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Colorado River Update – What does the Drought Contingency Plan mean for Arizona? Alexandra M. Arboleda (602) 803-8811 alex@tsllawgroup.com aarboleda@cap-az.com.

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Presentation on theme: "Colorado River Update – What does the Drought Contingency Plan mean for Arizona? Alexandra M. Arboleda (602) 803-8811 alex@tsllawgroup.com aarboleda@cap-az.com."— Presentation transcript:

1 Colorado River Update – What does the Drought Contingency Plan mean for Arizona?
Alexandra M. Arboleda (602) Welcome Introduce Self

2 Colorado River Basin Upper Basin States: Colorado, New Mexico, Utah, Wyoming and Arizona – 7.5 million acre-feet - CO (51.75%), UT (23%), WY (14%), NM (11.25%), AZ (50,000 acre feet) Lower Basin States: Arizona, California, and Nevada – 7.5 million acre-feet (MAF) - CA (4.4 MAF), AZ (2.8 MAF), NV (0.3 MAF) 1.5 MAF allocation for Mexico 1.2 MAF evaporation from Lake Powell and Lake Mead The Colorado River system, home to such natural wonders as Grand Canyon National Park and Rocky Mountain National Park, supplies water to over 40 million people and 5 million acres of agricultural land, and it has the capacity to generate over 4,200 megawatts of hydropower. The Colorado River Basin is divided into the Upper and the Lower Basins. Each basin was allocated 7.5 million acre feet to divide among the states. Arizona has an allocation of 2.8 MAF, and within that CAP holds an entitlement to more than half of Arizona’s supply. The Colorado River supplies about 40% of the state’s overall supply of water.

3 Colorado River Water Supply Report :July 2019
The forecasted April-July runoff forecast is 9.2 MAF (129% of average) Lake Powell is 42% full Lake Mead is 41% full

4 Central Arizona Project
336-mile aqueduct stretches from Lake Havasu to Tucson 14 pumping plants lift water nearly 3,000 feet 10 siphons, 3 tunnels Lake Pleasant/New Waddell Dam & Pump Generating Station Delivers more than 500 billion gallons of water annually Delivery began in 1985 in Maricopa County Construction complete in 1993 336-mile aqueduct stretches from Lake Havasu to Tucson 14 pumping plants lift water nearly 3,000 feet 10 siphons, 3 tunnels Lake Pleasant/New Waddell Dam & Pump Generating Station Annually delivers more than billion gallons (1.6 million acre-feet) of water Delivery of Colorado River water began in 1985 in Maricopa County Construction complete in 1993

5 CAP Service Area 3 counties 23,790 square miles
< 8” annual rainfall 5 million people (approx. 80% of Arizona’s population) 350,000 acres of irrigated agriculture 11 Native American tribes 3 counties 23,790 square miles < 8” annual rainfall 5 million people (approx. 80% of Arizona’s population) 350,000 acres of irrigated agriculture 11 Native American tribes

6 Municipal & Industrial 33%
Who Gets CAP Water? Municipal & Industrial 33% Agriculture 26% Native American 35% Native American 35% Municipal & Industrial 33% Agriculture 26% Recharge 6% Recharge 6%

7 CAP and the Economy Delivery of Colorado River water through the CAP has generated: Nearly $2 trillion of Arizona’s gross state product to date $100 billion per year, or 1/3 of Arizona’s gross state product CAP commissioned a study conducted by ASU’s W.P. Carey School of Business to quantify the economic impact of the Colorado River water supply on central and southern Arizona. We intuitively knew this number would be large, but the results even surprised some of us. To date, deliveries of Colorado River water through the CAP have generated nearly $2 trillion or Arizona’s gross state product. Deliveries of Colorado River water through the CAP generates $100 billion per year in economic benefit to the state. This equates to approximately 1/3 of Arizona’s gross state product. The water supply also fuels more than 1.6 million job years.

8 What is the Drought Contingency Plan?
Overlay to the 2007 Colorado River Interim Guidelines for Lower Basin Shortages and the Coordinated Operations for Lake Powell and Lake Mead (2007 Guidelines) The Drought Contingency Plan (DCP) is a set of agreements designed to protect the Colorado River system through voluntary reductions and increased conservation. The agreements were developed through a collaborative process amongst the federal government, states, tribes, water users and Mexico. There is an Upper Basin DCP, a Lower Basin DCP, and a companion agreement which connects these two programs and links them to Mexico through a US-Mexico agreement. What is the Drought Contingency Plan (DCP)? DCP is a set of agreements designed to protect the Colorado River system through voluntary reductions and increased conservation. The agreements were developed through a collaborative process among the federal government, states, water users and Mexico. There is an Upper Basin DCP involving Colorado, New Mexico, Utah and Wyoming, a Lower Basin DCP involving Arizona, California and Nevada, and a companion agreement which connects the two programs, as well as linkage to Mexico through a US-Mexico agreement.

9 Why Was the DCP Necessary?
Risk of Lake Mead falling below critically low elevations has tripled in the past decade Over-Allocation Prolonged Drought Reductions agreed to in Guidelines were not sufficient to prevent Lake Mead from reaching elevation 1025’ Why was DCP necessary? The risks of Lake Mead falling below critically low reservoir elevations tripled in the past decade, increasing the risks of large scale reductions to Arizona’s Colorado River supply and threatening the health of the river for all users. Previous agreements and guidelines designed to protect the system against such dry times may not be sufficient to address the current risks to the system. Projections by the U.S. Bureau of Reclamation show that DCP would reduce the risks of Lake Mead falling below critical elevations. DCP provides Arizona with greater certainty for reliable and secure water supplies now and in the future. Why did Arizona participate in DCP? Arguably Arizona had the most to lose because of its junior priority on the Colorado River, which means its supply is cut first, and the most, during times of shortage. There was also uncertainty about what would happen if Lake Mead dipped to the very lowest levels. Arizona participated in DCP in order to reduce this risk by sharing reductions with other states and Mexico.

10 What is the Lower Basin DCP?
Intentionally Created Surplus (ICS) Water stored in Lake Mead that can only be withdrawn at certain lake elevations System Conservation Compensated or uncompensated Verifiable conservation of existing uses Intentionally Created Surplus (ICS) Water stored in Lake Mead that can only be withdrawn at certain lake elevations System Conservation Compensated or uncompensated Verifiable conservation of existing uses

11 Lower Basin DCP Contributions to Lake Mead
Arizona Tier 0 < 1090’ – 192KAF Tier 1 < 1075’ – 512 KAF Tier 2a < 1050’ – 592 KAF Tier 2b < 1045’ KAF Tier 3 < 1025’ – 720 KAF Will DCP prevent a shortage? DCP will not prevent a Colorado River shortage, but thanks to Arizona’s innovative water management programs, conservation, and collaborative long-term planning, Arizona has enjoyed reliable water supplies. With DCP and Arizona’s water management framework, we are prepared to handle the effects of drought and impending potential Colorado River shortage. You Should Know A Colorado River water shortage does not mean that Arizona is in a water crisis. Arizona leads the nation with rigorous water conservation and sustainability laws that protect Arizona water users. The DCP guides new ways for how Arizona cities, agricultural users, industries, tribes and others will share Colorado River water supplies during shortages. What does DCP mean to me? Residents of Arizona can now be assured that future water supplies are more reliable and secure. The economies supporting the state can continue thriving based on this secure water supply.

12 2007 Guidelines Shortage Reductions and LBDCP Contributions
Arizona Total 720 KAF Total 1,475 KAF

13 Arizona Colorado River Priorities
On-River 1.2 MAF CAP 1.6 MAF

14 CAP Priority Pools Annual CAP water deliveries first meet long- term contract demands, in priority order: P3, then Indian and M&I, then NIA priority Then Excess demands can be met: Ag Pool and Other Excess for underground storage and replenishment Long-Term Contracts: P3, M&I, Indian, NIA Excess: Ag Pool, Other Excess

15 CAP Priority Pools – 2007 Guidelines
Tier 1 < 1075’ Tier 2 < 1050’ Tier 3 < 1025’ Tier 1 320,000 Tier 2 400,000 Tier 3 480,000

16 CAP Priority Pools - LBDCP
Tier 0 < 1090’ Tier 1 < 1075’ Tier 2a < 1050’ Tier 2b < 1045’ Tier 3 < 1025’ Tier ,000 Tier ,000 Tier 2a 592,000 Tier 2b 640,000 Tier ,000

17 Arizona Implementation Plan
DCP Timeframe Arizona legislation signed by Governor January 31, 2019 Federal legislation passed April 8, 2019 DCP Agreements signed May 20, 2019 DCP term AZ Steering Committee Process AZ Governor’s Office Legislative Representatives AZ Department of Water Resources Central AZ Project US Bureau of Reclamation Tribes in AZ Salt River Project AZ Cities AZ Industry AZ Agriculture Environmental NGOs When does DCP start? The DCP agreement lasts from 2020 through It is anticipated that new rules will be negotiated and put in to effect after 2026. How did we do it? In 2018, the Arizona Department of Water Resources (ADWR) and Central Arizona Project jointly led nearly 40 parties through months of public and small group meetings. During this process, new arrangements, which form a package called the Arizona Implementation Plan, were negotiated to among the parties. The package of agreements shares the burden of impacts from Colorado River reductions and the benefits of increased reliability among Arizona water users and stakeholders.

18 Arizona Implementation Plan
NIA Mitigation AZ ICS Water Deliveries ICS Offset Program Water Exchanges Ag Pool Mitigation Central Arizona Groundwater Efficiency and Conservation Plan CAGRD Water Acquisition State/Tribal ICS Programs Arizona Implementation Plan The Arizona Implementation Plan for DCP (AZDCP) helps those impacted by reductions in Colorado River supplies as the state transitions to an even drier future. Across Arizona, roughly 40 percent of the water we use comes from the Colorado River. AZDCP impacts Arizona’s junior Colorado River priority holders, mainly CAP water users. The most significant impacts will be felt by CAP Agricultural users as well as the CAP Cities and Tribes holding junior priority CAP water. A 40-member steering committee, representing diverse interests from across Arizona, carefully crafted AZDCP. Water managers, agriculture, cities, industry, nonprofits, tribal communities, and legislative leaders were all at the table. The resulting AZDCP balances water impacts and benefits from DCP and spells out ways Arizona will contribute to conserving more water in Lake Mead. Key components of the plan include: Water to mitigate impacts to CAP users Water conserved to benefit the Colorado River New infrastructure to stretch existing supplies

19 The Future of the Colorado River
Colorado River Basin 40 million people and fastest growing cities 5 million acres of irrigated agriculture Capacity to generate 4,200 megawatts of hydropower Certainty, Sustainability & Resilience Adaptive management and incremental response to changing conditions Collaborative process and voluntary agreements Innovation and new technology Trade offs, water transfers,& water markets Colorado River Basin -40 million people and fastest growing cities -5 million acres of irrigated agriculture -Capacity to generate 4,200 megawatts of hydropower Certainty, Sustainability, and Resilience -Adaptive management and incremental response to changing conditions Private property rights -Collaborative process and voluntary cooperation measures -Innovation and new technology -Trade offs/ Water transfers -Transfers for instream flow TNC and Trout Unlimited OR environmental transfer statute -Transfers for growth Third Party Impacts Environmental Impacts

20 Colorado River Update – What does the Drought Contingency Plan mean for Arizona?
Alexandra M. Arboleda (602) Welcome Introduce Self


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