Salt River Project wants to buy at least 50 acres along the Verde River in the Verde Valley.
SRP also is proposing to spend $500,000 for expansion of the state fish hatchery in the Verde Valley at Page Springs.
These proposals are part of SRP's draft plan to mitigate the effects of its Verde River reservoirs on endangered and threatened species, especially the Southwestern willow flycatcher.
The U.S. Fish and Wildlife Service is seeking public comments about Salt River Project's draft plan, as well as the federal agency's environmental study related to the plan.
SRP is one of the largest water providers in the state, serving a large portion of the Phoenix-area population. Its two reservoirs on the lower Verde River supply about 40 percent of the 900,000 acre-feet of SRP's annual surface water diversions.
The reservoirs fluctuate quite a bit because of changes in precipitation and spikes in customer needs, especially the upper Horseshoe Reservoir. That has led to the growth of riparian habitat in some areas of the reservoir bed, SRP official Greg Kornrumph has explained to people at recent Yavapai County Water Advisory Committee meetings.
In 2002 authorities confirmed that endangered flycatchers were establishing territories in the trees on the Horseshoe lakebed and below it.
So it can continue to fill its reservoirs and therefore inundate the vegetation, SRP has decided to work with the U.S. Fish and Wildlife Service on a Habitat Conservation Plan so it does not violate the law by hurting endangered species' chances of survival.
The Fish and Wildlife Service designated 90 miles of the Verde River as critical habitat for the endangered razorback sucker fish in 2005. And the threatened bald eagle nests and forages at the reservoirs.
So the Habitat Conservation Plan proposes a number of activities to help make sure these and other animals survive.
One proposal is to buy 200 acres of flycatcher habitat in Arizona.
While the Verde Valley is the highest priority area for purchase, SRP's draft plan says "high land costs and small parcel sizes make it difficult to acquire a large enough contiguous tract for suitable habitat." It also cited uncertainties with land title, reluctant sellers and potential urban encroachment as constraints.
"We're really struggling with where to purchase land," said Debra Bills, assistant field supervisor at the Fish and Wildlife office in Arizona.
So SRP is proposing to buy only 50 acres in the Verde Valley, then buy the remaining 150 acres along the Gila or San Pedro rivers in central Arizona.
SRP hopes to buy its 50 Verde Valley acres near its existing parcel along the Verde River above Camp Verde. SRP already bought the riparian area along a mile of the river there as mitigation for the effects of Roosevelt Dam on the flycatcher.
SRP and the City of Phoenix are committing as much as $8.8 million over a 50-year period to help the native species. The City of Phoenix is a partner in the plan because it has substantial water rights in Horseshoe Reservoir.
Other parts of the plan include rapid drawdown of Horseshoe to reduce non-native fish reproduction, and releasing Horseshoe water in the spring so the flycatchers can access the habitat by May, Bills said.
"SRP has developed a flexible dam operation program that will benefit and rejuvenate riparian habitat at Horseshoe Reservoir and give native fishes, frogs and garter snakes of the lower Verde basin a real recovery opportunity," said Steve Spangle, Arizona Field Office supervisor for the Fish and Wildlife Service.
