CAP clears storage-credit deal to mobilise 700+ Plan conservation
Central Arizona Project, Arizona · Meeting date: November 5, 2026 · Published: November 6, 2026
The Central Arizona Project board has authorised agreements allowing participating CAP municipal and industrial subcontractors to reduce deliveries and retain water in Lake Mead, receiving one acre-foot of Arizona Water Banking Authority credits for each qualifying acre-foot conserved. The framework supports Arizona’s voluntary system-conservation contribution alongside mandatory Lower Basin reductions.
Key points
- Participating subcontractors could contribute up to 59,895 acre-feet in 2027 and 59,433 acre-feet in 2028 under the AWBA credit-backed programme.
- Freeport-McMoRan plans to contribute up to 21,000 acre-feet in each of 2027 and 2028 without seeking AWBA long-term storage credits.
- CAGRD was separately approved to contribute up to 20,000 acre-feet in both 2027 and 2028, split between the Phoenix and Tucson active management areas.
- Each qualifying acre-foot left in Lake Mead will be matched with one acre-foot of AWBA long-term storage credits, subject to water availability, execution of the agreements and no monetary compensation for the conserved water.
Full report
Central Arizona Project has approved the agreements needed to turn voluntary municipal and industrial conservation commitments into Lake Mead system-conservation water under the Lower Basin’s 700+ Plan.
The Central Arizona Water Conservation District board authorised templates for two linked agreements: a System Conservation Implementation Agreement among the Bureau of Reclamation, CAWCD and each participating CAP subcontractor; and a firming agreement among the Arizona Water Banking Authority, CAWCD and the subcontractor. CAWCD’s General Manager can now execute agreements substantially in that form with the identified participants.
Under the arrangement, a subcontractor modifies its CAP water order to reduce scheduled deliveries. CAWCD correspondingly reduces its Colorado River diversion and Reclamation accounts the volume left in Lake Mead as an Arizona contribution to the 700+ Plan. The AWBA will provide one acre-foot of long-term storage credits for every acre-foot of qualifying, uncompensated system-conservation water.
The credits are intended to firm participating subcontractors’ supplies. They are available only where the participant has executed both agreements, Reclamation has acknowledged the contribution for the 700+ Plan, and the conserved volume receives no monetary compensation. The agreements set “up-to” volumes rather than fixed delivery reductions, leaving actual contributions dependent on water availability and annual water orders.
The programme is part of the May 2026 Lower Basin Proposal, under which Arizona, California and Nevada proposed mandatory annual consumptive-use reductions of 1.25 million acre-feet in 2027 and 2028. Arizona’s share is 760,000 acre-feet annually. The proposal also includes at least 700,000 acre-feet of cumulative voluntary system conservation across the Lower Basin during 2026-28. During the board discussion, the General Manager said Arizona’s commitment within that voluntary element is at least 300,000 acre-feet by the end of 2028.
The approved participation list identifies up to 11,808 acre-feet of contributions in 2026, from EPCOR service areas, Glendale, Mesa and Arizona Water Company’s Pinal Valley operation. For 2027, participants requesting AWBA credits could contribute up to 59,895 acre-feet. CAGRD accounts for 20,000 acre-feet of that volume, comprising 17,000 acre-feet in the Phoenix active management area and 3,000 acre-feet in the Tucson active management area. Other listed participants include Avondale, Glendale, Mesa, Phoenix, Scottsdale, Surprise, Marana, EPCOR, Chaparral City Water Company and several Arizona Water Company operations.
The 2028 list totals up to 59,433 acre-feet, again including 20,000 acre-feet from CAGRD. Freeport-McMoRan is expected to contribute up to 21,000 acre-feet in each of 2027 and 2028, but will use only the Reclamation conservation agreement and will not request AWBA credits.
The board also separately approved CAGRD’s participation for 2027 and 2028. CAGRD manager Viviane Baji said the district expects a neutral operational effect because it will receive credits in locations where it would otherwise have stored water for replenishment obligations. She said CAGRD will deliver less water to its groundwater-savings-facility partners, while receiving the matching long-term storage credits instead.
Board members pressed staff on whether the arrangements depend on completion of a Lower Basin implementing agreement. Senior attorney Gregory Adams said the AWBA policy and the conservation agreements can proceed without one, but conserved volumes remain contingent on water availability. If a Lower Basin agreement does not materialise and deeper reductions fall on Arizona, CAP and its subcontractors would need further discussions on the water available for voluntary conservation.
The board approved both the framework agreements and CAGRD participation unanimously.
This summary was generated by AI based on the source document and may contain errors.
Source: Board Meeting , Central Arizona Project