Arizona Water Resource Vol. 1 No. 7 (September 1992) Item Type text; Newsletter Authors University of Arizona. Water Resources Research Center. Publisher Water Resources Research Center, College of Agriculture, University of Arizona (Tucson, AZ) Rights Copyright © Arizona Board of Regents. The University of Arizona. Download date 25/09/2021 02:27:07 Link to Item http://hdl.handle.net/10150/316487 ARi ZONA WATER RESOURCE Volume 1, No. 7 September 1992 No CAP AG Bailout in Task Force Report TheGovernor's cp Task Force has released a report that is as noteworthy for what it fails to recommend as for what it does (see accompanying arti- ele). The task force declined to call for any major new taxes to bail out irrigation districts so they could con- tinue to use large portions of the state's Colorado River allocation. The task force also declined to endorse short-term interstate leasing of unused Colorado River water. In addition to concerns over the legalities of such a move and the risk that tern- porary reallocations might become permanent, there was recognition that such leases would make it easier for the holders of other, more senior The CAP aqueduct zigzags across the desert bearing Colorado River water. Colorado River rights to enter into Underutilization of the system remains an unresolved issue.Meanwhile, interstate transfers. Tucson prepares to receive CAP water wnid controversy over treatment of the The task force also gave a low city 's CAP allocation. (Photo: J. Madrigal, Jr., U. S. Dept. of Interior) priority to sales of surplus power from the Navajo Generating plant, which provides electricity to CAP pumping Report Addresses CAP Water Underutilization stations. There currently is a surplus of low-cost electric power in the West. InJanuary of this year Governor Fife Symington appointed a 16-member task force to address problems associated with the Central Arizona Project (CAP), particularly the underutilization of available Colorado River water. The Task Force membership provided broad representation from affected regions of the state, government agencies and water-using sectors. The report from the Task C O N T E N T S Force has been presented to the Governor. Arizona's underutilization of its Colorado River supplies is due principally to Communications 3 the fact that the CAP is operating at much less than full capacity. From 1985, the first year of deliveries, until 199 1, CAP water deliveries increased each year. Guest Views 4-5 However, in 199 1 there was a sharp decline in requests for CAP water. News Briefs 6-7 Deliveries dropped from 745,000 acre-feet in 1990 to 420,000 acre-feet in 1991. Both agricultural and municipal and industrial (M&I) uses declined, but the Special Projects 8 greatest reduction based on volume of water was in agricultural water deliveries. Reductions in agricultural use are caused in part by the unhealthy financial Publications 9 condition of many agricultural users and may be compounded in the future by a Legislation & Law lo- i i worsening of that situation. This problem comes at a time when both California and Nevada are searching Announcements . i2,16 for additional Colorado River water. Maximum utilization of the State's Calendar i3-15 continued on page 2 .__J WATER RESOURCES RESEARCH CENTER COLLEGE OF AGRICULTURE UNIVERSITY OF ARIZONA 2 Arizona Water Resource September 1992 CAP cont. from page 1 addressed were categorized by water Recommendations of the Task use sector: non-Indian agriculture, Force, by category of discussions, are Colorado River entitlement is widely M&I and Indian. For each sector, briefly summarized below: viewed as the best protection against historic and projected CAP use was possible attempts by neighboring states evaluated and impediments to increased Non-Indian Agricultural Use to permanently capture a portion of that CAP use were determined. The Bureau of Reclamation should supply. Potential opportunities to increase accelerate the reevaluation of irrigation The objective of the Task Force water use in all sectors were addressed. districts' ability to pay CAP-related was to review the issues affecting the Intrastate marketing of CAP M&I and costs. use of CAP water and to develop rec- agricultural priority water were consid- Agricultural and M&I users should ommendations which could increase use ered as possible mechanisms to promote explore with the investment banking of that supply. This would benefit increased use of projected M&I water. industry opportunities to restructure water management programs in the Interstate leasing of unused CAP water irrigation district debts. State and in turn provide further assur- and increased marketing of electric The Governor and Legislature should ance that the long-term security of power available to CAWCD were evalu- support a line item appropriation to pay Arizona's Colorado River entitlement is ated as mechanisms to generate reve- delinquent state guaranteed taxes or not jeopardized. nues to offset the high cost of water. assessments on State-leased lands in It became apparent early in the irrigation districts receiving CAP water. discussions that the most significant The entitlement is The CAP should be exempt from impediment to greater use by the agri- certain provisions of the Reclamation cultural sector was the high cost of permanent and not Reform Act. CAP water. The bulk of these costs are subject to the "use-it- the debt burden of irrigation districts Municipal and Industrial Use from loans and bonds necessary to pay or-lose-it" doctrine. The Phoenix Active Management for construction of CAP distribution An issue of general concern was the Area groundwater replenishment district systems, and the fixed and variable impact of the Bureau of Reclamation's should be formed as a mechanism to operation, maintenance and repair proposal to have the Secretary of the ensure the long-term use of CAP water (OM&R) costs, which must be recap- Interior declare the CAP substantially by the M&I sector in that area. tured by the Central Arizona Water complete on December 15, 1992. The The regional authority or district in Conservation District (CAWCD). Task Force also assessed the risk of the Tucson Active Management Area Irrigation districts which are sub- Arizona losing a portion of its Colorado should be permanently established and contractors for CAP water have bor- River entitlement due to non-use. pursue policies that facilitate increased rowed a total of over $228 million No single recommendation or set of use of CAP water. dollars from the Federal Government to recommendations were developed which CAWCD should address the issue of construct distribution systems. Addi- would resolve the situation of under- finding funding for fixed OM&R costs tional private financing was necessaiy to utilization of Colorado River water. that will not result in increased charges pay at least 20 percent of distribution However, a number of conclusions and to CAP M&I users. system cost. recommendations were agreed upon and CAP agricultural subcontracts should The rate to pay fixed OM&R costs reported to Governor Symington. If be amended so water could be assigned has serious implications because the implemented, these recommendations or leased for more than one year pro- non-Indian agricultural subcontracts each could incrementally increase use of vided such assignments satisfied condi- provide that such costs are take-or-pay. CAP water. tions and specific purposes. Because each subcontractor receives a The Task Force concluded that Marketing of CAP M&I water percentage of available supplies, until Arizona's Colorado River entitlement should be deferred until after the initial Indian and M&I users take their full was secure, even though the State is not subcontracting process is complete. allocations, a large supply of water will utilizing its full apportionment. The The DWR should adopt a policy be available for non-Indian agricultural entitlement is permanent and not subject regarding how agricultural priority users. Thus, the take-or-pay provision to the "use-it-or-lose-it" doctrine. Ar- water counts towards an Assured Water requires a large payment by agricultural izona's entitlement of 2.8 million acre- Supply. users if they take the water or not. feet has been acknowledged by the The Federal Government should pay While agricultural use of CAP water- Secretary of the Interior, confirmed by the fixed OM&R costs associated with has fallen far short of expectations, the United States Supreme Court and CAP allocations for Federal (Indian) uses by non-agricultural sectors also has ratified by Congress. Arizona has both purposes. failed to use anticipated amounts of a legal and an equitable right to enforce The DWR should form a group of water. Therefore, the Task Force its Colorado River entitlement against interested parties to evaluate opportuni- evaluated CAP use by all sectors. all others and to be secure that its enti- ties for providing incentives for early For discussion purposes, the issues tlement may not be diminished. use of CAP water. September 1992 Arizona Water Resource Indian Communities' Use of CAP with various CAP treatment options, Water start-up glitches and delays at the water treatment plant and purported delays in Indian water rights settlements dealing with leaky underground fuel should be diligently pursued through storage tanks all have combined to negotiations. create considerable doubt and fear in Opportunities for Additional Revenue Communications the minds of residents over the safety of their drinking water supply. Technical Additional marketing by CAWCD of 'Withthe end of summer at hand, water quality issues have become the surplus Navajo Generating Station AWR returns to its monthly schedule. subject of political campaigns, and a power, which may be made available Unfortunately, we are unable to return confused public, most of whom cannot through exchanges for hydro power to our 12-page format.