Thomas McCann- CAP - Groundwater Management District 3

Central Arizona Project
Thomas W. McCann
January 7, 2015
Central Arizona Project
Physical System
• Central Arizona Water Conservation District was
formed in 1971 by Maricopa, Pinal and Pima
Counties to repay Arizona’s share of CAP
construction costs
• U.S. had requested a
single CAP repayment
entity with ad valorem
taxing authority
Evolution of CAWCD Responsibilities
CAWCD entered into Master Repayment Contract with
Reclamation providing for:
Delivery of CAP water supply
Repayment of reimbursable project costs allocated to CAWCD
Arizona Legislature granted CAWCD authority to contract
with U.S. to be the operating agent for the CAP
CAWCD began performing CAP O&M under an interim
contract with Reclamation
CAWCD Mission
• Operate and maintain the CAP system
• Deliver the remainder of Arizona’s Colorado
River apportionment
• Repay reimbursable costs to U.S.
– Approx. $1.65 billion, plus interest
• Develop and operate recharge projects
• Operate the Central Arizona Groundwater
Replenishment District
CAP Recharge Projects
Phoenix area
– Tonopah Desert
– Hieroglyphic Mountains
– Agua Fria
– Superstition Mountains
Tucson area
– Lower Santa Cruz
– Pima Mine Road
• Central Arizona Groundwater Replenishment
District is a function added to CAWCD by the
Arizona Legislature in 1993
– Governed by CAWCD Board
– Separate funding from other CAP operations
• Provides a mechanism to comply with Arizona’s
100-year assured water supply rules
• Member Lands (subdivisions)
• Member Service Areas (water providers)
CAWCD Governance
• Not a State agency
• Governed by 15-member Board of Directors elected
from the 3 counties that formed CAWCD
– 10 from Maricopa
– 4 from Pima
– 1 from Pinal
• Directors serve staggered 6 year terms
– 1/3 of Board elected every 2 years
CAWCD Funding
• Not funded by State appropriations
• CAWCD revenues come from:
– Water service charges from sale of CAP
– Ad valorem tax levied on all property in
its 3-county service area
• CAWCD also receives benefit of
revenues from sale of surplus power
from the Navajo Generating Station
Contracting for CAP Water Service
• CAWCD holds a master water service contract for
the entire CAP supply
– Nominally about 1.5 MAF per year
• Long-term entitlements to CAP water allocated
by Secretary of the Interior
– 650,724 AF reserved for federal uses
– 764,276 AF allocated for non-Indian uses
• Allocation between federal and non-federal uses
affects CAWCD repayment obligation
Contracting for CAP Water Service
• Native American tribes contract directly
with U.S.
– CAWCD responsible for water deliveries
• Municipal & industrial users hold 3-party
subcontracts for CAP water with CAWCD
and U.S.
• Non-Indian agricultural users relinquished
long-term CAP entitlements pursuant to
Arizona Water Settlements Act of 2004
CAP Water Rates
• Three main rate components:
– Fixed OM&R
• All costs of operating and maintaining the CAP
• Costs distributed evenly across all water deliveries
– Pumping Energy
• All costs for energy needed to pump CAP water
• Costs distributed evenly across all water deliveries
– Capital Charges
• Used to repay U.S. for CAP construction costs
• Only collected from M&I users
CAP Economic Study
• What is the value of CAP to the state of Arizona?
• ASU study asked the question: What if CAP was
never built and no CAP water was delivered?
• Two periods considered
Construction (1973-1993)
Water delivery (1986-2010)
• Calculated impacts in 22 sectors of the economy
– Gross state product
Job-years of employment
CAP Economic Study
Construction period (1973-1993)
• CAP generated approximately
$2.4 billion of gross state product
• Roughly equivalent to what CAWCD
has to repay U.S. for CAP
• CAP generated annual employment
of up to 9,400 job-years
CAP Economic Study
CAP water deliveries (1986-2010) have accounted for
more than $1 trillion of Arizona gross state product
CAP Economic Study
• For 2005-2010, CAP
generated economic benefit
averaging more than $90
billion per year (35% of
Arizona’s GSP)
• In 2010, CAP generated
$128 billion (49.5%) of
Arizona’s gross state
CAP Economic Study
In 2010, the existence of CAP generated more
than 1.6 million job-years of employment

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