TO: Arizona Water Banking Authority Members FROM: Tim Henley, Manager SUBJECT: Amended 2005 Annual Plan of Operation DATE: April 11, 2005 AUTHORITY MEMBERS Herbert R. Guenther, Chairman Charles L. Cahoy, Secretary Maureen R. George John Mawhinney William K. Perry EX OFFICIO MEMBERS Senator Linda Binder Representative Jake Flake As approved by the Authority at the March 16, 2005 meeting, the 2005 Annual Plan of Operation (Plan) has been amended to reflect changes made to the original Plan due to re­market requests by AWBA partners and to include an interstate water banking component. To that end, attached to this memorandum are a revised Table 2 and a discussion regarding interstate water banking. These two pages replace pages 8 and 9, respectively, in the original Plan. These changes constitute the Amended 2005 Annual Plan of Operation. Amended Table 2 WATER BANKING AUTHORITY ARIZONA Water Delivery Schedule Calendar Year 2 0 0 5 (ACRE­FEET) Jan 1 Estimated CAP Deliveries + Losses : Feb Mar 31,300 28,720 Apr May Jun Jul Aug Sep Oct Nov Dec Total 45,612 118,600 128,240 178,460 180,362 147,069 99,982 78,693 50,681 49,767 1,137,486 15,000 55,000 55,000 60,000 60,000 457,360 AMA TOTAL 2,500 2,416 1,500 10,000 0 2,500 1,600 800 AMA TOTAL 1,500 20,000 59,062 10,000 6,800 5,000 10,000 533 35,084 7,645 4,000 84,373 27,500 35,000 9,000 4,310 9,500 45,063 9,000 56,845 32,675 3,289 5,000 10,000 17,645 6,939 34,200 11,447 1,000 161,218 119,237 (M&I, Indian, Ag Pool, Incentive Recharge) 2 Available Excess CAP Capacity for AWBA: AWBA ­­ Recharge Sites : 6,600 6,760 30,000 49,500 27,000 27,500 65,000 Permitted Requested Capacity Capacity (AF) (AF) PHOENIX A M A : 3 4 5 USF 6 8 9 10 GSF GRUSP HIEROGLYPHIC MTN. AGUA FRIA TONOPAH CHCID NEW MAGMA QUEEN CREEK SRP 200,000 35,000 100,000 150,000 3,000 54,000 28,000 200,000 10,000 6,800 5,000 10,000 533 35,084 7,645 4,000 110,000 44,000 55,000 13,810 120,000 54,063 0 0 0 0 0 0 0 0 0 100 0 0 0 0 0 0 0 100 0 0 50 0 0 0 0 0 1,000 0 50 0 0 0 0 0 1,000 0 50 4,000 0 0 0 0 0 0 100 1,500 0 0 0 0 0 0 75 3,000 0 0 0 0 0 0 75 6,000 2,285 800 2,500 0 0 0 50 6,500 2,000 800 2,500 1,767 0 0 83 6,000 800 800 2,500 2,417 1,500 0 0 5,584 960 800 PINAL A M A : 11 GSF CAIDD 12 HOHOKAM 13 MSIDD 0 0 0 0 103 482 5,600 2,625 63 0 1,960 5,780 6,000 1,000 8,000 0 7,343 1,197 9,000 0 7,300 11,000 0 4,300 5,500 0 8,050 1,000 4,310 0 690 5,120 4,420 TUCSON A M A : 14 USF AVRA VALLEY 11,000 3,289 15 CAVSARP 60,000 15,000 16 PIMA MINE ROAD 30,000 24,584 17 LOWER SANTA CRUZ 30,000 45,647 KAI – RED ROCK 11,231 1,000 18 GSF 19 T O T A L (USF + GSF): 20 Remaining CAP Capacity: 402 338 338 0 0 500 2,185 2,040 2,040 3,847 3,800 3,800 0 500 1,526 674 3,800 0 338 338 338 300 247 1,000 0 4,650 0 3,880 AMA TOTAL 0 650 3,550 1,450 500 2,200 500 2,200 2,000 2,200 2,000 2,200 2,000 2,040 2,000 1,540 2,039 1,700 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 0 0 0 0 0 0 0 500 500 0 0 0 6,600 6,760 14,388 15,955 28,090 22,738 24,713 37,048 36,110 24,957 28,800 34,296 0 0 612 14,045 21,410 4,262 2,787 27,952 18,890 30,043 31,200 25,704 176,905 INTERSTATE WATER BANKING Following approval of the 2005 Plan in December, there was a significant change in the water demands of many CAP customers resulting in a number of requests for remarketing of scheduled water. As a result of the remarket requests, CAP informed the AWBA that more than 300,000 acre feet of water was available in 2005. In recognition of the financial constraints associated with intrastate storage in the Tucson and Pinal AMA, the 2005 Plan was amended to include interstate water banking in an effort to assist CAP and its customers fulfill the remarket requests. As an added incentive to encourage groundwater savings facilities to increase their use of CAP water, the AWBA reduced the cost share portion of interstate water taken in 2005 to $26 an acre foot. This was done in recognition of the extreme importance of full utilization of Arizona’s Colorado River entitlement. The quantity of water projected for interstate storage in 2005 is 161,218 acre feet as shown in Table 2. However, it should be borne in mind that facilities that agreed to accept additional water for interstate storage will not receive interstate water until such time as the quantity of intrastate water agreed upon in the original Plan has been delivered. Further, if facility capacity becomes available later in the year, additional storage may be done to assist the CAP in their attempts to insure that Arizona fully utilizes its 2.8 MAF entitlement. Therefore, the total quantity of interstate storage is somewhat dynamic but cannot exceed a quantity that would result in more than 200,000 acre feet of long­term storage credits in any year pursuant to the Storage and Interstate Release Agreement (SIRA) among the United States acting through the Secretary of the Interior, the AWBA, the Southern Nevada Water Authority (SNWA) and the Colorado River Commission of Nevada. There exists the possibility that long­term storage credits previously earned by the CAP on behalf of Metropolitan Water District of Southern California may be available for purchase by the AWBA to meet the obligation to the SNWA. If credits become available, they will be purchased and transferred into the SNWA account to the maximum amount permissible under the SIRA.