U.S. Water News
PHOENIX -- After more than a year of negotiations, a
preliminary understanding has been reached between the
Central Arizona Water Conservation District and the U.S.
Department of Interior on a restructured repayment plan for
the Central Arizona Project (CAP), which delivers Colorado
River Water to Arizona's largest cities. A detailed
agreement in principle currently is being developed by the
district and federal negotiators.
Under terms of the preliminary agreement, the district --
which holds the operational authority of the CAP -- would be
obligated to repay slightly under $2 billion, with the exact
amount to be determined by identification of project
components yet to be completed. The allocation of project
costs will be based on "capacity allocation" from the
ultimate amount of water allocated to federal and
non-federal uses. In addition, the district will take over
completion of appropriate CAP construction.
The agreement also calls for an additional 240,000 acre feet
of CAP water to be reserved for federal use, including such
uses as settlement of Indian water rights claims. An Indian
board composed of representatives from the CAP tribal
communities will be formed to consult with the district
board on operation of the CAP.
After a formal agreement in principle has been developed and
signed, the CAP district will make an upfront payment of $30
million, with an additional $15 million to be paid to the
federal government when ownership of the CAP headquarters
complex is officially turned over to the district, or on
Jan. 1, 2001, whichever is earlier. These upfront payments
by the district will be placed into an escrow account that
will be paid to users of federal rights, primarily native
Americans.
"A significant amount of water is reserved to solve Indian
claims within the state," noted district board president
Grady Gammage, Jr., "and the Interior negotiating team has
agreed to be responsible for the costs of delivering that
water." According to Gammage, the preliminary agreement is a
major step forward, and "gives us the opportunity to plan
for the future in ensuring that Arizona has a stable,
affordable source of water."
Return to the U.S. Water News' Archives page
Or
Return to the U.S. Water News Homepage
uswatrnews@aol.com