1 00:00:00,910 --> 00:00:12,370 Call the order. The April 3rd, 2025, meeting in the Central Arizona Project, public policy committee will come to order. This case is called, call the roll. 2 00:00:12,370 --> 00:00:22,650 Lisa Akins, Ben Graff, Heather McRee, just a manual, Steven Miller, Amanda Monies, 3 00:00:23,250 --> 00:00:23,550 Martille. 4 00:00:24,130 --> 00:00:24,290 Here. 5 00:00:24,710 --> 00:00:26,050 All members of the President, Mr. Chair. 6 00:00:26,550 --> 00:00:26,750 Great. 7 00:00:26,910 --> 00:00:27,790 Thank you, Ms. Casey. 8 00:00:28,210 --> 00:00:33,270 I'd like to remind all presenters to identify themself for the record and anyway, I just want 9 00:00:33,270 --> 00:00:36,190 to say it's wonderful to be here in Penalty County. 10 00:00:36,350 --> 00:00:41,250 I always love the venue here, love the facility, I want to thank Director Miller or 11 00:00:41,250 --> 00:00:48,030 supervisor Miller for having us here and and always such a welcome place. So I really enjoy it. Thank you again. 12 00:00:49,090 --> 00:00:56,470 Let's go to item number one, consideration of action to prove the minutes of the March 6th, 2025 Public Policy Committee. 13 00:00:56,550 --> 00:00:57,590 Chair to entertain a motion. 14 00:00:58,890 --> 00:01:04,310 I move to approve the minutes for the March 6th, 2025 Public Policy Committee meeting. 15 00:01:06,290 --> 00:01:08,210 All right, you need to discuss your interchanges. 16 00:01:09,630 --> 00:01:11,770 All those in favor signify by saying aye. 17 00:01:12,210 --> 00:01:12,650 Aye. 18 00:01:12,870 --> 00:01:13,490 Any opposed? 19 00:01:14,470 --> 00:01:17,690 Okay, let the record reflect all members present, voted in favor of the motion. 20 00:01:18,190 --> 00:01:19,890 Go to agenda item number two. 21 00:01:20,230 --> 00:01:24,710 It's a report possible consideration of action on a recommendation or a recommendation 22 00:01:24,710 --> 00:01:28,670 to the board regarding state issues that could impact CAP. 23 00:01:29,210 --> 00:01:29,730 Mr. Gray? 24 00:01:34,960 --> 00:01:35,800 Good morning, Mr. Chair. 25 00:01:35,800 --> 00:01:38,320 board members for the record, Jeff Gray, legislative affairs manager. 26 00:01:40,280 --> 00:01:45,960 So Mr. Chairman, board members, for this morning, we've had a very busy last couple of 27 00:01:45,960 --> 00:01:47,580 months with positions on bills. 28 00:01:48,200 --> 00:01:52,140 Thankfully this morning we do not have any new staff recommendations on bills. 29 00:01:53,060 --> 00:01:57,180 The deadline to hear legislation in the opposite house has now passed. 30 00:01:57,940 --> 00:02:02,220 So the only thing we're really looking out for is amendments and updates on bills 31 00:02:02,220 --> 00:02:03,780 that we previously take in positions on. 32 00:02:03,880 --> 00:02:05,820 So there's no new items this month. 33 00:02:06,460 --> 00:02:08,640 So thankfully, we do not have the long list of items 34 00:02:08,640 --> 00:02:09,940 like we have the past couple of months 35 00:02:09,940 --> 00:02:12,880 that has certainly kept us busy during these meetings. 36 00:02:13,860 --> 00:02:16,360 First off, as I noted, the deadline has passed. 37 00:02:17,080 --> 00:02:21,180 And now we are facing a pretty long list of bills 38 00:02:21,180 --> 00:02:23,320 that need to be heard in the opposite house 39 00:02:23,320 --> 00:02:27,520 for cow rules committee, the caucus. 40 00:02:27,820 --> 00:02:30,680 So it's going through the process, the bill process, 41 00:02:31,300 --> 00:02:35,720 outside of the committee hearing process. Now I will say the only caveat to this is the budget. 42 00:02:36,700 --> 00:02:41,540 That still needs to obviously be introduced and move the process so that will obviously require 43 00:02:41,540 --> 00:02:46,680 committee hearings. But those are bills, the budget process is always outside of the traditional 44 00:02:46,680 --> 00:02:53,960 bill process as far as deadlines go. And we'll say that indications right now are that the 45 00:02:53,960 --> 00:02:56,440 budget process could still take some time. 46 00:02:57,180 --> 00:03:01,780 So once they wrap up the committee hearing or the bill process and the Minimumets of 47 00:03:01,780 --> 00:03:06,540 Center, there still can be some significant time for the budget as we are not hearing that 48 00:03:06,540 --> 00:03:08,800 they are near an agreement on that. 49 00:03:09,860 --> 00:03:14,480 So I think just in the back of our heads, we are planning on, or at least, there's certainly 50 00:03:14,480 --> 00:03:20,280 a possibility that this could extend out well into the summer for, ultimately, a past 51 00:03:20,800 --> 00:03:21,280 budget. 52 00:03:21,800 --> 00:03:25,160 There are also some indications, some comments that have been made, that the legislature 53 00:03:25,160 --> 00:03:28,380 can go to some of the hybrid schedule too, where they only meet partially throughout the 54 00:03:28,380 --> 00:03:33,640 week, or maybe every other week, which is again not uncommon to take place, and so again, 55 00:03:33,740 --> 00:03:37,980 we'll keep you a prize to win it if those decisions are made, but again, those are some 56 00:03:37,980 --> 00:03:42,640 indications of kind of a hybrid schedule that we can see them take, and again, part of that 57 00:03:42,640 --> 00:03:47,300 is if they don't have a significant agenda to work through every day, they only want to come 58 00:03:47,300 --> 00:03:51,820 every couple of days and worked through that process for them to bring it and work it through 59 00:03:51,820 --> 00:03:55,900 four or five bills and then going home to do everything in a couple of days and then recess 60 00:03:55,900 --> 00:04:01,360 for several. So again, we'll keep you a prized of all of that but just a lot of moving parts 61 00:04:01,360 --> 00:04:10,100 as the session begins to wind down for the year. Actually, when we made my item, I did 62 00:04:10,100 --> 00:04:17,440 if they'll mention, there was a resignation in the State Senate this past this past month, 63 00:04:17,440 --> 00:04:21,500 Center Eva Birch from East Valley stepped aside from her position. 64 00:04:21,540 --> 00:04:23,460 I think I've previously mentioned to that. 65 00:04:23,840 --> 00:04:25,860 They have the County Board of Supervisors has 66 00:04:25,860 --> 00:04:30,120 named an official replacement, Kiana Sears has been named to her 67 00:04:30,120 --> 00:04:30,780 to her position. 68 00:04:31,820 --> 00:04:33,220 And she is a school board member. 69 00:04:33,420 --> 00:04:34,140 It was a school board member. 70 00:04:34,300 --> 00:04:35,840 I believe in Mason Public Schools, possibly, 71 00:04:36,040 --> 00:04:40,080 or one of these valid districts before being named as a state center. 72 00:04:40,500 --> 00:04:45,620 So there are now officially 30 centers in office with the naming of the replacement 73 00:04:45,620 --> 00:04:47,560 for former Senator Birch. 74 00:04:51,720 --> 00:04:54,380 So update on the bill that we are working on the session. 75 00:04:54,500 --> 00:04:57,820 This is the GRD bill related to the annual Immership News. 76 00:04:58,500 --> 00:04:59,980 This bill has made it through. 77 00:05:00,000 --> 00:05:05,620 The Senate Natural Resources Committee, unanimously, my partisan vote. Since we posted this material, 78 00:05:05,900 --> 00:05:10,620 it has also made it through both rules and caucus. So the House, or the Senate Republican 79 00:05:10,620 --> 00:05:16,980 and Democratic caucuses, heard the bill, no issues were raised in either one of the caucuses. So 80 00:05:16,980 --> 00:05:23,260 because the bill is undemended in committee, it just simply waits a final third read vote in the 81 00:05:23,260 --> 00:05:28,840 state Senate. So again, no indication of timeline yet. At some point, they'll start to third read, 82 00:05:28,840 --> 00:05:34,920 sending the governor bills. But again, no specific indication on when that will take place. 83 00:05:35,540 --> 00:05:41,660 But again, as of today, no concerns have been raised and staff continue to meet with 84 00:05:41,660 --> 00:05:48,000 senators before any third-read vote were to take place. So some positive news there. 85 00:05:50,380 --> 00:05:58,820 Senate Bill 1611 and House Bill 2298. This is the act of urban legislation. No movement, 86 00:05:58,820 --> 00:06:03,700 No changes to this since the last time we updated this committee last month. 87 00:06:03,840 --> 00:06:05,900 I will say that there have been several stakeholder meetings. 88 00:06:06,980 --> 00:06:10,460 You probably have also heard from Ms. Graniano and the GRD staff and the update for the 89 00:06:10,460 --> 00:06:14,260 GRD and Underground Storage Committee for the regulatory rulemaking process that DWR 90 00:06:14,260 --> 00:06:19,480 has engaged in, but as we mentioned, there is also this parallel path with legislation 91 00:06:19,480 --> 00:06:21,640 that has been moved forward this year. 92 00:06:22,840 --> 00:06:27,600 No further compromises or agreements have been reached within the parties. 93 00:06:27,600 --> 00:06:57,580 In fact, there was a stakeholder meeting yesterday held by Senator Shope, also attended by Representative Griffin, who's sponsoring the House version of the bill brought it all parties together, and they say all parties that room had probably 40 plus people in it to discuss issues, and I will say that there are still a number of the bigger remaining issues have still been not been ironed out yet, including but not limited to three to five versus one to five years for farming aglan, the number of acre feet per acre. 94 00:06:58,720 --> 00:07:02,340 calculation in there and whether or not it would apply to member service areas and member 95 00:07:02,340 --> 00:07:02,660 lands. 96 00:07:03,340 --> 00:07:08,200 So those are obviously I've mentioned the policy dials that would impact the GRD and replenishment 97 00:07:08,200 --> 00:07:13,520 obligation and our message to them and what we've again communicated yesterday was that 98 00:07:13,520 --> 00:07:18,040 they look at the most conservative policy dials and decision points on all of this to keep 99 00:07:18,040 --> 00:07:21,960 the replenishment implications as low as possible. 100 00:07:22,580 --> 00:07:27,420 And so that was our message back as well as requesting that there be some form of legislative 101 00:07:27,420 --> 00:07:32,440 support for the ability to acquire replenish but supplies as well. 102 00:07:32,640 --> 00:07:37,540 So we've continued to communicate that and I would say that the feedback we are getting is 103 00:07:37,540 --> 00:07:41,740 certainly I think that their members are cognizant of that they understand that and I think 104 00:07:41,740 --> 00:07:45,020 they anything they want to move forward wants to be they want it to be achievable and actually 105 00:07:45,860 --> 00:07:52,120 a bill that is implementable. So that is the feedback we are getting but I will say those items 106 00:07:52,120 --> 00:07:57,080 that I highlighted those three items there certainly other ones as well have not been fully ironed 107 00:07:57,080 --> 00:08:01,660 yet on the development community side, they seem to want a higher per acre foot number, 108 00:08:01,840 --> 00:08:05,440 they believe that that is what is needed to make this pencil out for their developments. 109 00:08:06,080 --> 00:08:10,060 On the flip side DWR has wanted to see a lower number for water management purposes. 110 00:08:10,660 --> 00:08:15,420 Obviously, we have communicated a conservative number for our ability to replenish that water, 111 00:08:15,960 --> 00:08:22,120 that is a background water that is pumped. So I will say again, just no real agreement on this yet, 112 00:08:22,280 --> 00:08:26,720 it continues to be a priority for both the legislature and the executive, the legislature, 113 00:08:27,620 --> 00:08:29,320 We'll continue to work on this. 114 00:08:29,720 --> 00:08:31,340 Again, I will say that the executive legislature 115 00:08:31,340 --> 00:08:34,200 are continuing and have continued to talk about this. 116 00:08:35,020 --> 00:08:36,940 The folks have not gone to their respective corners 117 00:08:36,940 --> 00:08:40,220 and not shown a willingness to continue to negotiate 118 00:08:40,220 --> 00:08:41,960 at least, which is positive. 119 00:08:43,340 --> 00:08:46,680 But at a minimum, though, DWR and the executive 120 00:08:46,680 --> 00:08:48,420 have continued to express their willingness 121 00:08:48,420 --> 00:08:51,040 to move forward on a regulatory rule-making approach 122 00:08:51,040 --> 00:08:54,800 if this agreement is not ultimately come to hear. 123 00:08:55,240 --> 00:08:58,840 And again, you've heard some of those report from the DRD committee. 124 00:08:59,420 --> 00:09:04,240 Those policy dials there tend to be more ratcheted down to, I would say, the more conservative 125 00:09:04,240 --> 00:09:09,800 side, but applied to MSAs, one acre foot, et cetera, on that front. 126 00:09:10,700 --> 00:09:14,900 So without Mr. Chairman, happy to answer any questions on this, but that's essentially what 127 00:09:14,900 --> 00:09:19,620 we know today on the Ag to Urban Legislation, before I move on, I'll stop there for a brief 128 00:09:19,620 --> 00:09:20,020 moment. 129 00:09:26,130 --> 00:09:28,530 Okay, go ahead Mr. Ray. 130 00:09:29,410 --> 00:09:33,390 So then moving on, most of the rest of these bills will just be very brief updates on the status. 131 00:09:33,550 --> 00:09:35,210 So no new changes. 132 00:09:35,810 --> 00:09:37,090 House Bill 20204. 133 00:09:37,630 --> 00:09:41,030 This was a bill that dealt with the set aside under A-DOS. 134 00:09:41,210 --> 00:09:44,530 Originally this had a percentage number in there, but the bill was modified. 135 00:09:45,290 --> 00:09:54,610 And talks about the department cannot require more than a proportionate share of water needs under the A-DOS process as opposed to about 25% set aside. 136 00:09:54,610 --> 00:09:59,810 as you recall, any changes to the 25% set aside number under the A-DOS rules. 137 00:10:00,000 --> 00:10:08,900 Obviously, have impacts to GRD replenishment from those renewables, supplies being brought in to help offset groundwater pumping and replenishment implications. 138 00:10:09,380 --> 00:10:16,180 And so any number there would have impacts to the GRD, which is what we've continued to communicate to the legislature. 139 00:10:16,860 --> 00:10:20,120 So, this bill was modified to now just simply say a proportionate share. 140 00:10:20,340 --> 00:10:23,640 It's come unclear what exactly that means and how that would be potentially administered. 141 00:10:23,640 --> 00:10:30,820 But DWR, but again, the percentage numbers that was specific that highlight in the bill is no longer listed in there. 142 00:10:31,340 --> 00:10:35,380 Similarly, the House Bill 2297 has made its way through the process. 143 00:10:35,540 --> 00:10:38,760 I will say though that it failed on third read this one. 144 00:10:38,820 --> 00:10:42,340 Had a 25% reduced it to 5%. 145 00:10:42,340 --> 00:10:45,380 For the set aside, rather than 25%. 146 00:10:45,380 --> 00:10:47,460 That bill failed on third read. 147 00:10:47,500 --> 00:10:48,740 It had a prop one way clause. 148 00:10:48,740 --> 00:10:54,180 So one of the arguments from some of the opponents to the set aside is that it is a tax, essentially. 149 00:10:55,020 --> 00:11:00,240 And so in the bill, they attempted to codify the Ados rules and highlighted that they 150 00:11:00,240 --> 00:11:07,860 prop one a way to give them that they feel that it is a tax, and that nearly a two-thirds vote to make its way through the process. 151 00:11:08,420 --> 00:11:15,940 That bill failed because it did not achieve the necessary two-thirds vote to pass the house. 152 00:11:15,940 --> 00:11:19,880 and so that bill failed without getting that two-thirds majority. 153 00:11:20,780 --> 00:11:22,580 And so far, it has not been reintroduced. 154 00:11:22,580 --> 00:11:25,520 It seems to be that 2204 seems to be the primary vehicle 155 00:11:25,520 --> 00:11:26,820 that the proponents, legislature, 156 00:11:27,180 --> 00:11:30,420 home builders, etc., are moving on for the session. 157 00:11:34,610 --> 00:11:35,130 2299. 158 00:11:35,930 --> 00:11:37,850 This is a bill that would have required eight. 159 00:11:37,930 --> 00:11:40,970 Or would require the DWR to review pending applications 160 00:11:40,970 --> 00:11:43,070 for certificates of the Phoenix AMA 161 00:11:43,070 --> 00:11:45,730 and issue them based on the previous hydrologic model 162 00:11:45,730 --> 00:11:49,690 rather than the updated model that DWR released a couple of years ago. 163 00:11:50,690 --> 00:11:56,450 This would have, as we previously called, about a 6,000 acre foot impact to the GRD. 164 00:11:56,530 --> 00:12:01,190 And again, we've continued to highlight with both these and the other bills about the overall aggregate. 165 00:12:01,970 --> 00:12:14,490 Add it to the impact of all of the GRD related replenishment legislation, what that would mean to us in the need to acquire acquisition or acquire supplies for the GRD. 166 00:12:14,490 --> 00:12:18,470 So if we continue to highlight this one again, this one is a certainly a much more modest number, 167 00:12:18,670 --> 00:12:22,070 compared to some of the other bills this session that get at the hundreds of thousands of 168 00:12:22,070 --> 00:12:27,910 acre feet, but again, we continue to communicate on this one as it makes its way through the process. 169 00:12:28,830 --> 00:12:33,970 It did fail in the House floor, the initial version, 2299, and then the Home Billvers brought it back as a 170 00:12:33,970 --> 00:12:39,090 striker and the Senate to House Bill 291. So it has been brought back, and as you've heard from me 171 00:12:39,090 --> 00:12:43,390 over the years, no bill is dead until the very end of session and the signing die, everything could 172 00:12:43,390 --> 00:12:53,130 prop pack either with a striker and amendment and some form refashion so we always continue to watch everything out there because it can be brought back and this is a perfect example of a piece of legislation 173 00:12:53,130 --> 00:12:56,250 That was brought back in the form of a striker. 174 00:12:59,370 --> 00:13:05,430 So I mentioned bills they have a significant impact similar to 1114 was the legislation that 175 00:13:06,410 --> 00:13:12,170 would have about a little over 200 plus half an acre-foot impact for GRD related purposes. 176 00:13:12,990 --> 00:13:18,290 This would grant a certificate to those that had an analysis in the process prior to the 177 00:13:18,290 --> 00:13:18,670 pause. 178 00:13:19,190 --> 00:13:23,390 That was announced by DWR, the Governor's Office a couple of years ago, moving all of 179 00:13:23,390 --> 00:13:26,970 those into an immediate certificate, and as well as the amendment that this would also 180 00:13:26,970 --> 00:13:30,610 apply to physical availability determinations, which is a process a little further earlier 181 00:13:30,610 --> 00:13:35,190 on, and for analysis, broadening that would have a pretty significant impact. 182 00:13:35,910 --> 00:13:38,690 So we did testify in opposition to the bill in committee. 183 00:13:39,570 --> 00:13:44,290 Did we see, at least, a comment by both, the sponsor, as well as the proponents that 184 00:13:44,290 --> 00:13:46,170 they are willing to work with us on this? 185 00:13:46,690 --> 00:13:51,530 We'll say, I don't know really how to amend the bill to reduce the impact on this to take 186 00:13:51,530 --> 00:13:56,190 it down to a number that is comfortable or achievable given the other bills that are moving 187 00:13:56,190 --> 00:14:02,450 this session like Act Urban, but again, again, I mentioned during the Act Urban process, folks 188 00:14:02,450 --> 00:14:07,290 are cognizant of the need for the GRD to be able to acquire these supplies and the challenges 189 00:14:07,290 --> 00:14:11,150 that we are under in the additive effect of all of these bills. 190 00:14:12,110 --> 00:14:18,530 So, but with that, we did highlight our opposition and the rationale as to why it was, I think, 191 00:14:20,270 --> 00:14:23,810 folks understand where we were coming from, but I think there is obviously some frustration and 192 00:14:23,810 --> 00:14:32,670 on the on the on the flip side to be able to get development to the process too. So with that said they did move move without a committee by a vote of five to three. 193 00:14:33,210 --> 00:14:45,810 We have not received any outreach yet from the opponents about any amendments on the bill. It was on the floor this this past week for committee of the whole it was removed before it was it was voted on so that's again some positive indication that they're 194 00:14:45,810 --> 00:14:49,130 I'm at least going to try to slow this down to some degree. 195 00:14:51,420 --> 00:14:54,240 Senate Bill 1521, this is another bill that we voted to oppose the 196 00:14:54,240 --> 00:14:57,540 community and the board voted to oppose last month. 197 00:14:58,500 --> 00:14:59,960 This would allow for this. 198 00:15:00,000 --> 00:15:25,260 If they were transfer of unbuilt certificates, again, this would have had an impact for replenishment purposes, and the 60,000 plus acre foot range for the GRD, ultimately the bill was used as a strike everything amendment and we did not need to oppose the bill and committee, although we did highlight this as well as 1114 and the impacts to the sponsor of the bill. So he certainly understood the implications. 199 00:15:26,220 --> 00:15:31,840 But this bill was used as a strike or no longer as impacts the GRD, the underlying bill. 200 00:15:32,080 --> 00:15:37,160 No longer relates to us, it relates to a financial issue with the community of Welton, I believe, 201 00:15:38,100 --> 00:15:38,960 an overspending issue. 202 00:15:39,280 --> 00:15:44,100 So under completely unrelated to water issues, now, so we can strike this one off our list 203 00:15:44,100 --> 00:15:46,760 for the time being in its current form. 204 00:15:48,970 --> 00:16:06,070 House Bill 2753 and 1393, this is a bill that would apply so last year's recall, this was the legislation run by Queen Creek that allowed for it longer phasin for the absorption of member lands for those eight Oz designations. 205 00:16:06,270 --> 00:16:14,470 The bill as it was drafted only applied to the Phoenix AMA, as you've heard me say, the rules as they passed the WR late last year applied both to Phoenix and Penal. 206 00:16:14,470 --> 00:16:20,550 This legislation would allow that similar statutory mechanism lasted applied to the PNL AMA. 207 00:16:21,230 --> 00:16:25,570 The bill was amended to add some language that was unrelated to the bill itself, 208 00:16:25,710 --> 00:16:28,710 but is being pushed and supported by the homeless. 209 00:16:29,810 --> 00:16:33,770 Related to require, you see the language that I won't read it specifically, 210 00:16:34,530 --> 00:16:40,310 but it relates to financial implications for acquisition supplies related under ADOS. 211 00:16:41,050 --> 00:16:42,990 So again not specifically related to the bill itself, 212 00:16:42,990 --> 00:16:45,950 but language that they wanted to see added to the bill. 213 00:16:46,490 --> 00:16:48,090 There are two vehicles moving to the process. 214 00:16:48,750 --> 00:16:51,370 What will probably happen is one version will make its way through, 215 00:16:51,870 --> 00:16:52,710 sent to the executive, 216 00:16:53,470 --> 00:16:55,890 and we'll see what the ultimate response is there. 217 00:16:56,010 --> 00:17:00,450 But again, there are two vehicles to move in case one does not. 218 00:17:00,990 --> 00:17:03,930 Receive the support of the executive when it does pass. 219 00:17:04,370 --> 00:17:06,810 So both bills are still alive at this point. 220 00:17:10,520 --> 00:17:11,400 Hospital 2103. 221 00:17:11,780 --> 00:17:14,980 This is the appropriation for the Department of Water Resources 222 00:17:14,980 --> 00:17:18,800 to defend, protect, and enforce the state's allocation of Colorado River Water. 223 00:17:20,060 --> 00:17:23,640 This passed out of Senate Natural Resources this past month by unanimous vote. 224 00:17:24,000 --> 00:17:27,200 Also it passed out of the Appropriations Committee recently as well, so this past week 225 00:17:27,200 --> 00:17:28,640 it was up in Appropes. 226 00:17:28,940 --> 00:17:31,780 After we submitted our materially, it was added to the Appropes agenda and the Senate. 227 00:17:32,520 --> 00:17:35,840 And so typically, as you've heard me say in the past, what you see with Appropriations 228 00:17:35,840 --> 00:17:40,980 bills, again, early decade plus ago, they had what was referred to as the box. 229 00:17:40,980 --> 00:17:45,760 These were appropriation bills that were set aside and put into the budgetary process, 230 00:17:46,220 --> 00:17:50,940 and then whatever surplus you would have for the year, those bills would essentially fight over that surplus. 231 00:17:52,660 --> 00:17:55,840 So this is probably what you're going to see this year. All of those appropriations 232 00:17:55,840 --> 00:17:59,700 were in the bills, and we set aside and negotiate and just pardon the budget process. So the fact that 233 00:17:59,700 --> 00:18:05,840 this bill is now passed out, and we're probably not moved. It's not indication of any concerns or 234 00:18:05,840 --> 00:18:11,640 position after this, it's a traditional negotiation process for the state budget. 235 00:18:13,400 --> 00:18:19,640 Then moving on to HCR 2046, this is a resolution, so it's not a particular statute 236 00:18:20,520 --> 00:18:25,200 of just highlights the opinion of the state legislature, and it has outlines issues for 237 00:18:25,200 --> 00:18:26,800 cause of decline for the Colorado River. 238 00:18:27,040 --> 00:18:32,140 It was amended to broaden the language, so it was specifically calling out Saul Seeders 239 00:18:32,140 --> 00:18:38,300 or plants, et cetera, I had a more broader language now, which is, I think, I think, 240 00:18:39,140 --> 00:18:43,360 good in highlights a little bit more broadly speaking, some of the broader challenges on 241 00:18:43,360 --> 00:18:43,740 the river. 242 00:18:44,220 --> 00:18:48,700 The bill passed out of committee, Senate Natural Resources by about a five to three. 243 00:18:48,940 --> 00:18:52,900 And again, this one waits a vote on the false Senate floor, as we call, we had a neutral 244 00:18:52,900 --> 00:18:57,220 position on this, in fact, again, with the amendments that does certainly solidify that 245 00:18:57,220 --> 00:18:58,220 neutral position. 246 00:19:01,260 --> 00:19:05,480 HCR-251, this is the U.M. Agriculture Water Rights Resolution, again similar to the previous 247 00:19:05,480 --> 00:19:10,380 bill, simply outlines the opinion of legislature, pass out of natural resources, similarly 248 00:19:10,380 --> 00:19:15,560 to the other resolution by about a 5 to 3, and it continues to contain the amendment 249 00:19:15,560 --> 00:19:19,340 language that we had worked on under the bill before it left the house. 250 00:19:19,360 --> 00:19:21,020 No changes have been made since then. 251 00:19:23,740 --> 00:19:29,080 HCR-2016, this is the width of bill, again, another resolution supporting fully funding 252 00:19:29,080 --> 00:19:34,380 at some point in the future does it specifically outline it, but it helps with a from the 253 00:19:34,380 --> 00:19:39,240 on the bond market side shows support within the industry of fully appropriated billion dollars 254 00:19:39,240 --> 00:19:44,200 for for with a we supported the bill in committee and passed out of the natural resources 255 00:19:44,200 --> 00:19:49,760 to be in a probes by six one and eight two respectively and again a way to say final vote 256 00:19:49,760 --> 00:19:58,460 in the state senate. HP 2106 this is a bill that has some cleanup language to it related to 257 00:19:58,460 --> 00:19:59,980 We'll use some of our best water per... 258 00:20:00,000 --> 00:20:06,140 A purification. That overall authorization passed the legislature several years ago, and that 259 00:20:06,140 --> 00:20:11,660 we're making the authority to do that. This bill, this session, had some language that would 260 00:20:11,660 --> 00:20:18,180 provide some clarification in that industry. Folks wanted to see attitude. We supported the bill along 261 00:20:18,180 --> 00:20:22,280 with Amma and some of the other cities who have been working on this. While it passed unanimously 262 00:20:22,280 --> 00:20:29,980 out of the House committee, it did not receive a further vote in the process. So we were trying to 263 00:20:29,980 --> 00:20:35,660 but to date it has not moved out of its initial house of origin. 264 00:20:37,800 --> 00:20:40,600 And with that Mr. Chairman that concludes my presentation this morning, 265 00:20:41,100 --> 00:20:43,380 I'm happy to answer any questions on any of these 266 00:20:43,380 --> 00:20:45,900 or other related legislative issues. 267 00:20:46,760 --> 00:20:49,240 Great. Thank you, Mr. Gray. Any questions or comments? 268 00:20:52,020 --> 00:20:54,480 I got a couple questions if that's alright. 269 00:20:54,560 --> 00:20:57,240 Maybe go on back to side number five. 270 00:21:04,760 --> 00:21:08,960 This is mainly just to make sure I understand that whole process. 271 00:21:12,160 --> 00:21:20,680 When you essentially reduce the current 25% offset in A-DOS to 0 or 5% or different percentages, 272 00:21:21,180 --> 00:21:24,080 I want to make sure I understand the mechanism where that is reduced. 273 00:21:24,160 --> 00:21:29,140 Why there's additional augmentation on C-A-G-R-D? 274 00:21:29,680 --> 00:21:31,760 Why does that burden come on us when that happens? 275 00:21:32,560 --> 00:21:37,960 So, I'll give a general answer, but I'll also look to Ms. Brenyano for if you get throw something 276 00:21:37,960 --> 00:21:44,340 to have me if I get this incorrect, but that offset is meant to, that 25% offset is what 277 00:21:44,340 --> 00:21:48,980 it's meant to do is reduce the groundwater pumping that those parties, I'm going to know 278 00:21:48,980 --> 00:21:53,240 the Ados, that they're when they go through that designation. So, if they don't have that 279 00:21:53,240 --> 00:21:57,280 additional requirement to bring on new water to offset that groundwater pumping that's taking 280 00:21:57,280 --> 00:22:02,960 place for future growth, then they're going to continue to pump and they're going to continue 281 00:22:02,960 --> 00:22:03,840 to replenish. 282 00:22:04,060 --> 00:22:08,780 So that offset essentially has meant to eliminate or reduce some of that current groundwater 283 00:22:08,780 --> 00:22:11,020 pumping that would be taking place into the designation. 284 00:22:12,080 --> 00:22:14,320 So that's probably an overly simplified version all look back. 285 00:22:17,540 --> 00:22:18,740 But I think that makes sense. 286 00:22:19,080 --> 00:22:21,080 Everybody understands it's kind of a different thing. 287 00:22:21,320 --> 00:22:24,580 So when you actually reduce the offset the obligation goes on us. 288 00:22:24,740 --> 00:22:29,340 I guess the main thing there is that the status quo kind of stays because they're currently 289 00:22:29,340 --> 00:22:33,960 pumping groundwater that additional supplier brings, supposed to essentially reduce that. 290 00:22:34,280 --> 00:22:38,960 By getting rid of it, you're going to continue to pump that groundwater in us, the GRD would 291 00:22:38,960 --> 00:22:39,760 have to replenish. 292 00:22:40,060 --> 00:22:42,100 So the status quo would continue. 293 00:22:42,920 --> 00:22:43,640 That makes sense. 294 00:22:43,880 --> 00:22:44,760 That's a good way of putting it. 295 00:22:45,080 --> 00:22:46,060 Thank you. 296 00:22:46,400 --> 00:22:47,420 Did I have another question? 297 00:22:47,520 --> 00:22:53,300 Just want to make sure on Senate Bill 11, 14, they talk about analysis of a sure water supply 298 00:22:53,300 --> 00:22:55,740 and also a PAD physical availability. 299 00:22:55,740 --> 00:22:58,600 Can you explain the difference between those two? 300 00:23:00,100 --> 00:23:03,220 Often, actually, I don't have my notes that describes that. 301 00:23:03,300 --> 00:23:07,120 I'm going to have to read one of my colleagues, specifically, highlight the definition 302 00:23:07,120 --> 00:23:08,840 about of a pad versus an analysis. 303 00:23:09,020 --> 00:23:12,620 I know it's a earlier part of the process, but I'm afraid I'm going to explain it. 304 00:23:13,560 --> 00:23:14,800 That's the specific difference. 305 00:23:15,380 --> 00:23:16,160 Reason I'm asking. 306 00:23:16,500 --> 00:23:19,060 It's such a large number and such an impact in GRD. 307 00:23:19,600 --> 00:23:21,720 I think we're a lot of us are familiar with analysis. 308 00:23:21,720 --> 00:23:26,940 of sure water supply but the PADs, I really didn't know where they were or why they're such 309 00:23:26,940 --> 00:23:27,620 a large impact. 310 00:23:28,960 --> 00:23:35,240 I think a good morning for the record, Laura Grignano, C.A.G.R.D. manager, and Chair Taylor, 311 00:23:36,720 --> 00:23:41,440 I don't know the technical difference between the two but I do know that the analysis 312 00:23:41,440 --> 00:23:50,320 does reserve fiscal availability in the model whereas the pad does not. And I can look 313 00:23:50,320 --> 00:23:56,260 those differences up and give you a fuller definition in a few minutes if you'd like. 314 00:23:56,520 --> 00:24:02,520 But I do know that the analysis does reserve fiscal availability in the model, but the 315 00:24:02,520 --> 00:24:03,180 pad does not. 316 00:24:03,280 --> 00:24:04,320 And that's the big difference. 317 00:24:05,260 --> 00:24:07,420 And the Senate bill is going to combine them together. 318 00:24:07,720 --> 00:24:09,760 Both of them would be allowed to be built. 319 00:24:09,940 --> 00:24:11,120 Yes, sir. 320 00:24:11,420 --> 00:24:11,620 Right. 321 00:24:11,720 --> 00:24:13,020 Thank you. 322 00:24:13,920 --> 00:24:15,280 And I just hit one other question. 323 00:24:15,280 --> 00:24:21,820 for Dr. Miller of the spot on House of the 2753 and others of men's on it. Do you have any thoughts 324 00:24:21,820 --> 00:24:29,380 surge? Do you want to go over anything on that? That's fine. I'll just, uh, we're okay with the 325 00:24:29,380 --> 00:24:37,340 amendments. They don't really affect the legislation itself. We just need to have Penal added in there 326 00:24:37,340 --> 00:24:42,800 and if the home builders' association feels like they have to have an amendment on there that 327 00:24:42,800 --> 00:24:48,140 makes them feel better, anything to get panel's name and head to the legislation, that's 328 00:24:48,140 --> 00:24:49,020 what we're at. 329 00:24:49,300 --> 00:24:56,620 And it doesn't, in fact, us, but it is important that if we're the eight odds happens to 330 00:24:56,620 --> 00:24:59,900 take place in Penalty with probably Arizona. 331 00:25:00,000 --> 00:25:07,180 Water, we will need this mechanism in place, so that's why we're for it. Okay, does that make sense? 332 00:25:07,840 --> 00:25:10,220 Okay, thank you. 333 00:25:10,360 --> 00:25:11,000 Thank you. 334 00:25:11,740 --> 00:25:15,860 It's on. Thank you, Director Miller. Any other questions or comments for you go to the federal? 335 00:25:17,830 --> 00:25:19,310 No? Okay. 336 00:25:20,990 --> 00:25:24,490 Mr. Ray will go on to agenda item, that was if for item two. 337 00:25:24,490 --> 00:25:35,210 So we go to agenda item three report possible consideration of action on a recommendation of board regarding federal issues can the impact CAP go ahead Mr. Gray. 338 00:25:37,430 --> 00:25:45,530 So I'll start off. Obviously board members have heard of the passing of Congressman Roe Gralva earlier this this past month. 339 00:25:46,230 --> 00:25:51,210 As you know, the Congress has been chair of the House National Resources Committee from 340 00:25:51,210 --> 00:25:56,410 2019 to 2023, serve as ranking member for a number of years and two different segments 341 00:25:56,410 --> 00:25:59,870 from 2015 to 2019 and 2023 to 2025. 342 00:26:00,630 --> 00:26:08,310 He was chair during the DCP timeframe when that passed, and it certainly has been someone 343 00:26:08,310 --> 00:26:13,250 that we've been able to communicate with and work with during his time in Congress, so obviously 344 00:26:13,250 --> 00:26:17,030 wishing his family condolences during this time. 345 00:26:17,890 --> 00:26:22,450 But there's also with the passing initiates a process 346 00:26:22,450 --> 00:26:26,930 at the state level for the election to fill that seat. 347 00:26:27,790 --> 00:26:30,370 And so on the screen, you'll see the dates for that. 348 00:26:30,370 --> 00:26:33,110 The primary election will be July 15th. 349 00:26:33,110 --> 00:26:36,350 General election on September 23rd. 350 00:26:36,390 --> 00:26:38,510 We've heard at least two. 351 00:26:38,510 --> 00:26:40,410 It was multiple individuals that have announced 352 00:26:40,410 --> 00:26:45,550 to see, but two in particular, former State Legislator, and also well as his daughter, 353 00:26:45,650 --> 00:26:50,450 Kennedy Supervisor, have announced. So again, we'll continue to keep you a prize once the 354 00:26:50,450 --> 00:26:56,030 outcome of that election takes place in July and in September for the time being, 355 00:26:56,130 --> 00:27:00,110 that obviously that seats obviously vacant during that time frame. 356 00:27:03,740 --> 00:27:05,140 Is there a graph? 357 00:27:06,060 --> 00:27:13,780 This is just kind of a fun fact that I wanted to share with the passing of the Congressman 358 00:27:13,780 --> 00:27:19,300 And obviously this board has always been very supportive and appreciated of the Congressman's 359 00:27:19,300 --> 00:27:21,500 interaction with us and his staff. 360 00:27:22,400 --> 00:27:30,040 And I know this is unrelated, but his, his, I believe it is his great niece has just been 361 00:27:30,040 --> 00:27:36,000 re-elected as a student body president at the University of Arizona at her name's Adriana 362 00:27:36,000 --> 00:27:36,640 Graholva. 363 00:27:36,640 --> 00:27:44,620 So if you interact with the Associated Students down there or have that opportunity, it's just 364 00:27:44,620 --> 00:27:50,480 out of this very sad news, it's also really encouraging and quite neat that his family is 365 00:27:50,480 --> 00:27:55,480 continuing to have these leadership roles in Arizona. So she will be one of the few that has 366 00:27:55,480 --> 00:28:00,560 had two terms of student body president at the University of Arizona. So just just a fun fact I want to 367 00:28:00,560 --> 00:28:01,580 So, 368 00:28:06,190 --> 00:28:09,030 we've update on the state budget, are they seeming the federal budget. 369 00:28:11,330 --> 00:28:18,690 The previous continuing resolution was set to expire last month, and the Congress became 370 00:28:18,690 --> 00:28:23,770 very, very close to having a potential government shutdown, but ultimately, a deal was 371 00:28:23,770 --> 00:28:32,390 reached that was signed by the President and needed to have triggered the closure vote in 372 00:28:32,390 --> 00:28:39,270 the U.S. Senate in order for this to happen, but ultimately the bill did pass, funded the federal 373 00:28:39,270 --> 00:28:46,230 government through the end of September. And what you'll see is a process again just through the CR to 374 00:28:47,010 --> 00:28:51,530 appropriate monies for the agencies at the end of the federal fiscal year, and then the normal 375 00:28:51,530 --> 00:28:59,250 consideration of appropriations bills afterwards. So it's the will no longer have a dual track of a CR, 376 00:28:59,250 --> 00:29:04,990 And the following year is a preparation bill moving at the same time, which always is a challenge 377 00:29:04,990 --> 00:29:08,330 of two different budget processes moving potentially at the same time. 378 00:29:09,310 --> 00:29:15,450 But we'll keep you a prize of the water-related implications in particular, reclamation 379 00:29:15,450 --> 00:29:21,670 really implications to the federal budget, no specific updates yet or to date on that still 380 00:29:21,670 --> 00:29:26,130 very early in the preparation process for the following fiscal year. 381 00:29:26,130 --> 00:29:30,410 But, again, positive news is that there is a CR that does fund the federal government through 382 00:29:30,410 --> 00:29:37,090 the end of September and no additional risks of a government shutdown during that time 383 00:29:37,090 --> 00:29:37,550 frame. 384 00:29:40,580 --> 00:29:46,780 One final item, I do have one additional item on a hearing nomination hearing that took place yesterday 385 00:29:46,780 --> 00:29:51,420 morning early after this, but I do in a highlight, we included in your Britain material. 386 00:29:52,840 --> 00:29:58,020 But the Northern Northeastern Arizona Indian water rights settlement act of 2025 was reintroduced 387 00:29:58,980 --> 00:29:59,980 uh... led by many hard 388 00:30:00,000 --> 00:30:08,920 The delegation on the House and the Senate side, the bill was reintroduced as we call, we have a support position on this, similar to the MSCP legislation from last Congress. 389 00:30:09,620 --> 00:30:19,900 And I just wanted to highlight though that the bill had been, or the bills, I should say, dual introductions on the House and the Senate side have been reintroduced on on this related, related issue. 390 00:30:21,320 --> 00:30:29,980 And the final item I'll mention is that Kate McGregor did have her hearing yesterday in the Senate Natural Resources, energy and natural resources committee hearing. 391 00:30:32,120 --> 00:30:37,680 Senator Ruben Gaego from Arizona, since the committee did ask her a couple of questions related 392 00:30:37,680 --> 00:30:43,300 to the Colorado River and Glen Canyon Dam, similar to the questions he asked, the Secretary 393 00:30:43,300 --> 00:30:49,680 as well, but very, very similar with some versions of those will forward out typically. 394 00:30:49,880 --> 00:30:53,720 I'll show the video, but I've given the fact that it just happened less than 24 hours ago. 395 00:30:54,140 --> 00:30:59,640 We're able to get that uploaded, but we'll send you out the links to that so you can watch 396 00:30:59,640 --> 00:31:05,300 that if you, if you would like. So without Mr. Chairman, that concludes my remarks on federal 397 00:31:05,300 --> 00:31:08,840 issues. I'm happy to answer any questions on this or any other related issues. 398 00:31:11,020 --> 00:31:14,180 It's a little delay in the service. Any questions or comments? 399 00:31:16,790 --> 00:31:19,010 No. I did want to, I'm trying 400 00:31:19,010 --> 00:31:24,570 to remember MSCP. That was already reintroduced. What is the status of that right now? 401 00:31:24,750 --> 00:31:29,430 It has not been heard yet. It's just been reintroduced, but the bill has not been heard yet 402 00:31:29,430 --> 00:31:36,190 committee. Okay, great. Nothing else for this? Okay. Well, thank you, Mr. Ray. Appreciate all 403 00:31:36,190 --> 00:31:42,150 your help. Everything that you guys do. We'll go on to item number four public comment. 404 00:31:42,550 --> 00:31:47,150 Do we have any requests to speak? This is Casey. Mr. Chair, we do not. All right. With that, 405 00:31:47,150 --> 00:31:52,230 we'll go to German. Yep. With no further business to come before the committee this meeting is adjourned. 406 00:31:52,290 --> 00:31:52,830 Thanks, everybody.