Assigned to NRAE                                                                                                                                        AS ENACTED

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.J.R. 1001

 

Colorado river surplus guidelines

 

Purpose

 

            An emergency measure that waives Arizona’s sovereign and contractual rights to surplus Colorado River water for 15 years in order to implement the proposal of the Colorado River Basin States’ Governors representatives regarding the adoption of interim surplus guidelines by the Secretary of the Interior for the Colorado River system.  Authorizes the Arizona Department of Water Resources (DWR) to enter into the Interim Surplus Guidelines Agreement with the Metropolitan Water District (MWD) of Southern California regarding the implementation of interim surplus guidelines on the Colorado River if certain conditions are met.

 

Background

 

            The Colorado River flows through seven western states.  These states make up the Colorado River Basin states.  The states are divided into Upper Basin states (Wyoming, Colorado, New Mexico and Utah) and Lower Basin states (Arizona, California and Nevada).  With the signing of the 1922 Colorado River Compact, use of the system’s waters were divided between the Upper and Lower Basins, with roughly 7.5 million acre-feet (maf) a year for each.  The Upper Basin states are required to send to the Lower Basin states 75 maf every ten years.  In addition, the Lower Basin received the right to increase beneficial consumptive use by one million acre-feet per year. 

 

            The 1928 Boulder Canyon Project Act divided the Lower Basin’s first 7.5 maf of mainstream water among California, 4.4 maf; Arizona, 2.8 maf; and Nevada, 300,000 acre-feet.  In 1929, the California Limitation Act was signed.  The Act was a promise by California that the state would limit its annual consumptive use of Colorado River water to 4.4 maf a year and no more than half of any unapportioned surplus waters.  The 1928 Boulder Canyon Act was reaffirmed in Arizona v. California, 376 U.S. 340 (1964).  In Arizona, the U.S. Supreme Court upheld the Boulder Canyon Act’s division of water for Arizona, California and Nevada.  The Court's decision also provided for California to receive 50 percent of any surplus water, Arizona 46 percent and Nevada four percent. 

 

The Arizona decision, in conjunction with the Boulder Canyon Project Act, established the Secretary of the Interior’s authority as watermaster of the Lower Colorado River.  As watermaster, the Secretary has the authority to determine on an annual basis whether normal, surplus or shortage conditions exist on the Lower Colorado River.  A surplus occurs when there is more than 7.5 maf of mainstream water available to meet the demands of the Lower Basin states.  If there is not enough mainstream water to meet the Lower Basin’s 7.5 maf annual apportionment, the Secretary can declare a shortage, in which case California could receive even less than 4.4 maf.  To date, no Secretary has declared a shortage.  On the contrary, the Secretary has declared a surplus over the past four years, thus allowing California to use up to 5.2 maf, some 800,000 acre-feet beyond its basic apportionment. 

 

Exercising his authority with respect to his role as watermaster of the lower basin states, the Secretary was proposing to adopt surplus guidelines that did not adequately consider the interests of Arizona or the other states of the Colorado River Basin.  This led to the Basin states’ meeting and drafting a proposal for surplus guidelines that represented a consensus among the representatives of the Governors of the Basin states, in which the Secretary acknowledged the importance of the Basin states working to adopt interim surplus guidelines for the Colorado River. 

 

These new interim guidelines adopted by the Basin states have the effect of reducing the surplus water supply to Southern California over the next 15 years.  The goal is for Southern California to reduce its water use to the original 4.4 maf, as prescribed in the 1928 Boulder Canyon Project Act and affirmed in Arizona v. California.  In order for this goal to be reached, Arizona has indicated that it will not use more than its basic 2.8 maf apportionment, thus allowing California to use its share of surplus.  Nevada has requested a consumptive use of 300,000 acre-feet so California will receive the total surplus. 

 

In exchange for Arizona’s agreement to forego certain surplus supplies over the 15 year period, the Metropolitan Water District of Southern California (MWD) has agreed to reduce its orders for Colorado river water and to provide insurance to Arizona that the use of surplus water within California during the 15 year period will not cause a shortage of Colorado river water within Arizona either during or after the 15 year period.  Furthermore, MWD has agreed that in the event that a shortage is triggered either during or after the interim period due to releases made to California pursuant to the interim surplus guidelines, MWD will reduce its use of Colorado river water by up to a total of one million acre-feet and direct that water for use within Arizona to prevent any reduction of Colorado River supplies to Arizona.

 

There is no anticipated impact to the state general fund associated with this joint resolution.

 

Provisions

 

1.      Establishes that the State of Arizona will waive its rights to use certain quantities of surplus Colorado River water that would otherwise be available for use within Arizona for a period of 15 years if the following conditions are met:

 

·        The Secretary of the Interior faithfully implements the terms of the Basin states’ proposal concerning interim surplus water as adopted in the record of decision for the Colorado River Interim Surplus Guidelines.

·        The MWD faithfully complies with all the terms of the Interim Surplus Guidelines Agreement entered into with DWR.


·        All Colorado river water that is otherwise available for release and consumptive use within Arizona, including certain quantities of surplus water that will be available under the terms of the Interim Surplus Guidelines Agreement, are delivered by the Secretary of the Interior in accordance with the rights of the Colorado River water contractors within Arizona.

 

2.      Authorizes DWR to enter into an agreement with the MWD entitled Interim Surplus Guidelines Agreement.

 

3.      Specifies that any changes to the agreement that affect the temporary waiver of Arizona’s sovereign rights concerning Colorado River water require legislative ratification, except those specified under DWR’s authority in the contract, such as: 

 

q       Agreements to share the impact of shortages in a “shortage year” and the obligations in subsequent years related to any such agreement

q       Future interstate water banking arrangements between the Arizona Water Banking Authority and MWD.

q       Authorization for DWR to consult with affected Colorado River contractors in Arizona to agree to a program to share the impact of shortages with MWD after the interim period to address the method of delivery for any notices required by the agreement.

 

4.      Incorporates the entire Interim Surplus Guidelines Agreement between MWD and DWR into the resolution.

 

5.      Specifies that the action to ratify the proposal and approve the Interim Surplus Guidelines Agreement does not set precedent in regard to the alteration of rights to Colorado River water by the Legislature concerning contracts between the Secretary of the Interior and individuals, irrigation district, corporations, state departments, agencies, boards, commissions or political subdivisions of the state, without their consent.

 

6.      Contains an emergency clause.

 

Amendments Adopted by Committee

 

Makes technical and clarifying changes.

 

Amendments Adopted by Committee of the Whole

 

Makes a conforming change.

 

Amendments Adopted by the House of Representatives

 

1.      Specifies that the reparation and forbearance agreement between MWD and DWR concerning Colorado River interim surplus guidelines be ratified and approved on the following conditions:

 

q       Unless the contract is supplemented, amended or modified, the State of Arizona is to enforce the contract in accordance with its terms.

q       Supplements, amendments or modifications to the contract must be ratified and approved by the Arizona Legislature, unless such changes are provided for in the contract. If the Legislature is not in session, modification, amendments and interim supplements to the contract may become effective for no more than eight months.  These changes are subject to approval by the joint committees of reference that have jurisdiction over issues relating to natural resources. The Legislature must ratify and approve any supplement, modification or amendment to the contract that is to be in effect for more than eight months.

 

2.      Specifies that the action to ratify the proposal and approve the reparation and forbearance agreement does not set precedent in regard to the alteration of rights to Colorado River water by the Legislature concerning contracts between the Secretary of the Interior and individuals, irrigation districts, corporations, state departments, agencies, boards, commissions or political subdivisions of the state, without their consent.

 

Amendments Adopted by the Free Conference Committee

 

1.      Incorporates the entire contract between DWR and MWD into the resolution.

 

2.      States that the waiver of Arizona’s rights to surplus Colorado River water terminates on December 31, 2016. 

 

3.      Eliminates the provision that authorized the joint committees of reference with jurisdiction over natural resources to approve changes to the agreement based on concerns over unlawful delegation of legislative authority. 

 

4.      Authorizes DWR to enter into an agreement with MWD.  However, any changes to the agreement that affect the temporary waiver of Arizona’s sovereign rights concerning Colorado River water requires legislative ratification, except those specified under DWR’s authority in the contract.

 

5.      Adds an emergency clause.

 

6.      Makes technical and conforming changes.

 

Senate Action                                                               House Action

 

NRAE              3/8/01              DPA    8-0-0-0                        NRA                4/11/01       DPA      6-0-0-4

3rd Read           3/20/01            DPA    30-0-0-0          3rd Read           4/17/01                     50-4-6-0

Final Read        5/2/01                          30-0-0-0          Final Read        5/2/01                       48-5-7-0

 

 

Signed by Governor 5/8/01

 

Prepared by Senate Staff

May 25, 2001