Central Arizona Project: History, Controversy, and Future Role

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Central Arizona Project History, Controversy,
and Future Role
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The Law of the River

• Colorado River Compact
• Created to provide irrigation systems for farming
  communities for the west
• Divided 7.5 maf between Upper and Lower basins
• Allocation made during very wet period

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• Boulder Canyon Project Act
• Created to alleviate tensions resulting from
  Californias overuse
• Allotted 4.4 maf to California, 2.8 to Arizona,
  and .3 to Nevada
• Allocation still unenforceable
• Arizona ratified in order to start getting its
  own reclamation projects

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• Arizona v. California
• Ordered Project Acts suggested allocation as
  binding on all Lower Basin states
• All instate tributaries not part of allocation
• Decree gave Secretary of Interior broad
  discretion to see that Decree was carried out

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• Colorado River Basin Project Act
• Authorized construction of Central Arizona
  Project
• CAP delivers up to 1.5 maf of Arizonas 2.8
  allocation
• Arizonas sacrifice in obtaining Congressional
  approval would require CAP receive lowest
  priority
• CAPs original purpose was to irrigate non-Indian
  agriculture lands
• Price tag approximately 3.5 billion

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• Purpose of CAP evolved which was to supplement
  surface water and replace overused groundwater
• In addition to municipal and agriculture CAP uses
  include
• Fish and wildlife
• Flood control
• Power
• Recreation

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• Uses fall into one of three categories
• Direct treatment and delivery
• Treatment and blending with other water sources
• Recharge
• Groundwater Savings Projects have stored up to
  573,000 acre-feet of water in one year

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• Central Arizona Water Conservation District
• Principle political subdivision responsible for
  repayment of CAP reimbursable costs
• CAWCD operates in counties which CAP serves
• Approximately 1.6 billion is owed to Reclamation

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• CAWCD sources of revenue to make repayments
• Ad velorem taxes within CAP service area
• Surcharge on sale of electricity
• Power sales of Navajo-generated power which
  exceed CAP needs
• Water use payments

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• Tucsons use of CAP water
• Tucson passed a local law banning supplies of CAP
  water in Tucson after water irritated Tucson
  users
• Water left some Tucsonians ill and destroyed many
  water mains and pipes

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• Tucson gives CAP another shot
• Simulated sampling of mix-groundwater and CAP
  water conducted in Tucson homes
• CAP now provides municipal users with this same
  mix
• Tucsons return to CAP water prompted by
• Decreased water quality
• Increased pumping costs
• Land subsidence

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• Financing CAP
• 1972 Master Repayment Contract
• 1.2 billion

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• Amended Master Repayment Contract (1988)
  superseded 1972 contract
• Due to inattention to inflation factors and
  Environmental costs

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• Another cost overrun required negotiations to
  raise repayment ceiling
• Failure to execute Agreement in Principle
• Reclamation continues construction

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• Central Arizona Water Conservation District v.
  United States
• CAWCD refuses to pay additional costs
• Court refuses Reclamations interpretation
• Once Gila River Indian Community execute
  contract, CAWCD obligated to repay 250,000,000
  less
• CAWCD repayment obligation set at 1.781 billion

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• Irrigation District Contracts with CAP
• Irrigation districts reduce CAP water use due to
  price disparity with groundwater
• Two irrigation districts file Chapter 9 bankruptcy

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• Operation, Maintenance, and Repair payment
  obligation
• When irrigation districts use less CAP water,
  municipal and industrial users have to make up
  the costs
• Interest is charged on all non-Indian
  agricultural use

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• Underutilization by non-Indian agriculture
• Former Gov. Symingtons Final Report suggests
  target pricing
• Provide short-term low-cost water to MI
• Price CAP water for non-Indian agriculture below
  groundwater prices

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• Final Reports Repayment Adjustment Plan
• Non-Indian agriculture users allowed to waiver
  CAP entitlements
• Users would then purchase CAP water through
  alternative short-term contracts
• Currently, at least ten irrigation districts that
  receive CAP water under these contracts

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• Current CAWCD repayment status with Reclamation
• Litigation postponed between parties, and CAWCD
  has made all payments on time since 1993
• Parties entered Stipulation Regarding Stay of
  Litigation
• CAWCD is to meet several conditions for
  Stipulation
• Resolution of certain Indian reserved water
  rights issues
• CAP reserves 665,224 acre-feet for use by
  Reclamation-Indian rights settlement
• CAWCD will pay 56 million out of 185 million
  income

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• Vested Native American water Rights
• CAP diverts 388,906 acre-feet of water for Indian
  irrigation and tribal homeland use
• Winters federal reserved water rights for Native
  Americans based on the amount of reservation
  lands set aside that required water for various
  uses
• Still unsettled Indian water rights claims
• Navajo nation water rights claims may exceed 5
  million acre-feet

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• Arizonas Recent Indian Rights and Repayment Bill
• Under bill, two tribes would be entitled to
  nearly half of all CAP water
• Benefit to Arizona lawmakers because these tribes
  would agree not to pursue further claims, and
• Would provide good indication to Arizona
  lawmakers of how much less water is available for
  future use
• Bill would finalize CAWCD repayment obligation at
  1.65 billion

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• Water Banking
• Arizona Water Banking Authority established in
  order to store CAPs unused apportion of 1.5 maf
• Arizona Water Banking Fund created by adding
  Pinal county to the two counties that already
  levy ad velorem which is paid to CAWCD
• Banking fund is to receive tax paid in by Pinal
  county after CAWCDs Board deem the amount not
  required for CAP obligations
• Impetus for Arizona Water Banking Authority was
  Nevada and Reclamation lower basin water baking
  proposals

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• Requirements for Interstate Water Banking
  Agreement
• Secretary executes Storage and Interstate
  Release Agreement
• States execute
• Agreement for Interstate Water Banking
• Storage and Interstate Release Agreement
• Intentionally Created Unused Apportionment

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• Banking with Specific Entities
• City of Goodyear in April 2001 executed with AWBA
  the latters first water banking services
  agreement
• Southern Nevada Water Authority in July 2001
  executed first of three required agreements to
  receive Arizona CAP water
• Also in July 2001 Metropolitan Water District of
  California informed AWBA via letter of possible
  future interest in baking
• Prior to MWDs letter to AWBA Arizona lawmakers
  signed proposal that would gradually reduce
  Californias overdraft to 4.4 maf

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• CAPs Future Role in Arizona
• As more Indian water rights claims are settled,
  local water providers may be required to lease
  those rights in order to fulfill non-Indian water
  needs
• Although CAP is finally taking its full 1.5 maf
  from Colorado River, population growth and
  four-year drought will continue to place severe
  demands on water supplies

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• Lower Santa Cruz Recharge Project
• Facility consists of 33 acres of spreading basins
  with permit to store 30,000 acre-feet of water
  per year

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New Waddell Pumping/Generating Plant
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• Check Structure
• Used to regulate flow throughout system

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Member of Ak-Chin Indian Community tending to
irrigation field
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System Map