Water Transfers

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WATER TRANSFERS

Introduction

The concept of water transfers is as old as California's rich history of water development. Ever since the first diversions of water from a major river or tributary, transferring water among areas has helped this state develop into the economic giant it is today. State, federal and local water projects in California depend on the ability to move water from water-abundant areas to drier locations in the state.

Today's concept of water transfers still follows the basic premise of matching water demands with supply, but the issue quickly becomes complex and emotional when discussions focus on protection of existing surface- and ground- water rights, area-of-origin concerns and third-party impacts.

Recognizing these concerns, voluntary water transfers continue to be one means of ensuring that this state's most precious resource is put to reasonable beneficial use to the maximum degree practicable.

Westlands' Position Statement

Westlands is a major importer of water from areas around the State and is heavily dependent on short-term, or annual, water transfers to help provide economic stability to our farm communities on the west side and for all of Fresno County.

In light of the continual uncertainty in Central Valley Project export supplies from the Sacramento-San Joaquin Delta, Westlands officials are pursuing long-term water transfers and exchanges to help ensure an adequate water supply for west side farmers, farm workers and farm communities for the future. These long-term arrangements may involve partnerships with urban water suppliers, offering Awin-win" opportunities for all affected parties.

Current Status

Since 1989-90, Westlands and its farmers have purchased over 1.4-million acre-feet of short-term transfer water to supplement reduced allocations in the District's CVP water contract, as shown in the Water Transfers graph. In seven of the last nine years, Westlands has not received its full CVP entitlement due to the environmental restrictions to pump water south of the Delta. The District's average annual CVP contract supply is now forecasted to be only 65-to-75 percent of the total CVP entitlement of 1,150,000 acre-feet. Even with a full CVP entitlement, the District is about 200,000 acre-feet short of meeting yearly crop needs. Transfers have helped west side farmers and the communities weather chronic water supply uncertainty.

Westlands' water transfers are acquired from a variety of sources, mostly from water agencies south of the Delta. There are a number of physical, institutional and regulatory constraints that severely limit reliable transfers through the Delta. The hydrology, biological opinions and Atake" provisions under the Endangered Species Act, operations to meet CVP Improvement Act provisions, and export limits and flow requirements are some of the key impediments for transferring water through the Delta.

As a result, Westlands has partnered many times with agencies within the San Joaquin Valley to facilitate short-term transfers and same year exchanges. Kern County Water Agency (a State Water Project contractor), Madera and Merced irrigation districts (water rights holders on San Joaquin River tributaries), and other CVP contractors on the Delta-Mendota Canal have been trading partners with Westlands in recent years.

Westlands' water transfers have included: (1) the outright annual purchase of temporary surplus water from other water districts or agencies; (2) same year exchanges; and/or (3) exchanges which come with an obligation to return the water in future years. Also, farmers may individually transfer water into Westlands from another district in which they farm, depending on the physical means to do so and the necessary approval from the participating districts.

The ability to arrange a transfer depends on the participating districts' water type and rights, their location to major "plumbing systems;" coordination and cooperation with neighboring districts who may be asked to wheel, or transport, the water; addressing possible environmental and third party concerns; and obtaining the necessary approval from affected agencies and governmental entities and regulators.

All of Westlands' transfers have been short-term in nature. Although these types of transfers have been helpful to meet immediate water needs, short-term transactions are subject to great uncertainty and unpredictability for meeting future needs, especially during critically dry years.

The approval process for short-term water transfers is cumbersome and often lengthy. Both the state and federal water projects and various governmental agencies must review and approve water transfers, depending on the nature of the proposed transaction. Where applicable, California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) reviews must be conducted. This process may take many months.

Costs of short-term transfers are very volatile, reflecting the annual supply and demand market for water. In Westlands, supplemental short-term water has been delivered at prices ranging from $45 per acre-foot in the water-abundant 1995 to over $110 per acre-foot in the dry 1994.
Long-term water transfers can provide greater assurances in water quantity, availability and cost than short-term transactions. A multi-year arrangement can offer benefits to the participating agencies in the form of water management and financial resources.

Long-term water transfers are often viewed with skepticism and apprehension by local communities, given the reassignment of water for several years and subsequent concerns with area-of-origin and water rights protections, and third-party impacts to affected areas. If these concerns are addressed and mitigated appropriately with broad community involvement and support, long-term transfers can actually be used to help benefit an area by offering longer term water supplies at consistent water rates.

For example, well-structured partnerships between urban and agricultural water agencies may improve the economy of the farming communities by providing a more reliable long-term, affordable water supply in exchange for dry-year protections for urban areas. In most years, unused urban water can be transferred into the farming region, while in dry years either surface or groundwater supplies must be returned to the urban areas. Although the farming area would be hard-pressed to return the water in dry years, the benefits from receiving the water during most other years far outweigh the added hardships during a drought.

Talking Points for Westlands' Position

Westlands depends on the ability to transfer water into the Valley and in particular, Fresno and Kings counties. Local policy-makers must proceed with caution in developing and implementing water transfer policy, recognizing that over 25 percent of Fresno County's $3.4-billion farm economy is dependent on water imported from other areas. It would be difficult to oppose transfers from our county when we are so dependant on water imported from other areas.

Additional storage and conveyance facilities are necessary if water transfers will continue to play a meaningful role in California's overall water management. Water transfers will not solve all of our water supply needs, but they are helping meet immediate needs and future needs until additional storage and conveyance facilities are completed.

Like most water managers in the Valley, we are concerned with surface water leaving an overdrafted groundwater basin. Impacts resulting from transfers must be mitigated. In the specific case of the Widren Water District/City of Tracy long-term reassignment of water, the amount of water is minimal and there may be some relief in a drainage impacted area; we support the concept.

The CVPIA has made it possible that any CVP water can be moved freely within the CVP service area. Likewise, the CALFED Bay-Delta Program has focused on water transfers and groundwater banking programs to help address the state's current and future water supply needs. Clearly, more water transfers will occur, especially in the San Joaquin Valley.

Local policy-makers, agricultural representatives and the business community must place a high priority on education of water transfer issues, with a broad focus on the economic possibilities and resource stewardship components that long-term water transfer proposals can offer. We mustn't lose sight of the benefits of water transfers for Fresno County -- our reliance on imported Delta water from northern California, and on supplemental water from other counties through short-term transfers. We can't put ourselves in a position that other counties will oppose transfers to Fresno County, because Fresno County has adopted policies opposing transfers to other areas.

Both state and federal agencies must improve their water transfer implementation process. The length of time and paperwork needed for approval slows the process, often resulting in a missed opportunity. Because it can take several months to implement a transfer, hydrologic or demand conditions can change -- especially with crop needs -- impacting the necessity to complete the transfer. The approval process must be streamlined.


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	WATER TRANSFERS
	Introduction The concept of water transfers is as old as California's rich history of water development. Ever since the first diversions of water from a major river or tributary, transferring water among areas has helped this state develop into the economic giant it is today. State, federal and local water projects in California depend on the ability to move water from water-abundant areas to drier locations in the state. Today's concept of water transfers still follows the basic premise of matching water demands with supply, but the issue quickly becomes complex and emotional when discussions focus on protection of existing surface- and ground- water rights, area-of-origin concerns and third-party impacts. Recognizing these concerns, voluntary water transfers continue to be one means of ensuring that this state's most precious resource is put to reasonable beneficial use to the maximum degree practicable. Westlands' Position Statement Westlands is a major importer of water from areas around the State and is heavily dependent on short-term, or annual, water transfers to help provide economic stability to our farm communities on the west side and for all of Fresno County. In light of the continual uncertainty in Central Valley Project export supplies from the Sacramento-San Joaquin Delta, Westlands officials are pursuing long-term water transfers and exchanges to help ensure an adequate water supply for west side farmers, farm workers and farm communities for the future. These long-term arrangements may involve partnerships with urban water suppliers, offering Awin-win" opportunities for all affected parties. Current Status Since 1989-90, Westlands and its farmers have purchased over 1.4-million acre-feet of short-term transfer water to supplement reduced allocations in the District's CVP water contract, as shown in the Water Transfers graph. In seven of the last nine years, Westlands has not received its full CVP entitlement due to the environmental restrictions to pump water south of the Delta. The District's average annual CVP contract supply is now forecasted to be only 65-to-75 percent of the total CVP entitlement of 1,150,000 acre-feet. Even with a full CVP entitlement, the District is about 200,000 acre-feet short of meeting yearly crop needs. Transfers have helped west side farmers and the communities weather chronic water supply uncertainty. Westlands' water transfers are acquired from a variety of sources, mostly from water agencies south of the Delta. There are a number of physical, institutional and regulatory constraints that severely limit reliable transfers through the Delta. The hydrology, biological opinions and Atake" provisions under the Endangered Species Act, operations to meet CVP Improvement Act provisions, and export limits and flow requirements are some of the key impediments for transferring water through the Delta. As a result, Westlands has partnered many times with agencies within the San Joaquin Valley to facilitate short-term transfers and same year exchanges. Kern County Water Agency (a State Water Project contractor), Madera and Merced irrigation districts (water rights holders on San Joaquin River tributaries), and other CVP contractors on the Delta-Mendota Canal have been trading partners with Westlands in recent years. Westlands' water transfers have included: (1) the outright annual purchase of temporary surplus water from other water districts or agencies; (2) same year exchanges; and/or (3) exchanges which come with an obligation to return the water in future years. Also, farmers may individually transfer water into Westlands from another district in which they farm, depending on the physical means to do so and the necessary approval from the participating districts. The ability to arrange a transfer depends on the participating districts' water type and rights, their location to major "plumbing systems;" coordination and cooperation with neighboring districts who may be asked to wheel, or transport, the water; addressing possible environmental and third party concerns; and obtaining the necessary approval from affected agencies and governmental entities and regulators. All of Westlands' transfers have been short-term in nature. Although these types of transfers have been helpful to meet immediate water needs, short-term transactions are subject to great uncertainty and unpredictability for meeting future needs, especially during critically dry years. The approval process for short-term water transfers is cumbersome and often lengthy. Both the state and federal water projects and various governmental agencies must review and approve water transfers, depending on the nature of the proposed transaction. Where applicable, California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) reviews must be conducted. This process may take many months. Costs of short-term transfers are very volatile, reflecting the annual supply and demand market for water. In Westlands, supplemental short-term water has been delivered at prices ranging from $45 per acre-foot in the water-abundant 1995 to over $110 per acre-foot in the dry 1994. Long-term water transfers can provide greater assurances in water quantity, availability and cost than short-term transactions. A multi-year arrangement can offer benefits to the participating agencies in the form of water management and financial resources. Long-term water transfers are often viewed with skepticism and apprehension by local communities, given the reassignment of water for several years and subsequent concerns with area-of-origin and water rights protections, and third-party impacts to affected areas. If these concerns are addressed and mitigated appropriately with broad community involvement and support, long-term transfers can actually be used to help benefit an area by offering longer term water supplies at consistent water rates. For example, well-structured partnerships between urban and agricultural water agencies may improve the economy of the farming communities by providing a more reliable long-term, affordable water supply in exchange for dry-year protections for urban areas. In most years, unused urban water can be transferred into the farming region, while in dry years either surface or groundwater supplies must be returned to the urban areas. Although the farming area would be hard-pressed to return the water in dry years, the benefits from receiving the water during most other years far outweigh the added hardships during a drought. Talking Points for Westlands' Position Westlands depends on the ability to transfer water into the Valley and in particular, Fresno and Kings counties. Local policy-makers must proceed with caution in developing and implementing water transfer policy, recognizing that over 25 percent of Fresno County's $3.4-billion farm economy is dependent on water imported from other areas. It would be difficult to oppose transfers from our county when we are so dependant on water imported from other areas. Additional storage and conveyance facilities are necessary if water transfers will continue to play a meaningful role in California's overall water management. Water transfers will not solve all of our water supply needs, but they are helping meet immediate needs and future needs until additional storage and conveyance facilities are completed. Like most water managers in the Valley, we are concerned with surface water leaving an overdrafted groundwater basin. Impacts resulting from transfers must be mitigated. In the specific case of the Widren Water District/City of Tracy long-term reassignment of water, the amount of water is minimal and there may be some relief in a drainage impacted area; we support the concept. The CVPIA has made it possible that any CVP water can be moved freely within the CVP service area. Likewise, the CALFED Bay-Delta Program has focused on water transfers and groundwater banking programs to help address the state's current and future water supply needs. Clearly, more water transfers will occur, especially in the San Joaquin Valley. Local policy-makers, agricultural representatives and the business community must place a high priority on education of water transfer issues, with a broad focus on the economic possibilities and resource stewardship components that long-term water transfer proposals can offer. We mustn't lose sight of the benefits of water transfers for Fresno County -- our reliance on imported Delta water from northern California, and on supplemental water from other counties through short-term transfers. We can't put ourselves in a position that other counties will oppose transfers to Fresno County, because Fresno County has adopted policies opposing transfers to other areas. Both state and federal agencies must improve their water transfer implementation process. The length of time and paperwork needed for approval slows the process, often resulting in a missed opportunity. Because it can take several months to implement a transfer, hydrologic or demand conditions can change -- especially with crop needs -- impacting the necessity to complete the transfer. The approval process must be streamlined.