). Any flow past this gage in excess of 
    the amount specified herein will be absorbed by the District as an 
    efficiency loss.
        (j) Charges for water use. The District shall maintain a financing 
    and accounting system which produces revenue sufficient to repay its 
    operation and maintenance costs and to discharge its debt to the United 
    States. The District should give consideration to adopting a system 
    which provides reasonable financial incentives for the economical and 
    efficient use of water.
        (k) Distribution system operation. The District shall permit only 
    its authorized employees or agents to open and close individual 
    turnouts and operate the distribution system facilities. After 
    obtaining Bureau approval, the District may appoint agents to operate 
    individual headgates on a specific lateral if it can be shown that the 
    water introduced to the lateral by a District employee is completely 
    scheduled and can be fully accounted for with a reasonable allowance 
    for seepage and evaporation losses. If agents need to adjust the 
    scheduled delivery of water to the lateral to accommodate variable 
    field conditions, weather, etc., they must immediately notify the 
    District so proper adjustments can be made in the distribution system. 
    Each agent shall keep an accurate record of start and stop times for 
    each delivery and the flow during delivery. This record will be given 
    to the District for proper accounting for water delivered. The program 
    of using agents to operate individual headgates will be reviewed on a 
    regular basis by the District and the Bureau. If it is found that 
    problems such as higher than normal losses, water not accounted for, 
    etc., have developed on an individual lateral, the program will be 
    suspended and the system operated by District employees until the 
    problems are resolved.
    
    
    Sec. 418.4  Water rights
    
        These OCAP govern water uses within existing rights. These OCAP do 
    not in any way change, amend, modify, abandon, diminish, or extend 
    existing rights. Water rights transfers will be determined by the 
    Nevada State Engineer pursuant to the provisions of the Alpine decree.
    
    
    Sec. 418.5  Prohibited deliveries.
    
        The District shall not deliver Project water or permit its use 
    except as provided in these OCAP. No Project water will be permitted to 
    be released in excess of the MAD or delivered to ineligible lands. 
    Delivery of water to land in excess of established water duties is 
    prohibited.
    
    [[Page 64845]]
    
    Sec. 418.6  Violations.
    
        Violations of the terms and provisions of these OCAP shall be 
    reported immediately to the Bureau. The District or individual water 
    users will be responsible for any shortages to water users occasioned 
    by waste or excess delivery or delivery of water to ineligible land as 
    provided in the OCAP.
    
    
    Sec. 418.7  Enforcement.
    
        (a) Conditions of delivery. There are four basic elements for 
    enforcement with all necessary quantities and review determined in 
    accordance with the relevant sections of this OCAP
        (1) Valid headgate deliveries. In the event it is determined that 
    water was delivered in ineligible land or in excess of the appropriate 
    water duty then:
        (i) The District will stop such illegal delivery immediately;
        (ii) The District will notify the Bureau of the particulars 
    including location and amounts--known or estimated;
        (iii) The amount will not be included as a valid headgate for 
    purposes of computing the Project efficiency and resultant incentive 
    credit or debit to Lanhontan storage; and
        (iv) If the amount applies to a prior year, then the amount will be 
    treated directly as a debit to Lahontan storage in the same manner as 
    an efficiency debit.
        (2) District efficiency. To the extent that the actual District 
    efficiency determined for an irrigation season is greater or less than 
    the OCAP established target efficiency as determined for the 
    corresponding actual valid headgate deliveries, then the difference in 
    efficiency, expressed as a quantity in acre-feet, may be added to or 
    subtracted from the actual Lahontan Reservoir storage level before it 
    is compared to the monthly storage objective as follows:
        (i) Greater efficiency. Credited to the District as storage in 
    Lahontan (subtracted) from any accumulated debit, or two-thirds as 
    storage in Lahontan for their discretionary use in accordance with 
    state law.
        (ii) Less efficient. Debited (added) to Lahontan storage as an 
    adjustment to the actual storage level.
        (3)  Maximum Allowable Diversion (MAD). The MAD shall be computed 
    each year to deliver full entitlements at established Project 
    efficiencies. Project diversions shall not exceed the MAD. Within the 
    operating year, the Bureau will notify the District in writing of any 
    expected imminent violations of the MAD. The District will take prompt 
    action to avoid such violations. The Bureau will exercise reasonable 
    latitude month-to-month to accommodate the District's efforts to avoid 
    exceeding the MAD.
        (4) Maximum Efficiency Debit (MED). If the MED exceeds 26,000 AF at 
    the end of any given year, the District shall prepare and submit to the 
    Bureau for review and approval, a plan detailing the actions the 
    District will take to either earn adequate incentive credits or to 
    restrict deliveries to reduce the MED to less than 26,000 AF by the end 
    of the next year. The plan shall be submitted to the Bureau in writing 
    prior to the date of March 1 immediately subsequent to the exceeding of 
    the MED. If the District fails to submit an approvable plan, Project 
    allocations will be reduced by an amount equal to the MED in excess of 
    26,000 plus 13,000 (one-half the allowable MED). Nominally this will 
    mean a forced reduction of approximately five percent of entitlements. 
    The Bureau will notify the District in writing of the specific 
    allocation and method of derivation in sufficient time for the District 
    to implement the allocation. Liabilities arising from shortages 
    occasioned by operation of this provision shall be the responsibility 
    of the District or individual water users.
        (b) Project management. In addition to the provisions of 
    Sec. 418.7(a), in the event the District is found to be operating 
    Project facilities or any part thereof in substantial violation of 
    these OCAP, then, upon the determination by the Bureau, the Bureau may 
    take over from the District the care, operation, maintenance, and 
    management of the diversion and outlet works (Derby Dam and Lahontan 
    Dam/Reservoir) or any or all of the transferred works by giving written 
    notice to the District of such determination and the effective date 
    thereof. Following written notification from the Bureau, the care, 
    operation, and maintenance of the works may be retransferred to the 
    District.
        (c) Future contracts. The Bureau shall provide in new, amended, or 
    replacement contracts for the operation and maintenance of Project 
    works, for the reservation by the Secretary of rights and options to 
    enforce these OCAP.
    
    
    Sec. 418.8  Water management and conservation.
    
        (a) Conservation measures. (1) Specific conservation actions will 
    be needed for the District and its members to achieve a reasonable 
    efficiency of operation as required by the OCAP. The District is best 
    able to determine the particular conservation measures that meet the 
    needs of its water users. This assures that the measures reflect the 
    priorities and collective judgment of the water users; and will be 
    practical, understandable and supported. The District also has the 
    discretion to make changes in the measures they adopt as conditions or 
    results dictate
        (2) The District will keep the Bureau informed of the measures they 
    expect to utilize during each year. This will allow appropriate 
    monitoring for information helpful to evolving other suggestions and 
    for use by other Districts. The Bureau will work cooperatively in 
    support of the District's selection of measures and methods of 
    implementation.
        (b) Cooperative programs. The Bureau and the District will work 
    cooperatively to develop a water management and conservation program to 
    promote efficient management of water in the Project.
        (1) The Bureau will provide technical assistance to the District 
    and cooperatively assist the District in their obligations and efforts 
    to:
        (i) Document and evaluate existing water delivery and measurement 
    practices;
        (ii) Implement improvements to these practices; and
        (iii) Evaluate and, where practical, implement physical changes to 
    Project facilities.
        (2) The program will emphasize developing methods, including 
    computerization and automation, to improve the District's operations 
    and procedures for greater water delivery conservation.
    
    
    Sec. 418.9  Implementation.
    
        The intent of the implementation strategy for these OCAP is to 
    ensure that the Project delivers water within entitlements at a 
    reasonable level of efficiency as a long term average. The incentives 
    and disincentives provided herein are designed to encourage local 
    officials with responsibilities for Project operations to select and 
    implement through their discretionary actions, operating strategies 
    which achieve the principles of the OCAP. The specified efficiencies 
    (Appendix A of this part) were developed considering implementation of 
    reasonable conservation measures, historic project operations, 
    economics, and environmental effects. The efficiency target will be 
    used as a performance standard to establish at the end of each year on 
    the basis of actual operations, whether the District is entitled to a 
    performance bonus in the form of incentive water or a reduction in 
    storage for the amount borrowed ahead. The components of the 
    implementation strategy are outlined below.
        (a) Valid headgate deliveries. Project water may be delivered to 
    headgates
    
    [[Page 64846]]
    
    only as provided in Sec. 418.1(a). Water delivered outside the entitled 
    irrigable land and/or outside the court set water duty is difficult to 
    quantify at best because it is not typically measured. Since it is not 
    likely to be a part of the total actual headgate deliveries, yet is a 
    part of the total deliveries to the Project it will manifest itself 
    directly as a lower efficiency. Thus, it will either reduce the 
    District's incentive credit or increase the storage debit by the amount 
    improperly diverted. All other users outside the Project are thereby 
    held harmless but the District incurs the consequence. This approach 
    should eliminate any potential disputes between the District and the 
    Bureau over quantifying the amount of water misappropriated.
        (b) Efficiencies. The established target efficiencies pursuant to 
    these OCAP are shown in Appendix A of this part. The efficiency of the 
    Project will vary with the amount of entitlement water actually 
    delivered at the headgates. Since most of the distribution system 
    losses such as evaporation and seepage do not change significantly with 
    the amount of water delivered (i.e., these losses are principally a 
    function of water surface area and the wetted perimeter of the canals), 
    the Project efficiency requirement is higher as the percent of 
    entitlement water actually delivered at the headgates increases. The 
    actual efficiency is calculated each year after the close of the 
    irrigation season based on actual measured amounts. The application of 
    any adjustments to Lahontan Reservoir storage or Truckee River 
    diversions resulting from the efficiency is always prospective.
        (c) Incentives for additional long term conservation. As an 
    incentive for the District to increase the efficiency of the delivery 
    system beyond the expected efficiency of 65.7% (66.9% with full 
    delivery) as shown in the table Newlands Project Water Budget, Proposed 
    1995 Example, the District will be allowed to store and use the Carson 
    River portion of the saved water at their discretion, in accordance 
    with Nevada State Law. Thus, if the District is able to operate the 
    Project in such a manner that the expected efficiency is exceeded, the 
    District may store in Lahontan Reservoir two-thirds (\2/3\) of the 
    additional water saved. (The remaining one-third (\1/3\) of the water 
    saved will remain in the Truckee River or through reduced diversions to 
    Lahontan Reservoir). This water will be considered incentive water 
    saved from the Carson River and will not be counted as storage in 
    determining diversions from the Truckee River on computing the target 
    storage levels for Lahontan Reservoir under these OCAP. For purposes of 
    these OCAP, incentive water is no longer considered Project water. The 
    District may use the water for any purpose (e.g., wetlands, storage for 
    recreation, power generation, shortage reduction) that is consistent 
    with Nevada State Law and Federal Law. The water will be managed under 
    the District's discretion and may be stored in Lahontan Reservoir until 
    needed subject to the limitations in Sec. 418.9(d).
        (d) The amount of incentive water stored in Lahontan Reservoir will 
    be reduced under the following conditions:
        (1) There is a deficit created and remaining in Lahontan Reservoir 
    from operations penalties in a prior year;
        (2) The District releases the water from the reservoir for its 
    designated use;
        (3) During a spill of the reservoir, the amount of incentive water 
    shall be reduced by the amount of spill; and
        (4) At the discretion of the District, incentive water may be used 
    to offset the precautionary drawdown adjustment to the Lahontan storage 
    objective.
        (5) At the end of each year, the amount of incentive water will be 
    reduced by the incremental amount of evaporation which occurs as a 
    result of the increased surface area of the reservoir due to the 
    additional storage. The evaporation rate used will be either the net 
    evaporation measured or the net historical average after precipitation 
    is taken into account. The method of calculation will be agreed to by 
    the District and the Bureau in advance of any storage credit.
        (e) An example of this concept is:
    
        Example: Incentive Operation--At the end of the 1996 irrigation 
    season, the Bureau and the District audit the District's water 
    records for 1996. The District's water delivery records show that 
    194,703 acre-feet of water were delivered to farm headgates. On the 
    basis of their irrigated acreage that year (59,075) the farm 
    headgate entitlement would have been 216,337 acre-feet. On the basis 
    of 90% deliveries for 59,075 acres (194,203 divided by 216,337 = 
    0.90) the established Project efficiency requirements was 65.1%. On 
    the basis of the established Project efficiency (66.1%), the Project 
    diversion required to make the headgate deliveries would be expected 
    to be 291,909 acre-feet (194,703 divided by 0.651 = 291,909). An 
    examination of Project records reveals that the District only 
    diverted 286,328 acre-feet which demonstrated actual Project 
    efficiency was 68% and exceeded requirements of these OCAP. The 
    5,581 acre-feet of savings (291,909 - 286,328 = 5,581) constitutes 
    the savings achieved through efficiency improvements and the 
    District would then be credited two-thirds (3,721 acre-feet = 5,581 
    x  \2/3\) of this water (deemed to be Carson River water savings) as 
    incentive water. This incentive water may be stored in Lahontan 
    Reservoir or otherwise used by the District in its discretion 
    consistent with State and Federal Law (e.g., power generation, 
    recreation storage, wildlife, drought projection, etc.).
    
        (f) Disincentives for lower efficiency. (1) If the District failed 
    to meet the efficiencies established by these OCAP, then, in effect, 
    the District has borrowed from a subsequent year. The amount borrowed 
    will be accounted for in the form of a deficit in Lahontan Reservoir 
    storage. This deficit amount will be added to the actual Lahontan 
    Reservoir storage quantity for the purpose of determining the Truckee 
    River diversions to meet storage objectives as well as all other 
    operating decisions.
        (2) The amount of the deficit will be cumulative from year to year 
    but will not be allowed to exceed 26,000 acre-feet (the expected 
    variance between the MAD and actual water use). This limit is expected 
    to avoid increasing the severity of drought and yet still allow for 
    variations in efficiency over time due to weather and other factors. 
    This approach should allow the District to plan its operation to 
    correct for any deficiencies.
        (3) The deficit can be reduced by crediting incentive water earned 
    by the District or reducing the percentage of headgate entitlement 
    delivered either through a natural drought or by the District and its 
    water users administratively limiting deliveries while maintaining an 
    efficiency greater than or equal to the target efficiency.
        (4) In the event of a natural drought if the shortage to the 
    headgates is equal to or greater than the deficit then the deficit is 
    reduced to zero. If the shortage to headgates is less than the deficit 
    then the deficit is reduced by an amount to the headgate shortage. 
    During a natural drought, if the percentage of maximum headgate 
    entitlement delivered is 75% or more than the District will be subject 
    to the target efficiencies and resultant deficits or credits.
        (5) If the District has a deficit in Lahontan Reservoir and earns 
    incentive water, the incentive water must be used to eliminate the 
    deficit before it can be used for any other purpose. The deficit shall 
    be credited on a 1 to 1 basis (i.e., actual efficiency savings rather 
    than \1/3\-\2/3\ for incentive water).
        (g) An example of the penalty concept is:
    
        Example: Penalty--In 1996 the District delivers 90% of the 
    maximum headgate entitlement or 194,703 acre-feet 216,337  x  .90) 
    but they actually divert 308,000 acre-feet. The efficiency of the 
    Project is 63.2% (194,703 divided by 308,000). Since the
    
    [[Page 64847]]
    
    established efficiency of 65.1% would have required a diversion of 
    only 299,083 acre-feet (194,703 divided by .651) the District has 
    operated the system with 8,917 acre-feet of excess losses. 
    Therefore, 8,917 acre-feet was borrowed and must be added to the 
    actual storage quantities of Lahontan Reservoir for calculating 
    target levels and Truckee River diversions.
    
        (h) Maximum Allowable Diversion (MAD). (1) The MAD established in 
    these OCAP is based on the premise that the Project should be operated 
    to ensure that it is capable of delivering to the headgate of each 
    water right holder the full water entitlement for irrigable eligible 
    acres and includes distribution system losses. The MAD will be 
    established (and is likely to vary) each year. The annual MAD will be 
    calculated each year based on the actual acreage to be irrigated that 
    year.
        (2) Historically, Project water users have not ordered or used 
    their full entitlement. Actual deliveries at farm headgates have been 
    approximately 90 percent of entitlements and this practice is expected 
    to continue but the percentage is expected to change. This variance 
    between headgate deliveries and headgate entitlement will be calculated 
    annually under these OCAP and is allowed to be diverted if needed and 
    thereby provides an assurance that full headgate deliveries can be 
    made. The expected diversion and associated efficiency target for the 
    examples shown in the Newlands Project Water Budget table would be: 
    285,243 AF and 65.1% in 1996 and beyond. These are well below the MAD 
    limits; however, the District may divert up to the MAD if it is needed 
    to meet valid headgate entitlements.
    
    
    Sec. 418.10  Fallon Paiute-Shoshone Indian Reservation.
    
        Nothing in these OCAP shall affect the authority of the Fallon 
    Paiute-Shoshone Tribes to use water on Tribes' reservation which was 
    delivered to the Reservation in accordance with these OCAP, nor shall 
    these OCAP operate to restrict the Secretary's trust responsibility 
    with respect to the Fallon Paiute-Shoshone Tribes.
    
    Appendix A to Part 418--Expected Project Distribution System Efficiency
    
    BILLING CODE 4310-RK-M
    
    [[Page 64848]]
    
    [GRAPHIC] [TIFF OMITTED] TP09DE96.000
    
    
    
    [FR Doc. 96-30769 Filed 12-6-96; 8:45 am]
    BILLING CODE 4310-RK-C
    
    
    

Document Information

Published:
12/09/1996
Department:
Reclamation Bureau
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
96-30769
Dates:
Written comments should be submitted to be received by February 7, 1997. All comments received by the close of the comment period will
Pages:
64832-64848 (17 pages)
RINs:
1006-AA37: Adjustments to the 1988 Operating Criteria for the Newlands Irrigation Project, Nevada
RIN Links:
https://www.federalregister.gov/regulations/1006-AA37/adjustments-to-the-1988-operating-criteria-for-the-newlands-irrigation-project-nevada
PDF File:
96-30769.pdf
CFR: (15)
43 CFR 66.9%
43 CFR 0.90)
43 CFR 418.7(a)
43 CFR 418.3(e)
43 CFR 3.5
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