www.CentralArizonaProject.com April 2012

CAPTribalConfluences

CAP figures prominently in Indian Nations & Tribes Legislative Day Activities

The 17th Annual Indian Nations and Tribes Legislative Day (INTLD) included several emphasis points relating to water management in Arizona and CAP was a sponsor. Each year, the legislature hosts the event with support from the Arizona Commission of Indian Affairs and tribal communities. The day includes a Joint-Protocol session where tribal leaders join and address their state legislators. Water was a key point in remarks offered by tribal leaders this year. Fort Mojave’s Vice Chairman, Shan Lewis recognized the important role of both tribes and CAP, noting that “CAP water nourishes the people, farmland and Tribal enterprises,” of various Arizona tribes. “Water unites us, all, across our many different cultures, traditions and histo-ries,” the Vice-Chairman stated. “Tribes are, and will continue to be major players in water resource issues in this state.”

While Fort Mojave is one of just four Arizona tribes with court decreed water rights, Vice-Chairman Lewis touted the impor-tance of water settlements for Arizona, noting that settlements afford security to all by clearly establishing the water rights of all parties. Forty-seven percent of the CAP water supply is desig-nated for tribal water settlements. CAP General Manger David Modeer has indicated that “as more tribes begin to take CAP water, our need to understand one another’s operations will con-tinue to grow.”

CAP is pleased to sponsor events like INTLD to assist efforts of collaborative learning. “It is the financial support of organiza-tions, like CAP, who make this event a valuable learning experi-ence that our participants from throughout Arizona have come to expect,” said Kristine Firethunder, Executive Director of the Commission of Indian Affairs. In addition to financial support, as part of the event, CAP unveiled its first tribal specific adver-tisement and the first edition of its new tribal newsletter: CAP Tribal Confluences. Approximately 500 people attended.

Attendees check out the event program with the new CAP advertisement and the new CAP tribal newsletter.

Tohono O’odham Community College Students and Faculty Tour a CAP Pumping Plant

Water Management students from the Tohono O’odham Community College came to Central Arizona Project on March 12 for a tour of the Twin Peaks Pumping Plant and the Lower Santa Cruz Recharge Project. The seven students and their Agriculture and Natural Resources teacher learned about the history, function and activities of CAP. They also gained insight on how CAP supports wise water management and delivers water sup-plies to central and southern Arizona, including local tribal communities.

Students indicated that the scale and operational sophistication of the CAP system were larger and more advanced than what they had previously thought. They had many questions about water supplies, rates, canal management and power issues. CAP staff highlighted the opportunities for future employment at CAP in a number of technical, trade and administrative fields. The tour was so successful that the teacher has asked that CAP make this an annual event for his class, indicating that the students were very enthused about their visit and learned a lot about CAP’s relationship to the sustain-ability of their Nation.

White Mountain Apache Water Settlement One Step Closer to Full Enactment

One of the CAP’s top legislative priorities this session is se-curing state appropriations for the White Mountain Apache (WMAT) Water Settlement. The settlement, “White Mountain Apache Tribe Water Rights Quantification Act of 2010,” which Congress approved last term, provides for the construction of a WMAT rural water system to divert, store and distribute water. Under the settlement, the state is obligated to provide a share of the funding for the settlement. Therefore, CAP and others have advocated that the state appropriate its share.

The legislature has been extremely supportive of this legisla-tion,” said David Modeer, CAP General Manager. “Lawmakers have made it clear that it is important to move Arizona one step closer towards ensuring access to water services statewide.”

In addition to the access the WMAT will receive, the settlement is expected to generate almost 800 new jobs for rural Arizona and $6.5 million in state revenues. The bill has cleared all its initial legislative hurdles. It is expected to be part of the ultimate state budget negotiated between the legislature and the Governor.

Important Findings Released about the Impacts of Navajo Generating Station on Visibility

In January, the National Renewable Energy Laboratory (NREL) released a much-anticipated report regarding the Navajo Gener-ating Station (NGS). The EPA has been examining what if any additional controls will be required for NGS to comply with the Best Available Retrofit Technology (BART) requirements of the Clean Air Act. BART relates to visibility concerns at national parks—not health. According to the NREL report, the “funda-mental question” that must be examined is “how reducing NOx from NGS would contribute to improved visibility at the Grand Canyon and other areas of concern.” Importantly, however, the report concludes that “the answer to this fundamental question is, at best, inconclusive.”

Almost all of the power CAP uses to move more than 500 billion gallons of Colorado River water each year comes from the coal-fired NGS on the Navajo Nation. Just last year, plant owners in-stalled Low-NOx burners to reduce emissions of smog-forming nitrogen oxide. The EPA now must determine whether this is sufficient. Concern has continued to mount as expensive new

regulatory requirements together with other uncertainties, could force plant owners to close NGS. The NREL Report also found that the Navajo Generating Station and the Kayenta Mine, where the coal comes from, contributed nearly $1.3 billion to the Navajo and Hopi economies since 1987. Additionally, a recent study from the W.P. Carey School of Business at Arizona State University concluded that the power plant and mine would have a $20.5 billion impact on the state of Arizona through 2044. The ASU Report found that Arizona would lose up to 3,400 jobs per year through 2044 if NGS is closed.

CAP is not an owner of NGS and makes no profit from NGS, but more than 90 percent of the energy CAP uses for its 24-hour operations comes from NGS. According to the plant opera-tor, Salt River Project (SRP), NGS employs approximately 540 people, more than 80 percent of whom are Native American. The Kayenta Mine has more than 400 employees, the majority of whom are also Native American.

CAP Recognized for Ongoing Support of Hopi Education Endowment Fund

For the second straight year, CAP served as a primary sponsor of the Hopi Educational Endowment Fund’s (HEEF) Annual Art Auction. The HEEF is a perpetual education endowment fund segregated from the Hopi Tribe’s general funds; its goal is to foster the resources to aid in development of new strate-gies to address areas of greatest educational need, including post-secondary education for Hopi students. As part of fundraising activities, HEEF hosts a yearly art auction with exceptional works from emerging and established Hopi and Native American artists. The event is held simultaneously with the Heard Museum’s Indian Fair and Market and attracts a diverse crowd. HEEF honored CAP and other sponsors who helped to underwrite the costs of their fundrais-ing event during the March event.

Left, Sheridan Rogers, Student & HEEF Funding recipient and Kato-sha Nakai, CAP’s Manager of Tribal Affairs and Policy Development.

Navajo/Hopi Little Colorado River Water Settlement Pending in Congress

Legislation that would lead to settlement of the Navajo Nation and Hopi Tribes’ claims to water from the Little Colorado River now is pending. On February 14, 2012, Senators Kyl and McCain introduced the Navajo-Hopi Little Colorado River Settlement Act of 2012, SB 2109. Representative Quayle introduced a companion bill in the House, H.R. 4067. The long-awaited settlement provides for a much needed source of drinking water supply for portions of the Navajo Nation and the Hopi Tribe. It authorizes the funding and construction of three groundwater deliv-ery projects (one for the Hopi Tribe, two for the Navajo Nation) to enable the Tribes to access and utilize existing groundwater supplies.

CAP and Hualapai’s Grand Canyon West Support Charity Together

Each year the Phoenix Indian Center (PIC) hosts its Silver & Turquoise Fundraising Auction and Ball. CAP supports the ef-forts of the PIC and again participated in its April event. “This year we decided to try something new to simultaneously support investment into tribal communities while raising money to sup-port the programs of the Indian Center locally,” Katosha Nakai, CAP Manager of Tribal Relations & Policy Development stated. “As a past president of the PIC, I know that one of the hottest auction items is always a great trip or getaway so we wanted to entice people with an adventure they would not forget.” Huala-pai’s Grand Canyon West was an ideal adventure.

Working with leaders and executives of the Hualapai Nation, the CAP secured a generous donation for two people to visit Grand Canyon West and the amazing Skywalk. Courtesy of Grand Can-yon West Resort, guests will be treated to shuttle service to all viewpoints at Grand Canyon West, a meal at the viewpoint of the visitors’ choice, a Hualapai Visitation Certificate, photo op-portunities with tribal members, and a walk on the Skywalk, a glass bridge suspended 4,000 feet above the Colorado River on

the very edge of the Grand Canyon. CAP donated a daypack filled with all the supplies any tourist might need including a round trip gas card and first aid/emergency kit. The hope is that while creating a wonderful auction item to raise funds for the PIC, CAP will also encourage those with interests in seeing In-dian Country to travel to the Hualapai Nation, get to know the people, and contribute to the tribal economy while they are there.

Grand Canyon West home of the Skywalk

CAP hosts rate-setting workshopThe biennial rate-setting process for CAP and CAGRD rates is underway. April 12, CAP hosted a public workshop, which tribal representatives attended, to explain anticipated rate increases and key assumptions. Unlike cities, irrigation districts or typical CAP customers, how tribes are billed and which components of the CAP water delivery rate each tribe pays depends on individual water delivery contracts each tribe has entered with the federal government through the Bureau of Reclamation (BOR). While the costs CAP can control related to fixed Operations, Mainte-nance & Repair will be exactly as anticipated for 2013, rates re-lating to the cost of Navajo Generating Station (NGS) power will be increasing in the next few years more than originally forecast.

CAP is a cost of service delivery system and does not profit from rates. Costs of production, coal, capital expenses at NGS, a new operating agreement with the BOR, and new regulatory require-ments (i.e. Mercury and Air Toxic Standards) combined with the

decreasing market prices for surplus power are about to leave CAP spending more than it collects for energy costs. Therefore increases are necessary at this time to cover the cost of service.

Importantly, while the recommended rates reflect an increase, they also reflect a best case scenario as they do not account for other currently uncertain factors like a negative Best Available Retrofit Technology (BART) ruling from the EPA, increases in costs related to renegotiations of coal and land leases, or the pos-sible shutdown of NGS. Depending on how these matters are resolved, rates may again be increased. To help water users by keeping the rates as low as possible, CAP staff is recommending that for 2013, CAP use funds from its rate stabilization reserves for all customers to offset some of the difference that would oth-erwise be reflected in an even higher rate. The CAWCD, Board of Directors, CAP’s governing body, will vote on preliminary rates in May and final biennial rates in June.

David Modeer, General ManagerKathryn Royer, Associate General Manager, Communications & Public Affairs Katosha Nakai, Manager, Tribal Relations & Policy Development

CAP Confluences is a publication of Central Arizona Project. Central Arizona Project PO Box 43020

Phoenix, AZ 85080 623-869-2333

CAP Announces Webpage Focused on Tribal Water MattersMore and more of CAP’s water users are tribal users. In fact 47% of the CAP supply is designated for Indian water rights settlements. Our single largest contract holder is the Gila River Indian Community. Still, neither tribes nor the general public know exactly how the CAP is connected to Indian Country. In an effort to share more information, CAP has added a new page on its website dedicated to “Tribal Water.” Look for it under the “Water” tab or go directly to the page at: http://www.cap-az.com/Water/TribalWater.aspx.

Getting to know the tribes we serve: CAP and the Ak-Chin Indian Community

Recently leaders and staff of the Ak-Chin Indian Community (Com-munity) provided staff from the CAP with a tour of their new recla-mation facility and the Ak-Chin Farms Enterprise. The Community proactively manages its water resources for sustainability. Their new 2.5 million gal-lons per day water reclamation facility began operating in August 2011. A new drinking water treatment plant designed to process a blend of CAP water and groundwater is scheduled to open in July. According to Dee Fuerst, a CAP Senior Policy Analyst, “the water reclamation design choice for this sys-tem is highly efficient and will be easy to ex-pand to accommodate growth.” Meanwhile, the Community’s domestic and commercial groundwater demand will be reduced as it switches to a renewable supply, CAP water.

Ak-Chin Farms also is operating quite efficiently while playing a critical role in the Arizona economy. It grows hay and barley that provide important feed stock for multiple Arizona dairy farms and Hickman Eggs. “I was surprised to learn that the Ak-Chin Farms also grows potatoes that are used by local potato chip manufacturers,”

mused Donna Micetic, CAP’s Management Liaison to the Board. “A potato chip that I eat in June, was likely produced from a potato grown in Arizona!” According to the Community, Ak-Chin Farms

supplies the potatoes for Frito Lay, the store brands for Bashas and Frys and other local chip manufacturers.

The Central Arizona Water Conservation District, which maintains and operates the CAP, will hold its monthly Board of Direc-tors meeting at Harrah’s Ak-Chin Resort & Casino on May 3, 2012. Ak-Chin leaders will provide a similar tour to Board members the afternoon before the Board Meeting and provide a presentation for the Board and the general public who attend the May 3 meet-

ing. The Ak-Chin Indian Community was the first tribe in Arizona to reach a water rights settlement utilizing CAP water.

Above: Ak-Chin Farms Manager, Steve Coester, answers questions about the significant infrastructure that arrived to make irrigation possible fol-lowing the Community’s Water Rights Settlement.

CAP Encourages Native Students to Follow Science & Engineering Career Paths

Approximately 200 American Indian students from Arizona, New Mexico, Colorado and Utah gathered at Arizona State Uni-versity in March as part of the American Indians in Science & Engineering Society’s (AISES) Region 3 Conference. The confer-ence entitled “Fostering Indigenous Solutions to Global Chal-lenges” provided a unique opportunity to highlight critical issues associated with water supply and management from a global per-spective. CAP staff presented information about how the trend toward Indian water rights settlements is creating a greater de-mand for experts with experience and interest in working with tribal communities—especially those with specialized skill sets in the science, technology, engineering, and math (STEM) fields.

“It was thrilling to see how many students and professionals were interested in learning how water settlements are setting the stage for the next generation of water industry experts,” Katosha Nakai,

Manager of Tribal Relations and Policy Development said. “I think they really appreciated, some for the first time, how much cross-disciplinary diversity exists in the field and how pursuing a water-related profession can be personally and professionally fulfilling.”

Job growth in water related industries is expected to rise as chal-lenges relating to water management and supply continue to mount. Additionally, some human resources professionals esti-mate that as much as fifty percent of the water utility workforce will be eligible for retirement in the next five years. While the number of science and engineering degrees awarded annually to American Indians is holding steady, the number of these degrees awarded across other ethnic groups is trending higher. To help students identify the many exciting emerging opportunities that students may wish to explore, CAP is meeting with individual AISES Chapters and partnering with conferences such as this one.