1. The Colorado River and Nevada Association of California Water Agencies Fall 2010 Conference December 1, 2010

2. Background: Law of the River Colorado River Hydrology

3. Colorado River Basin 16.5 million acre-feet (maf) allocated annually
1.7 maf lost to evaporation annually
15.1 maf average annual “natural” inflow into Lake Powell over past 100 years
66% of average annual inflow to Lake Powell for last 9 years
Irrigates 3 million acres
Serves about 30 million people including Phoenix, Las Vegas, Los Angeles, Denver, Albuquerque and San Diego areas
Key points:
We can store 4 times the average annual inflow
The system has worked exactly as designed as we have made essentially all of our delivery commitments despite having the worse five-year drought in the last century 3

4. Beginning in 2000, severe drought conditions
began affecting the Colorado River Basin.
Fishing Dock at Lake Mead Marina - Nov. 2008

5. Since that time, Lake Mead’s elevation
has dropped by more than 100 feet.
Hoover Dam, Lake Mead
2010
Hoover Dam, Lake Mead
2000 5

6. Natural Flow Colorado River at Lees Ferry - Water Year 1906 to 2010
Points to make:
101-year ( ) historical average is approximately 15 maf
2007 and 2008 are estimated values
Inflows are highly variable
Period from has the lowest 12-year average inflow, but note there were a couple of good years in the period 6

7. Annual Natural Flow at Lees Ferry Tree-ring Reconstruction (Meko et al
Annual Natural Flow at Lees Ferry Tree-ring Reconstruction (Meko et al., 2007) 25-Year Running Mean 7

8. Colorado River

9. Colorado Resources Used to Meet Demands
Basic Apportionment
300,000 acre-feet for Nevada
Intentionally Created Unused Apportionment
Water banking agreements with California and Arizona
Intentionally Created Surplus

10. Existing Law of the River Concerning Shortages

11. Existing Law of the River Concerning Shortage
1944 Treaty between the United States and Mexico
In the event of extraordinary drought or serious accident to the irrigation system in the United States, Mexico will be reduced in the same proportion as consumptive uses in the United States are reduced

12. Existing Law of the River Concerning Shortage
1964 U.S. Supreme Court Decree Arizona v. California, Article II(B)(3)
If less than 7.5 million acre-feet is available, Secretary of the Interior will satisfy demands based on present perfected water rights regardless of state lines
Anything remaining will be apportioned in accordance with the Boulder Canyon Project Act
California will not receive more than 4.4 million acre-feet

13. Existing Law of the River Concerning Shortage
1968 Colorado River Basin Project Act
When there is insufficient water to meet lower basin demands, Central Arizona Project shall be limited as to assure the availability of water for consumptive uses of present perfected rights
Nevada shall not bear in shortages greater than it would have to before this Act
Act does not affect relative priorities of water in CA, AZ, and NV that are senior to Central Arizona Project

14. 2007 Interim Guidelines and Associated Agreements

15. Background
In January 2001, the Secretary of the Interior adopted the Colorado River Interim Surplus Guidelines to identify the conditions that are used to determine the availability of surplus water for Arizona, California, and Nevada
Following the adoption of the Interim Surplus Guidelines, drought significantly reduced the storage levels in Lakes Powell and Mead

16. Background
At that time, significant disagreements between the Upper and Lower Basins, as well as among the Lower Basin States included:
2005 Annual Operating Plan disagreement
Article II(B)(2) of the Decree in AZ v. CA (50/46/4)
Quantity and timing of shortages
In May 2005, the Secretary announced a process to develop Lower Basin shortage guidelines and explore management options for the operation of Lakes Powell and Mead, which began the initiation of a NEPA process

17. Background
In February 2006, the Seven States sent a Preliminary Proposal to the Secretary regarding Colorado River interim operations in response to NEPA scoping
Preliminary proposal focused on four primary elements:
Modification and extension of Interim Surplus Guidelines
Coordinated reservoir operation between Lakes Powell and Mead
Quantified shortages in the Lower Basin based on Lake Mead water elevations
Creation of Intentionally Created Surplus program (ICS)
Preliminary Proposal also attached a Draft Agreement among the Seven States
The Seven States’ Agreement designed a cooperative process to avoid conflicts between the states

18. Background
In December of 2007 the Secretary of the Interior issued a Record of Decision for Colorado River Interim Guidelines for Lower Basin Shortages and the Coordinated Operations for Lake Powell and Lake Mead and adopted all of the main components of the Basin States Proposal

19. Intentionally Created Surplus (ICS)
Nevada can create and utilize Intentionally Created Surplus by conveying Nevada groundwater and water from the Virgin and Muddy Rivers through Lake Mead
The Shortage Sharing Agreement and Interim Guidelines provide that this water will be available during declared shortages as Developed Shortage Supply (DSS)

20. Tributary Conservation
Allows a water user to fallow water rights in tributaries that were in use prior to the effective date of the Boulder Canyon Project Act (1929)
Water is transported through the Colorado River
Nevada has approximately 50,000 acre-feet within this category on the Virgin and Muddy rivers (SNWA currently owns or controls about 30,000 acre-feet)
Can be taken during shortage (DSS)

21. System Efficiency Projects
Allows a water user to fund a system efficiency project that would conserve Colorado River water
Such projects include the Drop 2 Reservoir Project and the operation of the Yuma Desalting Plant
The project must increase the amount of water available in the U.S. and a portion of the saved water is credited to the user funding the project
Cannot be taken during shortage

22. Drop 2 Reservoir Project System Efficiency ICS Project

23. Drop 2 Reservoir Project
Design and construction cost originally estimated at $172 million (with 20% contingency, $206 million)
$9.6 million has already been refunded to the states and additional refunds are expected as the project closes out
SNWA provided $ million to fund the design, construction and operation of the Drop 2 reservoir and SNWA will receive up to 400,000 acre-feet of ICS credits
The Metropolitan Water District of Southern California and the Central Arizona Water Conservation District exercised their option to contribute $28.67 million each in return for 100,000 acre-feet each of ICS credits

24. First Fill – Drop 2 Reservoir

25. Imported ICS
Allows non-Colorado River system water to be conveyed through and diverted from system reservoirs
Includes SNWA’s Coyote Spring groundwater rights that will be introduced into Lake Mead via the Muddy River (Currently 9,000 acre-feet)
Can be taken during shortage (DSS)
A pipeline has been constructed and water deliveries began in November 2010

26. Intentionally Created Unused Apportionment

27. Existing Law of the River concerning Surplus and Unused Water
1964 U.S. Supreme Court Decree Arizona v. California (2006 Consolidated Decree), Article II(B)(2)
If more than 7.5 million acre-feet is available for consumptive use the Secretary of the Interior will apportion 50% to California, 46% to Arizona, and 4% to Nevada
1964 U.S. Supreme Court Decree Arizona v. California (2006 Consolidated Decree), Article II(B)(6)
If, in one year, water apportioned for use in a State will not be consumed, the Secretary of the Interior may release the apportioned but unused water for consumptive use in other states
No rights to recurrent use of the water shall accrue

28. Existing Law of the River concerning Surplus and Unused Water
1999 Final Rule for Offstream Storage of Colorado River Water (43 CFR Part 414)
Regulation promulgated by the Secretary of the Interior to establish a procedural framework for facilitating interstate off-stream banking transactions including a commitment by the Secretary to release Intentionally Created Unused Apportionment (ICUA) as a part of such transactions

29. Intentionally Created Unused Apportionment
SNWA has entered into interstate water banking agreements with both California and Arizona
Agreements allow for SNWA to store water in California, and at a later date when SNWA needs the water, California will intentionally reduce their consumptive use below 4.4 MAF and the unused water will be directed to SNWA

30. Interstate Water Banking Agreement with Arizona
Original agreement signed in 2001, amendments entered into in 2004 and 2009
Guaranteed 1.25 million acre-feet of credits for SNWA with return flow credits for an estimated diversion of million acre-feet
Allowed Nevada to utilize Arizona bank to make up shortages, unless a shortage impacts Arizona municipalities, then Nevada will reduce recovery proportionally to Arizona’s municipal shortage
Established SNWA schedule to pay $330 million between 2005 and 2018
* AWBA has stored approximately 527,000 acre-feet of credits for SNWA

31. Unused Apportionment in 2010
Nevada is likely to have unused apportionment in 2010
On November 8, 2010, SNWA and the Metropolitan Water District of California submitted a letter to the Regional Director of the Lower Colorado River Region of the Bureau of Reclamation requesting this water be left in Lake Mead to benefit system storage and help delay the onset of shortages instead of being reallocated in accordance with Article II(B)(6)

32. Conservation

33. Indoor Water Use
Southern Nevada recycles nearly every drop of water that is used indoors and receives return-flow credits for this water

34. square-foot of turf removed and replaced with
The Water Smart Landscapes Program rebates businesses and homeowners $1.50 for every
square-foot of turf removed and replaced with
water efficient landscape.
Program Results
$164,700,000 rebated
148,353,000 square feet converted
8 billion gallons saved annually
More than 41 billion gallons saved since inception

35. Water Conservation
Gallons Per Capita Per Day (GPCD) Water Usage
Previous Goal Attained: 250 GPCD by 2010
New Goal: 199 GPCD by 2035
2035

36. Water Conservation Achievements
325,000
270,000
278,000
265,000
265,000
265,000
262,000
Southern Nevada's annual water consumption decreased by approximately 20 billion gallons between 2002 and 2008, despite a population increase of 400,000 during that span

37. Meeting Future Demands
Summary of Projected Water Demands and Water Resources
1,400,000
1,200,000
1,000,000
Conservation
800,000
Water Demands (acre-feet)
Future Resources to Full Consumption
600,000
400,000
Colorado River and
Las Vegas Valley Groundwater
200,000
2010
2020
2030
2040
2050
2060

38. Questions