COR - Senate NRIPD and House WE

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ARIZONA STATE LEGISLATURE

Forty-ninth Legislature – First Regular Session

SENATE NATURAL RESOURCES, INFRASTRUCTURE AND PUBLIC DEBT AND HOUSE OF REPRESENTATIVES WATER AND ENERGY
COMMITTEE OF REFERENCE FOR THE SUNSET REVIEW OF THE
ARIZONA DEPARTMENT OF WATER RESOURCES

Minutes of Interim Meeting

Wednesday, October 28, 2009

House Hearing Room 5 -- 10:00 a.m.

Co-Chairman Mason called the meeting to order at 10:02 a.m. and attendance was noted by the secretary.

Members Present

Senator John Nelson, Co-Chairman	Representative Lucy Mason, Co-Chairman
Senator Amanda Aguirre	Representative Christopher Deschene
Senator Sylvia Allen	Representative Nancy Young Wright
Senator Albert Hale
Senator Steve Pierce

Members Absent

	Representative Doris Goodale
	Representative David Stevens

Co-Chairman Mason welcomed everyone to the meeting and introduced the Members of the committee.

Rene Guillen, House Research Analyst, Water & Energy Committee, explained that the purpose of this Committee of Reference (COR) is to conduct a sunset review of Arizona Department of Water Resources (ADWR), a State agency, to determine if it is meeting its statutory responsibilities and if those responsibilities are necessary. The last review of ADWR was in 1999, when it was continued for another ten years. This is also an opportunity for the public to provide testimony directly to the Legislature. It is the responsibility of the COR to make a recommendation regarding the continuation of this agency, which will lead to legislation in the next Legislative Session.

Herb Guenther, Director, Arizona Department of Water Resources, greeted the Committee and outlined some of the agency’s accomplishments since its last sunset review in 1999:

Modified the non-per-capita conservation requirements in all five active management areas (AMA) and focused on specific customer water use, which allowed private water providers to work in greater alignment with the Arizona Corporation Commission.
Streamlined programs to comply with required timelines and to address customer concerns.
Implemented a customer survey which showed a 95 percent customer satisfaction.
Implemented policies and procedures to ensure the safety of Arizona’s jurisdictional dams and to reduce costs.
Developed rules for well-drilling to prevent cross-contamination.
Formed a statewide water advisory group to develop solutions for various Arizona water issues.
Developed a revolving fund for infrastructure.
Led efforts to create an early flood warning system for Havasupai.
Developed a groundwater basin plan for new development.
Collaborated on water feasibility studies addressing floodplan issues and flood control districts.
Took the lead in supporting a statewide study to update the probable maximum precipitation in order to improve public safety and to reduce emergency costs.
Expanded the agency website to include data gathering and a Water Atlas for Arizona.
Contributed to Arizona’s flood warning system.
Worked to protect Arizona’s water supplies for the future (agriculture currently uses 74 percent, but Arizona is converting to industrial usage as the market changes).

Mr. Guenther explained to the Members that Arizona shares the water of the
Colorado River with six other states, as defined in a 1922 Compact which divides the water into two basins:

· Upper basin (Utah, Wyoming, Colorado, and New Mexico) is allotted 7.5 million
acre-feet (maf).

· Lower basin (Arizona, California, Nevada) also is allotted 7.5 maf.

He explained that this allotment was based on thirty of the wettest years, and so is over-appropriated. He further explained that the Upper basin is currently using only about 4 maf of its allotment, but that the Lower is using its entire 7.5 maf, creating a very tense situation as the Upper basin grows into its allotted supplies.

He said the question has become “Will the water still be there?”. A plan put together in 2007 after years of debate involves water from Lakes Mead and Powell and will provide greater capacity. He added that desalination, which can provide a drought-proof supply, is a potential supply for the future.

Mr. Guenther stressed that ADWR has no overlap with any other agency; it is tasked with protecting groundwater supplies for the future and ensuring the public safety.

He informed the Members that the Governor has requested a fifteen percent budget reduction for the balance of FY 2009/2010. These cuts will affect personnel directly, forcing the agency to reduce from 220 full-time employees (FTEs) to 177 FTEs. He stated, by way of comparison, that the agency had 252 FTEs in 1999, and a far greater operating budget. He stated that there are many statutory requirements that require budget protection, but that he will have to close some AMA offices and cut some planning functions, which he sees as the most important functions of ADWR.

Co-Chairman Mason asked about capturing rainwater runoff in retention ponds. Mr. Guenther explained that ADWR is looking at all types of conservation, but that capturing rainwater could be problematic because rainwater recharges the groundwater aquifer. He added that a better option would be to reuse water, but that a “yuck” factor in the public perception discourages this approach.

Discussion ensued on water loss and evaporation, percentage of water recaptured and recharged, the critical distinction between surface water and groundwater, desalination, and weather modification. Also discussed were the capacity of Arizona dams and rivers, reliance on the snowmelt from Wyoming, Colorado, and Utah, and the 100-year horizon of a water supply based on today’s current population and expected population growth. The Members discussed the per capita use of water in Arizona which is estimated currently as:

· 160 gallons/day in Tucson

· 230 gallons/day in Phoenix

· 1,100 gallons/day in Paradise Valley

Mr. Guenther reminded the Members that a large portion of per capita use is for landscaping, fountains, and swimming pools. Co-Chairman Mason commented on the extreme water use and reminded the Members that “effluent is going to be the new gold.”

Co-Chairman Nelson added that Arizona is “bucking Mother Nature” in its water usage; it is an area that is not able to support the population centers that it now has. It is desert, open-range land with very low annual rainfall. Discussion ensued about Arizona’s history as a rural state with individual landowning families who have been in Arizona for 100 or 200 years and have water rights. Mr. Guenther stated that Arizona law reads that whoever gets the water first gets to use it, regardless of when the water was first taken.

Senator Hale reminded the committee of Indian water rights, which are appropriated through the compacts. Mr. Guenther clarified that he should have identified those issues and stated that he is aware of Federal case law which says that Indian nations have surface water and reserve groundwater rights.

David Modeer, General Manager, Central Arizona Project, stated his support for the continuation of ADWR.

Gary G. Small, HydroSystems, addressed the Members to support ADWR.

John Hetrick, Salt River Project, stated his support for this agency.

Senator Pierce requested that discussion cease and the committee move to the recommendation.

Co-Chairman Nelson announced the names of those who signed up but did not speak:

Lyn White, Freeport McMoRan

Chris Udall, Agri-Business Council of Arizona (Attachment 1)

Pat Graham, The Nature Conservancy (Attachment 2)

Trevor Hill, Global Water Resources

Steve Olson, Arizona Municipal Waters Users Association

Adam Hawkins, Resolution Copper

Mr. Guillen clarified the voting procedure.

Co-Chairman Nelson moved that the Senate Natural Resources, Infrastructure and Public Debt and House of Representatives Water and Energy Committee of Reference recommend the continuation of the Arizona Department of Water Resources for ten years. The motion carried by a voice vote.

Without objection, the meeting adjourned at 11:23 a.m.

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Jane Dooley, Committee Secretary

November 3, 2009

(Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)

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COR - SENATE NRIPD AND HOUSE WE

October 28, 2009

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