Mesa State of the River - May 15, 2017 Luke D. Gingerich, PE J-U-B Engineers, Inc. Grand Valley Water Users Conserved Consumptive Use Pilot Project & Beyond Conserved Consumptive Use Project Questions? Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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 – Representing thousands of individuals 23,500 irrigated acres (Urban, Suburban and Agricultural) Pre-1922 water rights Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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. Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Why test a water bank in the Grand Valley? A number of unique circumstances: - Location - Grand Valley Power Plant - Temporary Protections - Timing - Management and Operations - Increased Pressures on Agricultural Water Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Why is the GVWUA participating? Western Slope Ag Water… including ours…is in the bull’s eye! Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Why is the GVWUA participating? • Protection • Local. Trusted. Advisors. • Benefit A seat at the table for Western Slope agriculture J-U-B ENGINEERS, INC. Why is the GVWUA participating? Protection • Unacceptable risk associated with regional drought • Unacceptable probability of a myriad of negative consequences associated with basin-wide drought. • The Grand Valley Project is a Reclamation project. Reclamation’s role in Upper Basin Drought is unknown. • Avoidance of Draconian measures if/when supply limitations force the hand of the powers that be. Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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 Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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. Local. Trusted. Advisors. J-U-B ENGINEERS, INC. What has the GVWUA been working on leading up to this irrigation season? • Feasibility studies – – • Pilot Project Creation – – – – • Operational Assessment of System, can it be done? (2015) Infrastructure capacity studies, (2015) 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 Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Determining project feasibility, impact and scale Where is it? How much water? Why is it there? When will it get there? How did it get there? Foregone CU conveyed through the GVPP, cfs Cubic Feet per Second 16 14 12 10 8 6 4 2 0 4 5 6 7 8 9 10 11 12 Month Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Pilot Project Creation Agronomic activities, contracts, program processes and procedures Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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 Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Compliance and Verification • Pre-contracting program compliance • Verification throughout season Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Grand Valley Water Users Association 2017 Conserved Consumptive Use Pilot Project (CCUPP) Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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 Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 2017 CCUPP by the numbers 4 Program Activities Program Activity FF WW SS AA Criteria No CU throughout Irrigation Season No CU until October 1 No CU until September 1 No CU until August 1 CCU (ac-ft/ac) 2.8 2.6 2.3 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) • • • • Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 2017 CCUPP by the numbers 1,252 acres I l'iww'l 1&3 I I I. I Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 2017 CCUPP by the numbers 3,178 acre feet 1000 9'00 Estimates April May June July Aug Sept Oct Nov Month Local. Trusted. Advisors. J-U-B ENGINEERS, INC. 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 Local. Trusted. Advisors. J-U-B ENGINEERS, INC. So…what’s next for GVWUA? Figure 1 Project Location Map Initiating a New Project Answer questions and address concerns… • • • • • Why just the GVWUA? Why just lower valley irrigation? Why just agriculture? What is the role of the DOI and Reclamation? What is the role of municipal users East and West? Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Beyond Conserved Consumptive Use Project • 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. Local. Trusted. Advisors. J-U-B ENGINEERS, INC. Thank You Grand Valley Water Users Conserved Consumptive Use Pilot Program & Beyond Conserved Consumptive Use Project Local. Trusted. Advisors. J-U-B ENGINEERS, INC.