SUPPLEMENTARY INFORMATION:

Notices of Proposed Rate Adjustment were published in the Federal Register on February 8, 2024 (89 FR 8707) and May 6, 2024 (89 FR 37238) to propose adjustments to the irrigation assessment rates at several BIA irrigation projects. The public and interested parties were provided an opportunity to submit written comments during the 60-day period that ended April 8, 2024, and July 5, 2024, respectively.

Did BIA defer or change any proposed rate increases?

No. BIA did not defer or change any proposed rate increases.

Did BIA receive any comments on the proposed irrigation assessment rate adjustments?

Yes. BIA received five (5) written comments related to the proposed 2025 irrigation assessment rate adjustment for the BIA Colorado River Irrigation Project (CRIP). Comments were received by letter and email.

What issues were of concern to the commenters?

Comments received relate specifically to the proposed 2025 rate adjustment for CRIP and other issues associated only with CRIP. BIA's summary of the issues and responses are provided below.

Comment: Four commenters state a general opposition to the proposed CRIP 2025 rate increase because commenters believe basic services, such as water delivery, maintenance, and measurements are not being provided. The fifth commenter, Colorado River Indian Tribes (CRIT), generally supports the proposed 2025 rate adjustment and recommends BIA increase future rates because CRIT believes CRIP's operations and maintenance (O&M) are underfunded. CRIT further requests that the additional revenues from the rate increase be used to improve system performance and reliability.

Response: As noted when rates were proposed in the Federal Register on February 8, 2024 (89 FR 8707) and May 6, 2024 (89 FR 37238), BIA is required to establish irrigation assessment rates that recover the costs to administer, operate, maintain, and rehabilitate our projects. As owner of CRIP, BIA assesses rates to ensure adequate resources are made available to meet the requirements noted above. BIA's authority to assess ( printed page 65385) rates is codified at 25 U.S.C. 381 et seq. and is addressed in BIA's regulations at 25 CFR part 171. See also February 29, 2008 (73 FR 11028). The procedures followed by BIA in adjusting its irrigation assessment rates are consistent with applicable law and past practice, and the methodology used by BIA to determine the O&M assessment rates for CRIP is reasonable.

The proposed 2025 irrigation assessment adjustments for CRIP's basic per acre rate categories are necessary and justified due to the increased costs associated with administering, operating, maintaining, and rehabilitating CRIP. In accordance with BIA financial guidelines and 25 CFR part 171, BIA developed the CRIP budget for 2025 expenditures and income approximately two years in advance. BIA relied on financial reports generated by the Financial and Business Management System and procurement files to review past expenditures and project a future budget. The CRIP Project Manager also used his discretion to assess and anticipate upcoming financial needs and priorities. The 2025 expenses were then divided by the total assessable acres within CRIP. The $5.00 per acre assessment increase for the “basic per acre” rate category is necessary to ensure CRIP can pay its anticipated expenses for 2025.

The BIA Colorado River Agency Superintendent and CRIP Project Manager routinely attend the CRIT Irrigation Committee's monthly meetings to provide project updates and explain proposed rate increases. BIA also met with CRIT's Tribal Council on March 25, 2024. On March 28, 2024, BIA held a water user meeting and attendees included individual water users, CRIT's legal counsel, CRIT's farm director, and a U.S. Fish and Wildlife Service biological science technician. During all of these meetings, BIA presented details supporting the 2025 budget, upcoming expenses, and the proposed O&M assessment increase from $64 to $69 per acre. BIA also explained it provides irrigation service commensurate with its resources, meaning the $5.00 per acre assessment increase is needed to improve the project's quality of service.

BIA agrees with commenters that CRIP's water measurement devices can be operated and maintained better to meet water delivery requirements, and BIA is working to resolve this issue with our contractors and experts. BIA is addressing priority deferred maintenance projects at CRIP by providing supplemental funding, engineering, design, and construction resources to CRIP. From 2022 through 2024, BIA allocated over $17 million in supplemental funding for deferred maintenance projects, such as Lateral 73-36 Check 1 and Main Canal Check rehabilitation. BIA provided this supplemental funding in addition to revenues collected from CRIP's assessable acres.

We appreciate water users' participation in our meetings and comments, and we have sent a follow-up letter to CRIT in response to their unique questions and concerns.

Comment: Commenters state CRIP is chronically understaffed due to its lengthy hiring process and Indian preference requirements, and request BIA hire more staff to improve water deliveries along with a specific concern that the project is understaffed and personnel costs should not increase until vacant positions are filled.

Response: Due to a variety of reasons, recruitment for CRIP positions has proved to be challenging. The BIA Western Regional Director and Human Resources team remain committed to filling vacancies in CRIP's 78-position organizational chart as rapidly as possible. We are currently seeking applicants for the following 13 positions: 2 Maintenance Workers, 3 Engineering Equipment Operators, 7 Irrigation System Operators, and 1 Accounting Technician. Applications are reviewed on a rolling basis, and all positions are open until filled. Preference in filing vacancies is given to qualified Indian candidates in accordance with the Indian Preference Act of 1934 (25 U.S.C. 5116). Given our difficulties with filling the Irrigation System Operator positions, BIA's Human Resources opened these positions to the public in April and authorized recruitment or relocation incentives. All applicants must apply online at www.usajobs.gov (search for BIA positions in Poston, Arizona). BIA also posted application information in local newspapers, and the Superintendent will be attending job fairs at local colleges to recruit.

CRIP's 2025 budget can support personnel salary, benefits, and overtime for up to 45 employees, which is an increase of 17 CRIP employees above the current 2024 staffing levels. The remaining 33 vacant positions in CRIP's organizational chart are not accounted for or funded in the 2025 budget. The quality of irrigation service will improve as vacancies are filled, while also retaining and increasing experience levels of existing CRIP staff.

Comment: Commenters state BIA should have anticipated lost revenue from 2023 excess water sales and is punishing irrigators for using less water.

Response: All presently assessable acres within CRIP must pay an annual basic per acre charge for up to 5.75 acre-feet of water. If additional water is available, irrigators may request more water and pay our per acre-foot fee for “excess water.” Because the availability of excess water fluctuates year-to-year along with irrigators' demands, CRIP's excess water revenue fluctuates. In calendar years 2020, 2021, and 2022, CRIP's excess water revenues were around $480,000, $830,000, and $650,000, respectively. Based on prior revenues, BIA budgeted for 2023 excess water revenues of $580,000. This estimate, however, fell short, and the actual excess water revenue was around $170,000 for 2023. While we do not know why irrigators ordered less excess water in 2023 than in prior years, we believe it might be in part due to the unusually wet spring in 2023.

Given the difficulties of predicting an upcoming year's rainfall and the amount of excess water irrigators will order, BIA's budgets will no longer rely on excess water revenues to fund operational expenses. Accordingly, BIA's budgeted excess water revenue for 2024 and 2025 has been reduced to $150,000 per year. If the revenues from excess water sales exceed our budgeted amounts, CRIP will allocate the extra funds to filling vacancies or addressing deferred maintenance. Going forth, CRIP's budget will instead rely on collections from our basic per acre assessment to fund O&M expenses. We do not intend to punish irrigators for ordering less water. Rather, our budgets must account for the fact that irrigators are conserving and improving their on-farm watering techniques.

Does this notice affect me?

This notice affects you if you own or lease land within the assessable acreage of one of our irrigation projects or if you have a carriage agreement with one of our irrigation projects.

Where can I get information on the regulatory and legal citations in this notice?

You can contact the appropriate office(s) stated in the tables for the irrigation project that serves you, or you can use the internet site for the Government Publishing Office at www.gpo.gov.

What authorizes you to issue this notice?

Our authority to issue this notice is vested in the Secretary of the Interior (Secretary) by 5 U.S.C. 301 and the Act of August 14, 1914 (38 Stat. 583; 25 U.S.C. 385). The Secretary has in turn ( printed page 65386) delegated this authority to the Assistant Secretary—Indian Affairs under part 209, chapter 8.1A, of the Department of the Interior's Departmental Manual.

Whom can I contact for further information?

The following tables are the regional and project/agency contacts for our irrigation facilities.

( printed page 65387)

What irrigation assessments or charges are adjusted by this notice?

The rate table below contains final rates for the 2024 and 2025 calendar years for all irrigation projects where we recover costs of administering, operating, maintaining, and rehabilitating them. An asterisk immediately following the rate category notes irrigation projects where 2024 rates are different from the 2025 rates.

( printed page 65388)

Consultation and Coordination With Tribal Governments (Executive Order 13175)

The Department of the Interior strives to strengthen its government-to-government relationship with Indian Tribes through a commitment to consultation with Indian Tribes and recognition of their right to self-governance and Tribal sovereignty. We have evaluated this notice under the Department's consultation policy and under the criteria of Executive Order 13175 and have determined there to be substantial direct effects on federally recognized Tribes because the irrigation projects are located on or associated with Indian reservations. To fulfill its consultation responsibility to Tribes and Tribal organizations, BIA communicates, coordinates, and consults on a continuing basis with these entities on issues of water delivery, water availability, and costs of administration, operation, maintenance, and rehabilitation of projects that concern them. This is accomplished at the individual irrigation project by project, agency, and regional representatives, as appropriate, in accordance with local protocol and procedures. This notice is one component of our overall coordination and consultation process to provide notice to, and request comments from, these entities when we adjust irrigation assessment rates.

Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use (Executive Order 13211)

These rate adjustments are not a significant energy action under the definition in Executive Order 13211. A Statement of Energy Effects is not required.

Regulatory Planning and Review (Executive Order 12866, as Amended by Executive Order 14094)

These rate adjustments are not a significant regulatory action and do not need to be reviewed by the Office of Management and Budget under Executive Order 12866, as amended by Executive Order 14094.

Regulatory Flexibility Act

These rate adjustments are not a rule for the purposes of the Regulatory Flexibility Act because they establish “a rule of particular applicability relating to rates.” 5 U.S.C. 601(2).

Unfunded Mandates Reform Act of 1995

These rate adjustments do not impose an unfunded mandate on state, local, or Tribal governments in the aggregate, or on the private sector, of more than $130 million per year. They do not have a significant or unique effect on State, local, or Tribal governments or the private sector. Therefore, the Department is not required to prepare a statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.).

Takings (Executive Order 12630)

These rate adjustments do not effect a taking of private property or otherwise have “takings” implications under Executive Order 12630. The rate adjustments do not deprive the public, State, or local governments of rights or property.

Federalism (Executive Order 13132)

Under the criteria in section 1 of Executive Order 13132, these rate adjustments do not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement because they will not affect the States, the relationship between the national government and ( printed page 65389) the States, or the distribution of power and responsibilities among the various levels of government. A federalism summary impact statement is not required.

Civil Justice Reform (Executive Order 12988)

This notice complies with the requirements of Executive Order 12988. Specifically, in issuing this notice, the Department has taken the necessary steps to eliminate drafting errors and ambiguity, minimize potential litigation, and provide a clear legal standard for affected conduct as required by section 3 of Executive Order 12988.

Paperwork Reduction Act of 1995

These rate adjustments do not affect the collections of information which have been approved by the Office of Information and Regulatory Affairs, Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995. The OMB Control Number is 1076-0141 and expires March 31, 2026.

National Environmental Policy Act

The Department has determined that these rate adjustments do not constitute a major Federal action significantly affecting the quality of the human environment and that no detailed statement is required under the National Environmental Policy Act of 1969, 42 U.S.C. 4321-4370(d)), pursuant to 43 CFR 46.210(i). In addition, the rate adjustments do not present any of the 12 extraordinary circumstances listed at 43 CFR 46.215.