45-2427

45-2427. Limitation on powers

A. This chapter does not authorize the authority to exercise any right of eminent
domain.

B. Except as provided in subsection E of this section:

1. The authority shall not store Colorado river water that would otherwise have
been used in this state pursuant to a contract entered into pursuant to section 48-3703,
paragraph 2, a section 5 contract under the Boulder Canyon project act (P.L. 108-6; 43
United States Code section 617) with a priority that is equal to or higher than a
contract entered into pursuant to section 48-3703, paragraph 2 or any other section 5
contract under the Boulder Canyon project act entered into before September 18, 2003.

2. The authority shall not store for interstate water banking purposes Colorado
river water that would otherwise have been used in this state.

C. The authority shall not enter into contracts with agencies in California and
Nevada for the storage of water on their behalf until both of the following occur:

1. Regulations are in effect, promulgated by the secretary of the interior of the
United States, that facilitate and allow the contractual distribution of unused
entitlement under article II(b)(6) of the decree.

2. The director finds that the rules promulgated by the secretary of the interior
adequately protect this state's rights to Colorado river water, as those rights are
defined by the decree.

D. The authority shall not enter into water banking services agreements that will
provide water for use outside this state. The authority may cancel any water banking
services agreement without penalty or further obligation if after entering into a water
banking services agreement, the authority finds that the agreement will provide water for
use outside of this state. Notice of this subsection shall be included in every water
banking services agreement entered into by the authority. The cancellation under this
subsection shall be effective when written notice from the authority is received by all
other parties to the water banking services agreement.

E. The authority may obtain and store or replenish, as applicable, any of the
following excess central Arizona project water supplies as designated by CAWCD:

1. Any excess central Arizona project water made available by CAWCD in a year
exclusively for the authority. The authority shall use any excess central Arizona project
water obtained pursuant to this paragraph in a manner consistent with articles 3 and 5 of
this chapter or chapter 15, article 3 of this title, including meeting Indian firming
obligations, replenishing water under the Gila river Indian water settlement program and
storing water for municipal and industrial purposes in times of shortage.

2. Any excess central Arizona project water made available by CAWCD in a year for
the purpose of storing water to meet a contractual obligation of the authority under an
interstate water banking agreement entered into pursuant to article 4 of this chapter if
the excess central Arizona project water resulted from the acquisition of additional
Colorado river water by CAWCD using monies contributed by the authority.