Arizona Water Banking Authority

Arizona Water Banking Authority
Name	Arizona Water Banking Authority
Formed	1996
Jurisdiction	Arizona
Headquarters	Phoenix, Arizona
Chief1 name	(see Structure and Governance)
Website	(omitted)

Arizona Water Banking Authority is a state-chartered entity created in 1996 to store and manage Colorado River water supplies for future use by Arizona municipal and agricultural users. It operates within a complex framework involving the Central Arizona Project, the Secretary of the Interior (United States), the Arizona Department of Water Resources, and regional water providers such as Maricopa County and the City of Tucson. The Authority coordinates with federal agencies like the Bureau of Reclamation and interstate compacts such as the Colorado River Compact to secure Colorado River allocations for Arizona.

Background and Establishment

The Authority was established by the Arizona State Legislature amid prolonged negotiations following the passage of the Central Arizona Project (CAP) and adjustments to allocations under the Colorado River Compact (1922). Debates during the 1980s and 1990s involving stakeholders such as the Gila River Indian Community, the Salt River Project, and the Central Arizona Water Conservation District led to legislation designed to allow Arizona to bank surplus Colorado River deliveries underground. Influential events shaping its creation included prolonged drought on the Colorado River Basin and federal actions by the Bureau of Reclamation and the United States Congress addressing western water shortages.

Structure and Governance

The Authority is structured as a state entity within the framework of the Arizona Revised Statutes and works closely with the Arizona Department of Water Resources (ADWR). Governance involves a board appointed under state law and coordination with the Governor of Arizona's office, local utilities such as Phoenix water providers, and tribal authorities including the Tohono Oʼodham Nation. It partners operationally with the Central Arizona Project, which conveys Colorado River water, and with federal agencies including the Bureau of Reclamation and the U.S. Department of the Interior for interstate water management and delivery obligations.

Operations and Water Management

Operationally, the Authority arranges for the recharge of Colorado River water into aquifers across Maricopa County, Pima County, and Pinal County through agreements with entities such as the Salt River Project and municipal utilities in Tucson and Phoenix. It relies on facilities like recharge basins, managed aquifer recharge projects coordinated with the Arizona Water Banking Council, and exchanges with entities such as the Gila River Indian Community and the Fort McDowell Yavapai Nation. Its role includes storing excess CAP deliveries, managing credits under interstate agreements like the Lower Basin States arrangements, and coordinating with the Secretary of the Interior when International Boundary and Water Commission or interstate shortages trigger adjustments.

Funding and Financial Mechanisms

Funding originates from state appropriations authorized by the Arizona State Legislature, payments from water users including municipal providers like the City of Phoenix and City of Tucson, and transactional revenues from water storage and exchanges with entities such as the Central Arizona Project and tribal governments. The Authority engages in long-term contracts, storage credits, and exchange agreements that affect budgets of regional agencies like the Maricopa Water District and county governments. Financial interactions intersect with federal funding mechanisms administered by the Bureau of Reclamation and legislative actions by the United States Congress affecting western water infrastructure investments.

Legal and Regulatory Framework

The Authority operates under the Arizona Revised Statutes and in the context of interstate compacts like the Colorado River Compact and federal statutes including the Reclamation Act of 1902. It must comply with litigation and settlements involving parties such as the Gila River Indian Community and notables in water rights adjudication like the United States District Court for the District of Arizona. Regulatory oversight involves the Arizona Department of Water Resources, federal oversight by the Bureau of Reclamation, and coordination with federal environmental statutes administered by agencies such as the United States Fish and Wildlife Service and the Environmental Protection Agency when recharge activities implicate wetlands or endangered species.

Environmental and Economic Impacts

Banking operations influence groundwater levels across the Sonoran Desert and riverine systems tied to the Colorado River Basin, affecting habitats managed by the U.S. Fish and Wildlife Service and conservation efforts by organizations like the Nature Conservancy. Economically, stored water credits stabilize supplies for metropolitan economies in Phoenix and Tucson, support agricultural operations in the Gila River Valley and facilitate municipal growth in counties like Pinal County. Projects intersect with restoration programs for species such as the Southwestern willow flycatcher and with regional water markets impacting utilities including the Salt River Project and municipal water departments.

Criticisms and Controversies

Critics include tribes such as the Gila River Indian Community and stakeholders like agricultural districts in disputes over allocation priority, accounting of stored water credits, and perceived favoritism toward urban users in Maricopa County. Controversies have involved negotiations with the Bureau of Reclamation during Colorado River shortage declarations, legal challenges in state courts, and debates in the Arizona State Legislature over funding and governance transparency. Environmental groups including Sierra Club and regional advocacy organizations have raised concerns about impacts on native species and recharge site siting, while economists and policy analysts affiliated with institutions like Arizona State University and University of Arizona have critiqued the Authority's market mechanisms and long-term resilience under climate change scenarios.

Category:Water management in Arizona Category:Colorado River