CAP M&I Firming
One objective of the Arizona Water Banking Authority (AWBA) is to mitigate the effects of a Colorado River shortage on Central Arizona Project (CAP) Municipal & Industrial (M&I) subcontracts by firming those water supplies during a shortage. Firming is the use of one supply to increase the reliability of another. In this case, the AWBA has stored water in underground aquifers to supplement Colorado River water during a reduction in supplies. In the event of a declared shortage, AWBA long-term storage credits will be recovered to benefit water users firmed by the AWBA. CAP is responsible for recovering water previously stored by AWBA to make water available for CAP M&I water users firmed by AWBA. Recovery of AWBA credits could occur through increased groundwater pumping and delivery through the CAP aqueduct, independent recovery performed by an M&I subcontractor or by credit exchange with a CAP contractor or subcontractor. The 2014 Joint Recovery Plan includes a more detailed summary of potential recovery methods.
There are currently 52 M&I subcontractors collectively holding entitlements of 620,678 acre-feet of CAP water and the AWBA has stored 2.25 million acre-feet of long-term storage credits (LTSCs) to firm these supplies. In March 2019, the AWBA adopted a policy regarding the distribution of LTSCs for firming CAP M&I subcontractors (adopted March 4th, 2019). Through 2026, the AWBA will distribute LTSCs pursuant to A.R.S. 45-2457(B)(7) to meet all reductions to scheduled CAP M&I Priority water due to a shortage condition or required LBDCP contributions, regardless of use. Consequently, this policy provides the certainty desired by CAP M&I subcontractors that water will be available to meet demand and to ensure sufficient resources for mitigating water reductions that result from the LBDCP. The operating experience gained during this time will inform future AWBA policies on LTSC distribution.
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