Arizona has a long history of wise water stewardship. Since the 1950s, we have reduced our water use even as our communities have grown. Arizona’s economy continues to thrive—even now, amid a global pandemic—precisely because we know how to adapt. And, over the past few decades, Arizona’s business community has played a critical role in stewarding our resources and advocating for commonsense solutions.

Arizona’s business community understands that a secure and sustainable water supply will remain a fundamental component of our state’s economic vitality. Without water, our businesses and communities cannot grow.

In 2019, the Arizona �������� of Commerce & Industry supported the Lower Basin Drought Contingency Plan, a historic water agreement that positioned Arizona to manage our Colorado River supply in times of shortage through voluntary conservation. DCP was an important step in securing Arizona’s water supply and reducing the risk of far deeper shortages.

DCP will not prevent shortages or eliminate that risk completely, which is why it is critical for us to continue re-examining our water code and regulations to ensure that we incentivize conservation.

On February 18, Gov. Doug Ducey signed HB 2056 into law, representing a bi-partisan, unopposed win for Arizona’s businesses, communities, and the environment. The bill, referred to as the “no forfeiture” bill, allows agricultural water users with legal entitlements to water to file a conservation plan notice outlining the conservation measures that they will implement. In exchange, these water users are guaranteed that any water conserved as part of the plan does not constitute an abandonment or forfeiture of the water to which the user is entitled.

This commonsense reform addressed a risk—or in some cases a perceived risk—in prior law that a surface water user choosing to conserve water could be forced to forfeit valuable water rights.

While this may not appear to be a traditional business issue, reducing the threat and fear of forfeiture removes a harmful disincentive to conserve and will encourage water users to implement best practices to conserve water throughout the state. This conservation, in turn, frees up additional water that can support the diverse needs of Arizona farms, communities, businesses, and the environment, and gives farmers, ranchers, and other surface water users the flexibility they need to engage in smart water conservation practices with full confidence that their water rights will be protected. Water security and flexibility means businesses in Arizona can continue to grow and operate with a more dependable and long-term water supply. With this new law, Arizona continues to improve upon its water laws and systems, which is good for business and good for the state.

If the last year has taught us anything, it is that we must adapt to survive. That has been true throughout Arizona’s history—our communities and businesses have always found new and innovative ways to thrive in our unique desert environment. Amid 21 years of drought, the reality of less rain, and declining allocations from the Colorado River, it is clear that we in Arizona need to make the most of every drop of water in order to maximize economic, community, and environmental benefits across the state.

Luckily, Arizonans know how to come together to protect our state’s water resources. By passing HB 2056 into law, we in Arizona have once again demonstrated critical leadership on water, fundamentally changing a key tenet of western water law and eliminating the “use it or lose it” concept. Businesses care about these issues, and we must celebrate this achievement. This is a win for us all.

Garrick Taylor is the interim president and CEO of the Arizona �������� of Commerce & Industry

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PHOENIX (June 18, 2020)—Arizona �������� of Commerce & Industry President and CEO Glenn Hamer released the following statement on today’s U.S. Supreme Court decision rejecting the administration’s attempt to terminate the Deferred Action for Childhood Arrivals program, or DACA:

“Today’s ruling is a welcome relief for hundreds of thousands of DACA recipients who are our friends, neighbors, and coworkers, and who are contributing to the richness of the United States. The average Dreamer is 26 years old. They speak English. They went to school. They got jobs. They started families of their own. It is . But this country cannot subject major portions of immigration policy to the whims of one administration to the next. Congress must act to deliver a durable solution rooted in law. DACA recipients should not only be shielded from deportation but should be provided a path to eventual citizenship.”

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All members of Arizona’s U.S. House delegation Thursday voted in favor of legislation to implement the United States-Mexico-Canada Agreement — called USMCA — a decision cheered by Arizona’s business community.

“We are deeply appreciative of the members of the Arizona congressional delegation — Republican and Democrat — who voted to strengthen Arizona’s ties between our leading trade partners Mexico and Canada,” said Glenn Hamer, president and CEO of the Arizona �������� of Commerce and Industry.

The state’s congressional delegation in 1993 also voted as a unified bipartisan bloc when Congress voted to implement the North American Free Trade Agreement, the precursor to USMCA, something Hamer urged the 2019 delegation to repeat.

“We thought it was very important for the state of Arizona to maintain that type of record,” Hamer said.

The House vote to implement USMCA was overwhelming: 385-41.

The Senate vote, which is anticipated to take place next month, is also expected to be definitive.

Members of the Arizona congressional delegation spoke out after the vote, calling it a “major win” for Arizona.

“Today, I am proud to finally vote ‘yes’ on USMCA,” said Rep. David Schweikert, R-Ariz., a member of the House Ways and Means Committee. “We have worked tirelessly to get this modernized trade agreement across the finish line, and while it took longer than we all expected, I am pleased to see the USMCA finally be passed to help strengthen our trading relationships a cross North America.”

Rep. Greg Stanton, D-Ariz., who has been a vocal proponent of USMCA, spoke on the House floor in favor of USMCA on Thursday.

“Those of us in border states understand the value of trading with our neighbors, and I can tell you that growing trade relationships with Mexico and Canada is essential to Arizona — and this new agreement will offer a big lift to our local companies,” Stanton said. “Today we have a real opportunity to cement certainty for job creators. From multinational companies to mid-sized and small businesses, from tech workers to farm workers, there’s no doubt that the new USMCA is a win for all Arizonans.”

Following the vote, Rep. Debbie Lesko, R-Ariz., released a statement:

“The USMCA is a big win for the state of Arizona. Although I am disappointed it took Speaker Pelosi over a year to bring the USMCA to the floor for a vote, I am glad we could finally secure this victory for Arizona and the United States. Implementing the USMCA puts American workers first with 176,000 jobs, higher wages, and $68 billion in economic growth. I am proud to have supported the USMCA since before I was elected to Congress and today on the House floor.”

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Next up on “Request To Speak,” host Garrick Taylor asks his guests about their predictions for 2020, including the presidential election, a U.S. Senate race and the Arizona Cardinals. Featuring guest panelists: Bob Charles, director of First Strategic; Jessie Armendt, senior associate at Compass Strategies; and Lorna Romero, owner and founder of Elevate Strategies. Join us again tomorrow!

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On the latest episode of “Request To Speak,” Garrick Taylor, executive vice president of the Arizona �������� of Commerce and Industry, welcomes a panel of political experts to discuss what happened in the world in 2019 — for better or for worse. Featuring guest panelists Bob Charles, director of First Strategic; Jessie Armendt, senior associate at Compass Strategies; and Lorna Romero, owner and founder of Elevate Strategies. Stay tuned for Episode 8: Predictions for 2020.

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Central Arizona Project, the engineering marvel that delivers water throughout much of Arizona, held a behind-the-scenes tour this week to offer system stakeholders and members of the media a rare opportunity to descend into the temporarily empty canal for an up-close look at preventive maintenance on the Salt River Siphon.

The siphon is an 8,700-foot-long pipe, 21 feet in diameter, that runs as deep as 30 feet beneath a portion of the Salt River, carrying approximately 75 percent of all CAP water deliveries. The siphon sits approximately half-way along the length of the CAP system.

The siphon is responsible for a $90 billion contribution to the Arizona economy, according to CAP.

Gravity carries water through the siphon beneath the Salt River, and the water’s momentum takes it back to the surface as it flows to the Salt Gila Pumping Plant in Mesa.

Maintenance began Oct. 30, 2019 and included a partial recoating of the siphon to help protect against corrosion and erosion — the first recoating since 2001. Similar maintenance is expected to take place again in eight to 10 years.

CAP Board President Lisa Atkins said she thanked Salt River Project and the cities of Mesa, Gilbert, Chandler and Tucson for their assistance and collaboration in preparing for the partial service outage resulting from the maintenance project. Storage was maximized downstream from the Salt Gila Pumping Plant in preparation for the disruption.

“Without them working so closely with us — with CAP staff — on the planning phases of this project, today would not be possible,” Atkins said.

CAP General Manager Ted Cooke said planning for the six-week project began more than three years ago.

“It worked the way it was supposed to,” Cooke said of the steps taken to prepare customers and store enough water to avoid disrupting water delivery during the maintenance. Cooke said CAP’s contractors on the project worked round-the-clock in order to finish the project on schedule.

In addition to the Salt River Siphon, CAP maintains nine other siphons that run beneath the Agua Fria, New, Gila and Santa Cruz rivers.

With Salt River Siphon maintenance complete, regular water deliveries resumed Wednesday.

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Snow has arrived in Arizona’s high country, and parts of the country are already in the grips of a winter chill, but grocery store produce sections across the United States are still full of fresh fruits and vegetables.

That’s in large part because of Arizona’s role in facilitating the importation of fresh winter vegetables.

Nogales, Arizona, is one of the nation’s leading entry points for the importation of Mexican-grown fruits and vegetables, which pass through the Nogales-Mariposa Arizona Port of Entry.

Always a hotspot for fresh Mexican-grown tomatoes, the Mariposa port of entry is also a major gateway for chili and bell peppers, cucumbers, melons, berries and more.

“We’re going to see really good volumes of not only tomatoes but also good volumes of squash and bell peppers,” Lance Jungmeyer, president and CEO of the Fresh Produce Association of the Americas, said of this year’s winter vegetable harvest.

Nogales will also see high-volume importation of produce more typically associated with the summer months.

“Even this time of year, we’re importing watermelons,” Jungmeyer said. “That’s an area where the consumer demand is coming in the form of cut melons.”

Meeting national consumer demand

Nogales is essential to meeting national consumer demand when Mother Nature wreaks havoc on domestic crops.

Thanksgiving shoppers will be thankful about that — they can still buy fresh green beans, despite a cold snap in the southeastern U.S. that affected the supply and quality of green beans from that region for the worse.

“We’re seeing good demand for a lot of produce in Nogales right now,” Jungmeyer said. “The supply we have is good.”

Jungmeyer said he does not anticipate that shoppers will pay more for green beans this holiday, as many retailers have already set and advertised their prices for popular Thanksgiving ingredients.

SR-189 critical to Nogales, state

The uptick in activity at the port means increased truck traffic along State Route 189, also known as Mariposa Road, which connects the port of entry to Interstate 19, the north-south corridor between Nogales and Tucson.

SR-189 is slated for a significant upgrade, thanks to funds designated by the state Legislature and the Arizona Department of Transportation to fast-track work on the trade route.

Jungmeyer said Nogales could be on the brink of breaking its previous record for commercial truckloads this year.

“We’re definitely very thankful to Gov. Ducey and the Legislature for the funds that they appropriated towards this SR-189 project,” he said. “It’s going to be a big deal not only for Nogales, but really for the whole state.”

Warehouse space hard to come by

Before the fruits and vegetables that enter Nogales are distributed throughout the nation, they stop at one of the climate-controlled warehouses near the port of entry. That warehouse space is becoming increasingly hard to come by, however.

“This season, warehouse space is going to be at a premium,” Jungmeyer said.

Due to new federally mandated inspection requirements for Mexican tomatoes, warehouses will be forced to hold shipments longer while they await inspection; palates usually packed close together will have to be arranged further apart in order for inspectors to maneuver around them, taking up valuable space, Jungmeyer said.

Despite logistical and infrastructure-related challenges, Jungmeyer said optimism remains high for a successful winter season and another in the spring, which is likely to be even busier.

“We used to operate like a bell curve, but now we have two peaks,” Jungmeyer said. “So, starting in December through the end of February, it’ll grow like a bell curve peak and then it’ll drop off a little bit. And then, in late March through the end of June, we’ll have another peak, and that peak is even stronger than what we call the winter peak.”

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With only a few legislative days remaining for the United States House of Representatives in 2019, Rep. Greg Stanton, D-Ariz., is urging his colleagues to focus on the U.S.-Mexico-Canada Agreement in the waning days of the year.

Stanton took to the House floor Wednesday to deliver a speech extolling the virtues of cross-border trade and its positive impact on Arizona.

“Simply put, trade with our North American allies is essential to Arizona’s economy,” Stanton said. “Now, we have a real opportunity to improve these relationships through USMCA.”

Stanton spoke of his time as mayor of Phoenix, which saw him lead 18 trade missions to Mexico and Canada.

Stanton’s positive remarks about trade come as House Speaker Nancy Pelosi expresses skepticism about whether there is time left in 2019 for the House to act on a bill to adopt the new trade deal.

Politico that Pelosi told reporters, “I’m not even sure if we came to an agreement today that it would be enough time to finish [this year], but just depends on how much agreement we come to.”

Stanton, a freshman Democrat, has been one of his party’s of USMCA’s passage.

He and 13 Democratic colleagues sent Pelosi a in July asking her to bring USMCA to a vote this year. In August, Stanton and Arizona Gov. Doug Ducey held a tele-town hall discussion during which they touted their support for the new trade agreement.

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In a move that surprised the Arizona business community and dealt a blow to relations between Phoenix and Mexico, the Phoenix City Council voted down a proposal Wednesday to reopen the city’s trade offices in Mexico City and Hermosillo, Sonora.

By a 3-6 vote, the council rejected a recommendation from city staff to reopen the offices and award a contract to manage the offices to public affairs firm Molera Alvarez, which held the previous city contract.

The council voted in July to shutter the offices while competing bidders contested the city’s new contract with Molera Alvarez.

Members of the business community testified before the council Wednesday in favor of reopening the offices and fulfilling the contract with Molera Alvarez.

Arizona �������� of Commerce and Industry president and CEO Glenn Hamer discussed the importance of maintaining the offices as the United States, Mexico and Canada near the adoption of the U.S.-Mexico-Canada Agreement, or USMCA. The accord would maintain tariff-free trade between the three nations, which Hamer said would benefit Arizona greatly.

“We need to be doubling down with our friend, ally and neighbor, Mexico,” Hamer said. “This is not the time to retreat.”

Mike Huckins, vice president of public affairs for the Greater Phoenix ��������, also urged the council to keep the offices open.

“The offices [in Mexico] have put Phoenix on the map in ways we never were before,” Huckins said. “The trade offices provide Phoenix and Phoenix business owners with exposure and resources in one of the world’s largest markets.”

Councilmember Thelda Williams, who voted to adopt the staff recommendation, said she is concerned about the message the city’s action sends to Mexico and Hermosillo, one of Phoenix’s sister cities.

“What concerns me now is we kind of got caught up in politics, I think,” Williams said. “And I’m very worried that Mexico — Hermosillo — doesn’t understand what’s going on here, and the fact that they think we’ve abandoned them.”

No members of the public testified in opposition to the staff recommendation that the offices should be reopened and the contract be awarded to Molera Alvarez.

Phoenix Mayor Kate Gallego voted against the staff recommendation but did not offer an explanation.

Photo: Azwatchdog/Flickr

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The Drought Contingency Plan takes center stage in a new television advertisement that just hit the Phoenix market.

The 30-second spot features Arizona state Sen. Sine Kerr, R-Buckeye, discussing the importance of the DCP’s passage to Arizona. It was produced by the United States �������� of Commerce with support from the Arizona �������� of Commerce and Industry.

The Arizona Legislature passed the DCP in January to manage future Colorado River allocations and stave off federal intervention in Arizona’s water management strategy. Congress authorized the plan’s implementation in April.

In the ad, Kerr asks voters to thank U.S. Sen. Martha McSally, R-Ariz., for her leadership in passing the DCP in Congress.

“Martha McSally led the effort to pass the Drought Contingency Plan, keeping the water flowing and Arizona growing,” Kerr said in the ad.

Kerr said it is not common for legislation to pass through Congress as quickly as the DCP.

“I know that Sen. McSally was a champion for us in Congress and the Senate, and it went through Congress in record time,” Kerr said. “She was instrumental in that, and I’m just very proud of the work she did on DCP.”

Kerr, a Buckeye dairy farmer for nearly 40 years, said she did not hesitate when asked to appear in the ad.

“Water’s life… to farmers, to everyone,” she said. “No matter what you do, no matter where you live, water touches your life every single day.”

Water is particularly vital to Kerr and her district, which includes wide swaths of rural Western Arizona.

“We’ve made great strides to conserve water behind Lake Mead, and we already are seeing that it’s working,” Kerr said. “It’s great to see that progress, but we’re always looking ahead.”

Kerr said one of her main concerns is ensuring the water supply is secure for future generations.

“That’s really important to me, not only as a legislator but as a dairy-business owner,” she said. “We think in generations; we don’t just think the next few years. With that in mind, that’s how we look ahead is for the future generations.”

Kerr is the chair of the state Senate Water and Agriculture Committee.

This latest ad follows that aired in the Phoenix market, supported by the Arizona �������� and Arizona Manufacturers Council. featured Manufacturers Council Chair Dawn Grove and highlighted McSally’s advocacy for the proposed United States-Mexico-Canada Agreement (USMCA) on North American trade.

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