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September 6, 2007

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Agricultural customers will be
hardest hit by water shortages  


By Joe Naiman

The Alpine Sun

     SAN DIEGO — As Southern California dries out, and water officials preach conservation, agricultural customers will likely be the hardest hit my imposed water shortages. While the Interim Agricultural Water Program provides surplus Metropolitan Water District of Southern California supplies to agricultural customers at a discounted rate, the IAWP conditions allow for a reduction of up to 30 percent prior to implementing any mandatory reductions to municipal and industrial customers.
     The Metropolitan Water District plans to implement such a reduction at the beginning of 2008 in the absence of unexpected rainfall later this year, and on Aug. 23 San Diego County Water Authority planning manager Bob Yamada made a presentation on the reduction plan to the County Water Authority’s Water Planning Committee.
     “We have time to get ready for this,” Yamada said. “We have time to plan for this.”
     An actual regional reduction plan is expected to be brought before the CWA board Sept. 27. That plan would implement a 30 percent cut to each CWA member agency based on the 2006-07 IAWP allocation.
     “Agriculture has a specific reduction target that needs to be fulfilled,” Yamada said.
     “By using 06-07, nobody is disproportionately harmed. Everybody gets approximately 70 percent of what they received in 06-07,” said Fallbrook Public Utility general manager Keith Lewinger, who is also FPUD’s representative on the CWA board and the chair of the CWA’s Water Planning Committee. “Every member agency is going to receive approximately 70 percent of what they got in 06-07.”
     Excluding the Lakeside Water District, which received CWA membership after the beginning of Fiscal Year 2006-07, 17 of the CWA’s 23 agencies utilize IAWP supplies. The Lakeside Water District area was formerly served by the Padre Dam Municipal Water District’s CWA membership, and the IAWP deliveries to Padre
     Dam will likely be distributed to the two districts based on their proportional use prior to the reorganization.
     Lakeside Water District board member Frank Hilliker, who is the district’s representative on the CWA board, is also one of three farmers on the CWA board, although the Hilliker family egg ranch is on well water and does not use IAWP supplies. An agricultural property may choose to pay the municipal and industrial rate and not be subject to the IAWP cuts.
     The other two farmers on the CWA board are Rua Petty of the Rainbow Municipal Water District and Bill Knutson of the Yuima Municipal Water District. Petty grows proteas and avocados while Knutson grows avocados, citrus, and nursery crops.
     The Metropolitan Water District of Southern California has had an agricultural water program in place since 1958. In November 1990 the Incremental Interruption and Conservation Program was adopted by MWD, and the agricultural program was incorporated into the IICP in 1991.
     The period from 1987 to 1992 is considered a long-term drought for Southern California, including areas, which supply water to MWD. In December 1990 MWD implemented a Stage I conservation program, which included a 10 percent voluntary cutback.
     In January 1991 MWD implemented a Stage III plan, which included a 30 percent agriculture cut and a 10 percent municipal and industrial cut; the CWA responded to the 17 percent overall MWD cut with an overall 15 percent cutback. In February 1991 MWD ordered a 31 percent Stage V cutback, which reduced agricultural water by 50 percent and M&I supplies by 20 percent; the CWA passed on a 30 percent cutback to its member agencies.
     In March 1991 MWD called for a Stage VI cutback of 50 percent, which meant a 90 percent agricultural reduction and a 30 percent M&I drop. The CWA issued a corresponding 50 percent cutback.
     “The threat was the extinction of agriculture,” said Valley Center Municipal Water District general manager and CWA board representative Gary Arant. “The ‘91 thing happened so fast.”
     Before the Stage VI cuts were implemented, heavy rainfall hit Southern California in March 1991. The Stage VI cuts were cancelled, and many water agencies began focusing on storage and diversifying supplies in preparation for the next long-term drought.
     In 1994 the Interim Agricultural Water Program was implemented by MWD. Discounted agricultural water supplies were limited based on the four-year period prior to the implementation. The 12 participating MWD agencies have a maximum annual cap of 155,190 acre feet, although agencies can use less than their allocation.
     The San Diego County Water Authority was allocated 100,459 acre feet. The Western Municipal Water District, which is located in Riverside County, has the second-largest allocation at 32,347 acre feet. The third-largest allocation belongs to the Metropolitan Water District of Orange County, which receives up to 7,657 acre feet. Seven of the twelve districts are allocated less than 210 acre feet.
     During Fiscal Year 2005-06 the 17 participating CWA agencies utilized 84,993 acre feet of IAWP supplies.
     Agencies participating in the IAWP program must provide monthly agricultural water certification to MWD and must submit a plan to meet mandatory cuts to agriculture if needed. The MWD member agency is required to pass on the entire water pricing differential directly to its own member agencies. MWD’s most recent budget included an increase in the IAWP rates to $261 per acre foot for untreated water and $394 per acre foot for treated water.
     The MWD budget also increased untreated Tier 1 M&I deliveries to $351 per acre foot and Tier 2 M&I supplies to $449 per acre foot.
     In June MWD requested that its member agencies update their IAWP reduction plans and submit them by Sept. 28. MWD prepared draft reduction guidelines for program implementation, which include establishing a baseline, verification of usage, and penalties for non-compliance. IAWP cutbacks beyond 30 percent will be tied to M&I cutbacks and have yet to be determined.
     The MWD guidelines established Fiscal Year 2003-04 as the representative dry-year baseline for deliveries to MWD member agencies, although the CWA will be using Fiscal Year 2006-07 data for its reduction plan.
     “That best reflects dry-year conditions. That best reflects users which are currently in the program,” Yamada said of the CWA’s decision to use the 2006-07 baseline.
     The MWD guidelines stipulated a participant obligation cutoff date of Dec. 31, 2006. MWD’s guidelines also call for a penalty of twice the Tier 2 rate, or a surcharge of $898 per acre foot which would bring the total cost of exceeding the cutback amount to $1,212 per acre foot.
     Lewinger noted that the penalty rate of triple the IAWP rate would deter farmers from buying their way out of the cutbacks. “That’s a big number for an agricultural customer,” Lewinger said.
     The MWD guidelines also preclude the use of M&I water to supplement the IAWP cuts. “Metropolitan is asking for a real reduction in water use,” Yamada said. “These cutbacks need to stand on their own.”
     In addition to the penalty charges, some member agencies have flow restricters, and several of the CWA member agencies have implemented their own IAWP reduction plans.
     The CWA’s regional plan will include member agency reduction plans that have been submitted or are under review.
     “Our farmers are going to make it work. They realize that they’ve had interruptible water at a lower price all these years,” Knutson said.


                                                E-mail Christy Scott


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