CAP Water for the Upper Santa Cruz Valley

1. CAP Water for the Upper Santa Cruz Valley Dick & Nan Walden Farmers Investment Co. Safe Yield Task Force Tucson Active Management Area Groundwater Users Advisory Council December 13, 2010

2. Farmers Investment Co. (FICO)/Green Valley Pecan Co. • Diversified farming operations in the Santa Cruz Valley since the 1940s. • Family-owned company with strong community and statewide roots.

3. FICO ProposalA Community Based Effort • A pipeline to deliver CAP water to the Upper Santa Cruz Valley; • Builds on the work of the Upper Santa Cruz Providers and Users Group (USC/PUG), Pima County, and the Arizona Department of Water Resources (ADWR); • Regional effort to offset overdraft of groundwater from the Upper Santa Cruz Aquifer.

4. Basis of Proposal • According to USC/PUG, Pima County, and ADWR, the Upper Santa Cruz basin has an annual over-draft of >30,000 ac-ft/yr of groundwater • A 36-inch pipeline could deliver approximately 30,000 ac-ft/yr of CAP water • Excess capacity in the CAP system at the Pima Mine Road terminus is approximately 40,000 ac-ft/yr. • FICO welcomes additional partners who are current water users for initial and future phases.

5. Preliminary CAP Water Delivery System

6. Advantages of the FICO Proposal • Since 2001, FICO’s 3,000-acre Sahuarita Farm has been a permitted Groundwater Savings Facility (GSF), which can accept up to 22,000 ac-ft/yr. • FICO’s GSF is within close proximity of the CAP terminus, resulting in a shorter pipeline and no pumping lift for Phase 1.

7. Advantages of the FICO Proposal Project would … • have immediate access to 3,600 ac-ft/yr of Non-Indian Agricultural Pool CAP water, which would be purchased by FICO; • have immediate access to 1,500 ac-ft/yr of current CAGRD obligation CAP water; • be available to transport current CAP sub-contracts of CWC (2,858 ac-ft/yr) and GVDWID (1,900 ac-ft/yr). • Other parties have expressed interest, such as the Arizona Water Bank, Tucson Water, and other water companies and developers.

8. Advantages of the FICO Proposal • Phase I funding is independent of the CAP budget and does not affect tax rates or current capital budget; • FICO is the least costly pipeline alternative; shortest distance, does not require pumping; • Economical design enables quick construction and rapid contribution to region’s water needs; • Utilizes water supplies available now; • Requires no federal, state, or local permits since it is on private land; • Requires no purchase of rights of way (ROWs); • FICO Pipeline is consistent with the Colorado River Basin Project Act of 1968.

9. Colorado River Basin Project Act of 1968 Requires that sub-contractors use CAP water in-lieu of groundwater – allocation orders make this clear. CAP water was never intended for new uses. 1980 Arizona Groundwater Management Act No new land developed for farming; Compliance with mandated conservation requirements; Developers are restricted to water provided by a water company with a designated assured water supply or must join the CAGRD; Groundwater used by a new subdivision must be replenished with renewable sources drop for drop. FICO Pipeline Consistent With Federal and State Water Law

10. Summary The FICO Pipeline … • is compliant with the spirit and the intent of the law and the sub-contract; • is the least expensive to initiate; • is the quickest to construct and put into operation; • Leaves drinking-quality groundwater in the ground for the future and uses CAP water without the need for treatment; and • lends itself to future phases and additional partners for regional benefit.

11. Finally… Safe Yield Task Force Mottos…. PROGRESS NOT PROCESS, PROGRESS NOT PRESENTATIONS PROGRESS NOT PERIPHERALS FICO pipeline proposal is a ready and effective solution to put CAP water to use now to conserve groundwater.

12. Thank You For Further Information: Dick Walden, President (520) 879-7426 rsw@greenvalleypecan.com