Rifle State of the River May 11, 2017

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Rifle State of the River May 11, 2017 Grand Valley Water Users Conserved Consumptive Use Pilot Program Beyond Conserved Consumptive Use Project Questions?

Grand Valley Water Users Association 2017 Conserved Consumptive Use Pilot Project (CCUPP)

Introduction to the GVWUA Grand Valley Water Users Association Largest Service Area of Grand Valley Project GVP includes Grand Valley Water Users Association, Orchard Mesa Irrigation District, Mesa County Irrigation District, and Palisade irrigation District 1,700 accounts (several thousand customers) 23,500 irrigated acres (Urban, Suburban and Agricultural) another 15,000 for OMID, PID, MCID; &GVPP Pre-1922 water rights

What is Water Banking? Water Banking is the practice of intentionally foregoing diversion or consumptive use of a water resource and banking the conserved volume for use at a future date or for a different purpose. A Water Bank often functions to facilitate a temporary transfer of water between entities or between uses.

Why test a water bank in the Grand Valley? A number of unique circumstances: - Location (Close to state line) - Grand Valley Power Plant (Facilitates protection of conserved water under existing law) - Temporary Protections (Temporary legislative protection of water rights) - Timing (the right partners were interested) - Management and Operations (GVWUA staff is capable of exploring the idea while maintaining service to users) - Increased Pressures on Agricultural Water (Population pressure, supply gap, reservoir levels)

Why is the GVWUA participating? Protection Benefit A seat at the table for Western Slope agriculture

Why is the GVWUA participating? Western Slope Ag Water including ours is in the bull s eye!

Why is the GVWUA participating? Protection Unacceptable risk associated with drought Unacceptable probability of a myriad of negative consequences associated with basin-wide drought and population pressure The Grand Valley Project is a Reclamation project. Reclamation s role in the Upper Basin is unknown. Avoidance of Draconian measures if/when supply limitations force the hand of the powers that be.

Why is the GVWUA participating? Benefit The GVWUA shareholders have the right to the beneficial use of the water resource for irrigation. If water banking represents an opportunity to capitalize in a limited manner on that property right, then it is appropriate that the Association investigate the idea. Infrastructure investment through potential revenue stream

Why is the GVWUA participating? A seat at the table for agricultural water use The unintended consequences of decisions made by others affect Western Slope agriculture Water may be Western Slope agriculture s competitive advantage Isolation, limited markets, limited investment Agriculture is important for the Western Slope for innumerable reasons, and must serve a leadership role in decisions regarding drought resiliency in the upper basin.

Pilot Project preparation and due diligence Feasibility studies Operational Assessment of System, can it be done? (2015) Infrastructure capacity studies, (2015) Pilot Project Creation Shareholder interviews, discussions, explanation Program Design an Development (2016) Water rights investigation, negotiation, due diligence (on-going) Division Engineer, Reclamation, Attorneys, Project Partners Outreach, contracting Compliance, Verification and Next Steps Program Compliance (current and throughout 2017) Program management (2017) 2018 program creation Project next steps in western Colorado

Pilot Project preparation and due diligence Agronomic activities, contracts, program processes and procedures

Determining project feasibility, impact and scale How much water? Where is it? Why is it there? When will it get there? Foregone CU conveyed through the GVPP, cfs How did it get there? Cubic Feet per Second 16 14 12 10 8 6 4 2 0 4 5 6 7 8 9 10 11 12 Month

Conveyance, protective mechanisms and impacts to other Cameo Call water rights In theory we knew how the water was protected and conveyed past our diversion In practice it is more complicated Negative impacts to other irrigators is a non-starter

Compliance and Verification Pre-contracting program compliance Verification throughout season

2017 CCUPP by the numbers 10 Farmer Cooperators Chosen by lottery 13 potential, 10 selected Limited to those Farm Operators actively farming 120+ acres Searching for scalability Short time frame Limited administration budget Must commit minimum 60 acres, maximum 240 acres

2017 CCUPP by the numbers 4 Program Activities Program Activity Criteria CCU (ac-ft/ac) FF No CU throughout Irrigation Season 2.8 WW No CU until October 1 2.6 SS No CU until September 1 2.3 AA No CU until August 1 1.6 Expressed desire by GVWUA board for flexibility Goal of using water bank as a crop rotation and an agronomic tool Limited potential CU in WW, SS, AA allowing for less uncertainty of CCU Flexibility without requiring technical monitoring of individual fields with innumerable variables Continually learning what is needed (no spring pasture option currently)

2017 CCUPP by the numbers 1,252.2 acres

2017 CCUPP by the numbers 3,178 acre feet

2017 CCUPP by the numbers $1,039,615 Total Budget $725,473 Cooperator payments $145,095 Infrastructure fund $169,047 Foregone Revenue and Program Administration

So what s next for GVWUA? Initiating a New Project Answer questions and concerns Why just the GVWUA? Why just valley irrigation? Why just agriculture? What is the role of the DOI and Reclamtion? What is the role of municipal users East and West?

Beyond Conserved Consumptive Use Avoid separation of water from the land This Project will investigate approaches to addressing the risk and uncertainty around Colorado River water supplies, which do not require the permanent sale or transfer of existing agricultural water rights.

Thank You Grand Valley Water Users Conserved Consumptive Use Pilot Program Beyond Conserved Consumptive Use Project Questions?