CAP Agricultural Forbearance III: Briefing and Summary CAWCD Board - - PDF document

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CAP Agricultural Forbearance III: Briefing and Summary

CAWCD Board Meeting January 7, 2015

Chuck Cullom Color ado R iver Pr

• gr

ams Manager

Summary of Ag Forbearance I, II & III

• Ag Forbearance I conserves ~ 161 KAF total for ’15 & ‘16
• Part of CAP’s contribution to Lower Basin Drought Response Actions MOU (LB MOU)
• ICS available for future release to CAP
• $5M investment
• Ag Forbearance II conserves ~ 25 KAF in ’16
• Part of CAP’s contribution to the Pilot System Conservation Agreement
• System water not available for release
• Funding from existing PSCA + CAP 2016 budget + CAP recycled incentive payments
• Funding reduces Ag pool rates in ‘17 – ’18 by ~$8/af per year
• Ag Forbearance III conserves ~ 10 KAF in ’16
• Conservation as part of CAP’s LB MOU goals
• System water not available for release
• $0 additional cost to CAP, recycled funds to support Forbearance II
• Total spending of $5M for conservation = 191 KAF

Agenda Number 7. Attachment.

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Lake Mead Protection Actions

• 2 Programs to Protect Lake Mead Elevations:
• Lower Basin Pilot Drought Response Actions MOU (LB MOU)
• Pilot System Conservation Agreement (PSCA)

740 KAF ~75 KAF PSCA: Total funding = $11 M ($8.25M LB/$2.75M UB) BOR = $3M CAP = $2M SNWA = $2M MWD = $2M Denver Water = $2M LB MOU: CAP = 345 KAF MWD = 300 KAF BOR = 50 KAF SNWA = 45 KAF

CAP’s Lake Mead Protection Actions

• CAP’s MOU Actions = 345 KAF
• Includes Ag Forbearance I ($5M CAP investment)
• Complete 345 KAF in 2016
• PSCA (CAP’s $2M)
• Includes Ag Forbearance II

740 KAF ~75 KAF CAP PSCA: Ag Forbearance II = 25 KAF CAP MOU: Ag Forbearance I = 161 KAF Municipal ICS = 31KAF Ag Forbearance III = 10 KAF Other forbearance = 143 KAF TOTAL = 345 KAF

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CAP Ag Forbearance Participants Original Ag Forbearance II Budget

CAP Additional Funding $1 M (2016 budget) Existing Pilot System Conservation Funding $1.5 M (Lower Basin funds) Additional California Funding $0.5 M (pending approval by MWD/CRBC) + + + Savings on CAP Ag Incentive Payments ~$1.0 M (recycled funding)

• Board approved on 11/04/15
• Includes $1M from 2016 budget
• 25 KAF for PSCA Program in 2016
• Funding reduces impacts of ‘17 – ‘18 Ag Pool rate increases
• Ag Pool rate reduction of ~$8/af for ‘17 & ‘18

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Ag Forbearance II & III Proposed Budget

CAP Additional Funding $1 M (2016 budget) Existing Pilot System Conservation Funding $1.5 M (Lower Basin funds) Recycled Forbearance III savings $0.4 M (pending approval by CAWCD Board) + + + Savings on CAP Ag Incentive Payments $1. M (recycled funding)

• Ag Forbearance III is $0 cost to CAP & generates ~$400k in savings
• Propose to recycle the Forbearance III savings into Forbearance II
• Preserves Ag Pool rate reduction of ~$8/af for 2017 & 2018

Summary:

• Ag Forbearance I, II, and III conserves ~ 191 KAF total in ’15 & ‘16
• $5M investment in Forbearance I
• Existing investment in Forbearance II (PSCA+2016 approved budget+recycled savings)
• Recycled savings (money allocated for Ag Pool incentives) supports

Ag Pool rate reduction in ‘17 – ‘18

• Ag Forbearance I, II, and III are part of Lake Mead reservoir

protection actions in the LB MOU & PSCA

• Includes system water and ICS
• Provides more than 2’ of protection in Lake Mead
• Investment of $5M + PSCA + recycling savings conserves 191 KAF
• Inexpensive reservoir protection with benefits to CAP Ag Districts
• Benefits all CAP users due to shortage protection
• Benefits CAP Ag Districts through ‘17 – ’18 rate reduction