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AMWUA Response to the Grand Canyon Institute Report September 2011 Making a Wrong Turn:
A Critique of the Grand Canyon Institute’s "Arizona at a Crossroads" Report
The Grand Canyon Institute’s recently released "Arizona at a Crossroads: Water Scarcity or Water Sustainability" report provides a broad overview of current water issues; however, the "Suggested Legislative Initiatives" proposed in the report do not address the critical impediments to ensuring secure water supplies for Arizona’s quality of life and economic vitality. While quite provocative, these initiatives would be detrimental to Arizona’s economy and Arizona’s long-term water management. · Absorb the Department of Water Resources into the Department of Environmental Quality – The report advocates converting ADWR into a subdivision of ADEQ in order to facilitate the use of reclaimed water. ADEQ and ADWR are very different organizations with very different purposes. It would be unwise to relegate ADWR’s distinct and essential mission of defending Arizona’s Colorado River allocation and relegate managing the rights to use the State’s surface and groundwater supplies to an afterthought within ADEQ. ADWR’s responsibilities are far too important to dilute within another agency that is not equipped to meet those goals and is funded largely through unrelated federal monies. AMWUA supports a capable and effective ADWR that manages and defends Arizona’s water supplies for the long- term strength of our economy. Moving ADWR into ADEQ is a wrong turn that Arizona would be wise to avoid. · Require Water Providers to Provide Incentives for water recycling in New Developments – AMWUA cities already maximize the use of reclaimed water. As an example, AMWUA members provide reclaimed water to the Palo Verde Nuclear Generating Plant for use in generating power instead of drinking water.. That relationship is efficient, cost effective and supports an economic impact of more than $1.8 billion every year. Reuse by AMWUA members includes irrigation of parks, school playgrounds, golf courses, and crops; commercial and industrial uses, and community water features. Reclaimed water is stored in aquifers for future use and is used to sustain the Tres Rios and Rio Salado Habitat Restoration Projects. Communities need flexibility to choose the best use of their reclaimed water. A one-size-fits-all unfunded mandate, such as is proposed is unnecessary, extremely costly, and would be an impediment to reuse. The GCI’s proposal could jeopardize creative and smart solutions such as the Palo Verde agreement or the use in agricultural or tourism facilities. Arizona is a leader in the use of reclaimed water and must continue to have the flexibility to expand on existing successes. · Charging More for Water than it Costs - Arizona’s water providers are committed to serving their customers a safe, dependable water supply by establishing rates that reflect the cost of service. AMWUA member municipalities have multi-tiered rate structures designed to encourage water conservation, while reflecting the cost to provide water to each tier of water use. The GCI report would require radical increases in the upper tiers of water rates not to reflect the cost of service to customers, but to punish higher levels of water use, even if that water is being used efficiently. We must resist the temptation to make broad recommendations without thoroughly evaluating possible impacts. · Changing Water Law Despite Private Property Rights - Arizona’s water allocation system recognizes the economic commitment water users make to developing and beneficially using this vital resource for the long-term well-being of our communities and our economic development. The GCI report proposes "reconsideration of arcane allocation mechanisms that privilege historic uses…." These proposals fail to recognize the benefits that come from a clearly understood system of rights that allow for long term planning and capital investment. The historic protections provided by our water rights systems must be preserved while seeking new and innovative ways to provide water for environmental and wildlife purposes. · Statewide Financing of Water Resource Development – GCI proposes a "new reliable and sufficient revenue stream" to finance future water development. In an era where currently conceived regional water supply projects are estimated to cost upwards of $1 billion, we must ensure that existing water users will not subsidize water projects that will not result in direct benefits to those that pay. The report espouses market-based approaches and full-cost pricing of water, but then proposes taxes to subsidize water development that otherwise wouldn’t be economically viable. This proposal would be a drag on the state’s economic centers, which would ripple out to the rural areas. AMWUA is a leader in supporting effective water management and the local water providers’ ability to manage, plan, and acquire water resources that will promote economic development and quality of life. We believe that water resources development must be paid for by those who use it. These are some of the many problematic initiatives proposed by the GCI. They are not sound approaches to move Arizona in the right direction. 1 – Smith, K., “Arizona at a Crossroads: Water Scarcity or Water Sustainability?" Grand Canyon Institute. September 13, 2011. Arizona Municipal Water Users Association 3003 N. Central Ave., Suite 1550, Phoenix, AZ 85012 602-248-8482 • 602-248-8423 Fax webmaster@amwua.org The Arizona Municipal Water Users Association (AMWUA) is a voluntary, non-profit corporation established by municipalities in Maricopa County for the development of urban water resources policy. |