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. O":i C"') ...-< GOVERNOR'S CENTRAL ARIZONA PROJECT ADVISORY COMMITTEE .; I . I i . . . . . . . . predicated, in part, on the opportunity the CAP provided to reduce dependence on mined groundwater. Assuming that water users would voluntarily convert to CAP supplies, the Code provided few, if any, tools or incentives to cause a reduction in the continued use of groundwater. Now that it appears that the original CAP pricing assumptions will be changed reducing the likelihood of voluntary use, the underlying assumptions of the Groundwater Code may be challenged. Kev Considerations: . The State Legislature should consider statutory changes which provide incentives and reduce roadblocks to the use of CAP water. Statutory provisions under DWR, DEQ, DHS, the Arizona Corporation Commission and CAWCD should be reviewed to determine whether changes can be made which will encourage greater utilization of CAP water without violating water conservation rules and goals. . While major changes in the Groundwater Code are probably not feasible, institutional tools such as the Assured Water Supply Rules and groundwater recharge programs provide the opportunity to increase utilization of CAP water. . In developing the Assured Water Supply Rules, DWR should proceed with implementation of concepts proposed in its draft Assured Water Supply Rules which provide for an accelerated phase-out of groundwater as a source of supply which can be used to demonstrate an assured water supply. Also, the state should consider moving the date CAP subcontractors are no longer "deemed" to have an assured water supply forward to 1996 from 2001. . The state, CAWCD, and other entities should pursue the expansion of artificial recharge projects to store more CAP water for the future and increase its utilization during the next ten to fifteen years. FINAL REPORT AND RECOMMENDA TlONS 22