ARIZONA WATER BANKING AUTHORITY ANNUAL PLAN OF OPERATION 2007 Herbert R. Guenther, Chairman December 2007 The Arizona Water Banking Authority Summary The Arizona Water Banking Authority (AWBA; Water Bank) was created in 1996 to store the unused portion of Arizona’s annual allocation of the Colorado River. Until the AWBA was created, Arizona had not used its full 2.8 million acre-foot share of Colorado River water. Leaving a portion of Arizona’s water in the Colorado River was a lost opportunity; the AWBA has seized this opportunity to further secure dependable water supplies necessary to ensure the state’s long-term prosperity. The Water Bank stores unused Arizona Colorado River water to meet future needs for: Firming (to secure) adequate water supply to municipal and industrial users in the Central Arizona Project service area and along the Colorado River in times of shortages; Meeting the management plan objectives of the Arizona Groundwater Code; Assisting in the settlement of Indian water rights claims; and Assisting Nevada and California through interstate water banking. Each year, the AWBA pays the delivery and storage costs to bring Colorado River water into Central and Southern Arizona through the Central Arizona Project canal. The water is stored underground in existing aquifers (direct recharge) or is used by irrigation districts in lieu of pumping groundwater (indirect or in lieu recharge). For each acre-foot stored, the AWBA accrues credit that can be redeemed in the future when Arizona’s communities or neighboring states need this backup water supply. The money that funds the AWBA and, specifically, water storage for the benefit of Arizona (intrastate storage) comes from three sources that are either from existing revenue sources or from fees charged to those benefiting directly from the stored water. Restrictions on the ways these monies can be used depend on the source of the monies, which currently include: Fees for groundwater pumping currently collected within the Phoenix, Pinal and Tucson Active Management Areas (AMA). These monies can only be used to benefit the AMA in which the fees are collected. A four cent ad valorem property tax collected in the three county CAP service area. These monies can only be used to benefit the county in which the tax is levied. A general fund appropriation received at the discretion of the Legislature. Another source of funding is used for water storage to aid Nevada (interstate storage) and is received pursuant to an Agreement for Interstate Water Banking. In 2007, the Water Bank will store approximately 376,000 acre-feet at a cost of $37.8 million. Of that amount, 249,000 acre-feet are for intrastate storage at a cost of $14 million and 127,000 acre-feet are for interstate storage at a cost of $23.8 million. A general fund appropriation of $13.5 million received from the Legislature in 2006 specifies that it will be used for Indian firming. The AWBA will begin spending this 1 money in 2008 after the enforceability date (date obligations begin) of the Arizona Water Settlements Act. To date, the AWBA has stored approximately 2.81 million acre-feet at a cost of $178.8 million; 2.42 million acre-feet for intrastate storage at a cost of $107 million and 386,000 acre-feet for interstate storage at a cost of $71.8 million. INTRODUCTION The Arizona Water Banking Authority (AWBA) was created to store Arizona’s unused Colorado River water entitlement in western, central and southern Arizona to develop long-term storage credits to: (1) firm existing water supplies for municipal and industrial users (M&I) along the Colorado River and Central Arizona Project (CAP) M&I users during Colorado River shortages or CAP service interruptions; (2) help meet the water management objectives of the Groundwater Code; and (3) assist in the settlement of American Indian water rights claims. Changes in the AWBA’s enabling legislation in 1999 authorized the AWBA to participate in other water banking activities, however, no new water banking activities are included in this annual Plan of Operation. The AWBA’s storage (or banking) of water is accomplished through the Underground Water Storage, Savings and Replenishment Act (UWS) enacted by the Arizona legislature in 1994 and administered by the Arizona Department of Water Resources (ADWR). Through this program, the AWBA stores renewable water that currently has no immediate, direct use in either underground storage (USF) or groundwater savings (GSF) facilities. A USF is a facility that allows water to physically be added to an aquifer. A GSF is a facility where the renewable water is used in place of groundwater, creating a groundwater savings. The UWS program mandates the accounting of the renewable water stored and the development of long-term storage credits. The longterm storage credits developed by the AWBA will then be utilized by the AWBA when future conditions warrant. The use of credits for the three objectives listed above may differ and is dependent on the source of funds utilized to develop them. The AWBA is required by statute to approve an annual Plan of Operation (Plan) by January 1 of each year. Prior to approval of the final Plan, the AWBA is required to solicit public comment. This is achieved by presenting a draft of the Plan to the Groundwater Users Advisory Councils (GUAC) for the Phoenix, Pinal and Tucson Active Management Areas (AMA) and to the county board of supervisors for counties outside of the AMA’s if water storage is proposed there within the Plan. Presentation of the draft Plan must be made at publicly noticed open meetings at which members of the public are permitted to provide comment. The AWBA also accepts public comment in writing up to the time the final draft Plan is presented for approval. The Plan is intended to govern the operations of the AWBA over the course of the entire calendar year. The AWBA recognizes that day-to-day adjustments in the normal operations of the CAP or the individual storage facilities caused by maintenance and fluctuations in the weather may affect the actual monthly deliveries made on behalf of the AWBA. If the adjustments do not impact the overall annual delivery projections contained in the Plan, they will not be deemed modifications to the Plan and will be addressed by staff and reported to the AWBA members on an as-needed basis. 2 2006 PLAN OF OPERATION In 2006, the AWBA’s tenth full year of operation, the AWBA recharged approximately 365,000 acre-feet of Colorado River water and Arizona’s total use of Colorado River water is forecast to be 2.8 million acre-feet by the Bureau of Reclamation data dated December 14, 2006 (see Figure 1). ARIZONA USES (Million Acre Feet) 3.0 0.37 Diversion 0.29 0.21 2.0 1.11 1.18 1.01 1.0 1.38 1.26 1.11 0.0 2004 2005 2006 Year CAP OTHER BANK Figure 1 The Bureau of Reclamation forecasts total use of Colorado River water in the Lower Basin to be 7.40 million acre-feet in 2006 (see Figure 2). LOWER BASIN USES (Million Acre Feet) Diversion 9.00 0.30 0.28 0.29 2.78 2.33 2.81 4.32 4.33 4.29 6.00 3.00 0.00 2004 2005 2006 Year CALIFORNIA ARIZONA Figure 2 3 NEVADA The AWBA recharged water at both USFs and GSFs in 2006. Table 1 lists the AWBA's recharge partners for 2006, the amount of water that can be stored under each AWBA water storage permit, and the amount of water delivered to the facility by the AWBA in 2006. Table 1 values are based on actual deliveries through November with December’s deliveries estimated. The amount of water delivered to a facility is always greater than the amount of long-term storage credits earned by the AWBA because credits are computed by subtracting approximately 3-5% for losses and 5% for a "cut to the aquifer" from the total annual deliveries. Final figures for credits earned generally become available in the middle of the following year after review of the annual reports filed with the ADWR and are reported in the AWBA’s Annual Report. Table 1 AMA Phoenix Pinal Tucson Facility Agua Fria (CAP) Hieroglyphic Mtn. (CAP) Tonopah Desert (CAP) Tonopah Desert- Interstate Chandler Hts Citrus ID Queen Creek ID Gila River Indian IDD CAIDD CAIDD Interstate Hohokam IDD Hohokam Interstate MSIDD MSIDD Interstate Gila River Indian IDD Avra Valley (CAP) CAVSARP Lower Santa Cruz (CAP) LSC Interstate Pima Mine Road (CAP) PMR Interstate Type Permit Capacity USF USF USF (acre-feet) 100,000 35,000 150,000 GSF GSF GSF GSF 3,000 28,000 37,520 110,000 GSF 55,000 GSF 120,000 GSF USF USF USF 18,480 11,000 60,000 50,000 USF 30,000 Total 819,231 Amount Delivered (acre-feet) 9,909 10,324 101,127 17,308 218 1,700 12,525 3,300 26,135 3,300 34,700 3,300 70,506 6,169 5,513 11,000 7,500 21,439 5,732 13,423 365,128 The Plan as originally approved, was scheduled to deliver approximately 347,000 acrefeet of water. The Plan was amended in August to reflect the AWBA’s new partnership with the Gila River Indian Irrigation and Drainage District (GRIIDD) and to include deliveries to the GRIIDD GSF. Since the GRIIDD GSF is located in both the Phoenix and Pinal AMAs, a water storage permit was issued for each AMA for accounting purposes. In order to deliver water to the GRIIDD, a portion of the Pinal AMA intrastate deliveries previously scheduled for the AWBA’s three non-Indian GSF partners, was shifted to the GRIIDD GSF and interstate water was in turn used to replace the water originally scheduled for the three districts. The Amended Plan also included additional interstate deliveries to the Pinal AMA GSFs. As a result, the Amended Plan proposed to deliver 419,500 acre-feet of water with 219,700 acre-feet for intrastate deliveries and 199,800 acre-feet for interstate deliveries. Heavy summer rains resulted in less water deliveries than planned to some facilities, yet overall deliveries were higher than the 4 original Plan. The AWBA delivered approximately 365,000 acre-feet of water in 2006: 182,000 acre-feet for intrastate banking and 183,000 acre-feet for interstate banking. Figure 3 shows the acre-foot breakdown between GSFs and USFs for 2006 and a comparison between 2006 and previous years. RECHARGE BY TYPE (Million Acre Feet) 0.40 Deliveries 0.30 0.20 0.17 0.20 0.08 0.10 0.16 0.13 0.12 0.00 2004 2005 2006 Year GROUNDWATER SAVINGS UNDERGROUND STORAGE Figure 3 2007 PLAN OF OPERATION For 2007, the AWBA will store approximately 376,000 acre-feet of water. This represents 249,000 acre-feet for intrastate banking and 127,000 acre-feet for interstate banking. Water storage will be occurring in facilities from all three counties. When developing a Plan of Operation, the AWBA evaluates four critical factors: (1) the amount of unused water available to the AWBA for delivery; (2) the CAP capacity available to the AWBA for the delivery of unused water; (3) the funds available and the costs required to deliver the unused water; and (4) the capacity available for use by the AWBA at the various recharge facilities. In addition to these critical factors, the AWBA takes into consideration recommendations made by the Groundwater Users Advisory Councils (GUAC) of the three AMAs regarding water management objectives and priorities for storage. 5 I. Water Availability The factor of water availability consists of two parts: (1) the amount of water available on the Colorado River for diversion by the CAP within Arizona’s allocation; and (2) the amount of CAP water available for delivery to the AWBA under the existing pool structure. The Bureau of Reclamation distributed the Annual Operating Plan (AOP) for water year 2007 to the states in December of 2006. The 2007 AOP stated that the Partial Domestic Surplus condition is the criterion governing operation of Lake Mead. Under this declaration, there are 2.8 million acre-feet of water available for use within Arizona. The Bureau of Reclamation does not anticipate that there will be any unused state apportionment available in 2007. Arizona’s on-river use is forecast to be 1.2 million acre-feet, leaving 1.6 million acre-feet available for diversion by CAP. The amount of water available to be diverted by the CAP within Arizona’s 2.8 million acre-foot allocation was not a limiting factor in this Plan. With respect to availability of CAP water, the AWBA purchases water from the category that is termed excess water. Excess water is generally recognized to be all water available for delivery through the CAP, regardless of Secretarial declaration of condition, in excess of the quantities scheduled under long-term contracts and subcontracts. The availability of excess water is determined on an annual basis. Pursuant to current CAP policy, the AWBA has available to it any water not requested by another entity within Arizona. The AWBA shares an equal priority for water for municipal and industrial (M&I) firming with the Central Arizona Groundwater Replenishment District. Even though there continues to be a great deal of interest in the excess water by higher priority users, there remains sufficient excess water for AWBA’s purposes. II. Available Funds The AWBA has significantly reduced funds available in 2007 in all of the AWBA Fund accounts. The AWBA has $3.6 million available from ad valorem taxes previously collected in Maricopa County. In addition to the Maricopa ad valorem taxes, the AWBA will only have the withdrawal fees collected in 2007 with some carryover from 2006 available for use in this Plan for intrastate storage. The CAWCD Board resolved to continue to retain the county ad valorem property taxes collected and not transfer those revenues to the AWBA Fund. While the property tax revenues retained by CAP can be used to offset the cost of AWBA water deliveries in the tri-county CAP service area, those funds are not shown in the AWBA fund accounts. The impact of availability of funds in developing the Plan differs by geographic location. Within the Phoenix AMA/Maricopa County, there were adequate revenues to fund the Plan. In the Pinal AMA/Pinal County and in Tucson AMA/Pima County, the availability of funds was a limiting factor in this Plan. However, funds are available from the Nevada agreement to utilize additional capacity in both those areas. The total amount of intrastate revenue available in the AWBA Fund in 2007 is approximately $22 million. This amount includes (1) carryover from previous years in the Maricopa County ad valorem account, (2) withdrawal fees projected 6 for March of 2007, including some carryover from 2006, and (3) general fund appropriations. Of that amount, $5.8 million is available for the Phoenix AMA, and approximately $560,000 and $1.9 million are available for the Tucson and Pinal AMAs, respectively. A general fund appropriation of $13.5 million is also included, however, expenditure of this fund is limited to meeting the State’s firming obligation under the Arizona Water Settlements Act. For interstate banking, there is approximately $39.9 million available in the AWBA Fund. There are additional funds available at CAP for intrastate banking in the form of the retained ad valorem property tax revenues. Estimated CAP ad valorem tax balances available for 2007 are: Maricopa County ($50.3 million); Pima County ($6.35 million); and Pinal County ($699,000). III. Available Storage Facility Capacity AWBA staff conferred with facility operators to discuss their delivery schedules and their continued interest in participating with the AWBA. These discussions confirmed that there was significant interest in partnering with the AWBA and there was substantial permitted recharge capacity but, as in the past, previous commitments to other partners somewhat limited the availability of both the GSFs and the USFs to the AWBA. For 2007, several partners that had previously stored water for the AWBA opted again not to store because they found other partners to utilize their facilities. The two major partners that opted not to store for the AWBA are Salt River Project and New Magma IDD. The AWBA still has sufficient capacity to meet anticipated needs. IV. Table 2 The Water Delivery Schedule (Table 2) identifies the AWBA’s partners for 2007 and the amount of water scheduled to be recharged. The second column in this section identifies the AWBA’s water storage permit capacities for each facility based on the facility permits. The capacity available does not always equal the storage permit capacity because the storage facility operators may have agreements with other storage partners. 7 Table 2 Water Delivery Schedule Calendar Year 2007 (Acre-feet) Permitted Capacity (AF) May Jun Jul Aug Sep Oct Nov Dec 0 0 0 0 6,000 0 0 0 0 0 10,000 0 0 0 0 0 12,000 0 0 0 0 0 12,000 0 0 0 0 0 12,000 0 0 0 0 0 12,000 0 0 0 0 1,755 13,000 0 0 2,700 0 2,600 10,000 0 0 2,700 0 2,600 12,000 0 0 50 0 0 0 0 0 50 0 0 0 0 0 50 0 0 0 0 0 100 0 0 0 0 0 75 0 0 0 0 0 75 0 1,343 0 3,986 0 50 0 2,285 0 5,781 0 83 0 2,285 0 3,090 0 0 0 1,142 0 0 0 0 0 1,142 0 2,626 2,398 0 2,398 6,325 0 6,325 6,050 0 6,050 10,050 0 10,050 12,100 0 12,100 12,075 0 12,075 17,404 0 17,404 20,116 0 20,116 20,213 0 20,213 16,442 0 16,442 21,068 0 21,068 0 0 800 40 520 2,690 0 0 0 1,900 80 1,030 4,860 0 1,000 3,000 4,200 180 1,560 4,150 0 5,000 1,000 3,300 300 2,070 4,480 0 1,000 5,000 0 400 2,590 9,850 0 1,000 5,000 0 550 3,130 5,940 0 4,000 7,000 2,750 525 3,110 3,420 0 2,000 8,000 7,050 2,335 2,590 4,660 1,964 2,500 7,000 0 6,050 1,560 7,790 2,847 1,000 2,000 0 3,130 1,040 4,960 1,522 1,000 500 0 2,085 590 3,780 0 1,500 500 0 1,825 210 3,510 1,293 1,320 2,730 4,050 2,930 4,940 7,870 6,760 7,330 14,090 10,370 5,780 16,150 3,590 15,250 18,840 4,130 11,490 15,620 9,860 10,945 20,805 13,604 14,995 28,599 6,907 20,840 27,747 3,562 10,090 13,652 1,590 6,365 7,955 3,003 5,835 8,838 650 0 0 1,829 0 2,000 0 650 0 0 3,800 0 2,000 0 650 0 0 0 0 2,000 0 300 0 0 0 2,700 0 0 650 0 0 0 3,800 1,250 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,479 0 4,479 6,450 0 6,450 2,650 0 2,650 2,900 0 2,900 2,900 0 2,900 2,400 0 2,400 1,412 0 1,412 4,700 0 4,700 3,650 800 4,450 300 2,700 3,000 300 2,700 3,000 1,900 3,800 5,700 6,600 0 0 12,941 10,000 14,500 0 44,041 0 0 0 34,041 10,000 44,041 TOTAL INTRASTATE 8,974 11,778 15,735 19,320 16,540 18,630 23,347 35,708 30,673 24,075 18,332 25,971 249,083 TOTAL INTERSTATE 2,730 4,940 7,330 5,780 15,250 11,490 10,945 14,995 21,640 12,790 9,065 9,635 126,590 11,704 16,718 23,065 25,100 31,790 30,120 34,292 50,703 52,313 36,865 27,397 35,606 375,673 GSF USF AWBA-Recharge Sites PHOENIX AMA : GRUSP HIEROGLYPHIC HIEROGLYPHIC Interstate AGUA FRIA TONOPAH DESERT TONOPAH Interstate SRP CHANDLER HGTS ID NEW MAGMA QUEEN CREEK TONOPAH ID GILA RIVER INDIAN IDD 200,000 35,000 100,000 150,000 100,000 3,000 54,000 28,000 15,000 37,520 TOTAL INTRASTATE TOTAL INTERSTATE GSF AMA TOTAL PINAL AMA : CAIDD CAIDD Interstate HOHOKAM HOHOKAM Interstate MSIDD MSIDD Interstate GILA RIVER INDIAN IDD 110,000 55,000 120,000 18,480 TOTAL INTRASTATE TOTAL INTERSTATE GSF USF AMA TOTAL TUCSON AMA: AVRA VALLEY PIMA MINE RD PMR Interstate LOW ER SANTA CRUZ LSC Interstate CAVSARP CAVSARP Interstate BKW KAI FARMS (Red Rock) TOTAL INTRASTATE TOTAL INTERSTATE AMA TOTAL TOTAL 11,000 30,000 50,000 80,000 16,615 11,231 Jan Feb Mar Apr 0 0 0 0 3,175 0 0 0 0 0 2,398 0 0 0 0 0 6,275 0 0 0 0 0 0 0 0 0 0 0 0 0 3,175 0 3,175 650 0 0 0 0 2,250 0 8 650 0 0 0 0 2,250 0 150 0 0 0 0 2,250 0 650 0 0 512 0 250 0 650 0 0 3,800 0 250 0 650 0 0 3,000 800 0 0 300 0 0 0 2,700 0 0 Total 0 5,400 0 6,955 110,848 0 123,203 0 533 0 8,197 0 15,483 24,213 147,416 0 147,416 20,000 39,000 20,000 17,500 20,000 60,090 7,626 184,216 67,626 116,590 184,216 NEW FACILITIES No new facilities are currently projected to be used in 2007. However, the AWBA is in the process of drafting two new Water Storage Agreements with West Maricopa Combine, Inc. and Harquahala Valley Irrigation District. If the Water Storage Agreements are executed in 2007, the 2007 Plan of Operation will be amended to reflect one or both of these new partnerships. INTERSTATE WATER BANKING The 2007 Plan includes an interstate water banking component. AWBA will store approximately 127,000 acre-feet pursuant to the Amended Agreement for Interstate Water Banking. This storage will occur at both USFs and GSFs in Pinal and Pima Counties. RECOVERY Metropolitan Water District of Southern California (Metropolitan) has requested from CAWCD the recovery of 15,000 acre-feet of long-term storage credits for 2007. Pursuant to a letter agreement between Metropolitan, CAWCD, and the AWBA, those credits will be recovered and intentionally created unused apportionment (ICUA) created in 2007. The letter agreement recognizes CAWCD is responsible for recovering the credits, the AWBA is responsible for creation of ICUA, and Metropolitan is responsible for the diversion of ICUA. Table 3 identifies the planned recovery schedule for 2007. CAWCD began planning a recovery program in 2006 and with assistance from AWBA, ADWR and stakeholders will provide a recovery plan in 2007. The recovery plan will assist the AWBA in determining appropriate locations for water storage. Table 3. 2007 CAWCD Recovery Schedule (Acre-feet) MONTH January February March April May June July August September October November December Total MSIDD CAIDD HIDD TOTAL 0 1,100 1,500 1,300 1,100 500 0 600 1,200 1,300 600 800 0 0 756 756 756 756 756 756 756 756 756 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,100 2,256 2,056 1,856 1,256 756 1,356 1,956 2,056 1,356 800 10,000 6,804 0 16,804 9 PRICING In June 2006, the CAWCD board adopted final water delivery rates for 2007. The rate for AWBA and other M&I Incentive recharge is $61 per acre-foot. The delivery rate is the pumping energy rate 2 component ($51 per acre-foot) plus 10 percent of the fixed OM&R charge ($5.20 per acre-foot) plus a component to recover lost revenues from federal deliveries ($5.00 per acre-foot). For 2007, the pumping energy rate 2 was calculated using the average of the actual or forecast above threshold energy rates for the previous three years. In 2007, the AWBA increased the cost share for the GSF partners to $31 per acre-foot. Table 4 reflects the water delivery rate the CAP will charge the AWBA, the rate the GSF operators will pay for use of the AWBA’s water and the various rates the AWBA will be charged to utilize the different USFs. The Master Water Storage Agreement executed on July 1, 2002 describes the cost components that can be paid by the AWBA for storage at CAP facilities. On October 2, 2003, the CAWCD adopted a new policy regarding storage facility rates. Pursuant to the policy, the AWBA will pay an OM&R component for all water stored; that component is calculated by CAWCD annually for each AMA based on a rolling ten-year average. Additionally, for water stored for other than M&I firming purposes, the AWBA will pay a capital charge component. The capital charge is based on the total projected costs and projected storage of water over the lives of the facilities in the AMA and will not change annually unless there are significant changes in CAWCD’s costs for recharge facilities in that AMA. There is no administration cost component in the facility cost because the AWBA pays the CAP administrative costs on an annual basis. The rate established for interstate banking is $210 per acre-foot, plus facility costs and facility capital costs. 10 Table 4. 2007 Water and Facility Rates CAWCD delivery rate to AWBA $61 per acre-foot Interstate rate $210 per acre-foot Groundwater Savings Facility operator portion of delivery rate1 Intrastate2 $31 per acre-foot Interstate $26 per acre-foot Underground Storage Facility rate paid by AWBA Agua Fria Recharge Project (CAP) 3 Hieroglyphic Mtns. (CAP) Tonopah Desert Recharge Project (CAP) GRUSP Avra Valley (CAP) $8.00 per acre-foot 3 $8.00 per acre-foot 3 $8.00 per acre-foot $20.31 per acre-foot 4 $13.00 per acre-foot Lower Santa Cruz (CAP/Pima County) 4 Pima Mine Road (CAP) 4 CAVSARP (Tucson Water) $13.00 per acre-foot $13.00 per acre-foot $13.17 per acre-foot 1 This rate is paid directly to CAP by the GSF operators and is not available as revenue to the AWBA. The AWBA’s rate for delivery of in lieu water is thus reduced to $30/af for intrastate deliveries and $184/af for interstate deliveries. 2 The cost share portion for the Gila River Indian Irrigation District GSF is $20/af through 2008 and reduces the AWBA rate to $41/af for CY 2007. 3 Additional capital charge of $15 per acre-foot for interstate water 4 Additional capital charge of $9 per acre-foot for interstate water For CAVSARP, the cost includes an administration component, a capital component and an O&M component. The cost was set by agreement dated March 3, 2003 with a 3% annual increase. The estimated total cost of the AWBA’s 2007 Plan of Operation is approximately $37.8 million and includes the USF use fees and the CAP delivery rate minus the cost recovery from the GSF operator by the CAWCD. Of this total, approximately $14 million is for intrastate storage and $23.8 million is for interstate storage. ACCOUNTING The AWBA’s enabling legislation required the development of an accounting system that allows the tracking of all long-term storage credits accrued by the AWBA and the funding sources from which they were developed. The ADWR has established accounts that track both credits and funds. 11 Table 5 provides estimates of the funds available to be utilized by the AWBA including any funds carried over from previous years and an estimate of funds to be collected during the year, the funds to be utilized and the entity that holds the funds, and the credits that will accrue to those accounts based on the 2007 Plan. Table 5. Funding for 2007 Annual Plan of Operation Funds Available ($) AWBA CAWCD Funds Utilized ($) AWBA CAWCD Credits (AF) Withdrawal Fees Phoenix AMA Tucson AMA Pinal AMA $2,200,000 $560,000 $1,900,000 - $2,200,000 $560,000 $1,900,000 - 35,920 6,960 55,690 Four Cent Tax Maricopa County Pima County Pinal County $3,600,000 $0 $0 $50,310,000 $6,350,000 $699,000 $3,600,000 $0 $0 $3,597,700 $1,961,500 $212,700 99,700 24,360 6,520 - $0 $0 $0 Other General Fund Phoenix AMA Tucson AMA Pinal AMA Interstate Banking Nevada California $13,500,000 $39,872,374 (not applicable) $23,772,560 0 0 0 116,460 Total Funds Available Total Funds Expended Credits $118,991,374 $37,804,460 345,610 1 Includes $738,333 in CAP capital charge recovery costs for Interstate deliveries to state demonstration projects. 2 Expenditure limited to meeting the State’s firming obligation pursuant to the Arizona Water Settlements Act. The 2007 Plan was developed expending all available withdrawal fees, all carryover from previous years in the Maricopa County ad valorem account, and requires utilization of some of the CAP funds, as well. Table 6 provides an estimate of the AWBA funds expended and the credits that have accrued to the various accounts based on the AWBA’s recharge activities since inception. 12 Table 6. Cumulative Totals of Long-term Storage Credits 1997-2006 CREDITS 1 FUNDS EXPENDED AMOUNT (AF) LOCATION Withdrawal Fee Phoenix AMA Tucson AMA Pinal AMA $10,604,490 $5,521,161 $9,205,641 172,865 77,265 276,377 Phoenix AMA Tucson AMA Pinal AMA Four Cent Tax Maricopa County Pima County Pinal County $50,160,636 $17,688,985 $3,159,516 985,303 231,835 103,368 Phoenix AMA Tucson AMA Pinal AMA $10,695,000 $2,042,572 $6,977,540 $1,674,888 396,499 59,9372 39,7482 296,8142 Phoenix AMA Tucson AMA Pinal AMA (not applicable) $71,774,218 405,895 $178,809,647 2,649,407 Other General Fund Interstate California Nevada TOTAL 1 2 Actual credits used for 1997-2005; credits estimated for 2006 230,280 AF of credits reserved pursuant to contract dated February 4, 2005 with Mohave County Water Authority PUBLIC REVIEW AND COMMENT The AWBA staff held meetings with the GUACs for the Phoenix, Pinal and Tucson AMAs as required by statute. The Plan was distributed to the public and Table 2 was posted on the AWBA web page for public review and comment. Phoenix GUAC In general, the GUAC supported the Plan and had no requests for changes to it. Comments were made that the Bank has done a good job balancing the intrastate and interstate deliveries in the State. The need for a comprehensive recovery plan was emphasized and cooperative participation was recommended between all parties involved in developing a recovery plan. There were questions regarding the Amended Agreement for Interstate Water Banking. Pinal GUAC The GUAC supported the Plan and had no requests for changes to it. A question was raised regarding the $13.5 million and its use for meeting the State’s obligation for 13 Indian firming. The AWBA was asked if recovery planning efforts had been undertaken and concern was expressed that planning efforts might be taking place without the knowledge or input from the Pinal AMA. Additionally, GUAC members stated the need for stakeholders in the AMA to be actively involved in recovery planning with CAWCD, AWBA, and ADWR. The GUAC pointed out the increase in GSF deliveries as a result of funding available through interstate banking. Favorable comments were received on the progress made by the Water Bank and overall benefits the State is receiving from AWBA activities. Tucson GUAC General discussion regarding the Plan included: changes in AWBA storage at facilities, overall storage capacity available to the AWBA, and interstate water banking. Written comments were received from the Tucson GUAC recommending that the AWBA: (1) utilize full use of funds from the withdrawal fees, (2) explore additional opportunities to partner with GSFs for firming storage, (3) take advantage of projected lower cost of water to aggressively accrue M&I firming credits, and (4) analyze interstate storage for benefit from capital recovery costs and for drawback of reduced M&I firming storage during time of lower water costs. These comments were taken into consideration and Table 2 was adjusted accordingly. 14