Focus and Priorities
The purpose of the CAGRD Water Supply Program is to actively pursue and secure a diverse portfolio of water supplies through voluntary, market-based transactions and to develop partnerships through direct negotiation with consideration given to local needs and conditions. Third-party impacts will be avoided or mitigated. Water acquisition priorities have been established based on a variety of cost, legal, regulatory and technical feasibility criteria. Multiple types of water supplies will be pursued and developed concurrently to achieve target volumes.
The Program established and achieved a near-term target annualized water acquisition volume of 25,000 acre-feet by 2015. The Program exceeded the near-term goal by approximately 11,500 acre-feet by securing a current annualized volume of 36,534 acre-feet. CAGRD, in its update acquisition strategy, targeted the acquisition of an additional 45,000 acre-feet of supplies by 2025 with 25,000 acre-feet of this total acquired by 2020.
The Program’s pursuit of a diverse portfolio of water supplies will minimize potential impacts to any particular area, and increase overall supply reliability under a variety of operational and hydrologic conditions. To diversify its water supply portfolio, the CAGRD is pursuing five supply classes:
- CAP Entitlements
- Colorado River Entitlements (YMIDD Pilot Fallowing Program)
- Effluent (Liberty Utilities Effluent Lease)
- Long-Term Storage Credits (WestWater Water Market Insider Q3 2014)
- Imported Groundwater
CAGRD is not a water provider, and therefore has significant flexibility in the timing and location of its replenishment activities. As a result, the Program can accommodate a number of possible transaction structures. The primary objective of the acquisition program is to build a portfolio of long-term and reliable water supplies through a series of acquisitions that are generally timed to coincide with increases in demand. Mutually acceptable agreement terms and conditions can be structured in a flexible manner to meet the unique needs of an individual seller. The Program has developed a variety of agreement structures to promote flexibility, including:
- One-Time Purchases
- Multi-Year Purchases
- Fallowing or Forbearance Agreements
- Long-Term Leases (10+ years)
- Annual and Short-Term Lease Agreements
- Capital Contributions to Infrastructure Projects in Exchange for Water Supplies