Central Arizona Project; debt forgiveness
The CAP's debt has a substantial financial burden on Arizona, with projected balances nearing $897 million by the end of 2023. The bill recognizes that revenue from the now-decommissioned Navajo Generating Station (NGS) had previously been leveraged to assist in repaying this debt, creating further complications after its closure in 2019. By forgiving this debt, proponents argue that it would alleviate financial strains on Arizona's water management infrastructure and allow for better resource allocation, particularly in challenging economic periods.
House Memorial HM2002, introduced by Representative Burges, urges the United States Congress to forgive the outstanding debt associated with the construction of the Central Arizona Project (CAP). This project is significant as it provides the majority of the renewable water supply to central and southern Arizona, serving approximately 80% of the state's population. The bill highlights that the CAP was financed through a master repayment agreement requiring the Central Arizona Water Conservation District (CAWCD) to make annual payments to the federal government over a period of 50 years, initially set at over $1.6 billion.
The bill's advocacy for debt forgiveness may create contention, as it involves significant federal financial policies. Critics may argue about the implications of forgiving such a large debt, potentially opening discussions about fiscal responsibility and the precedent it may set for other regional projects struggling with similar debts. Moreover, there could be broader implications regarding federal-state relations in the management of infrastructure projects and resource allocation.
HM2002 does not provide direct legal changes to state laws but seeks to influence federal legislative action, thereby impacting Arizona's water law and management frameworks through financial relief. The movement for fiscal support could trigger legislative debates on future funding and management strategies for large scale water projects across the United States.