Transfers & Markets – California Water Library

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A Practitioner’s Guide to Instream Flow Transactions in California

SWIFT Working Group, American Rivers, Nature Conservancy, Trout Unlimited, Scott River Water Trust, River Right, Alford Environmental | March 1st, 2016

Summary

The purpose of this guide is to help water right holders –and those assisting them – understand their options for keeping water instream in California. Th

The purpose of this guide is to help water right holders –and those assisting them – understand their options for keeping water instream in California. This guide briefly describes some of the most common types of instream flow transactions (i.e., methods for restoring flow for environmental purposes), and discusses in detail how to navigate the process of completing an instream flow dedication by changing a water right, as permitted by Water Code Section 1707. The intended audience for this document includes both water rights holders and practitioners, such as staff for land trusts, water trusts, Resource Conservation Districts (RCDs), and other organizations. This guide focuses on instream dedications via the change petition process administered by the State Water Resources Control Board (State Water Board). Other publications – for example, the Trust for Public Land’s Water Acquisition Handbook (2003) – provide a more general overview of acquiring water for environmental purposes in California. This guide will provide a description of the change petition process, and offer advice on how to navigate, troubleshoot, and work in partnership with the State Water Board and other natural resource agencies to complete an instream flow dedication.

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A State Role in Supporting Groundwater Trading with Safeguards for Vulnerable Users: Findings and Next Steps

California Department of Water Resources (DWR) | May 18th, 2022

Summary

In those parts of California where groundwater pumping has long exceeded replenishment, people are striving to bring groundwater basins into sustainable conditions within

In those parts of California where groundwater pumping has long exceeded replenishment, people are striving to bring groundwater basins into sustainable conditions within 20 years, between 2040 and 2042, as the Sustainable Groundwater Management Act (SGMA) requires. In some areas, groundwater sustainability agencies (GSAs) – the local agencies tasked with sustainable groundwater management – are beginning to work with other entities and stakeholders to discuss and experiment with the idea of giving groundwater pumpers allocations – allowances to remove a certain amount of water from a groundwater basin – and allowing them to either use their allocation individually or trade allocations between specified parties. Ideally, groundwater trading could ease the economic disruption of cutting back the overall amount of water pumped from a groundwater basin; growers who have less need for pumping could sell their allocation to others willing to pay for it, helping buyers keep their operations functional while compensating sellers. But the concept of groundwater trading raises many questions: How would wetlands, streams, and other ecosystems fed by aquifers be treated in a groundwater trading program? Would operators of farms who lack the resources of larger neighbors be able to benefit from trading? How might trading affect people who depend upon a household well or communities that need reliable groundwater supplies for homes and businesses? How can GSAs work with local stakeholders to develop, implement, and oversee trading programs that help with sustainable groundwater management? There is a State interest behind all of these questions – and a clear need for a focused discussion about groundwater trading.

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Alternative Water Transfers in Colorado: A Review of Alternative Transfer Mechanisms for Front Range Municipalities

Environmental Defense Fund (EDF) | November 1st, 2016

Summary

Alternative water transfers (ATMs) refer to various methods, activities, and frameworks that have been established to transfer water on a temporary or intermittent basis

Alternative water transfers (ATMs) refer to various methods, activities, and frameworks that have been established to transfer water on a temporary or intermittent basis, primarily from agriculture to other uses. They are labeled as “alternative” because they represent a type of water transfer that does not result in the permanent dry-up of agricultural land, which has been the primary form of water transfers in much of Colorado for decades. ATMs are a body of activities that represent general frameworks or concepts to be molded to the specific conditions of a place and need. The Environmental Defense Fund (EDF) obtained a grant opportunity to fund research, analysis, and outreach toward the development of ATMs with the potential to improve the financial returns and long-term viability of farming, maintain or improve streamflows which support environmental and recreational activities, and provide a cost-effective means for municipalities to maintain water supply reliability into the future. The purpose of this project is to develop a comprehensive financial comparison of the water supply development options currently pursued by municipalities to applicable ATMs and to develop recommendations that can increase the application of specific ATM structures with the potential joint benefits to municipal and agricultural water users.

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Background and Recent History of Water Transfers in California

California Department of Water Resources (DWR), State Water Resources Control Board | July 1st, 2015

Summary

The purpose of this paper is to provide a basic understanding of water transfers in California with an emphasis on transfers that move water through the Sacramento-

The purpose of this paper is to provide a basic understanding of water transfers in California with an emphasis on transfers that move water through the Sacramento-San Joaquin Delta (Delta). This paper provides an overview of various types of water transfers, their recent history, and the regulatory setting that governs transfers. In its 1976 report, the Governor’s Commission on Water Rights recognized the importance of water transfers to the future of California’s water supply and made recommendations regarding the need for specific changes to the Water Code to facilitate the transfer of water. Many of these changes were accomplished in the following years and are reflected in the discussions below. Water transfers involve a change in the place of water use, from the water’s historic point of diversion and use, to a new location either within or outside the watershed of origin. Water may be transferred from one user to another for a variety of purposes, including agricultural, municipal and industrial uses. It may also be transferred for environmental purposes such as in-stream flow augmentation and wildlife refuges. Water transfers and exchanges can be temporary (up to one year) or long-term (more than one year, but not permanent) or permanent. Water transfers can be an effective water management tool providing much-needed flexibility in the allocation and use of water in California. Transfers in California are primarily executed to meet dry-year demands rather than to obtain a primary water supply for either agricultural or municipal development. Transfers are particularly useful for meeting critical needs during drought periods. Transfers, however, must be carried out in a responsible manner in order to assure that they do not result in adverse impacts to other water users or unreasonable effects to the environment.

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Basin Framework for a Multi-benefit Groundwater Replenishment and Water Trading Program: Groundwater Sustainability Plan Chapter Template

Environmental Defense Fund | October 1st, 2018

Summary

The following Groundwater Sustainability Plan (GSP) chapter templates were developed by Environmental Defense Fund and New Current Water and Land, LLC to assist Groundwat

The following Groundwater Sustainability Plan (GSP) chapter templates were developed by Environmental Defense Fund and New Current Water and Land, LLC to assist Groundwater Sustainability Agencies (GSAs) with incorporating multi-benefit replenishment and water trading mechanisms into GSPs. These chapter templates provide an initial framework that can be adapted to reflect regional conditions and objectives. Achieving groundwater sustainability in many overdrafted basins is contingent upon collaboration between landowners/pumpers/operators (“operators”) and GSAs to replenish groundwater. Chapter [X] Multi-Benefit Groundwater Replenishment outlines mechanisms to encourage and incentivize operator engagement in groundwater replenishment projects, with opportunities to pair these efforts with community and natural resource values, such as habitat creation and improved drinking water quality. When properly designed, groundwater trading programs can assist in efficient allocation of scarce resources, while avoiding negative third party impacts. Chapter [Y]: Water Trading provides a framework for implementation of groundwater trading programs as a groundwater management mechanism. Appendix A. outlines qualifying conditions that allow for streamlined approval of water trades.

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California’s First Farmer-Led Groundwater Market

The Nature Conservancy | July 12th, 2018

Summary

Ventura County, located in California’s south coast, is one of United States’ most productive agricultural counties (ranked 10th in California and 11th in th

Ventura County, located in California’s south coast, is one of United States’ most productive agricultural counties (ranked 10th in California and 11th in the US)1, with agricultural production valued at $2.1B in 2016.2 California’s landmark groundwater law, the Sustainable Groundwater Management Act (SGMA), requires that 127 groundwater basins, including those in Ventura County, develop Groundwater Sustainability Plans that ensure pumping within sustainable limits. In western Ventura County, where over 70 percent of groundwater use is agricultural, the California Department of Water Resources has designated two groundwater basins as being in critical overdraft under SGMA. The local management agency may have to reduce groundwater use in these basins by as much as 40 percent to achieve a sustainable yield. While these reductions are critical to achieving long-term sustainability of water use, which includes nature’s needs, they also pose significant challenges to wisely managing reduced water allocations to keep irrigated agricultural land in production. The Nature Conservancy (TNC) has a vested interest in preserving farming in the county because it buffers important river and wetland habitat from nearby urban lands. Growers in the region quickly identified water markets as an important tool for managing limited groundwater resources.

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California’s Water Market, By the Numbers

Public Policy Institute of California | October 17th, 2002

Summary

Prepared for presentation to the Department of Water Resources, October 2002.

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California’s Water Market, By the Numbers, Update 2012

Public Policy Institute of California (PPIC) | November 21st, 2012

Summary

This report provides a check-up on California’s progress with two innovative water management tools: water marketing and groundwater banking. These tools are part o

This report provides a check-up on California’s progress with two innovative water management tools: water marketing and groundwater banking. These tools are part of a modern approach that will enable California to manage its scarce water resources more flexibly and sustainably.

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Central Valley Project (CVP) Water Transfer Program Fact Sheet

U.S. Bureau of Reclamation (USBR) | February 1st, 2015

Summary

Water transfers and exchanges are an integral part of CVP water operations, particularly in drought years, as long as transfers can occur consistent with stat

Water transfers and exchanges are an integral part of CVP water operations, particularly in drought years, as long as transfers can occur consistent with state and federal laws governing water transfers. In 2014, Reclamation facilitated the transfer of over 257,000 acre-feet of water. Of the 257,000 acre-feet, 213,220 acre-feet was considered “new water” to the system, meaning specific actions (such as reservoir reoperation, crop idling/shifting, groundwater substitution, or Yuba Accord purchases) were taken to make the water available. The remaining quantity was considered an in-basin transfer or a reallocation of contract supply. • §3405(a) of the Central Valley Project Improvement Act of 1992 (CVPIA) authorizes the transfer of all or a portion of a CVP contractors contracted water supply to any other California water user or water agency, State or Federal agency, Indian Tribe, or private non-profit organization for project purposes or any purpose recognized as beneficial under State law. • CVP water transfers are subject to the conditions prescribed in §3405(a), 1993 Interim Guidelines for Implementation of Water Transfers, and the Department of the Interior Final CVPIA Administrative Proposal on Water Transfers (1998). • Water transfer provisions of CVPIA do not apply to permanent contract assignments under which a CVP contractor relinquishes their contractual right to Project water; water banking and recharge actions outside of the contractors boundaries; water for water exchanges; forbearance actions whereby CVP contractors are paid not to exercise their right to water; and transfers of base supply water under settlement contracts which are carried out in accordance with State law. • Since 1992, the Region and the State of California Department of Water Resources, owners and operators of the two largest water projects in California, have collaborated to develop criteria to facilitate water transfers. • The Region facilitates both short and long-term transfers of CVP water. Long-term transfer approvals are accomplished through programmatic environmental documentation, with annual approvals of physical water transfers.

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Colorado River Basin Environmental Transfers Scorecard

Stanford Woods Institute for the Environment and the Bill Lane Center for the American West | March 16th, 2017

Summary

The Colorado River and its tributaries support more than 35 million people and irrigate more than four million acres of farmland. At the same time, the river supports 30

The Colorado River and its tributaries support more than 35 million people and irrigate more than four million acres of farmland. At the same time, the river supports 30 fish species found nowhere else on earth and inspires millions of visitors and residents alike with its sheer beauty. However, growing water scarcity caused by increased water use, hydrologic variability and climate change loom over all the Colorado River provides. Click here for follow-up report.

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California Water Plan (1)
Case study (4)
Environmental Documents (1)
Essay (1)
Fact sheet (2)
Guidance Document (5)
Issue Paper (2)
Journal Article (10)
Legal document (1)
Model (1)
NGO Position Paper (1)
Policy Brief (1)
Report (10)
Research Article (1)
Strategy (1)
Technical Report (1)
Template (1)
White Paper (4)

Topic

Adaptive Management (1)
Agriculture (5)
Climate Change (2)
Drought & Hydrology (6)
Ecosystem & Species Mgt (6)
Fisheries (2)
Geochemistry (1)
Geohydrology (1)
Geohydrology (1)
Groundwater (8)
Human Right to Water (1)
Infrastructure (1)
Integrated Regional Water Management (6)
Modeling (4)
Planning & Management (12)
Pollutants (1)
Recycled Water (1)
Sacramento-San Joaquin Delta (2)
Salinity (2)
Storage (3)
Transfers & Markets (36)
Water Project Operations (1)
Water Quality (3)
Water Rights, Water Law (7)
Water Supply (6)
Water Use & Efficiency (4)

Keywords

adjudicated basins (1)
agricultural drainage (1)
agriculture (2)
agriculture water use and efficiency (2)
allocations (2)
best management practices (BMPs) (1)
California Water Plan (1)
Central Valley (1)
Central Valley Project (CVP) (3)
climate change (1)
Colorado River (8)
desalination (1)
drought (5)
economic analysis (2)
ecosystem management (6)
fisheries (1)
flows (1)
fugitive dust (2)
Groundwater Exchange (8)
groundwater recharge (4)
Groundwater Sustainability Plan (GSP) (2)
Integrated Regional Water Management (2)
modeling (3)
monitoring (1)
Monterey amendments (1)
planning and management (5)
Sacramento–San Joaquin Delta (1)
salinity (2)
Salton Sea (2)
State Water Project (SWP) (2)
stormwater (1)
Sustainable Groundwater Management Act (SGMA) (8)
Trading - See Water Markets (2)
Transfers - See Water Markets (4)
urban water conservation (4)
water markets (21)
water quality (3)
water rights (1)
water supply (1)
water transfers (7)
water use efficiency (1)

Publisher

American Geophysical Union (AGU) (3)
American Society of Civil Engineers (ASCE) (2)
California Agriculture (1)
California Department of Water Resources (DWR) (2)
California Department of Water Resources (DWR), State Water Resources Control Board (1)
California Department of Water Resources, U.S. Bureau of Reclamation Mid-Pacific Region (1)
California Natural Resources Agency (1)
California State Auditor (1)
Department of Water Resources (1)
Environmental Defense Fund (1)
Environmental Defense Fund (EDF) (1)
Environmental Defense Fund, Mammoth Trading, The Robert B. Daugherty Water for Food Global Institute at the University of Nebraska (1)
Journal of Water Resources Planning and Management, American Society of Civil Engineers (1)
Legislative Analyst's Office (1)
Metropolitan Water District of Southern California (MWD) (2)
Natural Resources Journal (2)
Nature Sustainability (2)
Pacific Institute (1)
Public Policy Institute of California (2)
Public Policy Institute of California (PPIC) (2)
Stanford Woods Institute for the Environment and the Bill Lane Center for the American West (1)
SWIFT Working Group, American Rivers, Nature Conservancy, Trout Unlimited, Scott River Water Trust, River Right, Alford Environmental (1)
The Nature Conservancy (2)
U.S. Bureau of Reclamation (USBR) (1)
University of California at Berkeley (1)
University of California at Berkeley, School of Law (1)

Basin

Palo Verde Valley 7-038 (2)

Hydrological Region

Central Coast (3)
Colorado River (9)
Lower Basin States and Mexico - Colorado River (6)
North Coast (2)
North Lahontan (2)
Sacramento River (8)
San Francisco Bay (7)
San Joaquin River (9)
South Coast (8)
South Lahontan (2)
Tulare Lake (7)
Upper Basin States - Colorado River (3)

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