ARIZONA WATER BANKING AUTHORITY
ANNUAL REPORT
2003

Submitted

July 1, 2004

Arizona Water Banking Authority
Annual Report
2003

Honorable Janet Napolitano
Governor of Arizona

Members
Herbert R. Guenther
Chairman
George R. Renner
Vice­chairman
Charles L. Cahoy
Secretary
Maureen R. George
Member
John Mawhinney
Member
Ex officio
Senator Linda Binder
Representative Jake Flake

Table of Contents
Arizona Water Banking Authority Annual Report Requirement .....................................................1
Members of the Arizona Water Banking Authority ..........................................................................2
Organizational Chart...........................................................................................................................3
Update..................................................................................................................................................4
Activities and Projects ­ 2003 ............................................................................................................6
Monies Expended from the Banking Fund .....................................................................................12
Long­term Storage Credits...............................................................................................................14
Long­term Storage Credits Distributed or Extinguished by the Authority ..................................18
Ten Year Plan for Calendar Year 2003.............................................................................................19
Appendices........................................................................................................................................25

List of Tables
Table 1. Monies Collected and Expended in 2003 by Source of Funds ......................................13
Table 2. Monies Collected and Expended through December 2003 and Monies Remaining
Available to the Authority .........................................................................................................13
Table 3. Number and Location of Long­term Storage Credits Accrued in 2003 .........................14
Table 4. Cumulative Total and Location of Long­term Storage Credits Accrued through
December 2003 ..........................................................................................................................15
Table 5. Identified Uses of Long­term Storage Credits Accrued through December 2003 and
Percentage of AWBA Goals Achieved .....................................................................................16
Table 6. Average Annual Cost for the AWBA to Obtain a Long­term Storage Credit ................17
Table 7. Ten Year Plan ......................................................................................................................20
Table 8. AWBA Percentage of Goals Achieved through 2014......................................................21

Arizona Water Banking Authority Annual Report Requirement

Arizona Revised Statutes § 45­2426 mandates that the Arizona Water Banking Authority (AWBA) file
an annual report with the Governor, President of the Senate and Speaker of the House of
Representatives on or before July 1 of each year for the previous calendar year. The report is
required to be a full and complete account of the AWBA’s transactions and proceedings and must
include the following:
1. An accounting of all monies expended from the banking fund.
2. An accounting of all monies in the banking fund remaining available to the AWBA.
3. The amount of water stored by the AWBA.
4. The number of long­term storage credits distributed or extinguished by the AWBA.
5. The purposes for which long­term storage credits were distributed or extinguished by the AWBA.
6. A description of the water banking services and interstate water banking to be undertaken by the
AWBA during the following ten year period and a projection of the capacity of the AWBA during
that period to undertake those activities in addition to storing Colorado River water brought into
the state through the Central Arizona Project (CAP) for all of the following purposes:
a. Protecting this state’s municipal and industrial (M&I) water users against future water shortages
on the Colorado River and disruptions of operation of the CAP.
b. Fulfilling the water management objectives of the state.
c. Making water available to implement the settlement of water rights claims by Indian
communities within Arizona.
7. Any other matter determined by the authority to be relevant to the policy and purposes of the
AWBA.

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Members of the Arizona Water Banking Authority
Herb Guenther was appointed by Governor
Napolitano and confirmed by the state Senate on
March 3, 2003 as the eighth director of the Arizona
Department of Water Resources (ADWR). As
director of ADWR, Sen. Guenther serves as
chairman of the AWBA.

“The Arizona Water Banking Authority is wise management
and insurance against an uncertain future.” ~H. Guenther

George Renner serves as a member of the AWBA
in his capacity as President of the Central Arizona
Water Conservation District (CAWCD). Mr. Renner
was appointed to the CAWCD Board of Directors in
1992 by Gov. Symington and elected to
consecutive six­year terms representing Maricopa
County in 1994 and 2000. He was re­elected
President of the CAWCD Board in March 2003.
Mr. Renner currently serves as vice­chairman of
the AWBA.

Charles (Chuck) Cahoy, an attorney for the City
of Mesa, was appointed to the AWBA
representing an entity that holds a CAP M&I
subcontract. Mr. Cahoy was elected Secretary of
the AWBA in May of 2003. Prior to his
employment with the City of Mesa, Mr. Cahoy
was employed by the ADWR. In that capacity, he
served as legal counsel to the AWBA and was
the principle draftsman of both the AWBA
enabling legislation and existing recharge and
recovery statutes.

2

“The extended drought has shown us all the benefit of the forward
thinking which created the Arizona Water Bank. It is now time to use
that same thinking to explore new ways to meet the goals of the Bank
and protect its existence.” ~M. George

AWBA Members Maureen George and John Mawhinney
were appointed by the governor to meet specific statutory
requirements. Ms. George, city attorney for Lake Havasu
City, represents an entity located in a county adjacent to the
mainstream of the Colorado River that holds a valid contract
with the Secretary of the Interior (Secretary) executed before
June 1, 1996 for a diversion and beneficial consumptive use
of Colorado River water in that county. Mr Mawhinney, a
former state legislator, was selected as an individual
knowledgeable in water resource management.

Organizational Chart
Herbert R. Guenther
Chairman
George R. Renner
Vice­Chairman

Charles L. Cahoy
Secretary

Maureen R. George

John Mawhinney
Ex officio Members

Senator Linda Binder

Representative Jake Flake

Timothy J. Henley
Manager
DWR Support

Sandra Fabritz
Tech. Administrator

Gerry Wildeman
Tech. Administrator

Nannette Flores
Administrative Assistant
Patrick Schiffer
Legal Counsel

3

CAWCD Support

Update
Calendar year 2003 could best be described as a year of uncertainty and that uncertainty greatly
impacted the planning and operations of the AWBA. From a water management perspective,
uncertainty existed both regionally and locally. The failure of parties in California to execute the
Quantification Settlement Agreement by December 31, 2002 resulted in discontinuation of surplus
declarations for the Lower Colorado River basin in 2003 under the Interim Surplus Guidelines. This
led to unanticipated requests for creation of Intentionally Created Unused Apportionment from both
Nevada and California to which the AWBA had to respond. A detailed discussion regarding these
events follows later in this report. Locally, the uncertainty was largely due to continuing drought
conditions and the resultant uncertainty regarding the quantity of excess CAP water available for the
AWBA. This uncertainty led to the AWBA approving an Annual Plan of Operation (Plan) for 2003 that
included approximately 100,000 acre feet of water whose status was unknown with the recognition
that the AWBA’s projected storage for 2003 could only be met if other parties in Arizona did not fully
utilize CAP water as scheduled. There was additional uncertainty regarding water supply in October
and November of 2003 as the AWBA developed the 2004 Plan. The on­going drought conditions
resulted in agricultural sector demand in excess of the 400,000 acre foot agricultural pool. The
CAWCD did not make a decision regarding a supplemental agricultural pool until December of 2003.
As any additional agricultural water would have meant less water for the AWBA, this uncertainty
impacted the AWBA’s planning process throughout the latter part of the year.
It was also a year of uncertainty with regard to budget and funding. As discussed later in this report,
revenues in the AWBA banking fund were directly impacted as a result of the on­going state budget
crisis. Revenues were also directly impacted as the CAWCD Board resolved for the first time since
the AWBA’s inception to retain the 4¢ ad valorem tax revenues for the 2003­2004 fiscal year.
Senator Herbert R. Guenther was appointed as the director of the ADWR by Governor Napolitano in
December of 2002 and confirmed by the state Senate on March 3, 2003. Pursuant to statute,
Senator Guenther serves as the chairman of the AWBA. Three new AWBA members were appointed
by the Governor and confirmed by the Senate in 2003 to replace three of the original AWBA members
whose appointments had expired. The new members were identified previously in this report.
Leadership changes in both the state Senate and House of Representatives resulted in new AWBA
ex officio members. Representative Jake Flake and Senator Linda Binder began serving in this
capacity in 2003.
In 2003, the AWBA continued its quarterly meeting schedule with special meetings, workshops and
study sessions scheduled as needed. Details about meetings held regarding firming for Indian water
rights settlements can be found in the Activities and Projects section of this report.
The AWBA annually coordinates with current and potential recharge entities in the process of
development of the Plan for the following year. As previously discussed, this process was filled with
uncertainty as the 2003 Plan was being developed. As in the prior year, the amount of excess water
available to the AWBA was limited and it was unclear even late in the planning process exactly how
limited it would be. Additionally, development of ICUA had been requested in 2003. Consequently,
development of the 2003 Plan was a process that required extensive cooperation and coordination
between AWBA and CAWCD staff and the facility operators.

4

The necessity for extensive cooperation and coordination carried over into development of the 2004
Plan, as well, as there continued to be increased demand for excess CAP water. Pursuant to the
2004 Plan, the AWBA anticipates recharging almost 305,000 acre feet of water using both withdrawal
fee and 4¢ ad valorem tax revenues. Use of both revenue sources accrues credits that the AWBA
can utilize for firming of M&I supplies in case of operational outage or shortage or to meet water
management objectives or to implement the settlement of Indian water right claims. For the 2004
Plan, the entities scheduled for delivery are SRP’s GRUSP and groundwater savings facilities,
CAWCD’s Agua Fria, Avra Valley, Hieroglyphic Mountains, Pima Mine Road and Lower Santa Cruz
facilities, Chandler Heights Citrus Irrigation District, New Magma Irrigation District, Queen Creek
Irrigation District, Central Arizona Irrigation and Drainage District, Hohokam Irrigation and Drainage
District, Maricopa Stanfield Irrigation and Drainage District, Tonopah Irrigation District, the Central
Avra Valley Storage and Recovery Project and the Herb Kai Red Rock Facility.
Because of the on­going drought, entities in central Arizona continue to rely on the CAP to
supplement their water supplies. As a result of increased demand there is less excess water
available to the AWBA. In 2003, the AWBA recharged only slightly more than 213,000 acre­feet of
CAP water, the lowest quantity since the AWBA began operations. This included the first storage at
the newest CAP recharge facility, the Hieroglyphics Mountain Recharge Project (see Appendix A). Of
this storage, more than 106,000 acre­feet were stored in the Phoenix Active Management Area
(AMA), 43,525 acre­feet were stored in the Pinal AMA and more than 63,500 acre­feet were stored in
the Tucson AMA. For the first time since inception, the AWBA stored more water at underground
storage facilities than at groundwater savings facilities.
Total consumptive use of Colorado River water by Arizona for 2003 was approximately 2.82 million
acre­feet. Distribution of that quantity was approximately 1.14 million acre­feet for direct uses along
the Colorado River and CAP diversions of approximately 1.68 million acre­feet. Of the CAP
diversions, AWBA use was slightly more than 213,000 acre­feet.
For more information about the Arizona Water Banking Authority, consult the AWBA web page at
http://www.awba.state.az.us or contact Tim Henley (tjhenley@adwr.state.az.us), Sandy Fabritz
(safabritz@adwr.state.az.us) or Gerry Wildeman (glwildeman@adwr.state.az.us) or by phone at 602­
417­2418.

5

Activities and Projects ­ 2003
Firming for Indian Water Rights Settlements
Section 105 of the Arizona Water Settlement Act (Act) details how CAP water delivered to Indian
tribes will be provided in times of shortage on the Colorado River and is the culmination of extensive
discussion and disagreement between Arizona and the Department of the Interior that has taken
place since the 1970s. Although the Act has not yet been executed and some concepts still require
negotiation between the state and the federal government, the quantity of water to be firmed has
been identified. Consequently, the state has some idea of the potential obligation to be borne
pursuant to the Act. In short, if the Act is passed, the state will be required to firm 15,000 acre feet
toward the Gila River Indian Community Settlement and 8,742 acre feet for future Indian water rights
settlements, and establish a 15,000 acre foot Southside Replenishment Bank. In recognition that the
AWBA could potentially provide assistance to the state in meeting this obligation, Senator Guenther,
as director of the ADWR, requested that the AWBA develop draft alternatives and recommendations
regarding AWBA participation in Indian firming. At the May 7, 2003 AWBA meeting, the concept of
Indian firming was presented and staff requested approval to hold an informational workshop
regarding the issue. The AWBA approved the workshop.
On May 30, 2003, the workshop was convened. At this meeting, historical information regarding
Indian settlements was presented, as was the concept of firming as detailed within the Act. Various
individuals discussed the federal perspective regarding firming and the necessity for creation of the
Southside Replenishment Bank. ADWR staff presented information regarding the potential water
supply available to be used for firming. Specifically, the Law of the River and the operational
parameters and computer model utilized by the Bureau of Reclamation for the Colorado River were
discussed. The information obtained from the models indicated that the quantity of water to be stored
to meet the long­term firming needs would range between 439,000 and 963,000 acre feet. There was
also discussion regarding potential funding options and alternative ways in which the AWBA could
participate. The meeting concluded with a recommendation to bring the issue before the AWBA at
the June meeting for determination of potential future action. At the June meeting, the AWBA
approved a motion to create a technical committee to further investigate the AWBA’s potential to
provide assistance to the state in meeting it’s Indian firming obligation.
At the first meeting of the Indian Firming Technical Committee (Committee), four objectives were
identified: (1) identification of the water volume needed to firm the state’s obligation under the Act; (2)
identification of the water supply available; (3) identification of potential funding sources; and (4)
identification of alternative approaches. The objectives were reviewed, a schedule for completion
was proposed and the Committee was asked to consider the structure of the group, i.e. should the
larger group break down into subgroups or work groups for evaluation of specific objectives. The
current statutory authorities of the AWBA were also reviewed because certain alternatives could
require legislative change for the AWBA to participate. Lastly, attendees were asked to review
handout information regarding the Colorado River model for the next meeting which would focus on
meeting the first objective of identification of firming volume.
The Colorado River Operational Model and the assumptions within it were the focus of the second
meeting. ADWR staff presented information and discussed eight scenarios selected as
representative of actual conditions. Attendees were asked to review the assumptions and were
informed that selection of assumption parameters would be the topic of the next meeting. There was
additional discussion regarding the model runs at the third meeting, in addition to discussion
6

regarding the Southside Replenishment Bank and the variety of potential water sources available for
Indian firming. As Central Arizona Groundwater Replenishment District (CAGRD) staff are in the
process of developing a plan of operation that includes an analysis of these potential sources, they
led the discussion. It was noted that there could ultimately be some competition for water between
the AWBA and the CAGRD and also within the AWBA between non­Indian firming and Indian firming.
In the next two meetings, the Committee determined that a reasonable firming volume ranged
between 508,000 and 601,000 acre feet and that this would fully meet the state’s firming obligation for
the next 100 years. It was estimated that this would cost approximately $60 million. The Committee
continues to meet in 2004 as the issues of identification of water available for firming and evaluation
of costs associated with firming are discussed. Summaries of all Indian firming meetings and copies
of all handouts are available from the AWBA web page.

Legislative Issues
On May 6, 2003, Governor Napolitano signed House Bill 2477 that amended statutes pertaining to
the CAWCD. Of import to the AWBA was the requirement for the CAGRD to establish a
replenishment reserve equal to 20 years of replenishment obligation. This was an issue that carried
over from recommendations made by the Governor’s Water Management Commission. Institution of
this reserve requirement had the potential to negatively impact the quantity of excess water available
for use by the AWBA. However, the statute was written such that CAGRD’s priority for use of excess
Colorado River water for establishment of the replenishment reserve is co­equal to the AWBA priority
for the use of water stored for M&I firming.
Interstate Issues
In 2003, the decision making processes of the Lower Basin states were largely guided by events
taking place in California. The failure of California entities to successfully execute the Quantification
Settlement Agreement (QSA) by December 31, 2002 resulted in the suspension of surplus
declarations under the Interim Surplus Guidelines (ISG). Although the QSA was ultimately executed
in October of 2003, the suspension triggered activity in the Lower Basin early in the year that directly
impacted the AWBA.
Requests for Creation of Intentionally Created Unused Apportionment
On January 31, 2003, the Southern Nevada Water Authority (SNWA) sent a letter to the AWBA
inquiring about the deadline for SNWA to request development of intentionally created unused
apportionment (ICUA) in 2003 pursuant to the interstate water banking agreements1. Because the
previously discussed suspension of surpluses had the potential to impact the SNWA they were in the
process of developing contingency plans to obtain water to meet demands in excess of their 300,000
acre foot allocation. At that time, the SNWA believed they would need to produce approximately
10,000 acre feet of ICUA. On the same day, the Metropolitan Water District of Southern California
(MWD) reiterated a similar request of the CAWCD for credits they had developed in Arizona in 1992.
The AWBA does not currently have an agreement for creation of ICUA with MWD so the request was
1

There were three agreements executed to permit interstate water banking on behalf of Nevada. The Agreement for
Interstate Water Banking among the AWBA, the SNWA and the Colorado River Commission of Nevada (CRCN) was
executed on July 3, 2001. The Agreement for the Development of Intentionally Created Unused Apportionment between
the AWBA and the CAWCD and the Storage and Interstate Release Agreement among the United States, the AWBA,
SNWA and the CRCN were executed on December 18, 2002.

7

made directly to CAWCD. The amount of recovery requested by MWD was almost 81,000 acre feet
and both requests noted that this water would only be needed if the terms of the ISG were not
reinstated in 2003.
By letter dated March 11, the SNWA was informed that a formal request for development of ICUA
must be received by March 19, 2003 and should also include a request to waive the timeframe
requirements detailed in the Agreement for Interstate Water Banking (Agreement). The Agreement
included a three­year timeframe for requests for development of ICUA as it was recognized that
establishing the framework for recovery would require time for planning and execution. However, in
light of the situation being faced by the SNWA, the AWBA was willing to take steps to facilitate
development of ICUA. The letter of request for waiver and development of ICUA was received on
March 20, 2003.
On May 13, 2003, MWD submitted a preliminary request for development of ICUA for the credits held
by CAWCD on their behalf. The AWBA could only comply with this request if there was agreement
between MWD and the AWBA similar to the agreements between the AWBA and the SNWA, thus
negotiations between the MWD and the AWBA were initiated at this time.
On May 29, 2003, the SNWA submitted a preliminary request for development of 20,000 acre feet of
ICUA for 2004 and a request to initiate discussions regarding the potential development of ICUA in
2005 and 2006. On July 18, 2003, pursuant to requirements of the Storage and Interstate Release
Agreement (SIRA), the AWBA informed all Arizona Colorado River entitlement holders of the SNWA
request for development of ICUA. On August 1, 2003, also pursuant to provisions of the SIRA, the
SNWA requested that the Secretary of the Interior release the 10,000 acre feet of ICUA for
consumptive use in Nevada in 2003. In August, MWD made similar requests of both the Secretary of
the Interior and CAWCD.
The AWBA is statutorily prohibited from holding recovery well permits, therefore, some other entity
must recover the long­term storage credits developed by the AWBA. With respect to development of
ICUA, all Colorado River entitlement holders must be afforded the opportunity to develop ICUA.
However, the CAWCD has been recognized as potentially being the primary recovery entity for water
stored by the AWBA for both interstate and intrastate purposes. Regardless of who is doing the
actual recovery, it is recognized that the AWBA should be extensively involved in the recovery
process. In 2003, the AWBA assisted the CAWCD with collecting well data needed to complete their
recovery well permit application, attended meetings with CAP and irrigation district staff to discuss
recovery, and facilitated processing of the permit application with the ADWR. The CAWCD was
issued two recovery well permits in August of 2003, only five months after the request for ICUA was
made.
The AWBA identified a number of issues associated with recovery in the process of the CAWCD
obtaining their permit. First, pursuant to statute in effect at the time, specific entities had the ability to
object to recovery of long­term storage credits when the recovering entity is different than the storing
entity. As previously discussed, this would always be the case with the AWBA as it is prohibited from
holding recovery well permits. On June 1, 2004, the governor signed legislation amending the statute
regarding recovery. Now, when the water stored is Colorado River water and the recovering entity is
not the entity that stored the water, there is no requirement to obtain consent nor is there a
requirement for the director of ADWR to find that the recovery is consistent with the AMA
management plan and goals. Other issues identified in this process were long­term maintenance of
specific wells identified in recovery well permits and the potential for well capacity constraints when
recovery is done during CAP shortages.
8

In the end, there was no ICUA developed in 2003 as the QSA was executed in October and neither
California nor Nevada exceeded their annual allocation. However, the requests for development of
ICUA resulted in the CAWCD obtaining recovery well permits in Pinal County that can be used at any
time in the future. Additionally, the requests provided a successful trial run recovery situation for the
AWBA, the CAWCD, the Secretary of the Interior and the states.

Interstate Water Banking
Pursuant to the interstate water banking agreements, the CAWCD transferred 50,000 acre feet of
long­term storage credits to the AWBA sub­account for the SNWA in January. The credits were
credits that had been developed and held by the CAWCD on behalf of the SNWA since the early
1990s. In July, the credits were transferred back to the CAWCD in anticipation of development of
ICUA.
There was no water delivered or stored on behalf of the SNWA in 2003. The AWBA sub­account for
the SNWA currently has a balance of 111,098 acre feet of long­term storage credits.

Impacts to the Water Banking Fund Accounts and Revenues
There are three primary revenue sources available to the AWBA and each was impacted to some
extent in 2003, largely as a result of the on­going state budget crisis. In some cases, the impacts
were to current revenues and in some cases the impacts were to existing monies in the Water
Banking Fund (Fund). The three revenue sources are a general fund appropriation, groundwater
withdrawal fees and an ad valorem property tax. Pursuant to statute, there are restrictions and
limitations to how the different revenue sources can be expended with regard to purpose and location
of use. The AWBA has the most flexibility in using long­term storage credits developed with the
general fund appropriation revenues. It should be borne in mind that there is overlap between the
fiscal year (FY), upon which the state budget operates, and the calendar year (CY), upon which the
AWBA operates and this report is prepared. Consequently, CY 2003 included activity that occurred in
the last half of FY 2003 and the first half of FY 2004.
Existing Fund Account Balance Impacts
On March 28, 2003, Governor Napolitano signed House Bill (HB) 2002, the FY 2003 Omnibus
Reconciliation Bill (ORB), that authorized the ADWR to expend up to $1,115,900 from the AWBA
Fund for ADWR’s operating expenses incurred in FY 2003. Although authorized, the ADWR
ultimately did not expend any money from the AWBA Fund pursuant to the ORB.
On June 11, 2003, the AWBA approved the operating budget for the AWBA for FY 2004. This budget
included $1,830,300 of budget support for the operation of the ADWR to permit full retention of
ADWR staff. Retaining ADWR staff insured that ADWR efforts in support of the AWBA and AWBA
constituents would not be reduced or eliminated. Throughout the remainder of CY 2003, money was
transferred to ADWR on a percentage basis at a rate such that the total amount approved for the FY
would be achieved. AWBA members approved this ADWR support with the condition that it be
viewed as a one time only event.
9

On June 17, 2003, Governor Napolitano signed HB 2531, the General Appropriations Act for FY 2004
and 2005 that included a fund transfer from the AWBA to the general fund in the amount of $9 million.
On June 30, 2003, Senator Guenther sent letters to Governor Napolitano, Speaker of the House,
Jake Flake and President of the Senate, Ken Bennett, expressing his concern over this action. Due
to the nature of the AWBA Fund accounts, it is the AWBA’s belief that this transfer must come from
the groundwater withdrawal fee accounts. As those revenues can be used to assist the state in
settling Indian water rights claims and the $9 million could have purchased more than 200,000 acre
feet of long­term storage credits, this transfer will likely impact the ability of the AWBA to assist the
state in meeting their obligation under any water rights settlement. The fund transfer did not occur in
CY 2003, however, the transfer must occur before July 1, 2004. With current account balances, the
$9 million transfer will effectively utilize all monies remaining in the AWBA withdrawal fee accounts.
Revenue Impacts
Historically, the AWBA has received an annual $2 million general fund appropriation from the state
legislature but budget problems have impacted the appropriation over the last few years. In CY 2003,
the AWBA did not receive any general fund appropriation money.
The CAWCD is statutorily authorized through 2016 to levy an ad valorem property tax in the three­
county CAP service area that cannot exceed four cents per $100 of assessed valuation and is used
either for repayment or OM&R costs of the CAP. If the taxes levied are not needed for those
purposes, an annual resolution of the CAWCD Board can direct them to the AWBA Fund. For the
first time since the AWBA’s inception, the CAWCD Board resolved that all taxes to be levied would
be retained by CAWCD. CAWCD has determined that it will use these funds to support their OM&R
activities thus reducing the cost of water to the AWBA.

2004 Annual Plan of Operation
Pursuant to the 2004 Plan, the AWBA projects recharge in excess of 304,000 acre feet. Of this
quantity, almost 178,00 acre feet are projected to be recharged at underground storage facilities
(USF) and almost 127,000 acre feet are projected to be recharged at groundwater savings facilities
(GSF). This is the second Plan to project higher deliveries to USF than GSF. The 2004 Annual Plan
of Operation is available on the AWBA web page.
Media Coverage
The AWBA received very limited press coverage during 2003 with the majority of articles being
published in association with the requests for ICUA made by California and Nevada.
“California, Nevada ask Arizona for Water”, Arizona Republic, March 10, 2003
“Arizona’s Neighbors Working to Reclaim Water”, AP Newswires, March 10, 2003
Agreement and Facility Permit Activity
The AWBA executed a new agreement for water storage at the Central Avra Valley Storage and
Recovery Project (CAVSARP) on March 3, 2003. The agreement established the various conditions
10

for storage at the facility operated by Tucson Water Company and is effective until December of
2008.
The AWBA submitted one water storage permit application in 2003. The amended Lower Santa Cruz
Recharge Project application was permitted in December of 2003. The new permit increased the
maximum storage volume from 30,000 to 50,000 acre feet.
Web Page
The AWBA has maintained a web page (http://www.awba.state.az.us) since 1997 to provide timely
and accurate information regarding the AWBA’s activities to the water community. The web page
contains information about the AWBA, AWBA members and staff, the AWBA’s recharge partners,
monthly water deliveries, the AWBA newsletter, AWBA announcements and scheduled meetings and
meeting minutes. It also contains publications and documents that may be downloaded and provides
links to other water related web sites. The AWBA staff continue to review and update the web page
to insure that it contains accurate information that can be accessed in an efficient manner.

11

Monies Expended from the Banking Fund
Arizona Revised Statutes § 45­2425 mandates the various sources of monies for the Water Banking
Fund (Fund) that is administered by the AWBA per the statute. In 2003, the AWBA obtained its
funding from the following sources:
1. Fees for groundwater pumping are collected within the Phoenix, Pinal and Tucson AMAs. Fees
are calculated two different ways because there exists a gradual increase in fees for entities not
associated with irrigation districts within the Pinal AMA. In the Phoenix AMA, Tucson AMA and
most areas of the Pinal AMA, fees for water banking purposes are charged at $2.50 per acre­foot.
Fees for entities in Pinal County who are not associated with an irrigation district were charged at
$0.75 per acre­foot in 1997 with planned increases of $0.25 per acre­foot annually until the $2.50
per acre­foot amount is reached. Therefore, the fee charged for these entities was $2.25 per
acre­foot in 2003. The fees for groundwater pumping are statutorily available to the AWBA
through 2016. Long­term storage credits accrued with these monies must be used to benefit the
AMA in which they were collected.
2. The CAWCD is statutorily authorized through 2016 to levy an ad valorem property tax in the three­
county CAP service area that cannot exceed four cents per $100 of assessed valuation and is
used either for repayment or OM&R costs of the CAP. If the taxes levied are not needed for those
purposes, an annual resolution of the CAWCD board can direct them to the Fund. In June of
2002, the CAWCD board resolved that all taxes to be levied for the following tax year would be
deposited in the Fund. This money was deposited into the Fund in December of 2002 and May of
2003. In June of 2003, the CAWCD board resolved to retain the tax revenues. Consequently,
there were no ad valorem tax revenues deposited into the Fund in December of 2003. Money
from this source must be used to benefit the county in which it was collected.
Table 1 shows the money the AWBA received and expended in 2003 by source of funds. Table 2
shows the total money received, expended and remaining in the Fund through December 2003 by
source of funds. The money listed as “Available” is money that is either remaining in the Fund or
money that has been prepaid to CAWCD. Any money that remains in the Fund is available to be
expended in subsequent years; any interest that accrues on this money is credited to the Fund and is
available for use.

12

Table 1. Monies Collected and Expended in 2003 by Source of Funds
Source of Funds

Money Collected

Money Expended

General Fund

$0

$0

$399,570

$399,570

4¢ Ad valorem Tax
Maricopa County
Pinal County
Pima County
Subtotal for Ad Valorem

$9,434,806
$358,241
$1,936,837
$11,729,884

$1,837,609
$358,248
$185,701
$2,381,558

Groundwater Withdrawal Fee
Phoenix AMA
Pinal AMA
Tucson AMA
Subtotal for Withdrawal Fees

$2,439,322
$1,250,635
$513,175
$4,203,132

$3,652,303
$1,078,077
$3,965,728
$8,696,1082

$16,332,586

$11,477,236

1

Interstate Water Banking ­ Nevada

TOTAL
1

OM&R reconciliation for water delivered in 2002; completed in August of 2003
Includes carryover from previous years

2

Table 2. Monies Collected and Expended through December 2003 and Monies
Remaining Available to the Authority
Source of Funds

Money Collected

Money Expended

Money Available

General Fund

$10,695,000

$10,695,000

$0

Interstate Water Banking ­ Nevada

$8,746,945

$8,746,945

$0

4¢ Ad valorem Tax
Maricopa County
Pinal County
Pima County
Subtotal for Ad Valorem

$53,858,037
$2,051,081
$11,188,188
$67,097,306

$30,431,390
$2,050,088
$8,262,875
$40,744,353

$23,426,647
$993
$2,925,313
$26,352,953

Groundwater Withdrawal Fee
Phoenix AMA
Pinal AMA
Tucson AMA
Subtotal for Withdrawal Fees

15,239,080
6,519,048
3,965,728
$25,723,856

$6,252,303
$6,407,829
$3,965,728
$16,625,860

$8,986,777
$111,219
$0
$9,097,996

$112,263,107

$76,812,158

$35,450,949

TOTAL

13

Long­term Storage Credits
The AWBA has established Long­term Storage Accounts with ADWR. The Phoenix AMA account
number is 70­441150, the Tucson AMA account number is 70­411150 and the Pinal AMA account
number is 70­431135. After receiving the AWBA’s annual reports for it’s water storage and water
transfer permits and the annual reports for the recharge facilities, ADWR calculates and issues long­
term storage credits to the appropriate accounts. The AWBA receives credit for 95% of the
recoverable quantity of stored water. The 5% that is not credited is termed the cut to the aquifer and
provides additional groundwater replenishment benefits. This cut to the aquifer is mandated by
statute and applies to almost all storage of water for long­term credit, with some exceptions. The
recoverable amount of stored water is determined by subtracting facility losses from the quantity of
water delivered to the facility. After credits are issued to the account, AWBA staff allocate the credits
to the appropriate sub­accounts based on source of funding. The number and distribution of long­
term storage credits for 2003 are listed in Table 3. The cumulative totals of long­term storage credits
accrued by the AWBA through December 2003 are listed in Table 4.

Table 3. Number and Location of Long­term Storage Credits Accrued in 2003
Location and Funding Source

Long­term Storage
Credits Accrued (AF)

Phoenix AMA
4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
AMA Total

33,395
66,372
0
99,767

4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
AMA Total

10,110
30,423
0
40,533

4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
AMA Total

2,685
57,342
0
60,027

4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund

46,190
154,137
0

Pinal AMA

Tucson AMA

Totals by Funding Source

TOTAL

200,327

14

Table 4. Cumulative Total and Location of Long­term Storage Credits Accrued
through December 2003
Location and Funding Source

Long­term Storage
Credits Accrued (AF)

Phoenix AMA
4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
AMA Total

742,734
113,181
59,937
915,852

4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
Interstate Water Banking ­ Nevada
AMA Total

80,661
218,667
296,814
111,000
707,142

4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
AMA Total

130,051
57,342
39,748
227,141

4¢ Ad valorem Tax
Groundwater Withdrawal Fee
General Fund
Interstate Water Banking ­ Nevada

953,446
389,190
396,499
111,098

Pinal AMA

Tucson AMA

Totals by Source of Funds

TOTAL

1,850,233

Since inception, the AWBA has focused it’s efforts on developing long­term storage credits for firming
purposes and the AWBA has identified 2,700,000 acre feet as reasonable to firm the CAP M&I
subcontracts over the next 100 years. This would be divided 58% to Maricopa County, 32% to Pima
County and 9% to Pinal County based on a pro­rata distribution to the three counties on the basis of
CAP M&I subcontracts. The AWBA has also identified 420,000 acre feet as reasonable to firm the
on­river communities over the next 100 years. In 2002, the AWBA adopted a resolution that identified
on­river firming as the highest priority of use for the general fund credits and established priorities for
other uses (Indian settlements, etc.). Consequently, all or part of the general fund credits could be
utilized to firm on­river M&I users. Table 5 illustrates the progress made by the AWBA towards
meeting it’s established goals.

15

Table 5. Identified Uses of Long­term Storage Credits Accrued through
December 2003 and Percentage of AWBA Goals Achieved
Location and Objective

Goal
(AF of Credits)

LTS Credits
Accrued (AF)

Percent of Goal
Achieved

1,566,000

742,734
113,181

47%
N/A

Pinal M&I Firming1
2
Pinal Groundwater Mgmt

243,000

80,661
218,667

33%
N/A

Tucson M&I Firming1
Tucson Groundwater Mgmt2

864,000

130,051

15%

420,000

396,499

94%5

61,098

5%

1

Phoenix M&I Firming
2
Phoenix Groundwater Mgmt

General Fund3
On­River M&I Firming4
Interstate Water Banking ­ NV

6

1,200,000

1

All three Active Management Areas have stated that withdrawal fees could be utilized in addition to 4¢ ad valorem tax
revenues for M&I firming if needed to reach firming goals.
2
Specific water management objectives have not yet been identified or quantified.
3
Specific uses of general fund credits have not been determined by the AWBA.
4
By resolution passed in 2002 the AWBA established on­river firming as the highest priority of use for credits accrued
through expenditure of general fund appropriations.
5
This percentage reflects full utilization of general fund credits and could change as other objectives are identified by the
AWBA.
6
Pursuant to the Agreement for Interstate Water Banking the AWBA agreed to use it’s best efforts to store this quantity
of water on behalf of the Southern Nevada Water Authority.

The average annual cost for the AWBA to obtain an acre­foot of long­term storage credit is presented
in Table 6. Table 6 illustrates that the unit cost per long­term storage credit has increased each year
the AWBA has been in operation with the exception of 2001. Increases are typically a function of
three primary factors: annual increases in the cost per acre­foot of water delivered, annual increases
in the cost of storage facilities and increased percentage of total water stored in USFs. In 2003, the
AWBA stored more water in USFs than in GSFs. Although earlier plans projected more storage in
USFs than GSFs, this was the first time since inception that the storage actually took place. It is
anticipated that the increasing trend in cost of developing credits will continue in the future as more
USFs become operational and water delivery and facility costs increase. However, the CAP policy
regarding recharge rate facilities that became effective in 2004 should help stabilize costs to some
extent.

16

Table 6. Average Annual Cost for the AWBA to Obtain a Long­term Storage
Credit1

Year

Credits

Funds Expended

Average Cost

% Stored in GSF:%
Stored in USF

1996

None

None

$0

0% : 0%

1997

296,987

$6,387,000

$21.51

85% : 15%

1998

202,542

$7,143,000

$35.27

68% : 32%

1999

232,142

$8,733,000

$37.61

68% : 32%

2000

272,122

$11,163,000

$41.02

60% : 40%

2001

269,687

$10,893,590

$40.39

62% : 38%

2002

255,000

$13,700,300

$53.732

64% : 36%

2003

200,327

$11,077,666

$55.30

47% : 53%

1

The information in this table was obtained from previous Annual Reports. Any differences between the
number of credits displayed here and the total cumulative number in Table 4 are due to the on­going
nature of the accounting process.
2
Average cost is for intrastate credits only.

17

Long­term Storage Credits Distributed or Extinguished by the Authority
The long­term storage credits developed by the AWBA to date have been identified as reserved for
four purposes: firming the post­1968 Colorado River municipal and industrial (M&I) entitlements;
firming the post­1968 M&I entitlements for entities outside the CAP service area; fulfilling the water
management objectives set forth in Chapter 2 of Title 45 (Arizona Revised Statutes); and for
interstate water banking purposes pursuant to agreements with Nevada. Credits for firming purposes
may be distributed or extinguished when the Colorado River system is deemed to be in a shortage or
if there is an operational disruption of the CAP. There were no shortages or unplanned CAP
operational problems, therefore, no credits were distributed or extinguished for these purposes in
2003. Credits may be distributed or exchanged for water management purposes upon request of the
director of ADWR. There were no requests made for distribution or extinguishment of credits for
water management purposes in 2003.
Under the 1999 amendments to the AWBA legislation, the AWBA is authorized to develop credits with
monies collected pursuant to water banking services agreements. In 2003, no credits were
developed or distributed under such agreements.
Interstate credits may be recovered and exchanged at the request of Nevada. In 2003, there was no
recovery of long­term storage credits on behalf of the SNWA 2.

2

The SNWA did request development of ICUA in 2003, however, changing circumstances led to withdrawal of that
request. For more information see discussion under “Interstate Issues” in the Activities and Projects Section.

18

Ten Year Plan for Calendar Year 2003
Introduction
Preparation of the ten year plan is statutorily mandated. The ten year plan must include a description
of any water banking activities the AWBA intends to undertake in addition to the three primary AWBA
functions of firming for M&I supplies, assisting in Indian water rights settlements, and fulfilling state
water management objectives. The ten year plan is presented in Table 7. The ten year plan must
also provide an analysis of the AWBA’s ability to complete those activities. This analysis is provided
in Table 8. The ten year plan is not a guarantee of future storage activities and is completed for
planning purposes only. In any given year, the AWBA’s activities are governed by the annual Plan.
The ten year plan for the year 2003 analyzes activity for the period 2005­2014 (Table 7) and was
derived using the information found in Appendices B through G. AWBA accounting for previous years
can be found in the 2003 Annual Report. AWBA staff developed the ten year plan based on the
following guiding principles:
1. The intent of the plan is to evaluate if the AWBA can engage in water banking activities beyond
the scope of the currently established AWBA role and to what extent.
2. The plan covers a ten year time period beginning with the next calendar year. For example, this
ten year plan covers the time period 2005­2014.
3. The plan will be updated annually based on current priorities of the AWBA.
4. The plan is an important tool to be utilized in development of the next year’s annual Plan of
Operation.

Ten Year Plan Components
The following factors are recognized to be important elements in developing the model used to
generate the ten year plan. Inclusion or exclusion of a specific factor or component of a factor was
based on whether the extent of the effect of the factor could be predicted over the planning period,
and whether the factor was anticipated to be at issue over the planning period.
1.

Storage Partners and Storage Capacity
The AWBA has 13 water storage permits for GSFs with a total storage capacity of 743,359
acre­feet per annum. Appendix C describes the storage partners, storage permits and
capacity available for use by the AWBA.
All of the permits associated with GSFs expire within this ten year plan. The AWBA’s storage
permits expire simultaneously with the partners’ facility permits. Consequently, any difficulty
on the part of the partners or the AWBA to obtain new permits could affect the ability of the
AWBA to maintain adequate storage capacity to fulfill water banking activities. Discussions
with ADWR recharge staff have indicated that there is typically no difficulty in obtaining new
permits for GSF facilities. Nonetheless, impacts of this nature cannot be predicted and are not
included in this ten year plan.

19

Table 7. Ten Year Plan
ARIZONA WATER BANKING AUTHORITY – 10 YEAR PLAN
2005 – 2014
(Acre­feet)

YEAR

(a)
CAP
Water
Avail
for
AWBA

(b)

(c)

(d)

(e)

(f)

(g)

CAP M&I Firming
(4¢ Tax)

Water
Management
(Withdrawal Fees)

General Fund

Indian
Settlement

Loaned Credits

Storage
for
Others

Delivered
Pre­
Plan(k)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

n/a
492,918
633,159
621,749
634,365
613,364
544,735
513,688
509,982
471,855
443,673

Credits

Delivered

1,153,376
234,531
283,117
322,191
325,775
299,796
199,206
195,501
192,085
188,110
183,786

216,638
257,635
292,868
296,030
272,598
182,013
178,626
175,504
171,878
167,941
3,365,107

Credits

Delivered

464,676
93,200
105,948
103,882
98,062
119,740
96,992
89,381
85,677
81,150
75,615

84,879
97,142
94,975
89,498
108,952
88,336
81,429
78,041
73,926
68,907
1,330,761

Credits

Delivered

Credits

Delivered

Credits

(h)

(i)

Interstate Banking

Water
Avail.

AWBA
Capacity
Avail.

396,499
0
0
0
47,993
45,906
43,938
42,095
40,377
38,756
37,230

0
0
0
44,823
42,887
41,059
39,346
37,750
36,243
34,824
673,431

FOOTNOTES:
(a) See Appendix B
(b) See Appendix D
(c) See Appendix E
(d) See Appendix F
(e) Currently no Indian settlement requirements identified for the AWBA
(f) Currently no requests for loaned credits
(g) Currently the AWBA is not providing banking services for others
(h) Available CAP Supplies minus AWBA intrastate delivery requirements
(i) Additional capacity may be needed to fully accommodate the opportunity for interstate banking
(j) See Appendix G
(k) Cumulative totals for 1997­2004; 2004 credits estimated based on projected deliveries

20

(j)

Credits
Earned
61,098

0
244,095
195,676
162,534
147,922
204,599
186,711
191,843
163,840
147,042

109,362
143,783
145,154
105,797
111,563
244,960
264,825
277,007
272,591
287,634

0
135,156
136,445
99,450
104,869
192,323
175,508
180,332
154,010
138,219
1,377,410

Table 8. AWBA Percentage of Goals Achieved through 2014

Location and Objective

Goal
(AF of Credits)

LTS Credits
Accrued (AF)

Percent of Goal
Achieved

1,566,000

2,550,7891
632,087

163%
N/A

Pinal M&I Firming
2
Pinal Groundwater Mgmt

243,000

196,832
576,099

81%
N/A

Tucson M&I Firming3
2
Tucson Groundwater Mgmt

864,000

617,485
122,576

71%
N/A

420,000

673,4316

160%7

1,200,0008

1,377,4109

115%

Phoenix M&I Firming
Phoenix Groundwater Mgmt2
3

General Fund4
On­River M&I Firming5
Interstate Water Banking ­ NV
1

The firming goal will be met in 2008.
Specific water management objectives have not yet been identified or quantified.
3
All three Active Management Areas have stated that withdrawal fees could be utilized in addition to 4¢ ad valorem tax
revenues for M&I firming if needed to reach firming goals.
4
Specific uses of general fund credits have not been determined by the AWBA.
5
By resolution passed in 2002 the AWBA established on­river firming as the highest priority of use for credits accrued
through expenditure of general fund appropriations.
6
The firming goal will be met in 2008.
7
This percentage reflects full utilization of general fund credits and could change as other objectives are identified by the
AWBA.
8
Pursuant to the Agreement for Interstate Water Banking the AWBA agreed to use it’s best efforts to store this quantity
of water on behalf of the Southern Nevada Water Authority.
9
The goal will be met in 2013.
2

The AWBA has nine water storage permits for USFs with a total storage capacity of 611,000
acre­feet per annum. The USF permit issued for the Pima Mine Road facility limits total
storage for the term of the permit to 500,000 acre­feet with the ability to request an
amendment to 600,000 acre­feet. This storage quantity limitation will not be a factor within this
ten year plan. The GRUSP permit is the only permit that expires within this planning period.
As previously described in the GSF discussion, any difficulty in obtaining new permits could
effect the capacity available to the AWBA. As the process of obtaining a new USF permit can
be more complex and extensive than obtaining a new GSF permit, the possibility of impact is
greater. Again, impacts of this nature cannot be predicted and are not included in the analysis
of this ten year plan.
2.

Recovery
This ten year plan does not include a recovery component because recovery for Colorado
River shortages, Indian firming or interstate purposes is not anticipated within the scope of this
ten year plan. Due to the on­going drought and public concern regarding reservoir levels, the
CAP has completed dry year scenario modeling of the Colorado River system. These model
21

runs show a small potential for shortage in 2011. However, due to projected M&I demand
levels, there will be no shortages to M&I users within the scope of this ten year plan, even with
the dry year hydrology used by CAP in modeling. Recovery for Indian firming purposes is also
not anticipated due to demand levels. However, the Indian Firming Technical Committee
continues to meet in 2004 as the issues of identification of water available for firming and
evaluation of costs associated with firming are discussed. Lastly, while there exists the
potential for requests for development of ICUA as occurred in 2003, recovery for interstate
purposes is not anticipated. If requests were made, the recovery would occur pursuant to
existing recovery well permits held by the CAWCD.
Although recovery is not anticipated within the scope of this ten year plan, the AWBA will
initiate discussions regarding recovery planning with the CAWCD to develop a general
recovery strategy and recovery principles. This will occur early in this ten year plan time period
in recognition of the CAP subcontractors’ need for long­range infrastructure planning.
3.

Water management objectives
The early activities of the AWBA were focused on achieving the goal of full utilization of
Arizona’s Colorado River allocation. In 2002, Arizona fully utilized its 2.8 million acre­foot
allocation. Additionally, the AWBA has focused its activities on meeting the firming goals and
has stored almost 1 MAF of credits to meet these goals. Consequently, the evaluation of water
management activities will become more complex as the available excess CAP water and
storage facility capacity becomes limited, new storage facilities are sited and AWBA’s funding
sources are impacted by economic factors.
Central Arizona Groundwater Replenishment District (CAGRD) Replenishment Reserve
Pursuant to statute, the CAGRD must develop a 20% replenishment reserve. The CAGRD
replenishment reserve shares co­equal priority for excess water with AWBA M&I firming.
However, the reserve has a higher priority for excess CAP water than the AWBA’s deliveries
for other non­firming purposes (i.e. water management). Therefore, a component for the
proposed replenishment reserve as well as the advance replenishment was included in the
model beginning in 2003.
The CAP Water Forecast Group
The group is composed of CAP, CAGRD, ADWR and AWBA staff and was formed to facilitate
consistency and understanding between the entities with regard to assumptions used for short­
and long­term Colorado River water supply and demand forecasts. Portions of this ten year
plan were developed using projections obtained from this group.
AWBA General Fund Appropriation
Since inception, the AWBA has received an annual general fund appropriation of $2 million.
To date, the AWBA has primarily utilized the money to augment the revenues generated in
Pinal County to develop credits to be used to firm on­river uses. It is recognized that the
economic factors resulting in the loss of the AWBA’s general fund appropriation will exist for
some time. Therefore, the ten year plan was developed with no general fund appropriation
through calendar year 2007. The model included a $2 million general fund appropriation for
the period 2008­2014.
22

4.

Modifications within CAP with regard to pricing and pool allocation
In May 2000, the CAWCD Board adopted a policy for marketing the non­Indian agriculture
(NIA) pool of excess water. This policy established a NIA pool of 400,000 acre­feet from 2004­
2016. The pool will decline to 300,000 acre­feet from 2017­2023 and to 225,000 acre­feet
from 2024­2030. This use will be the highest priority use for excess water. It is recognized
that this is a factor that could impact the AWBA’s ability to participate in recharge at
groundwater savings facilities, however, as the policy has not yet initiated it is difficult to predict
an effect. Therefore, only the 400,000 acre­foot pool concept was utilized in this ten year plan.
The CAWCD Board has also discussed the marketing of excess water for other users including
the CAGRD replenishment and replenishment reserve, incentive recharge programs, other
M&I uses and the AWBA. These discussions have centered on the recognition that policies
developed early on were intended to insure full utilization of CAP and Arizona’s Colorado River
allocation. As Arizona reached use of their full allocation in 2002, perhaps policies require
modification. In light of current discussions, this ten year plan included a component for
decreased availability of the incentive recharge pool.

5.

Participation in Indian settlements
One objective of the AWBA is assisting with the settlement of water rights claims by Indian
communities within Arizona. Settlements dealing with the CAP repayment and reallocation
would require the state to firm some NIA priority water for Indian settlements. In order to
achieve this, it is anticipated that the state will rely on the AWBA at some time within this ten
year planning horizon. However, this issue was not considered in this ten year plan pending
finalization of the Indian Firming Technical Committee process.

6.

New recharge facilities and/or expanded capacities at existing facilities
The AWBA is currently in the process of completing a revised inventory of existing storage
facilities in the state as required by A.R.S. § 45­2452. The revised inventory will be utilized in
developing future ten year plans.
The CAP has been active in the evaluation of locations for additional storage facilities. In
January 2002, the CAP initiated a regional feasibility study for sites in the East Salt River
Valley. Out of this study two sites were identified, with one more favorable site located on the
Queen Creek Wash. CAP is moving forward with design, land acquisition, and permitting of
the Superstition Mountain USF and anticipates this facility (designed for 80,000 acre­feet of
storage capacity) will be operational in mid­2006. The CAP also conducted a Western Arizona
Recharge Capacity Feasibility Study in 2002. Construction will begin on the Tonapah Desert
USF in the summer of 2004 and is anticipated to be operational by 2005, with 100,000 acre­
feet of storage capacity. The AWBA has recognized additional capacity available in Maricopa
County in this ten year period as a result of the anticipated construction of these facilities.
The SRP has applied to ADWR for a recharge facility permit for a project located in the west
valley near the confluence of the Agua Fria River and New River. The project has a planned
initial capacity of 30,000 acre­feet increasing to a maximum of 100,000 acre­feet. Storage at
this facility was not included in this ten year plan because of uncertainty regarding
23

development of an agreement between AWBA and SRP, cost of storage and availability of
capacity to the AWBA.

7.

Interstate banking
The ten year plan includes an interstate water banking component for Nevada but does not
include California.

Conclusion
The ten year plan is intended to serve as a guide to assist the AWBA in the development of the
Annual Plan of Operation (Plan). The AWBA is required to develop a Plan for activities to be
undertaken the following calendar year. As part of the Annual Report, the ten year plan is reviewed
and updated annually. Therefore, it is possible that the ten year plan may change significantly
depending on the goals set by the AWBA.

24

Appendices

25

Appendix A.
Colorado River Water Deliveries for Water Banking Purposes for Calendar Year 2003 by
Partner and Active Management Area
Phoenix Active Management Area
Partner

Quantity of Water (Acre­feet)

Agua Fria Recharge Project
Chandler Heights Citrus Irrigation District
Granite Reef Underground Storage Project
Hieroglyphic Mountains Recharge Project
Maricopa Water District
New Magma Irrigation and Drainage District
Queen Creek Irrigation District
Roosevelt Water Conservation District
Salt River Project

11,989
929
22,599
19,944
4,600
22,378
765
12,500
10,354

Pinal Active Management Area
Partner

Quantity of Water (Acre­feet)

Central Arizona Irrigation and Drainage District
Hohokam Irrigation and Drainage District
Maricopa­Stanfield Irrigation and Drainage District

5,500
27,075
10,950

Tucson Active Management Area
Partner
Avra Valley Recharge Project
B.K Wong
Central Avra Valley Storage and Recovery Project
Kai­Red Rock
Lower Santa Cruz Recharge Project
Pima Mine Road Recharge Project

Quantity of Water (Acre­feet)
3,539
1,527
7,660
3,092
30,380
17,315

APPENDIX B
CAP DELIVERY SCHEDULE
(Acre­feet)
CAP Demands
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

(1)
(2)
(3)
(4)
(5)
(6)

Average
Year
Supply (5)

Available
for
AWBA (6)

M&I (1)

Indian (2)

Ag (3)

Total(4)

340,282

99,800

400,000

1,032,082

1,525,000

492,918

374,541

102,300

400,000

891,841

1,525,000

633,159

385,951

102,300

400,000

903,251

1,525,000

621,749

368,835

106,800

400,000

890,635

1,525,000

634,365

374,836

121,800

400,000

911,636

1,525,000

613,364

422,937

142,328

400,000

980,265

1,525,000

544,735

434,384

161,928

400,000

1,011,312

1,525,000

513,688

420,625

179,393

400,000

1,015,018

1,525,000

509,982

433,652

204,493

400,000

1,053,145

1,525,000

471,855

461,834

204,493

400,000

1,081,327

1,525,000

443,673

Includes M&I, CAGRD, CAGRD replenishment reserve, Indian M&I lease and
M&I incentive water
From settlement discussions
Based on current agricultural pool policy, includes 32,537 for Harquahala
Includes secondary excess uses of 192,000 AF in 2005 and 15,000 AF per
annum 2006 through 2014.
Based on average year delivery of 1,600,000 AF per year minus losses
Average year supply minus CAP demands; AWBA last priority for intrastate use

APPENDIX C
STORAGE FACILITIES AVAILABLE TO THE AWBA1
(as used in the 10 year plan)

AMA and
Facility Type

Facility
Permit
Expiration

Facility
Permitted
Capacity
(Acre­feet)

Capacity
Available
to AWBA(2)
(Acre­feet)

Year
Water
Last
Stored

Volume of
Water Last
Stored
(Acre­feet)

(3)

PHOENIX – GSF
New Magma IDD
12/2007
54,000
45,000
2003
Queen Creek ID
12/2004
28,000
3,000
2003
Salt River Project
12/2005
200,000
20,000
2003
PHOENIX – USF
GRUSP
12/2010
200,000
50,000
2003
Agua Fria Recharge Project
05/2019
100,000
40,000
2003
Hieroglyphic Mtns.
12/2021
35,000
26,000
2003
PINAL – GSF
Central Arizona IDD
12/2007
110,000
15,000
2003
Hohokam IDD
12/2007
55,000
50,000
2003
Maricopa­Stanfield IDD
12/2004
120,000
50,000
2003
TUCSON – GSF
Kai – Red Rock
12/2006
11,231
3,000
2003
TUCSON – USF
Avra Valley
03/2018
11,000
7,000
2003
CAVSARP
07/2021
60,000
40,000 (5)
2003
Lower Santa Cruz
09/2019
50,000
40,000
2003
Pima Mine Road
09/2020
30,000
28,000
2003
Other Facilities Currently or Anticipated to be Available to the AWBA
(4)
Vidler – USF
09/2020
100,000
80,000
(4)
West Maricopa Combine ­ USF
05/31/2021
25,000
(6)
Tonopah Desert – USF
100,000
100,000
Superstition Mountain (6)
80,000
40,000
SRP New River – USF (6)

22,378
765
10,354
22,599
11,989
19,944
5,500
27,075
10,950
3,092
3,539
7,660
30,380
17,315
0
0
n/a
n/a
n/a

Footnotes:
(1) As additional facilities are developed, they will be included in future plans. However, it should
be recognized that availability of water and funding will likely be the limiting factors in future
plans.
(2) This does not reflect the actual “permitted” volume for these facilities, instead for the purposes
of this plan, staff relied on average historical storage volumes and potential for future storage.
(3) The AWBA holds water storage permits at Chandler Heights Citrus ID (3KAF), Maricopa Water
District (18KAF), Roosevelt Water Conservation District, BKW Farms (16KAF), Kai­Avra
(12KAD) and the Tonopah (15KAF) GSFs. These were not considered significant uses in this
10 year outlook.
(4) No deliveries to date.
(5) 20,000 acre­feet of additional capacity anticipated being available beginning in 2003.
(6) Not yet permitted.

APPENDIX D
Credits Developed for M&I Firming Utilizing the 4¢ Tax (1)
(Acre­feet)
Groundwater Savings
Capacity Capacity Credits
Available4
Used
Earned

Year

PHOENIX AMA2

3

Pre­plan
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

72,000
69,746
72,000
72,000
71,429
70,393
69,196
69,100
67,686
66,300

18,720
18,134
18,720
18,720
18,571
18,302
17,991
17,898
16,665
14,520

Groundwater Savings
Capacity Capacity Credits
Available4
Used
Earned

Year

PINAL AMA2

3

Pre­plan
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Year

TUCSON AMA2

481,832
16,848
16,321
16,848
16,848
16,714
16,472
16,192
16,109
14,998
13,068
642,250

Pre­plan3
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

115,000
115,000
115,000
115,000
115,000
115,000
115,000
115,000
115,000
115,000

10,718
11,502
12,392
11,733
11,219
10,742
10,298
9,884
9,496
9,132

98,284
9,861
10,582
11,400
10,795
10,322
9,883
9,474
9,093
8,736
8,402
196,832

Groundwater Savings
Capacity Capacity Credits
Available4
Used
Earned
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000

0
0
0
0
0
0
0
0
0
0

3,610
0
0
0
0
0
0
0
0
0
0
3,610

Underground Storage
Capacity
Capacity
Credits
Available4
Used
Earned
116,000
210,155
246,933
252,024
251,912
251,415
250,132
252,717
251,024
247,345

116,000
210,155
246,933
252,024
227,392
128,289
126,063
123,811
122,124
120,955

402,168
104,400
189,140
222,240
226,822
204,652
115,460
113,456
111,430
109,912
108,859
1,908,539

Underground Storage
Capacity
Capacity
Credits
4
Available
Used
Earned
­
­
­
­
­
­
­
­
­
­

­
­
­
­
­
­
­
­
­
­

­
­
­
­
­
­
­
­
­
­

Underground Storage
Capacity
Capacity
Credits
Available4
Used
Earned
89,093
92,946
92,294
93,604
93,665
103,289
112,474
113,329
101,897
110,620

89,093
43,325
44,146
43,298
42,614
41,873
41,149
40,492
39,825
39,179

167,482
85,529
41,592
42,380
41,566
40,909
40,198
39,503
38,872
38,232
37,612
613,875

Footnotes:
(1) Developing M&I firming credits has the first priority for water and storage capacity.
(2) M&I firming targets are Phoenix AMA­1.56 MAF, Tucson AMA­810 KAF, and Pinal AMA 230 KAF
(3) Cumulative totals for 1997­2004; 2004 credits estimated based on projected deliveries.
(4) The capacity available is based on the capacity remaining at the USFs and GSFs after all higher priority
demands have been met.

APPENDIX E
Credits Developed for Meeting AMA Water Management Goals
Utilizing Withdrawal Fees (1)
(Acre­feet)
Groundwater Savings
Capacity
Capacity
Credits
Available3
Used
Earned

PHOENIX AMA

Year
Pre­plan2
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

PINAL AMA

53,280
51,612
53,280
53,280
52,857
52,091
51,205
50,942
47,431
41,327

104,658
47,952
46,451
47,952
47,952
47,571
46,882
46,085
45,848
42,688
37,195
561,234

Groundwater Savings
Capacity
Capacity
Credits
Available3
Used
Earned

Year
Pre­plan2
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

104,282
103,498
102,608
103,267
103,781
104,258
104,702
105,116
105,504
105,868

34,920
36,774
38,876
36,117
33,883
31,826
29,929
28,174
27,034
25,964

278,481
32,127
33,832
35,766
33,228
31,173
29,280
27,534
25,920
24,871
23,887
576,099

Groundwater Savings
Capacity
Capacity
Credits
Available3
Used
Earned

Year

TUCSON AMA

53,280
51,612
53,280
53,280
52,857
52,091
51,205
51,202
51,021
51,780

2

Pre­plan
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000

5,000
5,000
5,000
0
0
0
0
0
0
0

8,084
4,800
4,800
4,800
0
0
0
0
0
0
0
22,484

Underground Storage
Capacity
Capacity
Credits
Available3
Used
Earned
0
0
0
0
24,521
123,126
124,069
128,906
128,899
126,390

0
0
0
0
24,521
6,296
1,795
413
834
2,756

37,900
0
0
0
0
22,069
5,666
1,615
372
750
2,481
70,853

Underground Storage
Capacity
Capacity
Credits
Available3
Used
Earned
­
­
­
­
­
­
­
­
­
­

­
­
­
­
­
­
­
­
­
­

0
­
­
­
­
­
­
­
­
­
­
0

Underground Storage
Capacity
Capacity
Credits
Available3
Used
Earned
0
49,621
48,148
50,306
51,051
61,416
71,325
72,837
62,072
71,441

0
12,561
6,726
8,665
8,479
6,779
6,453
6,148
5,852
5,568

35,552
0
12,059
6,457
8,318
8,140
6,507
6,195
5,902
5,617
5,345
100,092

(1) Withdrawal fees are used to develop credits for AMA water management goals after the 4¢ tax is utilized.
(2) Cumulative totals for 1997­2004; 2004 credits estimated based on projected deliveries.
(3) The capacity available is based on the capacity remaining at the USFs and GSFs after all higher priority demands
have been met and water is stored using the 4¢ tax as illustrated in Appendix D.

APPENDIX F
Credits Developed Utilizing Annual General Fund Appropriations(1,2)
(Acre­feet)

PHOENIX AMA

Year
Pre­plan3
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

PINAL AMA

Year
Pre­plan3
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

TUCSON AMA

Year
Pre­plan3
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Groundwater Savings
Capacity
Capacity
Credits
Available
Used
Earned
0
0
0
0
0
0
0
260
3,590
10,452

0
0
0
0
0
0
0
0
0
0

37,964
0
0
0
0
0
0
0
0
0
0
37,964

Groundwater Savings
Capacity
Capacity
Credits
Available
Used
Earned
69,362
66,724
63,733
67,149
69,897
72,431
74,773
76,942
78,470
79,904

0
0
0
31,250
29,586
28,047
26,622
25,297
24,064
22,913

296,814
0
0
0
28,750
27,219
25,804
24,492
23,273
22,139
21,080
469,571

Groundwater Savings
Capacity
Capacity
Credits
Available
Used
Earned
0
0
0
5,000
5,000
5,000
5,000
5,000
5,000
5,000

0
0
0
5,000
5,000
5,000
5,000
5,000
5,000
5,000

2,306
0
0
0
4,800
4,800
4,800
4,800
4,800
4,800
4,800
35,906

Underground Storage
Capacity Capacity
Credits
Available
Used
Earned
0
0
0
0
0
116,830
122,275
128,493
128,066
123,634

0
0
0
0
0
0
0
0
0
0

21,973
0
0
0
0
0
0
0
0
0
0
21,973

Underground Storage
Capacity Capacity
Credits
Available
Used
Earned
­
­
­
­
­
­
­
­
­
­

­
­
­
­
­
­
­
­
­
­

­
­
­
­
­
­
­
­
­
­

Underground Storage
Capacity Capacity
Credits
Available
Used
Earned
0
37,060
41,422
41,641
42,572
54,637
64,872
66,689
56,221
65,873

0
0
0
11,743
11,321
10,891
10,473
10,080
9,692
9,316

37,442
0
0
0
11,273
10,868
10,455
10,054
9,677
9,305
8,944
108,018

Footnotes:
(1) General Fund appropriations are used to supplement the 4¢ tax and withdrawal fees in AMAs where funding is
a constraint.
(2) The on­river M&I firming target is 420 KAF.
(3) Cumulative totals for 1997­2004; 2004 credits estimated based on projected deliveries.

APPENDIX G
Potential Credits Developed for Interstate Water Banking(1)
(Acre­feet)
Year

Available CAP
Supplies (2)

Available
AWBA
Capacity(3)

Remaining
Supply (4)

Interstate
Credits (5)

Pre­plan
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

0
244,095
195,676
162,534
147,922
204,599
186,711
191,843
163,840
147,042

109,362
143,783
145,154
105,797
111,563
244,960
264,825
277,007
272,591
287,634

0
100,312
50,522
56,736
36,358
0
0
0
0
0

61,098
0
135,156
136,445
99,450
104,869
192,323
175,508
180,332
154,010
138,219

(1) Interstate Banking is the last priority of the AWBA.
(2) Water available for Interstate Banking is calculated by subtracting the water delivered and
stored by individual subcontractors, contractors, and the AWBA for intrastate water banking
from the Total Available Supply (see Appendix B).
(3) Reflects the unused capacity available to the AWBA at USFs and GSFs in the Phoenix,
Pinal, and Tucson AMAs as well as capacity available from other storage facilities permitted
by the AWBA outside of the AMAs. Additional capacity may be available at individual facilities
based on the utilization by individual water storage permit holders
(4) Remaining supplies after subtracting the water delivered and stored by individual

subcontractors, contractors, and the AWBA for intrastate water banking and water delivered
for interstate water banking.
(5) Based on the Available Supplies or the Available AWBA Capacity, whichever is less,

resulting stored water multiplied by an average 6% cut and loss factor.