Public Policy Committee

May 6, 2010

Location: Central Arizona Project

Central Arizona Water Conservation District

(Central Arizona Project)

Public Policy Committee Meeting

May 6, 2010

Chairperson Burns called to order a meeting of the Public Policy Committee of the Central Arizona Water Conservation District ("CAWCD" or "CAP") on May 6, 2010, at 9:09 a.m.  The meeting was held at the Central Arizona Project headquarters, 23636 N. 7^th Street, Phoenix, Arizona 85024 in the Board Room. 

Committee members present were Chairperson Gayle Burns, Maricopa County; Terri Kibler, Pinal County; and Jean McGrath, Maricopa County.

Directors present were Susan Bitter Smith, Maricopa County; L.M. "Pat" Jacobs, IV, Pima County; Sharon Megdal, Pima County (via teleconference); Warren Tenney, Pima County; and Janie Thom, Maricopa County (arrived at 9:15 a.m.).

Staff members present were David Modeer, General Manager; Larry Dozier, Deputy General Manager; Doug Miller, General Counsel; Marie Pearthree, Assistant General Manager, Business Planning; Bridget Schwartz-Manock, Manager, Legislative Affairs; Ted Cooke, Assistant General Manager, Finance; Donna Micetic, Management Liaison to the Board; and Cheryl Visconti, Executive Legal Secretary.

1. CONSIDERATION OF ACTION TO APPROVE THE MINUTES OF THE MARCH 4, 2010, COMMITTEE MEETING

By unanimous consent, the Committee approved the minutes of the March 4, 2010 Committee Meeting.

2. UPDATE ON STATE LEGISLATIVE ISSUES THAT COULD AFFECT CAWCD

Ms. Burns reported that SB 1141 passed. Our office will work with Governor Brewer's office to arrange a bill signing ceremony. 

Ms. Schwartz-Manock provided updates on state legislative issues that could affect CAWCD. 

Navajo Generating Station -The joint letter to the EPA is currently being routed for signature by a number of state officials.

CAGRD Legislation (SB 1141) - This bill passed.

Arizona Water Banking Authority (AWBA) (SB 1356) - This bill passed and was signed into law on April 26, 2010.

ADWR Budget Issues -On April 1, 2010 ADWR posted a proposed fee schedule for various permits and programs. CAP staff analyzed the fee schedule to determine the financial impacts on its operations.  The analysis raised a number of technical questions to which staff has developed a list for ADWR.  CAP is waiting for ADWR's response to those questions.

Jurisdiction Over Intrastate Waters (SCR 1046) - This bill failed to pass the House.

Water Recharge; Direct Use (HB 2289) - This bill was signed by Governor Brewer on April 23, 2010.

Mining Amendments; Water; Permits; Rules (HB 2617) - This bill was amended to address CAP's concerns.  It passed the Senate on April 22, 2010.

Joint Action Agency Legislation (HB 2653) - This bill passed the House on April 27, 2010.

Statewide Water Augmentation Authority; Study (HB 2661) - This bill was amended to address CAP's concerns and passed out of the Senate on April 28, 2010. 

3. UPDATE ON FEDERAL LEGISLATIVE ISSUES THAT COULD AFFECT CAWCD

Ms. Pearthree reported on federal legislative issues that could affect CAWCD.  The current focus is on the financial reform bill which is likely to dominate Congress in the short term. 

EPA Rulemaking regarding Navajo Generating Station - Efforts to educate elected officials and key stakeholders are ongoing.  On May 24, 2010, a meeting will be held at CAP with SRP and tribal representatives to review revised NGS emissions control costs.  CAP leadership is also scheduled to meet with Administration officials in mid-May.

Climate Change and Energy Legislation - It is unlikely that a comprehensive climate change bill will move forward this session.

Lower Colorado River Protection Act - CAP continues to work on amended language with its federal lobbyists and other stakeholders that can be supported by Representative Grijalva. 

Clean Water Restoration Act (S. 787) - A bill to redefine what waters are covered by the Clean Water Act has been reintroduced in the House.  It is called "America's Commitment to Clean Water Act" (HR 5088).  CAP continues to work with the Western Water Urban Water Coalition to seek exclusion from the definition of "waters of the United States" for water conveyance facilities.  Currently, the bill defines "waters of the United States" so broadly that it could include water conveyance systems. 

Navajo/Hopi Water Rights Settlement - Settlement negotiations are ongoing.

Post-2017 Hoover Power Reallocation (S. 2891, H.R. 4349) - Markup of this bill is scheduled for May 5, 2010.  CAP staff has been working with other stakeholders to develop proposals responsive to the issues raised by the Arizona Rural Electric Cooperatives during the March 18 legislative hearing.  Mr. Miller reported that the Arizona Co-ops offered testimony requesting that the bill be amended to preempt Arizona law and change the process for allocating Hoover power at the state level.  CAWCD and others have indicated that they oppose such an amendment but are willing to support the allocation of some amount of Hoover power to the Co-ops once the allocation process reaches the state level.

EPA Rulemaking Greenhouse Gas Emissions - CAP staff continues to monitor this legislation.

EPA Rulemaking Inorganic Arsenic Standard - The Science Advisory Board (SAB) developed a special workgroup to review the EPA's assessment relating to its previous analysis of the hazards of arsenic in drinking water.  Depending on what the new standard is, it is likely to have an impact on CAP customers.  CAP staff continues to monitor this legislation. 

Ms. Pearthree reported that the EPA announced their plans to regulate disposal and management of coal ash from coal-fired power plants.  EPA will be accepting public comments on whether to treat coal ash as a hazardous or non hazardous waste.  If coal ash is determined to be a hazardous waste, costs for disposal will increase significantly.  CAP staff will work with SRP to analyze the affects such legislation may have on the Navajo Generating Station.

4. PUBLIC COMMENT

None.

5. ADJOURNMENT

There being no further business to come before the Committee and, without objection, the meeting adjourned at 9:37 a.m.            

Gayle Burns, Chairperson