TRUST WATER AND WATER BANKS. Amanda Cronin Washington Water Trust Chehalis Basin Partnership August 28, 2015

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1 TRUST WATER AND WATER BANKS Amanda Cronin Washington Water Trust Chehalis Basin Partnership August 28, 2015

2 PRESENTATION SUMMARY Background- WWT, water law Trust Water Right Program Stream Flow Restoration- examples Water Banking in Washington State Water Bank examples

3 WASHINGTON WATER TRUST Washington Water Trust works to improve and protect stream flows and water quality throughout Washington, benefiting agriculture, fisheries and wildlife by using innovative, market-based transactions and building cooperative partnerships.

4 16 CRITICAL BASINS IN WA WWT Seattle WWT Ellensburg

5 WA WATER LAW BASICS Property rights to use public resource (usufructuary) Prior appropriation (senior water uses first) 5-year use it or lose it rule (However there are 21exceptions including when in Trust ) All surface and groundwater rights must be permitted except permit exempt wells Generally new water rights are not available in WA

6 TYPES OF WATER RIGHTS Claim: initiated before the appropriate water code (surface-1917, groundwater-1945) Permit: use of water granted by Ecology, but not certificated, must be perfected to be certificated Certificate: use issued by Ecology after code was adopted

7 TRUST WATER RCW & Adopted 1989 and1991 Allows use of water for instream flow (w/o lose it ) Trust water managed and protected by WA DOE Retains priority date (seniority) Expedited processing of water right changes (Hillis Rule) Temporary, permanent, partial, entire

8 BASIC WATER MARKET OPTIONS Lease (temporary) Yearly compensation Familiarize parties with water market processes Purchase (in perpetuity) High degree of flexibility Transfer (new place, purpose of use, and new point of diversion) Donation Permanent = eligible for IRS charitable gift Easiest transfer (and process)

9 FLEXIBILITY & BALANCE Split-season leasing Dry-year options Source substitution Changing point of diversion Pulse flows Reverse auction Water conservation (efficiencies) Non-diversionary agreements Water banking & mitigation Land conservation CREP Riparian restoration Conservation easements

10 TEANAWAY RIVER YAKIMA BASIN Cumulative and late-season 21 partnerships from Headwaters to Mouth ~ 11.8 CFS Teanaway River

11 TANEUM CREEK YAKIMA BASIN WINTER AND SUMMER WATER SOURCE SUBSTITUTION 2005 Restored 28.8 cfs to Taneum Creek through source substitution Restored access to 30 miles of fish habitat Water users sourced to groundwater Changed 130-yr practice 2009 Bruton Ditch Source Substitution with Fish Barrier removal 1.9 cfs summer flow

12 TOUCHET RIVER WATER RIGHT PURCHASE I m getting to the point in my life where I m tired of changing handlines And I thought if I could help the stream out and help the fish and make out okay financially, I might as well do it - Landowner

13 DUNGENESS REVERSE AUCTIONS- LEASING PROGRAMS 2009 Results totals: 10 bids received; 9 accepted Acreage leased: Spent in leases: $32,187 Instream flow: 2.42 cfs 2015 Prelim Results 21 bids received; 17 accepted Acreage leased: ~840 Spent in leases: $125,000 Instream flow: ~5.5 cfs

14 WHAT IS A WATER BANK? A water bank is an intermediary that acquires or leases water from willing sellers and then holds, transfers, and exchanges water rights on behalf of willing buyers Many examples of water banks across the west WA water banks are active in the Dungeness, Yakima and Walla Walla Basins in WA Statewide Trust water rights program is a form of banking and provides the administrative process by which to transfer water rights from one use to another

15 HOW DOES A WATER BANK WORK? Water Bank as Broker Supply Sellers: water right holders Typical Functions Certifies validity of water rights Sets rules/criteria for bank Sets prices Matches buyers and sellers Determines priorities for banking transactions Demand Buyers: Mitigation for new water use Flow restoration

16 WALLA WALLA BASIN- GROUNDWATER MITIGATION Map: Department of Ecology

17 WHAT IS THE WALLA WALLA INSTREAM FLOW RULE? Amends existing WAC Sets instream flows Prohibits new summer surface water diversions Limits new water use to flow improvement and environmental enhancement projects Restricts withdrawals from the gravel aquifer New limits on stock watering Conditions use of Exempt Wells Exempt from permitting not regulation RCW

18 WALLA WALLA WATER EXCHANGE HOW IT WORKS WWT seeds the exchange for 2 years by acquiring existing water rights and placing into trust program Homebuilders pay WWT $2,000/exempt well Homebuilders receive mitigation certificate from Ecology WWT and Ecology debit the exchange.5 af for each certificate Homebuilders must meter use, record monthly and report annually to Ecology

19 DUNGENESS WATER EXCHANGE AS ENVISIONED BY LOCAL LEADERS Restoration Funds Public Sources Watershed Implementation State Appropriation Salmon Recovery Board Federal Grants Puget Sound Partnership Private Sources Individual Donations Corporate Sponsorships Tribal Donations Exchange Water Projects Water Right Leases New Water Storage Reclaimed Water Irrigation Efficiencies Water Right Purchases Shallow Aquifer Recharge Groundwater Well Retirement Mitigation Funds Private Sources Builders/Homeowners Property Developers Other new GW Users Public Sources City Payments PUD Payments State subsidies Environmental Restoration (Dungeness River flows) Environmental Sustainability Economic Development (new groundwater uses)

20 DUNGENESS SUBBASINS

21 HOW DOES THE EXCHANGE GENERATE MITIGATION CREDITS? Acquire water rights from Dungeness Water Users Association: 175 acre feet 30 AF instream late season 145 AF aquifer recharge Implement aquifer recharge projects

22 AVAILABLE MITIGATION PACKAGES Package Description Average Amount of Indoor Use (GPD) Average Amount of Outdoor Use (GPD) Amount of irrigated lawn Area (Square Feet) Amount of irrigated lawn Area (Acres) Indoor Only Package: $1000 (minimal incidental outdoor use only) Indoor with Basic Outdoor Package: $2000 Indoor with Extended Outdoor Package: $ sq. ft. (approx. 50x50 ft) sq. ft. (approx. 75x75 ft).06 acres.13 acres

23 STEPS FOR OBTAINING MITIGATION THROUGH THE EXCHANGE 1. Start the County building permit application process. 2. If you want to use outdoor water, contact the Exchange directly. 3. Contact a well driller and drill well (if one is not already drilled) to demonstrate adequate water is physically available. 4. Record all Mitigation Certificates on the specific parcel with the County Auditor. The Mitigation Certificate will be attached to the specific parcel and cannot be transferred. 5. Deliver a copy of the notarized Mitigation Certificate to DCD. 6. Install a meter (as required by Ecology) as part of the plumbing system.

24 MITIGATION ISSUED SO FAR Since January Indoor Mitigation Certificates 5 Basic Outdoor; 6 Extended Outdoor 2 Stockwater mitigation certificate in process 1 PUD Mitigation Certificate Photo: Peninsula Daily News

25 LESSONS LEARNED IN WATER BANKING Matching supply and demand is critical Net instream benefit results from linking flow restoration and groundwater mitigation for exempt wells Finding water for water mitigation in western WA requires creativity Involvement of key players = critical to success (State & local) Start-up cost, time, effort = significant Public relations are a key to success

26 THANK YOU! QUESTIONS? Amanda Cronin Western WA Office 1530 Westlake Ave N, Ste 400 Seattle, WA x100 Eastern WA Office 222 East 4 th Ave, Ste 109 Ellensburg, WA