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

Agenda Number 7. Attachment. CAP Agricultural Forbearance III: Briefing and Summary CAWCD Board Meeting January 7, 2015 Chuck Cullom Color ado R iver Pr ogr 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 1

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) • PSCA : Total funding = $11 M LB MOU : ($8.25M LB/$2.75M UB) CAP = 345 KAF 740 KAF BOR = $3M MWD = 300 KAF ~75 KAF CAP = $2M BOR = 50 KAF SNWA = $2M SNWA = 45 KAF MWD = $2M Denver Water = $2M 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 • CAP MOU : Ag Forbearance I = 161 KAF CAP PSCA : 740 KAF Municipal ICS = 31KAF Ag Forbearance II = 25 KAF ~75 KAF Ag Forbearance III = 10 KAF Other forbearance = 143 KAF TOTAL = 345 KAF 2

CAP Ag Forbearance Participants Original Ag Forbearance II Budget • 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 Existing Pilot Additional Savings on CAP System California CAP Additional Ag Incentive Conservation Funding Funding Payments + + + Funding $0.5 M $1 M ~$1.0 M $1.5 M (pending (2016 budget) ( recycled (Lower Basin approval by funding ) funds) MWD/CRBC) 3

Ag Forbearance II & III Proposed Budget • 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 Existing Pilot Recycled Savings on CAP System Forbearance III CAP Additional Ag Incentive Conservation savings Funding Payments + + + Funding $0.4 M $1 M $1. M $1.5 M (pending (2016 budget) ( recycled (Lower Basin approval by funding ) funds) CAWCD Board) 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 • 4