Westlands Long-Term Supplemental Water Supply Program

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BACKGROUNDER
Westlands Long-Term Supplemental Water Supply Program

Revised 5/00
Since 1992, the long-term reliability of the District's Central Valley Project water supply has been significantly reduced as a result of a variety of changes in federal environmental law. Westlands has received its full CVP entitlement of 1,150,000 acre-feet in only two of the last 10 years, including the current water year.

Year-to-year, Westlands relies on supplemental water supplies to help meet crop water demands. Even with a full CVP entitlement, Westlands is about 200,000 acre-feet short of meeting all of its crop water needs. But, the situation has become more long-term due to the ongoing uncertainty with the ability to export contract supplies from the Sacramento-San Joaquin River Delta due to environmental regulations.

Since 1989-1990, Westlands and its farmers have purchased over 1.4-million acre-feet of short-term water from other sources. Although these year-to-year transfers have helped meet immediate water needs, short-term transactions are subject to great uncertainty and unpredictability for meeting future needs, especially during critically dry years. The acquisition of long-term supplemental water supplies will help stabilize the uncertainty.

This March, Westlands initiated a program to acquire up to 140,000 acre-feet of water to supplement its uncertain CVP supply. The Board of Directors approved issuing $33-million in Revenue Certificates of Participation to finance the first phase of a program that focuses on increasing the multi-year supply of water, while at the same time, reducing the demand for water through retirement of drainage-impacted lands.

The program's phase one components currently underway include:

Participation in a four-way reassignment of part of the Mercy Springs Water District's CVP contract entitlement. Mercy Springs, Santa Clara Valley and Westlands water districts and the Pajaro Valley Water Management Agency have negotiated the reassignment of about 6,260 acre-feet of long-term supplemental water entitlement for at least the next 10 years.

Participation in the Bureau of Reclamation's Land Retirement Program, authorized by the CVP Improvement Act, which plans to idel, ore retire, up to 15,000 acres of farmland impacted by a build-up of highly saline subsurface drainage water. Since 1986, Westlands farmers have not had any outlet for disposal of their subsurface drainage flows, and have had to rely on on-farm management. Westlands is working with the Bureau to ensure that any water from the retired lands remains in the District for use by farmers in non-drainage impacted areas. The District will pay the Bureau up to $1,150 per acre for each acre of land acquired by the Bureau to ensure the water entitlement remains in Westlands. This program could result in about 15,200 acre-feet of long-term supplemental water entitlement during the first year.
For those farmers who may not want to participate in the federal Land Retirement Program, Westlands has offered a similar program. The District is acquiring land from willing landowners who favorably responded to Westlands' recent solicitation to buy drainage-impacted land and the water entitlement at fair market value. Over 11,000 acres are currently in escrow. The District expects this program will result in the acquisition of about 13,000 acres, with almost 29,000 acre-feet of long-term supplemental water entitlement.

Other concepts being discussed and explored include possible groundwater recharge/banking or storage within the District and vicinity, possible water supplies acquired through drainage treatment/recycling, and wet/dry year partnerships with in-basin and out-of-basin water districts.

The long-term supplemental water acquisition program is designed to serve two purposes: to provide more long-term reliability in the District's water supply and to provide a way to offer immediate relief to farmers with drainage impacted farmland. Today, both drainage and water supply issues are viewed differently than 10 to 15 years ago. The solutions try to focus on how we manage both problems to ensure long-term productivity for our farmers and farm communities and to be environmentally sensitive at the same time.


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	BACKGROUNDER Westlands Long-Term Supplemental Water Supply Program
	Revised 5/00 Since 1992, the long-term reliability of the District's Central Valley Project water supply has been significantly reduced as a result of a variety of changes in federal environmental law. Westlands has received its full CVP entitlement of 1,150,000 acre-feet in only two of the last 10 years, including the current water year. Year-to-year, Westlands relies on supplemental water supplies to help meet crop water demands. Even with a full CVP entitlement, Westlands is about 200,000 acre-feet short of meeting all of its crop water needs. But, the situation has become more long-term due to the ongoing uncertainty with the ability to export contract supplies from the Sacramento-San Joaquin River Delta due to environmental regulations. Since 1989-1990, Westlands and its farmers have purchased over 1.4-million acre-feet of short-term water from other sources. Although these year-to-year transfers have helped meet immediate water needs, short-term transactions are subject to great uncertainty and unpredictability for meeting future needs, especially during critically dry years. The acquisition of long-term supplemental water supplies will help stabilize the uncertainty. This March, Westlands initiated a program to acquire up to 140,000 acre-feet of water to supplement its uncertain CVP supply. The Board of Directors approved issuing $33-million in Revenue Certificates of Participation to finance the first phase of a program that focuses on increasing the multi-year supply of water, while at the same time, reducing the demand for water through retirement of drainage-impacted lands. The program's phase one components currently underway include: Participation in a four-way reassignment of part of the Mercy Springs Water District's CVP contract entitlement. Mercy Springs, Santa Clara Valley and Westlands water districts and the Pajaro Valley Water Management Agency have negotiated the reassignment of about 6,260 acre-feet of long-term supplemental water entitlement for at least the next 10 years.	Participation in the Bureau of Reclamation's Land Retirement Program, authorized by the CVP Improvement Act, which plans to idel, ore retire, up to 15,000 acres of farmland impacted by a build-up of highly saline subsurface drainage water. Since 1986, Westlands farmers have not had any outlet for disposal of their subsurface drainage flows, and have had to rely on on-farm management. Westlands is working with the Bureau to ensure that any water from the retired lands remains in the District for use by farmers in non-drainage impacted areas. The District will pay the Bureau up to $1,150 per acre for each acre of land acquired by the Bureau to ensure the water entitlement remains in Westlands. This program could result in about 15,200 acre-feet of long-term supplemental water entitlement during the first year. For those farmers who may not want to participate in the federal Land Retirement Program, Westlands has offered a similar program. The District is acquiring land from willing landowners who favorably responded to Westlands' recent solicitation to buy drainage-impacted land and the water entitlement at fair market value. Over 11,000 acres are currently in escrow. The District expects this program will result in the acquisition of about 13,000 acres, with almost 29,000 acre-feet of long-term supplemental water entitlement. Other concepts being discussed and explored include possible groundwater recharge/banking or storage within the District and vicinity, possible water supplies acquired through drainage treatment/recycling, and wet/dry year partnerships with in-basin and out-of-basin water districts. The long-term supplemental water acquisition program is designed to serve two purposes: to provide more long-term reliability in the District's water supply and to provide a way to offer immediate relief to farmers with drainage impacted farmland. Today, both drainage and water supply issues are viewed differently than 10 to 15 years ago. The solutions try to focus on how we manage both problems to ensure long-term productivity for our farmers and farm communities and to be environmentally sensitive at the same time.