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<br />~J <br />....... <br />- <br />M GOVERNOR'S CENTRAL ARIZONA PROJECT ADVISORY COMMITTEE <br /> <br />C._ <br /> <br />C; <br />. Policy Issue: In reformulating the CAP, what leyel of importance should the state place <br />on using the CAP as a water supply for Indian water rights settlements? <br /> <br />The uncertainty of Indian water rights claims has created a cloud over the <br />· continued use of water by non-Indian water users in Arizona. In order to <br />resolve these issues the state policy has been to encourage negotiated <br />settlements of Indian claims. CAP water has been a critical component of <br />the settlements executed to date. Additional large settlements, including <br />settlement of the Gila River Reservation claims, remain on the horizon. <br />. Current projected costs of CAP water raise questions about its use in future <br />I Indian settlements. <br /> <br />Key Considerations: <br /> <br />. <br /> <br />. <br /> <br />Because it is in the best interests of the Indian communities, the federal government <br />and the state, the federal government should make settlement of outstanding Indian <br />water rights claims in Arizona a priority. <br /> <br />. <br /> <br />· The state should express its continued willingness to participate in the completion <br />of negotiations between the tribes and federal government. <br /> <br />. <br /> <br />Policy Issue: Should revenue sources other than water charges be utilized to lower the <br />cost of CAP water? <br /> <br />I- <br /> <br />Because of the reduced demand for CAP water by agriculture, it appears that <br />its cost will be considerably higher than was predicted. Several proposals <br />have been made to lower the impact of the price increase on water users by <br />using other revenue sources. Subsidizing the cost will avoid "rate shock" <br />but it also masks the true cost of water. <br /> <br />- <br /> <br />Key Considerations: <br /> <br />. <br /> <br />The following sources of revenue should be considered: <br /> <br />I- <br /> <br />-Increased power revenues. <br /> <br />FINAL REPORT AND RECOMMENDA TIONS <br /> <br />- <br /> <br />25 <br />