A. A water and power plan for the state is established consisting of all or part of the following works and facilities:

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1. Central Arizona project, including:

(a) Granite Reef aqueduct to extend from Lake Havasu to a point in central Arizona on the Salt river near the city of Phoenix, together with pumping plants therefor.

(b) The Salt-Gila aqueduct to extend from the terminus of the Granite Reef aqueduct in central Arizona to the Tucson aqueduct, Colorado source, in the vicinity of Picacho reservoir, together with pumping plants therefor.

(c) The following alternative to Orme dam:

(i) New Waddell dam.

(ii) Cliff dam.

(iii) Modifications to Roosevelt dam.

(d) Buttes dam and reservoir on the Gila river east of the town of Florence.

(e) Tucson aqueduct to extend from the terminus of the Salt-Gila aqueduct in the vicinity of Picacho reservoir to and beyond the city of Tucson, together with pumping plants and terminal storage therefor.

2. Montezuma pumped storage power project to be located approximately twenty-five miles south of the city of Phoenix.

3. The authority‘s interest in or rights to capacity and any associated energy of the Hoover power plant modifications project consisting of an additional powerhouse or powerhouses at the Hoover dam and power plant located on the Colorado river in Clark county, Nevada and Mohave county, Arizona and Lake Mead, the reservoir formed behind Hoover dam.

4. The authority’s interest in or rights to capacity and any associated energy of the Hoover power plant uprating project consisting of an increase in capacity of existing generating units at Hoover dam and power plant as a result of replacement and improvement of equipment for such units. In each case the project shall include any improvements thereto and any incidental or associated capacity, energy, buildings, structures, transmission lines or mains, and all other appurtenances and facilities necessary or appropriate thereto.

5. The financing or refinancing of this state’s proportionate share of the costs incurred by the United States with respect to the Hoover visitor facilities as defined in section 101(a) of the Hoover power plant act of 1984 (P.L. 98-381; 98 Stat. 1333; 43 United States Code § 619) and this state’s proportionate share of the costs incurred by the bureau of reclamation with respect to the air slot treasury loan for the construction of air slots at Hoover dam.

B. The state water and power plan may also include such further water and power projects, either in addition to or in substitution of the projects set forth above, or any portion thereof, as the Arizona legislature may from time to time authorize. However, in no event may such further power projects include thermal generating plants or interests therein, except that the authority may enter into an agreement with other electric power interests proposing to construct a thermal generating power plant whereby the state shall acquire the right to such portion of the capacity of such plant, including delivery of power and energy over appurtenant transmission facilities to mutually agreed on delivery points as is required to provide central Arizona project pumping. Power and energy acquired thereunder may be disposed of intermittently by the authority when not required in connection with the central Arizona project.

C. Except as otherwise provided in this subsection, nothing in this article shall authorize the inclusion in the state water and power plan of the power and energy under the Hoover energy contract 1-1r-1455 dated November 23, 1945 as it may be supplemented, amended, renewed or replaced and the rights to deliver such power and energy under the 1964 Wheeling contract 14-06-0300-1444 dated January 1, 1965 as it may be supplemented, amended, renewed or replaced which power and energy and Wheeling rights shall continue to be administered under Title 30, Chapter 1. Power and energy of the authority from the Hoover power plant modifications project and the Hoover power plant uprating project shall be sold by the authority pursuant to this article. The contracts for the sale of the power and energy of the authority from such projects shall be treated as contracts under this article. Notwithstanding Title 30, Chapter 1, the authority may pledge its contracts, rights and interests in or to power and energy from the Hoover power plant modifications project, the Hoover power plant uprating project, the 1945 Hoover energy contract or the 1964 Wheeling contract, or any supplements, amendments, renewals or replacements of such contracts, or any other contract or contracts for the purchase or transmission of power and energy from the United States or any United States agency as security for any bonds or notes of the authority issued under this article for the purpose of the Hoover power plant modifications project, the Hoover power plant uprating project, the Hoover visitor facilities or the air slots at Hoover dam.